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December 2, 2013

NTPC will add 14,000 MW to its total capacity by 2016-17...

 

NTPC will add 14,000 MW to its total capacity by 2016-17...

The National Thermal Power Corporation (NTPC) will add another 14,000 megawatts (MW) to its total capacity by the end of 2016-17.

The installed capacity of NTPC at present is 42,500 MW which includes the capacity addition of 10,000 MW in the last three years, Chairman and Managing Director Dr.Arup Roychowdhury said today during a press conference in Delhi.

Dr.Roychowdhury said the company aims to become 1,28,000 MW utility in coming years.

The power company has registered a growth of 4.49 per cent of power in this fiscal year in comparison to the last fiscal.

The power production last year through the NTPC run power plants was 222.068 billion units which increased to 232.028 billion units.

The coal stations of the company also registered a growth of 6.67 per cent. In the last fiscal the production from coal station was 199.054 units which has reached 212.39 units this fiscal. On the front of plant load factor, NTPC has scored over other power producers. The plant load factor at the coal station run by NTPC on an average was 87.63 per cent while the national average of PLF was 69.93 per cent.

The NTPC also said its bond issue to raise up to Rs 1,750 crore will open on Tuesday. This is the state-run company's first bond issue after a gap of over 20 years.

"The issue will open on December 3, 2013, and is scheduled to close on December 16, 2013," Choudhury told reporters here at a company's conference. Under the scheme, the company will issue tax-free secured redeemable non-convertible bonds.

"The base issue size aggregates to Rs 1,000 crore with an option to retain over-subscription up to Rs 750 crore for issuance of additional bonds, aggregating to up to Rs 1,750 crore," the company said. The company says the money raised through the bonds will be utilized towards funding of capital expenditure and refinancing for meeting the debt requirement in ongoing projects.

The company continues to command dominant share in the power production with 27.37 per cent of total power produced. The installed capacity of the company is 18.44 per cent of the total in the country. For consecutive three years, the company has been performing at the peak capacity in power production scenario. The company added 4170 MW in the year 2012-13 while in 2011-12 the company added 2820 MW of power and in 2010-11 the power addition by NTPC was 2490 MW.

The chairman said that currently 19,500 MW of projects are under execution and the state run company will soon place orders to procure power equipment for 5000 MW. The new projects that the company plans include Tanda (1320 MW), Daripalli (1600 MW) and North Karanpura (1980 MW).

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Alstom bags Rs 79 cr order from PowerGrid for substations in Uttar Pradesh...

 

Alstom bags Rs 79 cr order from PowerGrid for substations in Uttar Pradesh...

Alstom T&D India today said it has bagged Rs 79-crore contract from state-run Power Grid Corporation for supplying equipment at substations in Uttar Pradesh.

“Alstom T&D India has won an order worth Rs 79 crore (9 million euro) from Power Grid Corporation to provide reactors for substations at Kanpur and Jhatikara in Uttar Pradesh,” the company said in a statement.

The projects are due for delivery in 2015.

The reactors are designed to maintain the voltage level, whatever the load, by limiting over-voltages which can occur due to sudden load decreases.

All equipment for these projects will be manufactured in Alstom’s transformer and reactor manufacturing facility at Vadodara in India, the statement said.

“This contract further reinforces the confidence that Power Grid has in Alstom’s capability to deliver products and solutions from its state of the art manufacturing facilities,” Alstom T&D India Managing Director Rathin Basu said.

Shares of the company closed at Rs 183.15, up 1.86 per cent on the BSE.

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SECI clarifies the comments on the NSM Phase II Batch I; revised documents released...

 

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Solar Energy Corporation of India has released the clarifications and amendments to the RfP documents for the National Solar Mission Phase II Batch 1 projects and released the revised documents.

 

SECI in the month of Nov-13 has released draft RfP documents and conducted a pre-bid meeting on 19th Nov to discuss and clarify the issues with all the stake holders.

 

Major clarifications/amendments as discussed during the pre-bid meeting are depicted below:

 
1.    Open Access

  • Question: Who will be responsible for taking the Open Access?  
    • Clarification: SECI shall be responsible for taking the Open Access; Clause 3.7. D (ii) of RfS shall be amended to this effect.

2.    Selection of Technology

  • Q: Technologically  agnostic:  Does  it  apply only to modules and cells? Are there any restrictions on BoS for e.g. string inverter concept, AC module etc.?  
    • C: Selection of Projects would be technology agnostic including BoS.


Q: Can a Project be set up using a combination of different solar PV technologies (e.g. crystalline, thin-film etc.)?   

C: Yes.

Q: Does SECI have a list of solar PV module manufacturers that satisfy the criteria specified in the RfS document?   

C: No. As such there is no restriction oncselection of manufacturers subject to meeting the RfS requirements.

3.    Will the Projects selected under this scheme be eligible for Renewable Energy Certificates (RECs)?   

C: No.

4.    Land Requirement   
Q: General Conditions   

C: Following shall be the general conditions:
•    The land should be under the possession of the SPD who signs PPA with SECI
•    Land should be obtained by legally enforceable Agreement / Lease/ Sub- Lease Agreement.
•    Period of lease/sub-lease (wherever applicable) should not be less than 30 years
•    State Government consent / No Objection Certificate is required towards land use

Q: Is it necessary that a Bidder should possess land at the time of bidding?   

C: The ownership and possession of land at the time of responses to RfS and PPA is not insisted upon. At the time of Financial Closure, the selected SPD is required to submit the documentary   evidence   for   ownership and physical possession of land through purchase/ acquisition/ leasing/ sub-leasing.
       
Q: Can a Bidder use leased land obtained through    lease    agreements, for the Projects under this scheme?   

C: This    shall    be    only    acceptable for Lease / sub-lease from State/Central Government entities.

Q: Can  a  bidder  take  land  on  lease  from Parent/ Affiliate/ Group Company?   

C: This, as a    special case, shall be acceptable.

Q: Can a bidder take land on lease from a private party other than specified in 4.iv. above?   

C: No.

Q: Right to Use: Some of the State Governments allocate land for setting up of the Project on Right to Use basis. Will such land be allowed?   

C: This shall be acceptable provided, the concerned Government body gives its consent for such an arrangement.

Q: In    cases    where    land    cannot    be transferred to the SPD due to a special order/rule of the Central/State Government, can it be allowed?   

C: It is allowed only in such cases, where land is held in the name of Parent Company of the SPD and it cannot be transferred to the SPD due to a special order/rule of the Central/State Government. This is subject to the condition that the ‘No Objection’ is obtained from concerned State/Central Government. In such cases, transfer of controlling share in the SPD will not be allowed during the whole duration of the PPA.

Q: If a government entity sub-leases land to the  Bidder  for  specific  purposes  (e.g. Solar Park), can it be considered?   

C: Yes.

Q: Is  the  Bidder  allowed  to  change  the project location? If yes, does he need to inform SECI?   

C: The Bidders are allowed to change the location of the Project and also the substation (if required) within the State only, till the time of Financial Closure. He, however, shall submit a fresh letter (Format 6.7 of RfS) from the STU/CTU/ other transmission utility, in case of any change.

Q: To set up 2 projects at the same location, can separate boundary fencing be provided instead of separate boundary wall?  

C: Yes. It is allowed.

5.    Letter from STU/CTU/any other transmission utility for grid connectivity

Q: Is it mandatory for the Bidder to get a letter from the concerned CTU/STU/any other transmission utility for connectivity of the Project with the grid?   

C: Yes, it is mandatory to submit a letter from the concerned CTU/STU/any other transmission utility in the Format 6.7 of RfS.

Q: In   case   the   bidder   wants   to   set-up multiple projects at the same location, i.e. same village and under same substation, can he apply for cumulative capacity to the STU/CTU for technical feasibility at one location? If yes, the STU/CTU will give only one original letter of   the   cumulative   capacity,   can   the bidder submit certified true copy in each of the projects?   

C: Yes, the bidder can submit a single letter for cumulative capacity under the same STU/CTU. In case the Bidder proposes installing a cumulative capacity more than 100 MW under a single substation, he has to submit the letter only for a total capacity of 100 MW. However, the letter should clearly specify all the Projects which add up to the cumulative capacity for which the CTU/STU is issuing the letter. In the event of award of projects, the bidder would be required to submit separate Transmission Service Agreement for each allotted Project at the time of Financial Closure. Accordingly clause no. 3.7 (D) (i) and Format 6.7 of RfS shall be amended.

Q: Can a Bidder bid for the same Project under both Parts and thus, submit a single letter from a single STU?   

C: No, the bidder is not allowed to propose the same Project in both parts of the bid.

Q: It is suggested that the Clause 3 of the “Format 6.7:Letter from STU/CTU of RfS Document be removed   

C: It is not agreed to. The Clause 3 remains unchanged.

Q: In  case  the  STU  delays  in  issuing  the feasibility letter, can the Bidder submit the bid without this letter, which can be submitted later on?   

C: Not   agreed  to.   Submitted   bids   shall contain all the required attachments and formats as mentioned in the RfS.

Q: Some  STUs  issue  conditional  letter  for connectivity. Will that be acceptable to SECI?   

C: No, SECI shall accept only the letter as per Format 6.7 of RfS.

6.    Interconnection Point

Q: Can the existing transmission line capable of carrying additional power, be used for transmission of power from the solar projects under pooling system, with meters at the interconnecting points as well as pooling points?   

C: Yes.

Q: If     there     is     an     existing     project commissioned under JNNSM Ph-I, can we have  common  pooling  arrangements with separate meter with that project to share the evacuation cost?   

C: The developer can have common pooling arrangement with separate meter with an existing JNNSM project subject to his submission of permission to SECI from NVVN. However, SECI will not be responsible for any loss due to evacuation issues, if any, related to this arrangement.

Q: Interconnection  with  DISCOM  network may be accepted in exceptional cases where the DISCOM is the ultimate buyer. At this stage, how do we know that the DISCOM is purchasing the entire power?   

C: At this stage, it is not possible to ascertain the ultimate buyer(s) of power from a particular project. This clause is mentioned as an exceptional condition, which may be examined at later stage only.

Q: It is request to replace “Injection Point” in clause 3.5 of RfS document with “Delivery Point”.   

C: Accepted.    Accordingly,    suitable amendment shall be issued.

7.    Is change in location and GSS allowed at a later stage after RfS submission?   

C: Yes, provided that the change is not from one  State  to  another.  Kindly  refer  to Clause 3.13 of the RfS.

8.    If the SPD sets up a plant at a location where the DISCOM is not willing to buy power from SECI, will it impact SPD in any given manner?   

C: For the SPDs, SECI is the purchaser of power from their projects. Hence, they won’t be affected in any manner by the arrangement between  SECI  and DISCOMs.

9.    Waiting List

Q: Is the capacity allotted under waiting list additional to 750 MW?   

C: No. The total capacity would remain 750 MW.

Q: What  would  be  the  timelines  for  the projects allotted under wait list?   

C: For the projects allotted under wait list, all the timelines shall become effective from the date of issue of LoI.

Q: It is requested that the bidders may be allowed to remove themselves from the waiting list at suitable juncture of the scheme.   

C: Wait  list  is  meant  only  to  enable  to replace the defaulters after the initial allocation process. However, the bidders would be required to opt to be in the wait list to avail this provision in the following manner: (i) Up to the time of completion of signing of PPA between SECI and the originally selected SPDs, and in this  case  Bidders  would  be required to keep their EMD valid for 9 (nine) months from last date of submission of the Bid. (ii) Up to the time of completion of financial closures of all the Projects for  which  SECI  signed  the  PPAs with selected SPDs, and for this the Bidders would be required to keep their EMD valid for 13(thirteen) months from last date of submission of the Bid. Accordingly,  the  amendments  shall  be issued  to  clauses 3.4,  3.10  (i)  and  the Format 6.1 of the RFS Document.

10.    Commissioning Timelines

Q: Request for increasing the commissioning period to at least 18 months from the signing of PPA, due to delays in land procurement.   

C: Not agreed to.

Q: Request to provide separate timelines for commissioning based on the capacity of the Project.   

C: Not agreed to.

11.    Calculation of Capacity Utilization Factor: Shall it be based on the DC Capacity or on Contract Capacity?   

C: Calculation of CUF shall be based on Contracted Capacity. Accordingly the amendment to the Article 1.1 of the PPA shall be issued.

12.    Contracted  Capacity:  Does  it  mean  AC MW or corresponding DC MW at STC?   

C: Contracted  capacity  is  different  from Project capacity. It is defined as AC MW at the Delivery Point where metering is done. Please refer to the definition given in Section 2 of RfS.

13.    Submission of bids: Clause 3.19(ii): Softcopy should contain documents in points (i) and (ii). Do we need to include the documents mentioned in the points (iii) and (iv) too?   

C: Yes. All the documents mentioned in points (i) to (iv) shall be submitted in softcopy in the CD. The Clause 3.19(ii) shall be amended accordingly. It is also clarified that the sealed Financial Envelope shall be placed inside the Techno-Commercial Envelope for the respective Project. All other documents should be given in soft copy in the sealed Techno-Commercial Envelope. Soft copy of Financial Bids is not to be submitted by the Bidder.

14.    Can a SPD submit two bids for the same location- one with AD and other without AD benefits?   

C: No.

15.    Will the list of willing DISCOMs and bulk consumers be provided to SPDs?   

C: Not envisaged.

16.    Excess Generation

Q: In case of excess generation, SECI will buy the power, if it can find off-takers. What would be the case when SECI refuses to buy?Will there be any prior/written intimation from SECI to SPD?   

C: In  case  of  excess  generation,  the  SPD shall inform SECI 30 days in advance about any possible excess generation likely to take place, so that SECI may arrange for its purchase. SECI would intimate the SPD accordingly on the matter of accepting excess power during this period.

Q: If the excess power is refused by SECI and SPD is selling power to the third party, can the SPD claim REC benefits for the sale of such power?   

C: SECI   intends   to   buy   all   the   power generated from projects under this scheme. In case SECI refuses to buy the excess power, the SPD would be free to deal with it as per the prevailing REC regulation, including sale to third party.

Q: Will the SPD be eligible to get RPO/ REC benefits for the excess power purchased by SECI?   

C: No.

17.    For   online   data   monitoring   by   any authorized data centres of SECI/ MNRE, the GPRS modem at remote location will not be in the scope of SPD. SPD shall provide only required data in required format for online data transfer.   

C: As per provisions of guidelines, the SPD is mandated to make available the plant performance data to SECI/MNRE. Therefore, arrangement (as specified in the guidelines) to make available data online is in the scope of SPD.

18.    Sale of projects: Should SECI be consulted prior to the sale of project as SECI will operationalize the PPA with the new asset owner? Or it will only be intimation in advance?   

C: Prior intimation of sale of projects by the SPD is acceptable. However, the new asset owner shall have to necessarily comply with all the eligibility criteria as per RfS and shall honor all terms and conditions as stipulated in PPA and VGF Securitization Agreement.

19.    Shortfall    in    generation:    Details    of compensation provided in the PSA as payable to DISCOM along with the details of compensation payable by the DISCOM towards non-meeting of RPOs needs to be circulated in advance to the bidders.   

C: Compensation  towards non-meeting of RPO is a dynamic phenomenon and hence, can’t be specified to the bidders beforehand.
The  amount  of  compensation  shall  be equal to the compensation payable (including RECs) by the Buying Utilities towards non-meeting of RPOs, if such compensation is ordered by the State Commission.  However, this compensation shall not be applicable in events of Force Majeure identified under PPA with SECI affecting supply of solar power by SPD.

20.    Discrepancy between PBG amount of Rs. 20 lacs/MW mentioned in the guidelines and Rs. 30 lacs/MW as mentioned in the RfS may be clarified.   

C: It may be noted that the EMD shall be Rs. 10 Lac/ MW and PBG shall be of Rs. 30 Lac/MW. Procedurally, for the successful bidders, PBG has to be submitted @ Rs. 30  Lac/MW  after  which  BG  submitted against EMD shall be returned.

21.    Criteria  for  generation: Suggested  that upper limit to be kept as +15% instead of +10%. Further, it is suggested that the calculation of excess/shortfall generation should be done in a lock of 3 years after the first year.   

C: Not   agreed   to.   It   is   based   on   the Government guidelines.

22.    Can a bidder bid multiple VGF amounts for a single project at a location?   

C: No.  Only  one  VGF  amount  shall  be quoted against a single project.

23.    Domestic Content Requirement (DCR)

Q: In case a developer is awarded a project under DCR category, and after all the efforts, is unable to procure modules and cells made in India, will he be allowed to import the modules and cells?   

C: Import   of   cells   and   modules   is   not allowed under DCR category.


Q: How will SECI verify the compliance of the Project with the DCR requirement of RfS?   

C: Clear mention of the Indian manufacturer of solar cells and modules under DCR category would be required as a part of information under RFID for each module. This would be supported by the manufacturers’ declaration of supplies of the same to the SPD. This information would be provided in soft form to SECI at the time of commissioning of the project. SECI reserves the right to visit and verify the details of the Project.


Q: Are  semi-finished  solar  cells  imported from other countries allowed under DCR category?   

C: The solar cells manufactured in India only are allowed. Guidelines to define DCR requirement  for  solar  cells  will  be brought out by MNRE.

Q: Is  a  project  which  is  being  currently implemented    under    REC    mechanism eligible for bidding?  

C: No.

Q: In case a bidder bid for more than 100 MW, what would be the Net Worth and EMD requirement?   

C: Since  allocation  of  projects  would  be restricted to 100 MW capacity to a bidder, the net worth and EMD requirements would be for 100 MW capacity  only.  Accordingly,  the  clauses 3.7 (B) (i) and 3.10 of RfS document shall be amended.

26.    Net   Worth   infusion   @   20%   of   the minimum equity contribution: Can the project company show source of equity rather than infusion in the Project Company?   

C: Physical  infusion  of  Net  Worth  as  per Clause 3.7)B)xii) of the RfS document is mandatory.

27.    Kindly explain the definition of Paid up share capital   

C: Paid up share capital shall include (i) Paid –up equity share capital and (ii) Fully, compulsorily and mandatory convertible Preference Shares and (iii) Fully, compulsorily and    mandatory convertible Debentures

28.    Will Share Premium will form part and parcel of Net Worth   

C: Yes, Share Premium will form an integral part of Net Worth, provided it is realized in cash or cash equivalents.

29.    It is requested that the change in shareholding of bidding company due to infusion of equity, to be allowed till the time of signing of PPA.   

C: Infusion of any additional equity has to be made without altering the existing shareholding. Hence no change in Clause 3.15 of the RfS document is envisaged.

30.    Is a “Partnership Firm” eligible for Bidding under this scheme?   

C: No.

31.    It is suggested that the company may be allowed to revise the CUF of the project within 2 years of commissioning.   

C: Provision of RfS shall prevail.

32.    At the time of FC, in case the project cost is higher than what is declared in the bid, the same should be accepted subjected to the VGF remaining the same.   

C: Please refer to the Clause 1.3.3 of the RfS document.  VGF  amount  shall  not  be revised on the higher side.

33.    It is suggested that 100% VGF be paid on COD. If required, a progressively diminishing BG for 50% of the VGF could be taken which shall be valid till 5 years.   

C: The process of VGF disbursement shall remain the same.

34.    Grace period of 3 months may be provided before encashment of PBG.   

C: Not agreed upon.

35.    It is suggested that SECI ensures that the required testing would be carried out within 10 days of issue of notice by the SPD, failing which the plant would be deemed to be commissioned.   

C: Deemed   commissioning   shall   not   be accepted.

36.    Can the Company avail 20% depreciation in addition to 7.69% which is the depreciation applicable to projects, not availing accelerated depreciation?   

C: Claiming of depreciation in the normal rate or Accelerated rate will be as per appropriate Government regulations.

37.    Bidders may be allowed to opt out of the process if they are offered last project which is less than the quoted capacity Clause (4.1 (B) (e) of RfS document).   

C: Accepted. In such cases, EMDs will not be forfeited. The SPD will have to indicate the choice in the Format 6.1 of RfS.

38.    It is suggested to amend Clause 8.2.2 of the Standard PPA document limiting SECI’s claim on insurance proceeds up to the VGF Disbursed.   

C: Accepted.    Accordingly,    suitable amendment shall be issued.

39.    It is suggested to delete clause 4.8.3 of the    PPA    pertaining    to    Quarterly Maintenance of CUF.  

C:  Accepted.

40.    It is suggested to reword Clause 3.7 B (xiii) of  RFS  Document  regarding  Minimum Equity Contribution.  

C:  Accepted.   It    is    reworded    to    read “minimum equity contribution of” as “minimum equity contribution which is equal to”.

41.    Is it necessary for a SPD to register with SNA for putting up projects?   

C: It is not a requirement of SECI.

42.    It is suggested to amend point 3.0 (ii) of Format 6.10 of the RfS Document related to suitability of land for industrial use.   

C: Accepted. The clause will read to replace “industrial use” with “solar power project” Accordingly, suitable amendment shall be issued.

43.    It  is  assumed  that  the  Projects to  the waitlisted Bidders will be allotted at the VGF quoted by them and will not have to match the VGF quoted for the cancelled projects. Please clarify.  

C:  Yes, the Projects to the waitlisted Bidders will be allotted at the VGF quoted by them and will not have to match the VGF quoted for the cancelled projects.

44.    It is requested to clarify the discrepancy related to use of net worth of Ultimate Parent Company and Parent Company for meeting financial eligibility between clause 3.7 (B) (xii) and Format 6.6 of the RfS document.   

C: It  is  clarified  that  “Ultimate  Parent”  is removed from Exhibit-i and Exhibit-ii of the Format 6.6.   Accordingly, suitable amendment shall be issued.

45.    Pursuant to Clause 4.8 of the Standard PPA, who will bear the cost of third party verification?   

C: All costs related to third party verifications (wherever required) shall be borne by the SECI.

46.    Is a bidder allowed to set up different projects under both the categories at the same location, provided they will have separate metering and physical boundaries?   

C: Yes.

47.    In the illustration of LD Calculation- part (d)- calculation shows that Tariff: Rs.5.45- Rs.(0.5*10/100) = Rs. 5.40/kWh. It seems that the penalty considered is 0.5 paise per month for the remaining capacity. Please clarify whether if it is per day or per month?   

C: Kindly  refer  to  the  illustration  for  LD calculation in the RfS document. In the table provided in part (b), it is clearly mentioned that the last quantum of 10 MW gets commissioned after 10 days from the latest commissioning. Hence, the calculation is for a period of 10 days only. The penalty of 0.5 paise is applicable per day and not per month.

48.    If SECI is not equipped to carry out the trading activity and NVVN does it on behalf of SECI, will it impact the SPD in any manner? Does the SPD have to get into any kind of agreement with NVVN?   

C: No.  SPDs   won’t  get  affected  in  any manner.

49.    Please provide the draft copy of the PSA between SECI and willing DISCOMs   

C: The draft PSA will be provided at a later stage.

50.    Preliminary  cost  estimates: Kindly provide the clarifications on following cases: (i) If the break-up cost is interchanged keeping the estimated project cost unchanged (ii) Increase in the    project cost, in compliance with the guidelines   

C: (i) The bidder can interchange the break- up of the project costs based on facts and  figures.  SECI  is  concerned  only with the overall project cost estimated by the bidder. (ii) Kindly refer Clause 1.3.3. of the RfS document.

51.    Order of Preference: Will the preference be separately made for Part-A & Part-B?  

C: Yes.   The   Preferences  shall   be   made separately.

52.    Can the plant and machinery be taken on lease for the Project?

C: The ownership of plant and machinery has to be with the SPD.

53.    Guarantees/ Warrantee 

C: In   order   to   maintain   the   CUF   and degradation norms, it is suggested that SPDs may get Guarantees/ Warrantees from the Solar PV module manufacturers as well as Solar cell manufacturers.

The complete clarifications along with revised documents be downloaded from these links:

Source: SECI

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Chorus for hike in ROE in power sector increases...

 

Chorus for hike in ROE in power sector increases...

Chorus for increase in the return on equity (ROE) in the power sector is rising especially in the wake of commencement of tariff block for 2014-19 from April 1. The Central Electricity Regulatory Commission (CERC) during tariff block of 2009-14 had fixed the ROE of 15.50% plus 0.5% for timely competition. 

The issue came up for discussion on several rounds of meetings held at the power ministry and central public undertakings and also at the CERC’s advisory committee.
 
Component of tariff comprises ROE, interest on loan capital, depreciation, interest on working capital and operation and maintenance expenses. Industry players said that the rise in ROE will help the investors to build up sufficient internal accruals for capacity addition and to ensure better cash flow. They also argued that the regulatory stability is a need of the hour and hoped that the upward revision in ROE will give a much needed impetus to the sector.
 
Ashok Khurana, director general, Association of Power Producers (APP) told Business Standard that the CERC advisory committee discussed the issue at its recent meeting. ‘’There was a unanimous opinion that this is not the time to tinker with ROE. Infact, all efforts should be made to revive investors interest in the power sector.’’ Khurana said looking at the environment there is no appetite for investment in the power sector. Reduction of ROE if any, would ones again pull the sector further back.
 
RN Nayak, chairman and managing director, PowerGrid Corporation said ROE is generally governed on interest rates especially G-Sec rates, SBI PLR rates and AAA corporate bond rate. ‘’Present interest rate is quite harsh than the interest rate prevalent during late 2008 and early 2009 before the commencement of previous tariff block of 2009-14. Thus there is no reason why ROE should be reduced in the coming tariff block of 2014-19. Infact, PowerGrid Corporation had requested the regulator to enhance the same,’’ he added.
 
RV Shahi, former power secretary said that investment in power sector in general should be made attractive.  He gave the example of the issues prevailing in the transmission sector. ‘’In case of transmission sector of late a number of uncertainties have crept in. Right of Way has become a real issue as a result of which gestation period has increased. Therefore, better rate of return due to idling of equity in increased period of gestation appears essential,’’ he noted.
 
PC Pankaj, chairman and managing director, North Eastern Electric Power Corporation made a strong case for maintaining the ROE in the current uncertain environment. ‘’As fixed during 2009-14, ROE for hydro should be fixed at 15.5% and for storage at 16%. It should not be reduced considering the huge investment required in the hydro power projects,’’ he added.
 
ABL Srivastava, director finance, NHPC also pleaded for rise in ROE for the power sector as a whole but insisted that additional ROE for hydro sector should be sanctioned considering the uncertainties involved during the project development. ‘’Being a green power such a incentive should be given for the hydro sector. Effectively during the course of time the tariff of hydro power projects will be low,’’ he said.
 
RP Singh, former CMD, PowerGrid Corporation said that the investors need to be induced in the power sector and especially in the transmission sector. ‘’ROE in the transmission sector should remain sustainable especially when the investors' interest is fading. ROE needs also to be linked with 98% line availability,’’ he added.

Source

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NTPC tax-free bond issue of Rs.1750 crore opens Tuesday...

 

NTPC tax-free bond issue of Rs.1750 crore opens Tuesday...

State-run National Thermal Power Corp. (NTPC) said its bond issue to raise up to Rs.1,750 crore will open Tuesday.

"The issue will open on December 3, 2013, and is scheduled to close on December 16, 2013," NTPC chairman Arup Roy Choudhury told media persons here.

 

This is the biggest national power producer's first bond issue in over 20 years. The company will issue tax-free secured redeemable non-convertible bonds.

"The base issue size aggregates to Rs.1,000 crore with an option to retain over-subscription up to Rs.750 crore for issuance of additional bonds, aggregating to up to Rs.1,750 crore," NTPC said in a statement.

According to the company, funds raised through the issue would be used for funding capital expenditure and refinancing to meet the debt requirements of ongoing projects.

NTPC has a capacity of nearly 42,000 MW and aims to add around 14,000 MW to its total capacity by the end of 2016-17.

Lead managers to the issue are ICICI Securities, A K Capital Services, Axis Capital, SBI Capital Markets and Kotak Mahindra Capital Company.

Source

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Coal India achieves 93% of target production in Nov'13...

 

Coal India achieves 93% of target production in Nov'13...

Coal India (CIL), an Indian state-controlled coal mining company, has achieved 39.20 million tones of coal production for November 2013, which was 93% of target production of 41.93 million tones.

 

CIL achieved actual offtake of 38.76 million tones for November 2013, which was 93% of target production of 41.65 million tones for November 2013.

Shares of the company gained Rs 1.6, or 0.59%, to trade at Rs 273.20. The total volume of shares traded was 40,118 at the BSE (12.32 p.m., Monday).

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Swan Energy gains after securing a contract in Gujarat...

 

Swan Energy gains after securing a contract in Gujarat...

Swan Energy rose 1.9% to Rs 110 at 12:27 IST on BSE after the company said it has been selected by the Gujarat Maritime Board as the developer for a greenfield project in Gujarat.

The announcement was made after market hours on Friday, 29 November 2013.

Meanwhile, the S&P BSE Sensex was up 102.22 points or 0.49% at 20,894.15.

On BSE, 1.23 lakh shares were traded in the counter as against average daily volume of shares in the past one quarter.

The stock hit a high of Rs 111 and a low of Rs 107.75 so far during the day.

The stock had underperformed the market over the past one month till 29 November 2013, sliding 4.47% compared with the Sensex's 0.65% fall. The scrip had also underperformed the market in past one quarter, gaining 3.4% as against Sensex's 12.99% rise.

Swan Energy said that the Gujarat Maritime Board (GMB) has selected the company as the developer of Greenfield LNG Port Terminal with Floating Storage and regassification Unit (FSRU) project at Jafrabad, Gujarat on built-own-operate-transfer (BOOT) basis.

Swan Energy's net profit declined 14.5% to Rs 4 crore on 47.3% growth in net sales to Rs 81.73 crore in Q2 September 2013 over Q2 September 2012.

Swan Energy is an emerging green energy company with a pipeline of innovatively structured power projects. The company is currently undertaking a gas-based energy projects in Gujarat through 49% equity participation in special purpose company, Gujarat Pipavav Power Co (GPPC).

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NTPC commissions Unit 1 of Barh Super Thermal Project; reaches 42,454 MW installed capacity...

 

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NTPC Ltd has announced that the Unit-I of 660 MW of Barh Super Thermal Power Project Stage-Il has been commissioned on November 30, 2013 at 20:15 hrs.

With this, the total installed capacity of NTPC group has become 42454 MW.

 

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Update on KSK's 3600 MW Mahanadi Thermal Power Project...

 

Update on KSK's 3600 MW Mahanadi Thermal Power Project...

A brief update of KSK's 6 X 660 MW KSK Mahanadi Thermal Power Project  which is the largest  power  generation initiative  of the KSK Group has been submitted by the company to NSE.

 

 

 


A brief update on the project on-site progress is as provided  below:

  • First 600 MW Unit is fully functional  with all associated  ancillary  infrastructure set up by various Group companies commissioned and operational;
    • The entire  60 km pipeline  laying  work  for the water  intake  system  for the power plant has been completed  and currently  used for water transport; and
    • The  rail  connectivity  of  the  power   plant  to  the  Indian   Rail  network   is completed  with movement of rakes into the plant commenced.
  • Power  supplies   are  being  made  in  accordance  with  the  Grid  code  and  Power Purchase  Agreements  ("PPA").  Revenue  recognition  is expected  to commence  in the later part of the current  quarter.
  • It is anticipated that boiler light up for the second  unit of 600 MW, on a test basis, will be achieved  within  the next 45 to 60 days and  the turbine  generator  box up is also anticipated to be completed around the same time. Flue duct fabrication  works and  insertion  completion in the second  chimney  for the second  600 MW unit is in progress.

Fuel Supplies:

With capital  investment commitment of over  US$ 3.6 billion, this coal fired  power  plant once completed  will help address tl1e power  requirements of multiple  states  across India, namely   Gujarat,   Chhattisgarh,  Goa,   Andhra   Pradesh   and   other   states   with   power generation  based   on   long   term   coal   supply    arrangements  with   Gujarat    Mineral Development Corporation ("GMDC") and  Goa Industrial  Development Corporation from the committed Morga-II and Gare Pelma-III coal blocks respectively, with tapering  linkage arrangements with  Coal India to address immediate needs.

KSK has been anticipating the immediate term fuel supplies of the power  plant being met through tapering linkage granted  to the Company in November  2008 and  the Company has been  pursuing the same  with  the Government of India  for a considerable time.  Further updates shall be provided as we obtain necessary confirmations and execution with respect to the same.


Power Sales:

As regards  Power sales, KSK Mahanadi is pleased  to confirm  that an additional long term PPA for 500 MW of Net Capacity, under  a competitive Bidding process, has now been concluded  with Tamil Nadu  Generation and  Distribution Corporation Limited ("TANGEDCO") at a levelised  tariff of Rs  4.91/kwh, with potential  for tariff escalations on account of certain input costs.


The Company has participated in other competitive bids under Case-I mechanism by state utilities and  is waiting  for further  tie-up of substantial power  plant capacities  under  long term PPAs."

Source: NSE

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PMO to meet Coal Ministry this week on Coal India disinvestment...

 

PMO to meet Coal Ministry this week on Coal India disinvestment...

The Prime Minister's Office has called a meeting this week with the Coal Ministry to discuss issues pertaining to disinvestment in Coal India Ltd, ahead of the proposed 3-day strike by CIL union against the government's stake-sale plan.

"The Prime Minister's Office has called a meeting this week to discuss CIL disinvestment," said an official.

Various aspects of the disinvestment are likely to be taken up, including the proposed strike that was deferred to December 17 from September 23, he added.

The official declined to comment on as to who will chair the meeting. He also said that a call is yet to taken on who will represent the Coal Ministry at the meeting.

Taking ahead the proposed stake sale in CIL, government has already held roadshows in two phases in Singapore, Hong Kong, Australia, Germany and UK.

According to the official, although these were non-deal roadshows, "the response has been good".

Commenting on the mood of investors with regard to the roadshows, Coal Secretary S K Srivastava had earlier said: "It is a very sound company with strong fundamentals and they have appreciated various aspects of operations and functioning of Coal India."

The Department of Disinvestment originally planned to sell 10 per cent stake in CIL, but faced strong opposition from employees' unions as they threatened to go on strike.

Meanwhile, Coal Minister Sriprakash Jaiswal had said that the disinvestment might take place in November or December.

Coal India was listed on the stock exchanges in 2010 after an initial public offer through which the government raised Rs. 15,199 crore by selling a 10 per cent stake. The company has a cash balance of over Rs. 60,000 crore.

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