India to develop coal-fired ultra supercritical plant

A 800-MW coal-fired power project based on more efficient advanced ultra supercritical thermal power technology is being set up jointly by BHEL,NTPC and Indira Gandhi Centre for Atomic Research (IGCAR). 

The Rs 10,000-crore plant being developed by IGCAR would be 5% more efficient than the prevailing supercritical technology. 

“The project would pave way for cleaner energy and cut rising imports of coal for power generation,” former principal secretary Anil Razdan who is currently consultant energy technologies to the scientific advisor to GoI told ET. “The site for the project is yet to be finalised,” he maintained. 

‘The venture is aimed to cut on rising costs of imports for energy needs as by 2030 the country would have to import 55% of the fuels,” Mr Razdan who was special secretary in Union petroleum and natural gas said. “The country would be importing 90% of the crude oil by 2030,” he said. 

The three energy companies BHEL, NTPC and IGCAR have tied up for the venture for which IGCAR would develop boilers capable of operating at 700 degree centigrade and high pressure. “The technology would improve thermal plant efficiency levels to 45% and would cut pollution,” he said. The plant is likely to be operational by 2017. 

The states like J&K, Himachal Pradesh and Uttarakhand also needs to opt for gas for energy needs to check dependence on forests for fuel needs. “The industry needs to opt for gas-based micro turbines to cut fuel costs as it is 85% efficient and also checks pollution,” he said. 

The per capita energy consumption levels of the country would more than double in 15-20 years. He said that project implementation and delivery is a major cause for imbalance in demand and supply of power. He said that timely completion of hydel power projects is still far behind expectation. “The need is to improve competence and competition among the sub contractors who often delay the projects,” he said. 

Suzlon gets $1.28b order from Caparo

Suzlon Energy has received an order worth $1.28 billion for supply of wind turbines aggregating to 1,000 MW to Caparo Energy (India), the Pune-headquartered company said in a statement on Friday. 

Caparo Energy, an independent power producer, plans to commission 500 MW by March 2012, and another 500 MW by March 2013 in India. 

"Price of the turbines for the first 500 MW is fixed, while the next 500 MW would have index-based price so that cost rise can be absorbed," Chief Financial Officer Robin Banerjee told ET. 

Caparo's order comes at a time when Suzlon is struggling with order inflow as global demand for wind energy continues to be muted.

Egypt turmoil may hit Indian oil companies as Brent tops $100/bn

Fears of political turmoil spreading from Egypt to the world's top oil producers in the Middle East hoisted Brent crude oil to over $100 a barrel, casting a shadow on the finances of India's top oil firms as the inflation-weary government is reluctant to raise fuel prices. 

State-run refining and marketing firms like Indian Oil Corphave not been allowed to raise prices of diesel, cooking gas and kerosene for seven months, even though crude oil has risen by a quarter. The new oil minister, Jaipal Reddy, recently ruled out deregulation of diesel, saying such a move is a political minefield. 

The oil ministry has estimated that state firms are losing Rs 1.90 a litre on petrol, Rs 9.20 a litre on diesel, Rs 21.60 a litre on kerosene and about Rs 400 per cylinder on cooking gas. Indian Oil chairman SV Narasimhan said the situation was disturbing. "It is definitely a concern. We hope it is temporary. I hope prices come down. It has gone up too fast in too short," he told the ET. 

The situation is worrying for India, which imports about three-quarters of the oil it consumes. Some technical analysts say that Brent crude oil can touch $110 per barrel in four weeks and soar to $125 later in the year. 

While the government tries to cushion the impact of soaring crude prices by freezing diesel rates and askingONGC and the oil marketing firms to share part of the subsidy burden, economists have cautioned that subsidy payments can upset India's fiscal calculations. 

The head of state-run Bharat Petroleum Corp, shared IOC's concerns. "It is a difficult situation. Refineries are doing well but what we are getting from refinery is lost on marketing front (as state-set diesel prices are low)," said BPCL chairman & managing director RK Singh: 

State oil firms had deferred their quarterly earnings announcement before the finance ministry sanctioned subsidy reimbursement of Rs 8,000 crore. Oil minister Jaipal Reddy had asked for Rs 10,000 crore. 

Oil industry officials say that the ad hoc and opaque subsidy payment made it difficult for companies to plan investments, while analysts say it is virtually impossible to forecast share performance in the absence of clear guidelines for subsidy. 

"We need to make some reasonable profits to be able to invest in necessary infrastructure that maintains supply of fuel in the country. Either we should be allowed to raise fuel price, if not, then government should provide adequate compensation," Mr Singh said. 

A director at Hindustan Petroleum Corp , who did not want to be identified, said that even in the case of petrol, which has been freed from government control, state firms were not charging market rates, keeping in mind the sensitivity of the issue. 

Govt, Cairn, Vedanta to meet on Feb 6: Sources

India's oil secretary may meet Cairn Group and Vedanta Resources on Sunday, ministry and company sources said, to try to hammer out royalty payment issues that threaten the multi-billion dollar takeover of Cairn India. 

It could be the last meeting with the parties to the deal before the oil ministry firms up its view -- which will be the clincher for whether the deal goes ahead. 

On Jan. 31, Oil Minister Jaipal Reddy said that Oil Secretary S. Sundareshan would meet all stakeholders for the planned acquisition deal at the end of this week. 

"There will be one more interaction at the end of the first week of February. Situation in its final contours will be known then," Reddy said. 

Cairn Energy agreed in August to sell 40-51 percent inCairn India to Vedanta but the deal has been delayed on rumblings from the government and its partner in the big Rajasthan block, Oil and and Natural Gas Corp. 

State-owned ONGC , which has a 30 percent stake in Cairn-operated Rajasthan fields and pays royalty on the entire output, said it would not block the planned deal but wanted the royalty issue to be resolved at the earliest. 

The oil ministry has been maintaining that it has nothing against the deal but it would strive to protect ONGC's interest. 

ONGC's then chairman R. S. Sharma on Jan 30. said his firm would end up paying a royalty of 140 billion rupees ($3.1 billion) on crude output from Rajasthan fields as per the production plan submitted by the private firm to the government. 

Citing persons with direct knowledge of the matter, the Economic Times of India on Friday reported that Vedanta will terminate the $9.6-billion deal if Cairn India accepts the oil ministry's conditions like changing the royalty obligations in the Rajasthan block. 

IOC may build $5 bln refinery in Turkey

Indian Oil Corp (IOC) is interested in building a $5 billion refinery in Turkey and is currently carrying out feasibility work on the project, junior trade minister, Jyotiraditya Scindia , said on Friday. 

IOC and Oil and Natural Gas Corp (ONGC) are interested in exploring for oil and natural gas in Turkey, Scindia also told reporters. 

IOC "is looking at setting up a 15 million tonne refinery company in Turkey," Scindia said, referring to the volume of crude oil a facility could process in a year. "They are evaluating the feasibility of this." 

The Delhi-based company had previously planned to build a refinery with Turkey's Calik Holding at the Mediterranean port of Ceyhan, where pipelines carrying Iraqi and Azeri crude terminate. 

Plans for that plant were put on hold during the global financial crisis in 2008, and Scindia did not say whether IOC would partner again with Calik. 

India imports about 70 percent of its oil and gas and is interested in exploring for new sources, Scindia said. 

Turkey has tiny amounts of gas and oil reserves, requiring it to import about 95 percent of the fuels. 

But the government has agreed in recent years with U.S.-based Chevron and Brazilian state oil company Petrobras to look for gas off its Black Sea coast.

Discoms can enhance connected load of Consumers- APTEL

In a development that could mean a more stable power supply in future, though possibly at a higher cost, the Capital's power companies on 02-02-2011 got the legal go-ahead to enhance the load of those consumers in the habit of using more than what is sanctioned to them. The Appellate Tribunal on Electricity ruled in favour of the companies, who have been fighting the Delhi Electricity Regulatory Commission for the right to enhance load on their own.

Typically, each household has a sanctioned load of 1-2 KW. But nearly all of them use 3-4 KW, due to the use of appliances such as geysers and ACs. This causes overload and breakdown of the grids and transformers, leading to power supply disruptions and faster wear and tear of infrastructure.

"This will help us build a more robust network that sees fewer breakdowns due to overloading and the life of our infrastructure will also improve," said Gopal Saxena, CEO of BSES Rajdhani, Delhi's biggest power company.

But for this to happen, Delhiites may have to pay a slightly fatter power bill.

If your load is enhanced, your security deposit would go up by Rs 600 for every additional kilowatt (KW) of power you consume and you would also have to pay a monthly fixed charge of R12 per KW.

Wednesday's judgement affects almost all power consumers in the city since domestic consumers don't usually get their sanctioned load enhanced to what they actually use, either out of ignorance or to avoid paying a higher security deposit and fixed charges per month.

A consumer using more than the sanctioned load for three months a year will be eligible for automatic load enhancement. It applies only to those who have under-declared their load.

SAIL to set-up 1000mw power plant in UP

Steel Authority of India Limited will put in over INR 5,000 crore in reviving its unit at Jagdishpur that may include a 1,000 MW gas based power plant to be set up in collaboration with Japan's Kobe Steel. Besides, it is also examining the prospects of setting up a steel processing unit in Uttar Pradesh, steel minister Mr Beni Prasad Verma while reviewing the progress of the ongoing revival work at maharatna PSU's Jagdishpur unit. Said that "Steel Authority of India Ltd will be examining the feasibility of setting up a steel processing unit at Barabanki/Gonda."

The first phase of the revival plan with an investment of INR 100 crore in the sick Malavika Steel that was taken over in 2009 by the maharatna PSU is already on, besides some other works, SAIL chairman Mr CS Verma, who accompanied the steel minister.

Talks are already on with Kobe Steels, Japan, for the second phase, which includes a 1000 MW gas based power plant with an investment of INR 2,500 crore and a steel plant based on direct re used iron making technology that would take some three years to complete.
Mr Verma added that a joint task force team with the Japanese firm has been set up, which would submit its report in March 2011.