New Delhi: The Government on Thursday decided to further ease the Mega Power Policy in a move that will help nearly 25 projects with investments of more than Rs 1.6 lakh crore. This is expected to increase power availability in the country and also ensure that consumers are charged reasonably for electricity supply.
Benefits
To benefit from this policy, the developer will have to tie up sales with distribution utilities through long-term power purchase agreements (PPAs). The amendment allows project developers to tie up for only 65 per cent of generation capacity through competitive bidding with the State distribution utilities against the earlier norm of 85 per cent.
The amendment allows the developer to sell up to 35 per cent of installed/net capacity under regulated tariff as per the specific host State policy. This dispensation would be one time and limited to 15 projects located in the States having mandatory host State power purchase policy under regulated tariff. States such as Odisha, Chhattisgarh and Madhya Pradesh insisted on buying up to 25-30 per cent of electricity from power stations for their respective States. The Government has also extended the maximum time for furnishing final mega certificates to tax authorities to 60 months instead of 36 months from the date of import for provisional mega projects (25 projects).
The Mega Power Policy was introduced in November 1995 to provide impetus for setting up of large projects. Thermal power projects of 1,000 MW and hydel plants of 500 MW are eligible for benefits under the policy. The policy has been modified time and again to encourage development of the sector.
It will also benefit supercritical projects that are awarded through international competitive bidding with the mandatory condition of setting up indigenous manufacturing facilities.
Development fund
The Cabinet also approved setting up of Power System Development Fund (PSDF). The projects taken up to strengthen the electricity transmission grid can source funding from this Rs 6,000-crore facility.
“The utilities that break grid discipline pays fine. Part of the fine is paid to compensate any utility that encounters losses. Currently, about Rs 6,000 crore has been accumulated in the fund, which would now be utilised for grid strengthening projects,” a senior Power Ministry official told Business Line.
Powering ahead Will encourage setting up of large power plants Simplify procedure for grant of mega certificate, encourage capacity addition Power System Development Fund to be used for creating necessary transmission lines Renovation and modernisation of transmission and distribution systems to relieve congestion Fund to be operationalised within three months
Success in my Habit
Saturday, January 4, 2014
US welcomes Indian firms
Hyderabad: The US will do more to help Indian companies of all sizes to set up operations there, said the US Ambassador Nancy Powell while addressing CII-AP members here.
The envoy welcomed Hyderabad-based businesses to participate in the Select-USA Road Show planned for April 2014.
The initiative is promoted by the US Department of Commerce. In her interaction with CII members, Powell enumerated the many reasons why Indian investment in the United States is now easier than ever before, including record low energy costs, a streamlined approval process, world-class universities and labour, and access to over 20 additional markets through high-level bilateral and multilateral international trade agreements.
During the meeting, Rajesh Datla, past chairman of CII Andhra Pradesh, and Managing Director, Elico Ltd., shared his experience in doing business with the U.S. He pointed out that CII is focusing on establishing contacts amont small and medium enterprises in the two countries.
Earlier in his welcome address, Suresh Chitturi, Vice-Chairman, CII Andhra Pradesh, and Vice-Chairman & Managing Director, Srinivasa Hatcheries Ltd, said the Indo-US trade has become broad-based and multi-sectoral.
The envoy welcomed Hyderabad-based businesses to participate in the Select-USA Road Show planned for April 2014.
The initiative is promoted by the US Department of Commerce. In her interaction with CII members, Powell enumerated the many reasons why Indian investment in the United States is now easier than ever before, including record low energy costs, a streamlined approval process, world-class universities and labour, and access to over 20 additional markets through high-level bilateral and multilateral international trade agreements.
During the meeting, Rajesh Datla, past chairman of CII Andhra Pradesh, and Managing Director, Elico Ltd., shared his experience in doing business with the U.S. He pointed out that CII is focusing on establishing contacts amont small and medium enterprises in the two countries.
Earlier in his welcome address, Suresh Chitturi, Vice-Chairman, CII Andhra Pradesh, and Vice-Chairman & Managing Director, Srinivasa Hatcheries Ltd, said the Indo-US trade has become broad-based and multi-sectoral.
India, Maldives sign pact on health cooperation
New Delhi: India and Maldives signed 3 agreements after delegation level talks between Maldives President, Abdula Yameen Abdul Gayoom, and Prime Minister Manmohan Singh here on Thursday. The pacts include an MoU on health cooperation.
India has extended standby credit of $25 m for imports from the country. It has agreed to consider favourably Maldives' proposal for import of diesel, petrol and aviation fuel.
Both sides agreed to address concerns of Indians in Maldives and Maldivians in India regarding consular and visa issues. The countries also agreed to consider a bilateral investment promotion and protection agreement at the earliest
Replying to Prime Minister Singh over amicable settlement of Maldives airport issue and other investor concerns, Gayoom said he was willing to work for a solution that makes both parties happy.
Gayoom said that he came to India with a long shopping list and added "my delegation is not disappointed".
The newly elected President of Maldives, Abdula Yameen Abdul Gayoom, began his first trip abroad with a four-day visit to India on Wednesday.
His visit comes in the backdrop of the island nation wanting to increase sourcing of products from India.
India has extended standby credit of $25 m for imports from the country. It has agreed to consider favourably Maldives' proposal for import of diesel, petrol and aviation fuel.
Both sides agreed to address concerns of Indians in Maldives and Maldivians in India regarding consular and visa issues. The countries also agreed to consider a bilateral investment promotion and protection agreement at the earliest
Replying to Prime Minister Singh over amicable settlement of Maldives airport issue and other investor concerns, Gayoom said he was willing to work for a solution that makes both parties happy.
Gayoom said that he came to India with a long shopping list and added "my delegation is not disappointed".
The newly elected President of Maldives, Abdula Yameen Abdul Gayoom, began his first trip abroad with a four-day visit to India on Wednesday.
His visit comes in the backdrop of the island nation wanting to increase sourcing of products from India.
Thursday, January 2, 2014
Gujarat Gas in 12-year supply pact with GSPC
Under the agreement, GSPC will supply imported re-gassified liquefied natural gas (R-LNG) to GGCL from January 1, 2014 up to July 01, 2025. The move is seen as a major relief for GGCL, as it will get assured gas supply for a long period. GGCL’s dependence on spot LNG will reduce, as the supply pact is expected to help it meet nearly 50 per cent of its total R-LNG requirement of around 1.3 mmscmd.
In an MoU signed last September, GSPC had agreed to supply up to 0.85 mmscmd of gas to GGCL.
GGCL will buy 0.574 mmscmd (of gas) between period March 1, 2014 up to July 01, 2025, and 0.076 mmscmd between January 01, 2014 up to July 01, 2025, said a statement filed with exchanges by GGCL. The price of gas will be determined in the relevant gas station control systems and it is expected to be formula-based.
Meanwhile, GGCL is also exploring other options to secure long-term gas supplies to further reduce its dependence on the costly spot LNG.
South power grid linked with national
Synchrony of power transmission lines refers to their ability to withstand sudden and large variations in power flow
New Delhi: The southern region’s power grid was connected to the rest of the country’s transmission network on Wednesday after state-owned transmission company Power Grid Corp commissioned a power line between Solapur in Maharashtra and Raichur in Karnataka, the power ministry has said.
The inter-connection would enable inter-regional flow of power, helping cut the electricity deficit in the south and ease power prices in the spot market. The new power link, a single-circuit 765-Kilo Volt line, has been constructed at a cost of Rs 815 crore.
“Synchronous interconnection of the southern region with the North-East-West grid was envisaged through the high capacity 765 KV Raichur – Sholapur lines, a step towards the establishment of a pan-India national grid facilitating bulk transfer of power across regional boundaries,” the power ministry said in a statement.
Synchrony of power transmission lines refers to their ability to withstand sudden and large variations in power flow that cause tripping and blackouts.
The Indian national grid now is a complex mesh of inter-regional transmission lines running criss-cross between the northern, eastern, western, north-eastern and southern grids. The network has a capacity to transfer 2,32,000 Megawatt of power.
New Delhi: The southern region’s power grid was connected to the rest of the country’s transmission network on Wednesday after state-owned transmission company Power Grid Corp commissioned a power line between Solapur in Maharashtra and Raichur in Karnataka, the power ministry has said.
The inter-connection would enable inter-regional flow of power, helping cut the electricity deficit in the south and ease power prices in the spot market. The new power link, a single-circuit 765-Kilo Volt line, has been constructed at a cost of Rs 815 crore.
“Synchronous interconnection of the southern region with the North-East-West grid was envisaged through the high capacity 765 KV Raichur – Sholapur lines, a step towards the establishment of a pan-India national grid facilitating bulk transfer of power across regional boundaries,” the power ministry said in a statement.
Synchrony of power transmission lines refers to their ability to withstand sudden and large variations in power flow that cause tripping and blackouts.
The Indian national grid now is a complex mesh of inter-regional transmission lines running criss-cross between the northern, eastern, western, north-eastern and southern grids. The network has a capacity to transfer 2,32,000 Megawatt of power.
Coal & Oil Group to invest Rs 10k cr in TN
Chennai: Dubai-based Coal & Oil (C&O) Group, building a 1,200-Mw thermal plant in Tuticorin district of Tamil Nadu for Rs 6,800 crore, has said it will invest another Rs 10,000 crore to increase the capacity by 1,600 Mw to 2,800 Mw.
R Venkataramani, vice-president (finance and accounts), said public hearing for the proposed expansion of the Mutiara Thermal Power Plant had been completed and work will start once the existing project completes. The company has about 1,000 acres, good enough for the project as well as its expansion.
Last week, C&O Group said it secured additional funding of around Rs 1,600 crore from a State Bank of India (SBI)-led public sector bank consortium to complete the 1,200-Mw plant, being developed at a cost of around Rs 6,800 crore by Coastal Energen Pvt Ltd, the power-generating flagship company of the C&O Group. The plant has so far obtained Rs 5,200 crore in funding from a consortium led by SBI, said Venkataramani.
Ahmed Buhari, founder and president of the C&O Group, said considering the acute power shortage in Tamil Nadu, the company had committed to supply a large part of its generation to the state grid.
The latest sanction of Rs 1,600 crore will contribute to last-mile funding and address cost escalation due to the recent devaluation of the rupee, among other things. The first phase of the 2x600 Mw power plant is expected to go on stream in June 2014, after a delay of around 12 months. The second phase will commence producing power within four months of the phase-I commissioning date, Buhari added.
The Mutiara plant aims to address the power shortage in the state, which is to the tune of 5,000 Mw. The company has signed a power purchase agreement with the Tamil Nadu Generation and Distribution Corporation for 600 Mw, Buhari said.
The plant will benefit from the proximity to both a major city (Tuticorin) and major port, as well as road, rail and air connectivity. It is currently the first and only mega project that has commenced out of the 30 which were planned in the past 15 years.
Central Government approves 1080 more buses for 13 cities/cluster of cities
New Delhi: Under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM), Ministry of Urban Development under the guidance of Shri Kamal Nath, Minister for Urban Development has sanctioned buses to following 13 cities/ cluster of cities in the Central Sanctioning & Monitoring Committee Meeting held on 31.12.2013 :
S.No. State City No. of buses sanctioned
1 Bihar Purnea 61
2. Darbhanga 53
3. Katihar 38
4. Bhagalpur 55
5. Andhra Pradesh Karimnagar 70
6. Maharashtra Vasai-Virar 346
7. Latur 60
8. Odisha Jeypore-Koraput 40
9. Cuttack- Choudwar 100
10. Balasore-Bhadrak 54
11. Punjab Patiala 50
12. Sikkim Gangtok 53
13. Tripura Agartala 100
Total 1080
These cities have also been sanctioned projects relating to ancillary infrastructure viz. Depot, Workshops, ITS etc. for Urban Transport. In addition, ancillary infrastructure project for Bathinda has also been approved. The total estimated project cost for these 13 cities/ cluster of cities is Rs. 464 crore (approx.).
The State Govt. has to procure these buses as per the urban bus specifications-II which have been prepared by the Ministry of Urban Development recently. 1st instalment of Government of India share will be released to the State after submission of information / documents within three months as per the conditions given in bus funding guidelines.
The objective behind sanctioning of these buses is to improve the city transport system, to give Metro experience to public in these modern ITS enabled buses and to attract the public to use Public Transport. The JNNURM buses will change the face of the Urban Transport of these 13 cities and will help in the overall growth of the State/ UT
S.No. State City No. of buses sanctioned
1 Bihar Purnea 61
2. Darbhanga 53
3. Katihar 38
4. Bhagalpur 55
5. Andhra Pradesh Karimnagar 70
6. Maharashtra Vasai-Virar 346
7. Latur 60
8. Odisha Jeypore-Koraput 40
9. Cuttack- Choudwar 100
10. Balasore-Bhadrak 54
11. Punjab Patiala 50
12. Sikkim Gangtok 53
13. Tripura Agartala 100
Total 1080
These cities have also been sanctioned projects relating to ancillary infrastructure viz. Depot, Workshops, ITS etc. for Urban Transport. In addition, ancillary infrastructure project for Bathinda has also been approved. The total estimated project cost for these 13 cities/ cluster of cities is Rs. 464 crore (approx.).
The State Govt. has to procure these buses as per the urban bus specifications-II which have been prepared by the Ministry of Urban Development recently. 1st instalment of Government of India share will be released to the State after submission of information / documents within three months as per the conditions given in bus funding guidelines.
The objective behind sanctioning of these buses is to improve the city transport system, to give Metro experience to public in these modern ITS enabled buses and to attract the public to use Public Transport. The JNNURM buses will change the face of the Urban Transport of these 13 cities and will help in the overall growth of the State/ UT
Anand Sharma expresses optimism for economy in 2014
New Delhi: The Union Minister of Commerce & Industry Shri Anand Sharma expressed optimism for the economy in 2014. In a statement, Shri Sharma said:
In 2013, India was rated as the most favoured investment destination globally. The bold decisions of the UPA Government for liberalizing Foreign Direct Investment Policy in key sectors such as civil aviation, retail and telecom have resonated with the global community and we have seen results in the last few months. The Government will continue its endeavour for liberalizing the FDI Policy further in the coming weeks to ensure that India retains its leadership position for attracting foreign investments.
I am also happy to see that manufacturing seems to be on the mend and there is visible rebound in industrial activity. The Indian economy has inherent strengths which give it resilience from external pressures and the series of steps taken by the Government both on the fiscal and current account front have yielded positive results.
The coming months will see a greater push for development of industrial corridors across the country and work will commence for establishment of the first few cities along the Delhi-Mumbai Industrial Corridor. I expect that with greater foreign investment and technology collaborations, Indian manufacturing will also move up the value chain and acquire greater competitiveness globally.
There is also optimism about the scenario on the export front. Inspite of weak demand in traditional markets, exports have done reasonably well and in the first eight months of the current financial year, exports touched US$ 204 billion, registering a growth of over 6% over the same period last year. It was also reassuring that the trade deficit also came down to US$ 99.9 billion during this period as compared to US$ 129 billion during the same period last year. I am sure that the in the remaining period of this financial year, exports will show a strong and dynamic growth.
In 2013, India was rated as the most favoured investment destination globally. The bold decisions of the UPA Government for liberalizing Foreign Direct Investment Policy in key sectors such as civil aviation, retail and telecom have resonated with the global community and we have seen results in the last few months. The Government will continue its endeavour for liberalizing the FDI Policy further in the coming weeks to ensure that India retains its leadership position for attracting foreign investments.
I am also happy to see that manufacturing seems to be on the mend and there is visible rebound in industrial activity. The Indian economy has inherent strengths which give it resilience from external pressures and the series of steps taken by the Government both on the fiscal and current account front have yielded positive results.
The coming months will see a greater push for development of industrial corridors across the country and work will commence for establishment of the first few cities along the Delhi-Mumbai Industrial Corridor. I expect that with greater foreign investment and technology collaborations, Indian manufacturing will also move up the value chain and acquire greater competitiveness globally.
There is also optimism about the scenario on the export front. Inspite of weak demand in traditional markets, exports have done reasonably well and in the first eight months of the current financial year, exports touched US$ 204 billion, registering a growth of over 6% over the same period last year. It was also reassuring that the trade deficit also came down to US$ 99.9 billion during this period as compared to US$ 129 billion during the same period last year. I am sure that the in the remaining period of this financial year, exports will show a strong and dynamic growth.
Rising demand for platinum jewellery
With restrictions on gold and more awareness of this substitute, import doubles to 40 tonnes in a year, aided by buyback assurances
Mumbai: Rakhi Agarwal, a mid-rank salaried woman in a western Mumbai suburb, was overjoyed this festive season when friend Rimmi told her about a new jewellery collection made of platinum. Saved through a regular cut in spending over 18 months, Rakhi bought a platinum ring weighing six grammes for the first time from a jewellery retailer.
She now advises all her friends to spend on platinum instead of gold, with the prospect of a price increase and a different look from the regular yellow metal wear. Rimmi, a software professional, spent a little over Rs 5 lakh on platinum jewellery collections for the first time, for her sister’s wedding. “It gives me the pleasure of owing a rare metal, with assurance of buyback similar to gold jewellery,” she said.
The changing perception towards platinum has encouraged younger aspirants to own a piece, as had been the case for gold until recently. There are two basic reasons for the change. Consumers have begun to feel platinum is available and affordable. Second, jewellers have widened the availability of ornaments.
In addition, platinum coins have become an investment option, without any restriction on sales unlike the case of gold coins, where the Reserve Bank of India has been monitoring continuously.
“Platinum is increasingly becoming a metal of choice for weddings and engagements. The white lustre brings out the sparkle of the diamonds. Every year, we introduce new designs. The male rings starts at Rs 65,000 onwards and the female rings at Rs 35,000,” said Vijay Jain, chief executive, ORRA, one of the largest jewellery retailers in this metal.
“Our consumer research and market reports suggest awareness for platinum is very high among younger consumers. They buy/gift platinum for special occasions; it is established as a precious gift of love. As the awareness and knowledge deepens, the market should see higher growth,” said Vaishali Banerjee, country head, Platinum Guild International.
Among the rising demand in platinum jewellery, love bands (couple rings), women’s chain/pendants and men’s chain or bracelet are the most popular. Banerjee says platinum jewellery demand rose a little over 30 per cent in 2013.
It is also used in photography. The implication of rising platinum demand is evident on imports. According to Mehul Choksi, chairman of Gitanjali Gems, a jewellery retailer with global presence, import of platinum was around 40 tonnes this year as compared to around 18 tonnes last year. He says the restrictions on gold will further raise platinum demand.
Mumbai: Rakhi Agarwal, a mid-rank salaried woman in a western Mumbai suburb, was overjoyed this festive season when friend Rimmi told her about a new jewellery collection made of platinum. Saved through a regular cut in spending over 18 months, Rakhi bought a platinum ring weighing six grammes for the first time from a jewellery retailer.
She now advises all her friends to spend on platinum instead of gold, with the prospect of a price increase and a different look from the regular yellow metal wear. Rimmi, a software professional, spent a little over Rs 5 lakh on platinum jewellery collections for the first time, for her sister’s wedding. “It gives me the pleasure of owing a rare metal, with assurance of buyback similar to gold jewellery,” she said.
The changing perception towards platinum has encouraged younger aspirants to own a piece, as had been the case for gold until recently. There are two basic reasons for the change. Consumers have begun to feel platinum is available and affordable. Second, jewellers have widened the availability of ornaments.
In addition, platinum coins have become an investment option, without any restriction on sales unlike the case of gold coins, where the Reserve Bank of India has been monitoring continuously.
“Platinum is increasingly becoming a metal of choice for weddings and engagements. The white lustre brings out the sparkle of the diamonds. Every year, we introduce new designs. The male rings starts at Rs 65,000 onwards and the female rings at Rs 35,000,” said Vijay Jain, chief executive, ORRA, one of the largest jewellery retailers in this metal.
“Our consumer research and market reports suggest awareness for platinum is very high among younger consumers. They buy/gift platinum for special occasions; it is established as a precious gift of love. As the awareness and knowledge deepens, the market should see higher growth,” said Vaishali Banerjee, country head, Platinum Guild International.
Among the rising demand in platinum jewellery, love bands (couple rings), women’s chain/pendants and men’s chain or bracelet are the most popular. Banerjee says platinum jewellery demand rose a little over 30 per cent in 2013.
It is also used in photography. The implication of rising platinum demand is evident on imports. According to Mehul Choksi, chairman of Gitanjali Gems, a jewellery retailer with global presence, import of platinum was around 40 tonnes this year as compared to around 18 tonnes last year. He says the restrictions on gold will further raise platinum demand.
BHEL modernises 200-MW thermal power unit in UP
This unit has already completed 25 years of operation and now the working life of the machine has been extended by another 15-20 years. At the same time, it can generate 216-MW electricity and also has been synchronised with the grid.
All these happened even in the absence of original design documentations. It may be noted that this is the first time when the company has modernised and uprated any 200-MW class machine in India.
Currently over 150 sets of 200/210 MW rating are in operation in the country. Out of this, about 70 sets have outlived their designed economic life of 25 years.
Capacity uprating
Power utilities need to see this as an opportunity for capacity uprating and life extension to not only improve their performance level in terms of improving efficiency and reducing emissions but also extending their useful life span by another two decades.
BHEL has already executed renovation and modernisation of 10 units with a capacity up to 120 MW. Now it is working on five sets of 110 MW units and four sets of 200 MW units for improving the efficiency.
With problem in setting up new plants due to various reasons, optimum utilisation of the existing capacity to maximise the generation through renovation and modernisation and life extension of existing power plants is considered to be the most cost-effective option.
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