Maharashtra has no plan to order CAG audit of Tata Power, R Infra...

 

Mumbai electricity consumers will have to wait for an audit by the Comptroller & Auditor General (CAG) for their distributors namely Tata Power and Reliance Infrastructure as the Congress led government in the state has not taken any formal decision in this regard.

The state government has so far not indicated its plan to adopt Aam Aadmi Party led government's model of conducting CAG audit for Mumbai power companies.

Reliance Infrastructure has a consumer base of over 2.8 million while Tata Power with .42 million consumers. When contacted Tata Power and Reliance Infrastructure declined to comment.

A state government official, who did not want to be identified, told "Currently, Tata Power and Reliance Infrastructure carry out their annual audits by deploying leading audit firms. There is no proposal as of now before the government to order CAG audit of these two companies for their Mumbai operations.''

However, the official admitted that CAG audit of these companies can be possible under section 20 of the CAG Act, 1971 which regulates the audit of accounts of authorities or bodies that are otherwise not subject to audit by the CAG.

Section 20 reads "'The Comptroller and Auditor-General may propose to the President or the Governor of a State or the Administrator of a Union territory having a Legislative Assembly, as the case may be, that he may authorised to undertake the audit of accounts of any body or authority, the audit of the account of which has not been entrusted to him by law, if he is of opinion that such audit is necessary because a substantial amount has been invested in."

Central Electricity Regulatory Commission's (CERC)  former chairman Pramod Deo said CAG audit of Tata Power and Reliance Infrastructure can be done. He however, added that the state government will have to take a call in this regard.

Ashok Pendse, consumer representative at the Maharashtra Electricity Regulatory Commission shared Deo's views saying that CAG audit of Tata Power Reliance Infrastructure will be a reality. ''However, at the end of the day what will come out of CAG audit should not be like what atually appears out of magician's hat,'' he noted.

D Radhakrishna, power analyst said CAG audit should be carried out of the generating companies as in the power supply the contribution of Discoms is only limited to 20% but remaining 80% cost attributed to the generation and transmission.

''Thus CAG audit for Mumbai power companies can be done as per Sec 20 of CAG Act 1971. The state government can order such audit,'' he added.

Source: Business Standard

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Coal imports rise 20% to help fuel new power plants...

 

The coal imports rose 20% to 105.8 million tonnes in April-October from a year earlier as power producers turned to Indonesia to help feed new plants, according to data from mjunction services, an online market operator.

Regulatory and bureaucratic delays in adding new mines and expanding existing ones have made India the No. 3 importer of coal, even though it sits on what BP ranks as the world's fifth-largest reserves. Imports leaped 34% to 137.56 million tonnes in 2012/13.

April-October shipments of thermal coal, used in power generation, jumped 28% to 81.6 million tonnes, according to mjunction services, which is jointly owned by Tata Steel Ltd and SAIL.

India's generation capacity increased in the seven months with the addition of new plants, while benchmark thermal coal prices fell, reaching their lowest levels in almost four years in September.
Imports of coking coal for making steel, the second-biggest contributor to total shipments, were nearly flat at 19.35 million tonnes.

The Indian government does not regularly release data on coal imports.

Its domestic production, 81% of which is from state-owned Coal India Ltd , could fall short of demand by 155 million tonnes this fiscal year, according to the Coal Ministry. That could lead to a 13 percent rise in imports.

Coal India has fallen short of its production target for at least the past six years due to difficulties in obtaining environmental approvals, lack of railway access and other issues. Its April-December output of 319.2 million was 4% less than its target for the period.

The world's largest coal mining company launched its first tender in November, seeking to import 5 million tonnes of coal to supply power producers until March 2015.

The need for reform of the coal mining sector means India is expected to remain a big importer, with Coal India estimating a shortage of 350 million tonnes for 2016-17.

Indonesia could be the biggest beneficiary. It already accounts for more than 50 percent of India's coal imports, ahead of Australia and South Africa.

Several coal blocks allocated to companies from 1998 to 2009 for development are yet to start production. Recent court-mandated investigations into the allocations by the Central Bureau of Investigation (CBI) have further delayed mining.

The CBI said last week it had registered two cases regarding the alleged supply of low quality Indonesian coal by a private company to fuel power plants operated by National Thermal Power Corporation.

Source: Business Standard

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NTPC signs initial pact for Chhattisgarh geothermal project...

 

NTPC has signed an initial agreement with the Geological Survey of India to set up a geothermal power project at Tattapani in Chhattisgarh.

"A Memorandum of Understanding (MoU) was signed between NTPC and Geological Survey of India today...for preparation of DPR (Detailed Project Report) for geothermal power project at Tattapani," NTPC said on Tuesday in a statement, without providing financial details.

Ajit Kumar, ED (Business Development) at NTPC, and PB Sarolkar, Deputy Director General, GSI, signed the agreement. NTPC had earlier signed an MoU with the Chhattisgarh Renewable Energy Development Agency to set up the project at Tattapani. Geothermal power projects use heat from rocks and fluids in the earth's crust to generate electricity.

NTPC's current installed generation capacity is 42,454 MW. The company plans to add about 20,000 MW by 2017. It has about 1,500 MW of hydro power capacity under construction and operates about 4,000 MW of gas-based power plants in the country.

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GSECL’s Dhuvaran 3 Gas based power project stranded due to no gas allocation...

 

Gujarat State Electricity Corporation Limited (GSECL) is finding itself in a complex situation with the Ministry of Petroleum and Natural Gas rejecting company’s request to utilise unused natural gas from Dhuvaran unit 1 and 2 of the power plant for the commissioning of the third unit.

As a result GSECL is finding it difficult to commission its third unit at Dhuvaran. According to petroleum ministry Dhuvaran 3 does not qualify for diversion of gas.

As per the guidelines on clubbing/diversion of gas between power plants, the clubbing/diversion is possible only among original gas allottees and Dhuvaran 3 has no allocation. Further, the petroleum ministry has noted that higher production of electricity after undertaking the proposed diversion has not been certified by the power ministry and on these grounds also the ministry has rejected GSECL’s request.

GSECL’s Dhuvaran Combined Cycle Power Plant, at present, has two units, both of which were taken under commercial operation since November 2007.

While the unit one has total installed capacity of 106.617 MW, unit two has total capacity of 112.45 MW.

Dhuvaran 3 proposes to add another 375 MW generation capacity. Originally, Dhuvaran thermal power station had 6 units of oil and gas based power plants with a total generation capacity 534 MW which were retired from service between 2007 and 2010 after their useful life.

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Delhi Government cannot afford power subsidy: Ex-CERC chief...

 

It is increasingly becoming clear that the Arvind Kejriwal-led Aam Aadmi Party (AAP) put little thought in announcing its freebies, especially in the power sector.
 
In a conference call by foreign broker Jefferies, former Chairperson of Central Electricity Regulatory Commission of India and the longest serving electricity regulator in the country, Dr Pramod Deo, said Delhi cannot afford to meet the subsidy burden announced by AAP.
 
The way the Kejriwal government has managed it is by giving only Tata Power the subsidy amount and adjusting the amount due from Reliance Infra. This is contestable as the law is clear that any subsidy amount announced by a political party has to be paid upfront. The section 65 of the Electricity Act 2003 is clear on this part that if the state government announces subsidy, then they have to pay the amount upfront, says Deo.
 
If the state government wants to give benefit to any consumer, they are free to do that but they have to pay the difference to the distribution company.
 
The idea being that whatever the political decisions are taken they should not affect the performance/commercial operations of distribution companies, Deo pointed out in the conference call.
 
The former CERC chief made it very clear that if the state government does not give subsidy, tariff cannot be reduced.
 
Kejriwal had said that Tata Power will be given a Rs 61 crore subsidy while the amount due to Reliance will adjusted against payment dues to government owned generating and transmission companies.
 
The Delhi government will have to pay much more than what was announced by the chief minister, Deo said, if Reliance contests the mode of subsidy payment. 
 
On the issue of CAG audit, Deo said that all items in the P&L related to sales, operating and maintenance cost are approved by the regulator and are based on normative tariff, so these cannot be inflated.
 
CAG audit can be mainly related to the capital expenditure incurred by these companies over the years to improve the service and availability of power in the state. Distribution companies have been accused to gold plating their capital expenditure.
 
In the case of distribution companies, capital expenditure is important as the amount is transferred to the equity capital of the company based on which they get a return of 12%. Thus gold plating capital expenditure would mean higher profits for the companies.

Source: Business Standard

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Kirloskar Brothers constructed world's largest water pumping system at Tata Power's Mundra UMPP...

 

Kirloskar Brothers Limited (KBL) has done India proud. The leading global fluid management company has collaborated with Tata Power and installed the world’s largest water pumping system for Tata Power’s Mundra UMPP (Ultra Mega Power Plant).

A mammoth 10.5 million litres of water is circulated with the help of KBL’s 10 sets of Concrete Volute Pumps every minute. The Coastal Gujarat Power Limited (CGPL), Tata Power’s wholly-owned subsidiary, which has implemented the 4000 MW (800 MW x 5 units) UMPP requires an enormous amount of water to condense the heat generated in the production of power.

On a turn-key basis, KBL created an open loop type of circulating water system for Tata Power’s subsidiary, wherein sea water from the Arabian Sea is used as heat sink to condense the steam in the condenser. Cold water from the sea is pumped by KBL’s unique circulating water pumps through the condenser going back to sea through an outfall structure. All of 10.5 million litres in 60 seconds!

Ravindra Ulangwar, Associate Vice President & Head - Power Sector, KBL said: “The World’s largest water pumping system is a salute to Indian engineering. The Mundra UMPP is India’s first and most energy efficient 800 MW unit coal-based thermal power plant, using supercritical technology to create lower greenhouse gas emissions. Its main power generation equipment is sourced from Japan and Korea. And thus came about Indian technology to create a water pumping system that rubs shoulders with world leaders.”

He added: “The layout of the pumping system is designed in such a way that large fluctuation in the water level due to tidal variation in the Arabian Sea is taken care of. The motors are installed above the high tide level, where as pumps are installed in such a way that enough submergence is possible during low tide levels. To accommodate this, the motors are connected with a pump shaft with specially designed cardon shaft. The length of the cardon shaft with universal coupling is 12 meters long, making it one of the longest pump shaft. The size of the entire pumping system is so large that it has become the largest circulating water system in the world.”

In order to ensure a perfect flow pattern for smooth operation of the pump, KBL also conducted Computational Fluid Dynamics (CFD) analysis followed by a physical model study for fore-bay and sump at Hydraulic Research Centre at Kirloskarvadi factory. A prototype physical model was built with 1:12 scale ratio. KBL also conducted the pump model study to establish the Hydraulic Performance of the Concrete Volute pumps.

As reported earlier, the Mundra UMPP will meet 2% of India’s power needs and 16 million domestic, industrial and agricultural consumers in power starved Gujarat, Rajasthan, Maharashtra, Haryana and Punjab.

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REC mechanism not being honoured by most States; Rays Power taps APTEL...

 

Most States are still not honouring the renewable energy certification (REC) mechanism available for solar photovoltaic power plants subjecting them to financial strain, according to Rays Power Experts.

A turnkey solutions provider for solar PV projects having set up three solar parks in Rajasthan, the company has knocked at APTEL (Appellate Tribunal for Electricity) seeking justice making various regulatory commissions respondents.

“If the REC mechanism is extended as per the National policy, the per unit purchase price works out to about Rs 9. In fact, we are now getting only Rs 2.75 per unit through third party sales as there is no power purchase agreement obligation,” Rahul Gupta, Director of Rays Power, told Business Line.

“Even though this is a policy announcement whose facility is available till 2017, it is not being currently honoured. This is making projects which have come up based on REC mechanism financially unviable. Therefore, we have approached APTEL seeking justice. The Central Electricity Regulatory Commission is also looking into the matter,” he said.

The company has set up three solar parks in Rajasthan near Bikaner with a total installed capacity of 60 mw and expects to take the capacity to up to 100 mw by March 31, 2014.

“Our clients include Rajasthan Patrika and food & beverage (namkeen) makers Haldiram and Bikaji among others for whom we have set up units,” he said.

A perfect business model of projects based on REC mechanism, which the Government had promised has been put to test as most State regulators are yet to implement the mechanism. The company has mentioned that a similar petition filed by the Indian wind power association.

Gupta said that there is immense potential in harnessing the potential of the solar power provided all the regulatory commissions meet and enforce renewable purchase obligation. This would provide much needed boost to the new and renewable energy sector in the country making it cost effective.

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Bhakra Beas surpassed the generation target set by CEA...

 

The Bhakra Beas Management Board (BBMB) has surpassed the energy generation target set by the Central Electricity Authority (CEA) for 2013-14 in the first nine months itself.

The BBMB generated 9,679 million units (MUs) from April 1 to December 21, 2013, against the full-year target of 9,665 MUs.

According to the BBMB spokesman, this was facilitated by ensuring high machine availability of 95.08% as well as optimal water reservoir operations, leading to effective utilisation of inflows.

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Tripping Up On Mega Dreams - A tale of Mundra Power Plants...

 

Inside the bridge of the MV Hero, a 300-metre cargo ship berthed at the coal handling port in Mundra, Gujarat, the captain is relaxed even though he has just completed a long voyage from Indonesia. Lighting up a cigarette and sipping his coffee, he talks about braving rough weather in the Indian Ocean, waiting for two days to berth at Singapore port, and again on the outskirts of Mundra port.

“But this is a fantastic facility,” says the Ukranian, who has called on many a port across the world. As he talks, three giant mechanised cranes are at work. Each shovel attached to a crane scoops up about a tonne of coal from the ship’s hull and deposits it on a conveyor belt that’s 13 km long and delivers the cargo directly to the furnaces of Tata Power’s subsidiary, Coastal Gujarat Power (CGPL), India’s first ultra mega power plant (UMPP).

Coal from another ship berthed nearby is being unloaded in a similar fashion onto a conveyor belt that runs up to Adani Power’s plant, located next to CGPL. A third conveyor is feeding coal to trucks and rail wagons; it takes 1-2 minutes to load a truck.

Today, the tale of the upcoming city of Mundra is also the tale of these two power plants. Thanks to Tata Power’s 4,000 MW UMPP and Adani Power’s 4,620 MW plant, Mundra has come to earn the distinction of being home to the largest coal-fired power plants at a single location. The two plants account for 13 per cent of India’s coal-based installed thermal power capacity of 120,100 MW.  Also, Mundra is cited as a shining example of cooperation between corporate houses to develop infrastructure.

But, with policy issues and the higher cost of imported coal rendering the future of the two power plants uncertain, Mundra’s future has come under a cloud.

See more at: http://www.businessworld.in/news/business/energy-and-power/tripping-up-on-mega-dreams/1207810/page-1.html#sthash.DwaBo0qk.dpuf

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MNRE to conduct interaction meet to draw plan for the Green Telecom development in the country...

 

The Ministry of New and Renewable Energy is conducting an Interaction Meet on Powering Mobile Towers through Renewable Energy on January 13, 2014 to discuss the experiences of use of renewable energy technologies and to draw a plan to accelerated the use of RE for powering mobile towers.

As per MNRE's release on the matter, DG sets installed to power mobile towers account for about 4% of the total diesel consumption during the year 2012-13 requiring about Rs.4,300 crores from the public exchequer towards subsidy.

This initiative to use RE for power mobile towers may be attributed to the Telecom Regulatory Authority of India (TRAI) direction to replace DG sets by renewable energy and hybrid systems in urban and rural areas in phased manner with a view to move towards 'Green Telecom'.

While MNRE has supported the use of solar photovoltaic systems to BSNL for use in telecom towers, other mobile service providers have also opted solar PV systems, biomass gasifiers, biogas systems and fuel cell systems to power mobile.

Considering that the initiative, though, in its initial stage has emerged to be quite beneficial, MNRE will conduct the meet with mobile service providers, mobile tower operators and renewable energy service providing companies to work out a plan to accelerate the use of renewable energy systems.

Source: MNRE

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