CCEA may take up Mega Power Policy proposal tomorrow...

 

The Cabinet Committee on Economic Affairs is expected to take up Thursday the Power Ministry's proposal to amend the Mega Power Policy.

The policy was introduced in November 1995 to provide impetus to the setting up of large power projects and derive benefits from economies of scale.

"The proposal for making changes to the Mega Power Policy may be taken up at tomorrow's (Cabinet) meeting," said a source without providing further details.

Thermal power projects of 1,000 MW and hydel plants of 500 MW are eligible for benefits under the policy.

These guidelines were modified in 1998, 2002 and 2006 to encourage power development in Jammu & Kashmir and the North Eastern region.

The projects can tie up electricity sales with distribution utilities through long-term power purchase agreements. They can also sell power outside these agreements, in accordance with the National Electricity Policy 2005 and the Tariff Policy 2006, as amended from time to time.

The benefits of policy also apply to energy-efficient supercritical projects that are awarded through international competitive bidding with the mandatory condition of setting up indigenous manufacturing facilities.

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Delhi Government orders CAG audit of private power companies...

 

Rejecting the contention of private power distributors, the Delhi government on Wednesday ordered a CAG audit of their finances, fulfilling yet another election promise of the Aam Aadmi Party.

"We have ordered an audit of the private power distribution companies. The CAG has said it will do the audit," chief minister Arvind Kejriwal told reporters after a meeting of the Cabinet which took the decision on audit.

He said the Lt Governor's order on the audit of the companies will go to the CAG on Thursday. "From tomorrow (Thursday), the audit will begin," he said.

The Delhi government had given time to the three companies -- BSES Yamuna Power Ltd, BSES Rajdhani Power Ltd and Tata Power Delhi Distribution Ltd -- till this morning (Tuesday) to give their views on why there should not be a CAG audit of their companies.

Asked what the companies have told government, Kejriwal said they had given numerous reasons but not one reason why the audit should not be done.

"Nobody has given any reason why there should not be an audit," he said adding the auditing will cover from the days the power distribution was privatised.

He also rejected the view that the matter was subjudiced and the decision cannot be taken. "The matter has been in the High Court and proceedings are on. No stay has been granted. Even now the proceedings can go on."

On complaints about the defective quality of power meters, the chief minister said the government would approach IIT Delhi and Delhi College of Engineering for suggestion to improve the quality of meters.

Kejriwal said there had been constant demand for auditing of the private power distribution companies and the previous government was "misleading" the people saying the matter was in the court.

"What the previous government could not do in four years, we have done in four days," he said.

Asked about BJP leader Arun Jaitley's criticism that his government was taking populist measures with short term objective, Kejriwal said people can argue about the quantgity of water to be supplied free but any civilised government has a duty to provide it.

When told that the Congress government in Haryana has slashed power tariffs and a Congress MP in Maharastra was pleading for reducing tariff on the lines of the AAP government, he said "I am very happy".

"We will teach them politics," he added with a chuckle.

Asked about BJP's criticism that he was keeping mum on the 'corruption' of the previous Congress government after coming to power, he shot back "let Harsh Vardhan send details.

We will immediately take action."

On Tuesday, Kejriwal had announced 50 per cent subsidy to thsoe consumers whose monthly consumption does not cross 400 units.

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Bhagyanagar India commissions 5 MW solar PV unit in Andhra Pradesh...

 

Bhagyanagar India Ltd has commissioned a 5 MW solar power photovoltaic plant at Munipally in Medak district of Andhra Pradesh, taking its installed solar power generation capacity up to 10 MW.

“This unit has been set up with an investment of Rs 29 crore. We have tied up supply of power to third parties at Rs 6 a unit with Global Energy Power Trade. In addition, we plan to make use of renewable purchase obligation,” Narendra Surana, Managing Director of Bhagyanagar India, told.

With the commissioning of this 5 MW unit, implemented by Surana Ventures, a group company, the total installed capacity of the company’s solar power plants has gone up to 10 MW. The first 5 MW power project was commissioned in Gujarat.

The company is setting up two more solar power plants of 5 MW capacity each in the State.

The first one will be commissioned in Medak district before February. The second project of 5 MW relates to the Andhra Pradesh Government’s offer for developers to set up solar power plants in the State. This project will come up at Vikarabad with an investment outlay of Rs 30 crore. The AP Transco, which is the nodal agency for the project implementation, is offering Rs 6.49 per unit.

“In a full year of operation, a 5 MW solar PV unit generate revenues of about Rs 6-7 crore. The tariff offer of Rs 6 a unit is less. But given the current circumstances, we preferred to go ahead and sign up for supply. The ideal price is about Rs 7 per unit,” he said.

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India Hopes to Power Up on Better Energy Policies in 2014: WSJ Article

 

India aims to do more in 2014 to battle the bottlenecks in energy supplies which are contributing to the country’s painful economic slowdown.

New Delhi plans to auctions oil, gas and coal blocks, free diesel prices from government controls and promote alternative energy in hopes of invigorating the energy sector in 2014.

The energy-starved nation wants to cut down its dependence on energy imports by half in the next six years by attracting new investments in the sector. India now imports around three-fourths of its energy needs.

“We can’t really afford the imported energy,” said Oil minister M. Veerappa Moily. “So we have to attract more investments in the oil and gas sector and for that the policies have to be investor friendly.”

India plans to sell rights for about 86 oil and gas blocks in auctions expected in January. If all the blocks go under the hammer as expected, it would be the biggest ever bidding round.

It remains to be seen whether big international firms will step forward to bid for the blocks. Many private companies have avoided recent auctions, citing heavy regulations and a lack of clarity on pricing.

The south Asian nation is also planning to free up some fuel prices. Mr. Moily said he expects diesel prices to be completely free of government controls in 2014.

Currently diesel prices are regulated by the government while regular gasoline prices were freed to move with the market in 2010.

“We believe that market forces need to be allowed to have proper inter-play,” said R.S. Butola, chairman of state-run Indian Oil Corp., India’s largest fuel retailer

The coal industry could also get a boost in 2014. India’s government has been unable to approve big coal projects as it has been grappling with the investigation of a multi-billion-dollar scandal in which lucrative coal-mining licenses were allegedly handed out at throw-away prices.

India plans to start issuing new mining rights through auction next year. The scandal forced the Prime Minister Manmohan Singh’s government to clear the way for the auctions, which are expected in March.

Even though India is home to world’s fourth largest coal reserves, it is facing a severe shortage of the fuel, which powers most of its power plants.

India is also expected to push for growth in solar, nuclear and other alternative energy sources in 2014.

It is expected to award contracts for building new solar projects in the coming months. It is also expecting to seal reactor supply deals with companies from Russia and France to boost its nuclear energy program.

To be sure, pessimists warn that the government has repeatedly failed to deliver on past promises for this highly-regulated, highly-political sector. With India headed towards national elections, scheduled to happen before the end of May, it will be particularly difficult to push through unpopular reforms.

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BHEL renovates power plant unit in Uttar Pradesh...

 

Bharat Heavy Electricals Ltd has modernised a 200 MW unit at a thermal power plant in Uttar Pradesh. Besides renovation and modernisation, the rated output of the thermal unit has been enhanced to 216 MW.

The work has been carried out at Obra thermal power station, an Uttar Pradesh government enterprise. In a statement, BHEL said the working life of the machine has also been extended by another 15-20 years.     “This is also the first instance of a successful modernisation and uprating of any 200 MW class machine in India,” it added. State-run BHEL is a leading power equipment maker in the country.

“Optimum utilisation of existing capacity in the country to maximise the generation through Renovation & Modernisation (R&M) and Life Extension (LE) of existing power plants is considered to be the most cost effective option,” the statement added. BHEL succeeded in loading the machine to 218 MW i.e 2 MW higher than design capacity with all parameters within the acceptable range.

This brings to the fore once again BHEL’s capabilities against the issue of dependence on foreign agencies as well as the reliability of BHEL to deal with the associated energy security risks and ensure self-sufficiency for the country’s power sector.

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2014 wishlist: More power to electricity as India records surplus...

 

India became power surplus in the first quarter of 2014-15, heralding a new phase in its infrastructure development story.

According to data compiled by the Central Electricity Authority, total power availability was about a per cent more than the total demand from industrial, commercial and household sectors. This was a dramatic improvement over the average three per cent power deficit recorded in 2013-14.

Power ministry officials admitted that the improvement on the power availability front was expected because in the past few years the country has been witnessing an annual power capacity addition of more than 20,000 Mw. But they were surprised by the dramatic recovery which occurred in spite of a sharp uptick in economic growth in the same period.

Many states like West Bengal have, in the past, seen an improvement in power availability as a result of industrial stagnation. With lower demand for power from industries, such states have often seen an improvement in power availability or a drop in power deficit. However, in the first quarter of 2014-15, power became surplus in spite of an economic growth rate of seven per cent, which was possible largely because of a spike in the manufacturing sector’s performance.

Another reason that contributed to surplus power availability was the pace of tariff increases in the power distribution sector that saw a sharp reduction in subsidies, an improvement in the health of power utilities and a surge in fresh investments in the power sector.

All these developments, power sector experts said, would help sustain the healthy power availability situation reached in the first quarter of the current year.

Source: Business Standard

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CCI may take up three hydro power projects at next meeting...

 

The Cabinet Committee on Investment (CCI) at its next meeting may take up three hydro power projects that have been held up on account of environmental and forest clearances.

The three hydel projects -- Tawang (800 MW) and Tato (700 MW) and Teesta (520 MW) --have been awaiting environmental clearances for a very long time.

"These projects in Arunachal Pradesh and Sikkim have been sent to CCI from the Power Ministry for clearance," said a source.

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Power Min Cabinet note on 'carriage and content' by month-end...

 

The Ministry of Power will float a Cabinet note on the proposal of disintegrating power supply and distribution network for providing electricity to consumers, in a month's time.
    
This proposal -- carriage and content -- has been in the works for the past one year and may fructify by the end of the current financial year (2013-14), sources said.
    
"The deliberations on the carriage and content model are on and by this month-end we will be ready with the note," a Power Ministry official said.
    
This move is aimed at reducing losses of discoms.
    
As per the proposed model, there will be a separate power supplier and separate electricity distributor or distributors.
    
The power network would be owned by one company while the suppliers of electricity could be more than one.
    
"The power supplier will not manage the distribution network, it will be managed by another firm which will disseminate electricity to the end consumer," the official said.
   
The model is based on the existing system in the United Kingdom, which has separate suppliers and electricity network providers.
   
At present, power distribution companies (discoms) supply as well as manage network that provides electricity for residential as well as commercial purposes.
    
The government has also launched the scheme -- financial restructuring package -- to bailout the distressed power distribution utilities .
    
The accumulated losses of state power distribution companies were estimated at about Rs 1.9 lakh crore as on March 31, 2011 and Rs 2.46 lakh crore as on March 31, 2012.
    
As per the scheme, 50 percent of the outstanding short term liabilities of the discoms, upto March 31, 2012, will be taken over by State Governments.
    
This shall be converted into bonds to be issued by discoms to participating lenders, duly backed by State Governments guarantee.
    
The scheme is under implementation in Tamil Nadu, Rajasthan, Uttar Pradesh, Haryana and Himachal Pradesh.

Source: Business Standard

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ONGC's first power plant in India starts commercial generation...

 

State-owned ONGC's first commercial power project in the country started commercial production Tuesday night in Tripura, six months after President Pranab Mukherjee dedicated the 726 MW capacity facility to the nation.

"After the inauguration of the power project June 21 by the president, technical hurdles were found in the 53-km gas ONGC (Oil and Natural Gas Corporation) pipelines. All types of technical hitches were resolved by engineers, and the generation from the first unit (363.3 MW capacity) of the power plant began Tuesday night," ONGC Tripura Power Company (OTPC) managing director Sudhindra Kumar Dube said.

"The second unit (363.3 MW capacity) of the gas-based power project is expected to start by June," Dube told reporters.

OTPC is a special purpose vehicle (SPV) promoted by ONGC, Infrastructure Leasing and Financial Services (IL & FS) and Tripura government, created in 2004 for execution of the 726.6 MW combined cycle gas-based thermal power project (using both water and natural gas) at Palatana, 60 km from the state capital, in southern Tripura.

The Palatana power project, expected to ease the power problem of seven of the eight northeastern states, is the biggest gas-based thermal power project in the region.

Dube said that from this power plant, Assam will get the maximum share of 240 MW of electricity followed by Tripura (196 MW), Meghalaya (79 MW), Manipur (42 MW), Nagaland (27 MW), Mizoram (22 MW) and Arunachal Pradesh (22 MW), while IL & FS and OTPC keep 98 MW.

"OTPC has signed a gas sale and purchase agreement with ONGC for supplying 2.65 million metric standard cubic meters gas per day. The agreement would be valid for 15 years against the assumed power plant's life span of 25 years with a provision of further extension by another 10 years," he said.

To set up the Rs.4,047 crore power plant, a total of Rs.10,000 crore is being invested for the project and related works including transmission lines and setting up of ONGC gas pipelines.

"A 400KV high transmission power line (661 km) has been drawn up to Silchar in southern Assam from Palatana to connect with the Bongaigaon national grid in western Assam to distribute electricity to various northeastern states," the OTPC chief said.

"The supply of power to the seven northeastern states would start from Saturday after getting mandatory clearance from the North East Regional Load Despatch Centre in Shillong," he added.

The Palatana project is a hallmark of cooperation between India and Bangladesh, which ensured smooth passage of heavy project equipment and turbines to Palatana through its territory by road and waterways, from Haldia port in West Bengal.

Prime Minister Manmohan Singh laid the foundation stone of the power project in October 2005.

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Delhi Government slashed electricity tariff by 50%...

 

Aam Aadmi Party-led Delhi government on Tuesday cleared a 50% cut in electricity tariffs, delivering on yet another poll promise a day after it announced metered consumers will get 20 kilolitres water every month free of cost.
 
The government was also on course to ordering an audit by the national auditor into the finances of three power distribution companies, another key poll promise.
 
The decision to subsidise power tariff, which will involve a cash outgo of Rs. 61 crore in the next three months, was announced by chief minister Arvind Kejriwal after a meeting of the cabinet.

The subsidy would be applicable to those households that consumed up to 400 units. And those who use electricity above this limit will have to pay full amount for the entire consumption. The decision is expected to benefit 28 lakh of 34 lakh households.
 
Questioned about the subsidy that will be available only for three months, Kejriwal said further decision on this would be available only after the audit report.
 
He said the cabinet would meet tomorrow after the three companies submit to the government their views on the proposal for audit of their finances.
 
"Only after studying their replies we will take a decision whether to audit or not," he said.
 
To a question whether the government has the right to decide on slashing power tariff when a regulator was there, the CM shot back the government can provide subsidy.
Earlier, defying doctor's advice, an unwell Kejriwal met comptroller and auditor general Shashi Kant Sharma to discuss the issue before going into a cabinet meeting.

After the meeting with the CAG, Kejriwal said the national auditor is ready for the job. He said the cabinet will tomorrow go through the representations to be made by the power companies and take a decision.
 
"Then there will be an order by the Lt Governor," he said, denying that a decision has been taken and only formalities are being completed.
He said the CAG told him it all depends on how much work is involved and how fast the companies would provide documents.
 
The BJP and AAP have been demanding CAG audit of finances of the discoms, alleging huge irregularities by them.
 
Riding the anti-corruption wave, the AAP made a phenomenal electoral debut by reducing Congress to number three after having tasted power for the past 15 years.
 
However, all the three companies— BSES Yamuna Power Ltd, BSES Rajdhani Power Ltd and Tata Power Delhi Distribution Ltd—have been opposing it.

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