Friday, November 19, 2010
Mumbai - 8 cos submit EoIs for distributing power in RInfra's area
Eight companies have submitted their Expressions of Interest (EoIs) to the state's electricity regulator MERC for distributing power in the license area of RInfra in the city's suburbs. Last month, Maharashtra Electricity Regulatory Authority (MERC) had invited EoIs from interested parties for supplying power in the suburbs where presently the Anil Ambani-led Reliance Infrastructure (RInfra) is distributing electricity.
The company's license expires on August 15 next year. Maharashtra State Electricity Distribution Company (MSEDCL), which supplies power in the rest of the state, and RInfra's competitor Tata Power Company (TPC) have submitted their EoIs to the MERC.
Interestingly, RInfra has not submitted its EoI. Instead, it has filed a petition for amendment of license conditions. Apart from TPC and MSEDCL, Torrent Power Limited, DPSC Limited (Kolkata), Lanco Infrastructure, GMR Energy Limited, Indiabulls Power Limited and Enzen Global Solution Pvt Ltd (Bangalore) have submitted their EoIs.
Currently, RInfra has a consumer base of 27.24-lakh consumers, including residential, commercial, industrial and streetlights in its area of supply. Last year, the Supreme Court had upheld TPC's demand to operate as a retail distributor in the distribution areas of BEST and RInfra in Mumbai.
Following this, nearly 45,000 RInfra consumers had shifted to TPC. TPC and RInfra had entered into a legal battle after the former declined to supply 160 MW of power to the latter for supplying power to its suburban consumers.
Power ministry seeks expert opinion for Rs 50,000 crore debt fund
The power ministry is consulting financial experts to work out the modalities of the proposed Rs 50,000-crore debt fund to finance electricity generation, transmission and distribution projects. "We are in talks with some economic experts...Can't name them right now, they would advise us on the debt fund...How to go about it," a power ministry official said.
The ministry is mulling to set up a debt fund for financing projects with an estimated corpus of Rs 50,000 crore.
State-run lenders Power Finance Corporation and Rural Electrification Corporation may also be roped in for the same.
The ministry is also in constant dialogue with the Planning Commission to work out a blueprint of the proposed fund.
Meanwhile, the Planning Commission has proposed a Rs 1,00,000-crore National Electricity Fund (NEF) to finance development of power transmission and distribution network in the country, which would soon go to the Cabinet for its approval.
The plan panel had last year announced setting up of NEF to finance the development of power transmission and distribution network by state utilities, so as to reduce transmission and distribution (T&D) losses.
It had suggested that the government should provide interest subsidy aimed at bearing part of the interest cost by the Centre. For example, if a state utility plans to raise funds at an interest rate of 10 per cent, four per cent of that would be borne by the government.
Power Finance Corp and Rural Electrification Corp are likely to be the nodal agencies to finance state utilities, as a part of NEF.
The support of World Bank and Asian Development Bank could be sought for improving electricity transmission and distribution network in the country.
Mumbai - Rinfra demands increase in wheeling charge and cross subsidy surcharge
RInfra has filed a petition for truing up tariff for year 2010-11 (up to March 2011). RInfra has asked for 31% increase in wheeling charges (charges for using its network by other supplier to connect the switch-over consumers) from 88 paisa to 115 paisa. The company has also demanded a cross-subsidy surcharge varying from Rs 2 to Rs 8 (depending on category) for consumers who shift to Tata.Reliance Infrastructure (RInfra) doesn't want to burden its consumers further, but wants the regulator to approve more charges for those who switch over to other suppliers. The petition was discussed for technical validation at the office of the Maharashtra Electricity Regulatory Commission's (MERC) office on 16-11-2010.
As per MERC directive, the new multi-year tariff will come into force from April 2011. It means there will be no tariff revision every year.
More than 60,000 suburban consumers have shifted to Tata Power in the past year.
Consumer activist Sandeep Ohri, who debated RInfra proposal on, told the Hindustan Times that RInfra's demand would kill any kind of competition. "RInfra has done nothing to procure additional power to bring its own tariff down."
Ohri said there were many discrepancies in the petition. "MERC has asked RInfra to file a fresh petition within 10-12 days."
Renewable Energy Certificate to be Launched today (18-11-2010)
arooq Abdullah, Union Minister of New and Renewable Energy, will be launching Renewable Energy Certificate (REC) Mechanism at New Delhi on 18-11-2010. Shri Uma Shankar, Secretary (Power); Shri Deepak Gupta, Secretary (MNRE); and Dr. Pramod Deo, Chairperson, CERC will also be attending the launching function.
The Regulatory framework for REC mechanism has been notified by CERC and the REC mechanism is being supported by MNRE and the Ministry of Power. REC mechanism is expected to bring new investments in renewable energy projects and help introducing market based competition in renewable energy sector.
A large part of our Renewable Energy potential is concentrated in few States and some of these States have achieved comparatively high levels of renewable electricity purchase as share of their total electricity consumption. The electricity from renewable energy being more expensive than the conventional electricity, these States are not willing to buy renewable based electricity any further. For example, Tamil Nadu has more than 10% of total electricity from renewable sources of energy but still has untapped wind energy potential. On the other hand, there are States like Bihar and Delhi which have very little renewable energy potential but are required by the National Electricity Policy to enhance the share of renewable electricity in their total electricity consumption.
To address this mismatch, the Electricity Regulatory Commissions have collectively evolved REC mechanism under which the green electricity is to be split into two components, i.e. electricity and the green attribute. The electricity component can be sold to local distribution utilities at a price of conventional electricity and the green attribute is converted into REC which the generator can sell to the utilities of States like Delhi. Such a utility can fulfill its renewable purchase obligations by purchasing RECs.
Centre plans to defer tariff-based bidding in hydel projects for 5 years
The central government is all set to defer mandatory tariff based bidding for hydroelectric power projects by another five years. The deferment will be based on recommendation of a taskforce headed by power minister Sushilkumar Shinde.Major government-ow ned power utilities like NHPC, Satluj Jal Vidyut Nigam (SJVNL) and Tehri Hydro Development Corporation (THDC) stand to gain from such a decision.
A task force headed by Shinde has recommended that cost-plus tariff regime be extended for the sector till January 2016, a power ministry official said. "We are very much in agreement with the task force recommendations. The hydro sector is not mature to handle competition," he said.
The task force has cited high risks and uncertainties inherent to hydropower projects. "Given their location in hilly areas, sites for hydroelectric projects suffer from adverse geological conditions and natural calamities," the official quoted the task force report.
Power minister Sushilkumar Shinde held a meeting with state energy ministers on October 24 to decide on whether to exempt hydel projects from tariff-based competitive bidding beyond January 2011.
HPCL to invest Rs13,000 cr to augment Vizag refinery capacity
State-owned Hindustan Petroleum Corp Ltd (HPCL) plans to invest Rs13,000 crore to almost double the capacity of its Vizag oil refinery in Andhra Pradesh to 15 million tonnes a year by 2013-14.
"We have asked for a detailed feasibility report (DFR) for raising capacity at the Vizag refinery," HPCL Chairman and managing director Subir Roychowdhary said here.
The decision to expand the Vizag refinery follows steel tycoon Lakshmi Mittal group and French oil firm Total SA walking out of a proposed USD 4 billion project to build a 15 million tonnes per annum refinery and a 2.5 million tonnes per annum petrochemicals plant near HPCL's 8.3 million tonnes per annum refinery at Visakhapatnam.
"That project is on freeze (since 2007 when Mittal walked out). We are now looking at raising our Vizag refinery capacity," he said.
The other partners in the five-way consortium were state-run explorer Oil India Ltd and state gas utility GAIL India Ltd.
HPCL does not intend to bring a partner onboard for the refinery expansion.
It may add a new 180,000 barrels per day (9 million tonnes per annum) crude distillation unit (CDU) and scrap the old 36,000 bpd (1.8 million tonnes per annum) unit at the Vizag refinery.
"We already have acquired land for the project," he said. "The project will take 3 years to complete."
HPCL currently operates three CDUs at the 8.3 million tonnes a year (166,000 bpd) Vizag refinery. It also runs a 6.5 million tonnes a year refinery in Mumbai.
Roychowdhary said HPCL and Mittal Energy, owned by billionaire Lakshmi Mittal, will mechanically complete the 9 million tonnes a year refinery at Bhatinda, in Punjab, by March, 2011, and the unit will be fully operational by September.
HPCL is also looking at investing Rs30,000 crore to set up an 18 million tonnes a year refinery.
The new refinery, to be set up in Maharashtra, was conceptualised to make up for space constraints at HPCL's existing Mumbai Refinery.
"We have been told that 1,800 acres of land is available with MIDC (Maharashtra Industrial Development Corp). We have asked for 1,000 acres more land," he said.
State-owned Engineers India has been engaged to carry out a feasibility study on the proposed refinery. The options under consideration are a single 18 million tonnes per annum unit or two units of 9 million tonnes per annum capacity each.
The DFR will be ready by December, Roychowdhary said. The land earmarked for the refinery is located between Ratnagiri and Raigad and the unit, called Maharashtra Refinery, would be completed within 48 months from the date of receipt of all approvals.
"We have asked for a detailed feasibility report (DFR) for raising capacity at the Vizag refinery," HPCL Chairman and managing director Subir Roychowdhary said here.
The decision to expand the Vizag refinery follows steel tycoon Lakshmi Mittal group and French oil firm Total SA walking out of a proposed USD 4 billion project to build a 15 million tonnes per annum refinery and a 2.5 million tonnes per annum petrochemicals plant near HPCL's 8.3 million tonnes per annum refinery at Visakhapatnam.
"That project is on freeze (since 2007 when Mittal walked out). We are now looking at raising our Vizag refinery capacity," he said.
The other partners in the five-way consortium were state-run explorer Oil India Ltd and state gas utility GAIL India Ltd.
HPCL does not intend to bring a partner onboard for the refinery expansion.
It may add a new 180,000 barrels per day (9 million tonnes per annum) crude distillation unit (CDU) and scrap the old 36,000 bpd (1.8 million tonnes per annum) unit at the Vizag refinery.
"We already have acquired land for the project," he said. "The project will take 3 years to complete."
HPCL currently operates three CDUs at the 8.3 million tonnes a year (166,000 bpd) Vizag refinery. It also runs a 6.5 million tonnes a year refinery in Mumbai.
Roychowdhary said HPCL and Mittal Energy, owned by billionaire Lakshmi Mittal, will mechanically complete the 9 million tonnes a year refinery at Bhatinda, in Punjab, by March, 2011, and the unit will be fully operational by September.
HPCL is also looking at investing Rs30,000 crore to set up an 18 million tonnes a year refinery.
The new refinery, to be set up in Maharashtra, was conceptualised to make up for space constraints at HPCL's existing Mumbai Refinery.
"We have been told that 1,800 acres of land is available with MIDC (Maharashtra Industrial Development Corp). We have asked for 1,000 acres more land," he said.
State-owned Engineers India has been engaged to carry out a feasibility study on the proposed refinery. The options under consideration are a single 18 million tonnes per annum unit or two units of 9 million tonnes per annum capacity each.
The DFR will be ready by December, Roychowdhary said. The land earmarked for the refinery is located between Ratnagiri and Raigad and the unit, called Maharashtra Refinery, would be completed within 48 months from the date of receipt of all approvals.
Hopes to finalise overseas asset buy: Oil India exec
State-run Oil India is hoping to conclude a deal soon to buy a stake in an oil and gas producing asset overseas, its head of finance T.K. Anantha Kumar said on Tuesday.
"We are looking at producing assets in Australia, South America and parts of Africa. It should be below $1 billion... we are not going for a multi-billion dollar deal," Kumar told reporters.
"We are looking at producing assets in Australia, South America and parts of Africa. It should be below $1 billion... we are not going for a multi-billion dollar deal," Kumar told reporters.
Cairn cannot sell stake to Vedanta without govt nod
In A significant development, the law ministry has opined that UK’s Cairn Energy cannot sell stake in its Indian unit to Vedanta Resources without government nod for transfer of control in all its properties including the giant Rajasthan oilfields .
“We had been criticised for being overzealous and so we took the opinion of the law ministry which has unequivocally stated that Cairn Energy must apply and seek government approval in all of its assets in India,” an oil ministry official said here.
The Edinburgh-based firm, in its August 16 announcement for sale of its 40-51% stake in Cairn Indiato London-listed Vedanta Resources for $8.48 billion, did not say the deal was conditional on government approvals.
On being shown the relevant provisions of the contracts for exploration it has with the government, Cairn Energy, about a month later, made an application for permission that left out all of its three producing properties including its mainstay 6.5-billion barrels Rajasthan block.
“The law ministry in an opinion sent late last month has clearly held that the share sale is nothing but transfer of control (in all of the 10 properties of Cairn India) and so government nod is required in all of them,” the official said.
Previously, the Solicitor General of India, the nation’s second-highest law officer, had held the same view on being asked for advice by Oil and Natural Gas Corporation.
“Cairn India is primarily an aggregation of interests that it holds directly or indirectly through its subsidiaries in 11 blocks (in India and Sri Lanka). A transfer of controlling stake in Cairn India amounts to a transfer of the respective participating interests, therefore necessitating government approval,” the official said.
And transfer/sale/assignment of interest to third party will trigger pre-emption rights of state-owned ONGC , which partners Cairn India in most of its properties.
The official said Cairn was awarded exploration blocks on the basis of the group’s financial strength, technical capabilities and past experience in the area of exploration and production of oil and natural gas worldwide including operatorship experience.
Vedanta on the other hand would not have won a single block on its own due to lack of experience in oil and gas sphere. But by acquiring Cairn India, it is “circumventing the technical expertise criteria required for bids and assignment (in oil and gas properties),” he said. The new owner of Cairn India will have to meet the technical expertise criteria set for operations of complex oil and gas fields.
Cairn says the Vedanta deal is only a corporate transaction involving share transfer which does not trigger issues like examination of new owners’ technical capability and ONGC’s pre-emption rights.
“We had been criticised for being overzealous and so we took the opinion of the law ministry which has unequivocally stated that Cairn Energy must apply and seek government approval in all of its assets in India,” an oil ministry official said here.
The Edinburgh-based firm, in its August 16 announcement for sale of its 40-51% stake in Cairn Indiato London-listed Vedanta Resources for $8.48 billion, did not say the deal was conditional on government approvals.
On being shown the relevant provisions of the contracts for exploration it has with the government, Cairn Energy, about a month later, made an application for permission that left out all of its three producing properties including its mainstay 6.5-billion barrels Rajasthan block.
“The law ministry in an opinion sent late last month has clearly held that the share sale is nothing but transfer of control (in all of the 10 properties of Cairn India) and so government nod is required in all of them,” the official said.
Previously, the Solicitor General of India, the nation’s second-highest law officer, had held the same view on being asked for advice by Oil and Natural Gas Corporation.
“Cairn India is primarily an aggregation of interests that it holds directly or indirectly through its subsidiaries in 11 blocks (in India and Sri Lanka). A transfer of controlling stake in Cairn India amounts to a transfer of the respective participating interests, therefore necessitating government approval,” the official said.
And transfer/sale/assignment of interest to third party will trigger pre-emption rights of state-owned ONGC , which partners Cairn India in most of its properties.
The official said Cairn was awarded exploration blocks on the basis of the group’s financial strength, technical capabilities and past experience in the area of exploration and production of oil and natural gas worldwide including operatorship experience.
Vedanta on the other hand would not have won a single block on its own due to lack of experience in oil and gas sphere. But by acquiring Cairn India, it is “circumventing the technical expertise criteria required for bids and assignment (in oil and gas properties),” he said. The new owner of Cairn India will have to meet the technical expertise criteria set for operations of complex oil and gas fields.
Cairn says the Vedanta deal is only a corporate transaction involving share transfer which does not trigger issues like examination of new owners’ technical capability and ONGC’s pre-emption rights.
Production to go up after 10-year flat growth: ONGC
After a flat production growth in the past decade, ONGC's oil and gas output is now expected to go up following significantly higher reserve accretion, its Chairman and Managing Director R S Sharma said today.
He said ONGC production had been flat in the last ten years based on the discoveries it had made but last year, the reserve accretion has been the highest in the last 20 years.
"Our oil production, after a ten-year flat growth, is projected to increase by about three million tonnes (annually) in the next two-three years and gas production from 62 million cubic metres per day is expected to cross 100 million cubic metres per day in the next five-six years", he said.
He noted that in the industry that ONGC operates,it takes five-seven years for the discoveries to materialise into production.
Sharma said ONGC's follow-on public offer is slated for the January-March quarter when five per cent stake would be divested. When ten per cent was divested in the initial public offer in 2004,government was able to collect Rs 10,500 crore. The five per cent divestment in early 2011 would fetch "much more than ten per cent collection in 2004".
On reports of ONGC mulling stock-split,he said the company is waiting to hear from the Government.
"Once we hear (from the Government), we will deliver", he said on the margins of CII-organised three-day national quality summit which commenced here.
He said ONGC production had been flat in the last ten years based on the discoveries it had made but last year, the reserve accretion has been the highest in the last 20 years.
"Our oil production, after a ten-year flat growth, is projected to increase by about three million tonnes (annually) in the next two-three years and gas production from 62 million cubic metres per day is expected to cross 100 million cubic metres per day in the next five-six years", he said.
He noted that in the industry that ONGC operates,it takes five-seven years for the discoveries to materialise into production.
Sharma said ONGC's follow-on public offer is slated for the January-March quarter when five per cent stake would be divested. When ten per cent was divested in the initial public offer in 2004,government was able to collect Rs 10,500 crore. The five per cent divestment in early 2011 would fetch "much more than ten per cent collection in 2004".
On reports of ONGC mulling stock-split,he said the company is waiting to hear from the Government.
"Once we hear (from the Government), we will deliver", he said on the margins of CII-organised three-day national quality summit which commenced here.
Vedanta seals $6 bn financing for Cairn India deal
India-focused mining group Vedanta Resources Plc agreed a $6 billion financing deal with a consortium of banks to help fund its proposed acquisition of a majority stake in the Indian unit of Cairn Energy.
London-listed Vedanta said in a statement the financing would be structured in four tranches, with maturities of between 18 months and three years.
The bank consortium comprises Barclays Capital, Citi, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, Royal Bank of Scotland and Standard Chartered.
General syndication will be launched shortly. Vedanta announced a deal in August to buy a stake of 51-60 percent in Cairn India for $8.5 billion to $9.6 billion.
On Tuesday, UK's Cairn Energy said there was no guarantee its planned sale of the stake would proceed, but still hoped to close the deal in the first quarter of 2011.
Cairn Energy has applied for government nod in seven out of the 10 properties held by Cairn India. It has not sought government approval and consent of partner Oil and Natural Gas (ONGC) in the three producing properties including the giant Rajasthan block, that has triggered a war of words.
Both Oil Ministry and ONGC , which holds stake in most of Cairn India's properties, have contested this view and have got legal opinion backing their claim. They feel the deal is effective transfer of control and so ONGC's pre-emption rights are triggered.
Vedanta was to get shareholder nod for the deal by October 30 but has not yet posted a notice for a shareholders meet. Its mandatory open offer for additional 20 per cent stake in Cairn India too missed the October deadline as market regulator SEBI is yet to give its approval for the same.
London-listed Vedanta said in a statement the financing would be structured in four tranches, with maturities of between 18 months and three years.
The bank consortium comprises Barclays Capital, Citi, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, Royal Bank of Scotland and Standard Chartered.
General syndication will be launched shortly. Vedanta announced a deal in August to buy a stake of 51-60 percent in Cairn India for $8.5 billion to $9.6 billion.
On Tuesday, UK's Cairn Energy said there was no guarantee its planned sale of the stake would proceed, but still hoped to close the deal in the first quarter of 2011.
Cairn Energy has applied for government nod in seven out of the 10 properties held by Cairn India. It has not sought government approval and consent of partner Oil and Natural Gas (ONGC) in the three producing properties including the giant Rajasthan block, that has triggered a war of words.
Both Oil Ministry and ONGC , which holds stake in most of Cairn India's properties, have contested this view and have got legal opinion backing their claim. They feel the deal is effective transfer of control and so ONGC's pre-emption rights are triggered.
Vedanta was to get shareholder nod for the deal by October 30 but has not yet posted a notice for a shareholders meet. Its mandatory open offer for additional 20 per cent stake in Cairn India too missed the October deadline as market regulator SEBI is yet to give its approval for the same.
Greenforce Enviro forms JV with German firm Gehrlicher
German company, Gehrlicher Solar AG and Greenforce Enviro Pvt Ltd today announced that they have formed the joint venture company-Gehrlicher Solar (India) to offer EPC and other services for solar power plants in the country.
Mumbai-based, Gehrlicher Solar (India) has drawn up business plan for the Indian market through its joint venture. As per the shareholding pattern, Gehrlicher Solar AG, Germany will hold 51 per cent while Green Force Enviro will hold 49 per cent stake in the new joint venture, a company statement said here.
The current investment works out at about USD five million, the release said.
The solar project is being planned as a response to the recently announced Jawaharlal Nehru National Solar Mission by the Government of India. The policy envisages installation of Solar Power Plants to achieve 20,000 MW capacities by 2020, thus offering a huge opportunity in the field.
Gehrlicher Solar AG is a leading German company operating in the field of solar photovoltaics. The company designs, constructs, finances and operates photovoltaic plants and also offers photovoltaic modules and components.
Mumbai-based, Gehrlicher Solar (India) has drawn up business plan for the Indian market through its joint venture. As per the shareholding pattern, Gehrlicher Solar AG, Germany will hold 51 per cent while Green Force Enviro will hold 49 per cent stake in the new joint venture, a company statement said here.
The current investment works out at about USD five million, the release said.
The solar project is being planned as a response to the recently announced Jawaharlal Nehru National Solar Mission by the Government of India. The policy envisages installation of Solar Power Plants to achieve 20,000 MW capacities by 2020, thus offering a huge opportunity in the field.
Gehrlicher Solar AG is a leading German company operating in the field of solar photovoltaics. The company designs, constructs, finances and operates photovoltaic plants and also offers photovoltaic modules and components.
Need of the hour is dynamic regulator: Power companies
India needs a dynamic regulatory framework to augment growth in the power sector and address the perennial energy deficit in India, said top executives of the country’s power firms.
"A regulatory framework is necessary. It can provide the momentum to the renewable energy sector," said Tulsi R Tanti , chairman and managing director of Suzlon Energy, at the India Economic Summit. Many new schemes were kicked off in the past two years to propel the growth of the renewable energy sector, but more such initiatives are needed, Mr Tanti added.
"The generation-based incentive and the renewable energy credit have been good incentives," Mr Tanti said at the session ‘Empowering the Underpowered: action for Energy Infrastructure’.
Ravi Sharma, CEO of Adani Power , agreed with Mr Tanti. He, however, said the government needs to ensure better distribution as it has been a politically-sensitive issue and states are seeking control over power created in the region.
Another major issue that needs to be tackled is the wastage of power at different levels of production. "We can bring down wastage from roughly 70% to more acceptable levels," Mr Sharma said, adding that the existing infrastructure was capable of delivering much more.
Even as the stock markets soared to record highs, the financing of the renewable energy sector remains a problem. "Unavailability of long-term (20-25 year loans) finance is a major hindrance," said Mr Tanti.
Rajiv Lall, managing director and chief executive of development finance institution IDFC, said: "The presence of a deep and liquid corporate bond market is essential.”
The efforts to develop the corporate bond market have not made much progress, and this is largely the reason why long-term insurance and retirement funds have not invested in the infrastructure sector. But some encouraging signs have emerged after banks have shifted to the base rate regime of pricing loans. Seeing cheaper funds in the markets, companies are beginning to raise larger amount of short term debt through commercial paper.
Providing power to the underprivileged is the most important factor if India is to achieve the status of a developed country.
"A regulatory framework is necessary. It can provide the momentum to the renewable energy sector," said Tulsi R Tanti , chairman and managing director of Suzlon Energy, at the India Economic Summit. Many new schemes were kicked off in the past two years to propel the growth of the renewable energy sector, but more such initiatives are needed, Mr Tanti added.
"The generation-based incentive and the renewable energy credit have been good incentives," Mr Tanti said at the session ‘Empowering the Underpowered: action for Energy Infrastructure’.
Ravi Sharma, CEO of Adani Power , agreed with Mr Tanti. He, however, said the government needs to ensure better distribution as it has been a politically-sensitive issue and states are seeking control over power created in the region.
Another major issue that needs to be tackled is the wastage of power at different levels of production. "We can bring down wastage from roughly 70% to more acceptable levels," Mr Sharma said, adding that the existing infrastructure was capable of delivering much more.
Even as the stock markets soared to record highs, the financing of the renewable energy sector remains a problem. "Unavailability of long-term (20-25 year loans) finance is a major hindrance," said Mr Tanti.
Rajiv Lall, managing director and chief executive of development finance institution IDFC, said: "The presence of a deep and liquid corporate bond market is essential.”
The efforts to develop the corporate bond market have not made much progress, and this is largely the reason why long-term insurance and retirement funds have not invested in the infrastructure sector. But some encouraging signs have emerged after banks have shifted to the base rate regime of pricing loans. Seeing cheaper funds in the markets, companies are beginning to raise larger amount of short term debt through commercial paper.
Providing power to the underprivileged is the most important factor if India is to achieve the status of a developed country.
NLC to set up over Rs 20,000cr power plants in Orissa, UP, TN
State-owned Neyveli Lignite Corp has proposed to set up 4,000 MW coal-based power plants in the states of Orissa and Uttar Pradesh while a wind mill in Tamil Nadu, Parliament was informed today.
"Neyveli Lignite Corporation(NLC) proposes to set up coal fired power plants of 2,000 MW capacity each in Orissa and Uttar Pradesh...and is also setting up a 50 MW wind power plant at Trinelveli district (Tamil Nadu) at the cost of Rs 313 crore," Coal Minister Sriprakash Jaiswal said in a written reply to the Rajya Sabha.
Industry observers say that the coal-fired power plants could cost the mini-ratna company as much as Rs 20,000 crore.
All three projects are yet to be approved by respective state governments, the Minister added.
"Details of land and households will be known only after the state governments approvals have been obtained for setting up of the power plants," Jaiswal said.
The 4,000 MW power plants require as much as 2,000 acre of land and the wind power project would need an area of 100 acres, he said.
"Neyveli Lignite Corporation(NLC) proposes to set up coal fired power plants of 2,000 MW capacity each in Orissa and Uttar Pradesh...and is also setting up a 50 MW wind power plant at Trinelveli district (Tamil Nadu) at the cost of Rs 313 crore," Coal Minister Sriprakash Jaiswal said in a written reply to the Rajya Sabha.
Industry observers say that the coal-fired power plants could cost the mini-ratna company as much as Rs 20,000 crore.
All three projects are yet to be approved by respective state governments, the Minister added.
"Details of land and households will be known only after the state governments approvals have been obtained for setting up of the power plants," Jaiswal said.
The 4,000 MW power plants require as much as 2,000 acre of land and the wind power project would need an area of 100 acres, he said.
NTPC may set up cement plant with NALCO
State-run power utility NTPC may set up a cement plant in a joint venture with National Aluminium Co , NTPC chairman Arup Roy Choudhury said on Tuesday.
"In a month to a month-and-a-half, we will firm up the plan," Choudhury told reporters.
"In a month to a month-and-a-half, we will firm up the plan," Choudhury told reporters.
Indo-UK business group exploring potential for clean coal tech export
A high powered UK India business group is exploring the potential for the UK government to fund UK firms who can export clean coal technologies to India, and is working on a funding mechanism so that funds earmarked for green technologies can be channeled to transfer of clean coal technologies.
The initiative is part of a star-studded UK India business leaders climate change initiative set up by David Cameron while in opposition, and includes the likes of Stuart Rose, chairman of Marks and Spencer, Stephen Green formerly of HSBC, and James Murdoch of Newscorp among others on the UK side, and Rajan Bharti Mittal, managing director of Bharti, YK Modi of Great Eastern, Tulsi Tanti of Suzlon among others on the Indian side.
The group has an agenda to explore business to business collaboration between UK and India towards a low carbon economy, and has come up with a report outlining its agenda of action, which includes a directory for clean technologies, setting up demonstration joint projects and creating and facilitating financing for green enterprises, and a summit to be held in India next year.
The initiative is massively supported by the UK government, and personally by UK prime minister David Cameron. William Hague, UK foreign secretary William Hague said that Indian companies are setting global standards for low-carbon technologies while launching the report by the UK India Business Leaders Climate Group , an event hosted by UK’s energy and climate change minister Greg Barker.
Prime minister David Cameron, in a video message said: ““The innovation and creativity of business won’t just help us save the planet, but is expected to create millions of jobs and billions of revenue in the green goods and services market.” Among the wishlist on the Indian side for collaboration is progress on transfer of clean coal technologies, considered too expensive for general use in India and critical for most Indian industry.
“There are some concerns about IPR from UK companies, which we have to address. We have asked the UK side to consider how the UK government can channel the subsidies available for the green sector to their own companies. We are working on a financing mechanism,” said Rajan Bharti Mittal, speaking on the sidelines of the launch of the group’s meeting in London.
The initiative is part of a star-studded UK India business leaders climate change initiative set up by David Cameron while in opposition, and includes the likes of Stuart Rose, chairman of Marks and Spencer, Stephen Green formerly of HSBC, and James Murdoch of Newscorp among others on the UK side, and Rajan Bharti Mittal, managing director of Bharti, YK Modi of Great Eastern, Tulsi Tanti of Suzlon among others on the Indian side.
The group has an agenda to explore business to business collaboration between UK and India towards a low carbon economy, and has come up with a report outlining its agenda of action, which includes a directory for clean technologies, setting up demonstration joint projects and creating and facilitating financing for green enterprises, and a summit to be held in India next year.
The initiative is massively supported by the UK government, and personally by UK prime minister David Cameron. William Hague, UK foreign secretary William Hague said that Indian companies are setting global standards for low-carbon technologies while launching the report by the UK India Business Leaders Climate Group , an event hosted by UK’s energy and climate change minister Greg Barker.
Prime minister David Cameron, in a video message said: ““The innovation and creativity of business won’t just help us save the planet, but is expected to create millions of jobs and billions of revenue in the green goods and services market.” Among the wishlist on the Indian side for collaboration is progress on transfer of clean coal technologies, considered too expensive for general use in India and critical for most Indian industry.
“There are some concerns about IPR from UK companies, which we have to address. We have asked the UK side to consider how the UK government can channel the subsidies available for the green sector to their own companies. We are working on a financing mechanism,” said Rajan Bharti Mittal, speaking on the sidelines of the launch of the group’s meeting in London.
New setup in works to monitor power projects
The government has put in place a special monitoring mechanism under the Cabinet Secretariat to see that country’s capacity addition programme in the power sector proceeds smoothly.
The fresh intervention comes at the behest of the Prime Minister’s Office that is concerned that delays in power projects being reported at regular intervals may again derail the country’s capacity addition programme.
The country’s Eleventh Plan (2007-12 ) target of generation capacity addition has already been revised downwards to 62,000 MW from 78,700 MW. Even this is unlikely to be met as just about half of the target has been achieved so far.
The Cabinet Secretariat plans to oversee progress of power projects on a monthly basis with special emphasis on activities getting delayed on a regular basis.
"We have been asked to send progress on implementation of power projects to the Cabinet Secretariat on a monthly basis with details of activities getting delayed or showing deviation from the agreed timeline," said an official in the power ministry.
"This report also has to give reasons for the delay, corrective action initiated and the revised timelines," the official involved in the process of preparing report for the Cabinet Secretariat said.
The government has already formed a panel of officers headed by the cabinet secretary to review capacity addition. Another committee headed by the secretary, heavy industries , and senior officials from the ministry of power, CEA, NTPC and BHEL as members will regularly evaluate commissioning of power projects.
It has been decided that the new set up will not only identify and rectify delays but will also put in a mechanism to fix responsibility and take strict action for lapses.
One of the reasons for the delay has cited in the inability of BHEL to stick to its delivery schedules. The power equipment manufacturing PSU on the other had has cited certain logistical issues as reasons for delay in equipment reaching the desired destination.
In this regard it has been decided that the expert technical group (ETG) under the heavy industries ministries will prepare a generic logistic plans for speedy transportation of heavy and over sized dimension consignments of power equipment to various project sites in the country.
The country’s currently has an installed generation capacity of about 1,60,000 MW. Even at this level, India faces high energy deficit of over 10% and equally high peaking power deficit of over 13% or close to 16,500 MW.
The fresh intervention comes at the behest of the Prime Minister’s Office that is concerned that delays in power projects being reported at regular intervals may again derail the country’s capacity addition programme.
The country’s Eleventh Plan (2007-12 ) target of generation capacity addition has already been revised downwards to 62,000 MW from 78,700 MW. Even this is unlikely to be met as just about half of the target has been achieved so far.
The Cabinet Secretariat plans to oversee progress of power projects on a monthly basis with special emphasis on activities getting delayed on a regular basis.
"We have been asked to send progress on implementation of power projects to the Cabinet Secretariat on a monthly basis with details of activities getting delayed or showing deviation from the agreed timeline," said an official in the power ministry.
"This report also has to give reasons for the delay, corrective action initiated and the revised timelines," the official involved in the process of preparing report for the Cabinet Secretariat said.
The government has already formed a panel of officers headed by the cabinet secretary to review capacity addition. Another committee headed by the secretary, heavy industries , and senior officials from the ministry of power, CEA, NTPC and BHEL as members will regularly evaluate commissioning of power projects.
It has been decided that the new set up will not only identify and rectify delays but will also put in a mechanism to fix responsibility and take strict action for lapses.
One of the reasons for the delay has cited in the inability of BHEL to stick to its delivery schedules. The power equipment manufacturing PSU on the other had has cited certain logistical issues as reasons for delay in equipment reaching the desired destination.
In this regard it has been decided that the expert technical group (ETG) under the heavy industries ministries will prepare a generic logistic plans for speedy transportation of heavy and over sized dimension consignments of power equipment to various project sites in the country.
The country’s currently has an installed generation capacity of about 1,60,000 MW. Even at this level, India faces high energy deficit of over 10% and equally high peaking power deficit of over 13% or close to 16,500 MW.
IOC to pick up 26% stake in NPCIL Kota N-plant for Rs 900 cr
State-run oil marketing company Indian Oil on Friday said it will invest about Rs 900 crore to pick up a 26 per cent stake in Nuclear Power Corporation's 1,400-MW atomic power project at Kota, in Rajasthan.
"We would join Nuclear Power Corporation by picking up 26 per cent equity for Rs 900 crore in their 1,400-MW Kota atomic plant," Indian Oil CMD B M Bansal told reporters here.
Nuclear Power Corporation is setting up a 1,400-MW (2x700-MW) nuke plant at Kota, in Rajasthan, which is scheduled for completion by 2015-16.
"The joint venture agreement would be signed in a month," Bansal added.
IOC would hold 26 per cent equity in the project, which is proposed to be financed by both partners in the debt equity ratio of 70:30.
Meanwhile, the company is gearing up for its follow-on public offer in January, through which it expects to raise about Rs 20,000 crore.
The government plans to offload 10 per cent of its equity holding in Indian Oil through the FPO and an equal stake would be diluted by the PSU company.
Following the stake sale, the government's holding in IOC would reduce to 64.57 per cent from the existing 78.92 per cent.
Indian Oil has hired six investment banks -- Merrill Lynch, Citigroup, ICICI Securities, Morgan Stanley, SBI Capital and UBS -- to manage the public offer.
The mega offer is a part of the government's Rs 40,000 crore disinvestment programme this fiscal.
Apart from IOC, the government has lined up stake sales in Hindustan Copper, Manganese Ore India Ltd and SAIL, among other PSUs, this fiscal.
"We would join Nuclear Power Corporation by picking up 26 per cent equity for Rs 900 crore in their 1,400-MW Kota atomic plant," Indian Oil CMD B M Bansal told reporters here.
Nuclear Power Corporation is setting up a 1,400-MW (2x700-MW) nuke plant at Kota, in Rajasthan, which is scheduled for completion by 2015-16.
"The joint venture agreement would be signed in a month," Bansal added.
IOC would hold 26 per cent equity in the project, which is proposed to be financed by both partners in the debt equity ratio of 70:30.
Meanwhile, the company is gearing up for its follow-on public offer in January, through which it expects to raise about Rs 20,000 crore.
The government plans to offload 10 per cent of its equity holding in Indian Oil through the FPO and an equal stake would be diluted by the PSU company.
Following the stake sale, the government's holding in IOC would reduce to 64.57 per cent from the existing 78.92 per cent.
Indian Oil has hired six investment banks -- Merrill Lynch, Citigroup, ICICI Securities, Morgan Stanley, SBI Capital and UBS -- to manage the public offer.
The mega offer is a part of the government's Rs 40,000 crore disinvestment programme this fiscal.
Apart from IOC, the government has lined up stake sales in Hindustan Copper, Manganese Ore India Ltd and SAIL, among other PSUs, this fiscal.
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