GE's $200 million manufacturing facility in Pune to be operational from mid-2014

PTI | 8 Nov, 2013

HYDERABAD: The $200 million manufacturing facility being set up by GE India in Pune will start functioning by June, a top official at the conglomerate said here today. GE South Asia president and CEO Banmali Agrawala said the products manufactured from the facility will also be exported to other countries. "It should be up open really by the middle of next year. We will be making a host of different things ranging from aviation components to turbo machinery components to measurement and controls and wind turbines," Agrawal told reporters on the sidelines of an ISB's Leadership Summit. The Government of Maharashtra and GE last year signed an MoU for the upcoming manufacturing site which is located at MIDC Industrial Park at Chakan, Phase II, Pune. The facility, to begin with, will focus on Energy products and technologies driven by the industry needs for power generation, transmission and distribution as well as measurement and control, GE India had earlier said. Agrawala said India should focus on becoming a manufacturing hub for the global markets rather than remain a domestic player for own consumption.

"The fundamentals of the country have not changed in any way. The basics have not changed. There is an opportunity to step up the India advantage in manufacturing in India for the world," he added. In his keynote address at ILS-2013, Agrawala said there is huge mistrust and distrust on the business community all over the world. "The business has never perhaps in the past become such an uncomfortable or unwelcome community or term in the society. I think the value of the perception of businesses or the industry has taken a beating and there is something that we have to come out," he added. "The amount of distrust and mistrust that is there in the system is huge. Not talking about certain pockets, it is there much across the world. That is manifesting itself into various ways (such as) excessive regulation through excessive legislation through Government control," Agrawala said. Replying to query, he said the India is on a learning curve in the regulatory process and it is working well. On rupee depreciation, he said there may not be much impact on GE India due to currency fluctuation.

Nepal's initiative to benefit Indian hydropower companies

Debasis Sarkar, ET Bureau | 8 Nov, 2013

SILIGURI: With high hydropower potential but low output level, severely power starved Himalayan country Nepal is in process of widening the bottlenecking identified as hindrance for the power promoters, mainly from India, to come forward. The country has a set objective to produce 25,000 MW extra hydropower by 2030. According to Mr. K D Adhikary, Joint Secretary at Nepal Energy Ministry, conflicting acts are causing trouble in initiating power projects. Thus, the country is planning to amend these acts. As the Bonus Act and Electricity Act are contradictory to each other on the issue of bonus, so is the case of local Self-governance Act and Electricity Act on the issue of electricity royalty. Similarly, acts about registration fees, royalty, income tax, value-added tax ( VAT) are also conflicting. Officials in many departments have urged the government to review many other similar contradictory acts. Issues like integrated license, Power Development Agreement (PDA), one-door policy, land acquisition and its ceiling, determination of the standard of resettlement, local participation in share investment and tax discounts are also being re assessed. Undoubtedly these are going to make things easier for Indian companies getting involved into Nepal's hydropower initiatives through projects like Upper Karnali (900 MW), Marsyangdi II (600 MW), Arun III (900 MW) or Tamakoshi III (650 MW). There are many other potential projects to tap in. Nepal government has an objective to generate 25,000 MW fresh hydropower and build adequate power evacuation infrastructure by 2030 to have 18,000MW export capability in hand. But, "It is tough for financially crunched Nepal to develop all these alone. So, we are open for collaborations from other countries like India," said Nepal Power Ministry officials. On the other side, "Nepal is a major source of green energy and promising field for Indian power developer companies. We are always keen on shouldering responsibility to harness this," said Mr. A.B.L. Srivastava, Director (Finance) of Indian hydropower major NHPC Limited. Despite having 42,000MW economically viable hydropower potential Nepal's present production is around 1000MW, much lesser than its need at peak hour. The shortage forces the country's national power monopoly, Nepal Electricity Authority, to impose mandatory load shedding that sometimes goes even for 12 hr a day. "Over 40% industrial operations are almost dead due to power shortage," said Nepal's major trade and commerce association members. "The new initiative may alter the scenario," they said.

 

Tata Power's low-end consumers to soar 7.92 lakh in Mumbai

Sanjay Jog | Mumbai November 08, 2013

The ongoing tussle between Tata Power and Reliance Infrastructure (R-Infra) to lure consumers in Mumbai is expected to become even more embittered. The Maharashtra Electricity Regulatory Commission (Merc) has ordered the transfer of R-Infra's 7.92 lakh low-end residential consumers with a monthly power consumption of 0-300 units to Tata Power's distribution arm from November 1. Merc has asked Tata Power to supply electricity to these new low-end consumers from the R-Infra distribution network. Tata Power will pay wheeling, regulatory asset charges and other costs to R-Infra. However, R-Infra had approached the Appellate Tribunal for Electricity (ATE) challenging Merc's order. ATE has not stayed Merc's order, but will hear R-Infra's petition on December 17. In the meantime, according to ATE's order, R-Infra has again approached Merc for extending the timeline for transfer of its consumers to Tata Power. The hearing is slated for November 8 at Merc.

A Tata Power spokesman said, "'Tata Power is studying the order." On the other hand, an R-Infra spokesman stated, "R-Infra approached ATE, as the time-span given to implement Merc directives was too short and inadequate." Currently, of the 4.25 lakh consumers, Tata Power is supplying power to 2.50 lakh low-end residential consumers. However, R-Infra's low-end consumer base will fall to 1.1 million from the present 1.9 million. R-Infra is currently supplying power to a total of 2.8 million in Mumbai. The current tariff charged by R-Infra from low end residential consumers for the 0-100 slab is Rs 3.93 per unit while Tata Power's tariff is Rs 2.13 per unit. For the 101-300 slab, R-Infra charges Rs 6.84 per unit against Tata Power's Rs 3.62 per unit. This excludes fixed charge. These consumers are from the 11 clusters in Mumbai identified by Merc to introduce competition in the distribution business and thereby protect the interest of the common man, specifically low-end consumers by option of cheaper electricity to be sourced from TPC-D. Industry players believe that the transfer will bring parity in the number of low-end residential consumers serviced by both the utilities. Further, R-Infra's subsidy burden is expected to come down.

 

Rs 7,300-cr PowerGrid follow-on offer gets Cabinet nod

BS Reporter | New Delhi November 08, 2013

The Cabinet cleared a proposal on Thursday for a follow-on public offer (FPO) later this financial year in Power Grid Corporation of India Ltd (PGCIL), the country's largest power transmission company. This will include the raising of 13 per cent fresh equity by the company and a four per cent stake sale by the government. It is expected to fetch close to Rs 7,300 crore at the current price of the scrip. "The FPO will help raise funds of the order of Rs 5,600 crore for the company to meet its investment programme for the next two financial years," went an official statement.

The government will get an estimated Rs 1,700 crore, bringing it closer to realising its current year's disinvestment target of Rs 40,000 crore. The government currently holds 57.8 per cent stake in the company. It will sell 185.1 million shares through the issue. Also, the company will issue a fresh 601.8 million shares through the offer. Of this, around 2.4 per cent would be reserved for employees. The government has so far raised Rs 1,325 crore in 2013-14 from disinvestment — in MMTC, Hindustan Copper, National Fertiliser, India Tourism Development Corporation, State Trading Corporation and Neyveli Lignite. The department of disinvestment has also readied sales in Power Grid, NHPC and Engineers India.

The transmission utility had sold 10 per cent stake in the market, in addition to an equal divestment by the government, in November 2010 at Rs 90 a share. The initial public offering was in October 2007. The company said it would use the additional resources generated through the FPO in its ongoing Rs 1-lakh crore capital expenditure programme for the current Plan period. PowerGrid had posted a 10 per cent jump in net profit at Rs 1,239 crore during the second quarter ended September. The company operates a 102,000 circuit-km transmission network and plans to more than double its current inter-regional power transfer capacity of 31,000 Mw by 2017. Its share price at the BSE exchange closed at Rs 95.1 on Thursday, down 1.2 per cent as compared to Wednesday.

 

Ask PSUs to ink pacts with Centre for mines: CoalMin to States

Press Trust of India | New Delhi November 08, 2013

The Coal Ministry has asked states like Jharkhand, Madhya Pradesh and Chhattisgarh to advise the PSUs which have been allocated coal blocks earmarked for mining to enter into pacts with the Centre. "You are requested to advise the allocatee company/ corporations... To enter into an agreement with the Central Government," the Coal Ministry said in letters to the Chief Secretaries of Odisha, Jharkhand, Bihar, Chhattisgarh and Madhya Pradesh. In the letters to states of Jharkhand, Bihar, Chhattisgarh and Madhya Pradesh, the Coal Ministry has also asked them to advise the companies allocated mines to either form a SPV (Special Purpose Vehicle) or joint ventures. The development follows a Coal Ministry panel agreeing to allocate three coal blocks to mining PSUs including Jharkhand State Mineral Development Corp and MP State Mining Corporation Ltd. The three coal blocks are part of 17 mines identified by the Ministry for state-owned companies. It had earlier allocated 14 coal blocks to power sector firms. The panel, chaired by Coal Secretary, agreed to give Brahmani coal block in Odisha to Orissa Minerals Development Company Ltd (OMDC), Gowa coal block in Jharkhand to Jharkhand State Mineral Development Corp (JSMDC) and Bihar State Mineral Development Corp (BMDC), and Kerwa coal block in Chhattisgarh to Chhattisgarh Mineral Development Corp (CMDC) and MP State Mining Corp. In all, the Ministry had received 41 applications from 17 state-owned companies for the blocks. Kick-starting the process of coal blocks allocation, the government had in June allocated 14 coal mines to Central and State public sector undertakings (PSUs), including four to NTPC.

 

RPower to commission second unit of Sasan UMPP next month

BS Reporter | New Delhi November 08, 2013

Reliance Power Ltd (RPL), a subsidiary of the Anil Dhirubhai Ambani Group (ADAG), today said it will commission the second 660 MW unit of its flagship Sasan Ultra Mega Power Project in Madhya Pradesh next month. Sasan is the one of the three UMPPs of 4,000 Mw capacity each being commissioned by the company. Coal production has also started from the 20 MTPA capacity Moher and Moher-Amlohri mines allotted to the power project, the company said in a statement.

 

Green Energy Corp seeks 300 acre land for solar power plant

BS Reporter | Bhubaneswar November 08, 2013

The Green Energy Development Corporation Ltd (Gedcol), a wholly-owned subsidiary of Odisha Hydro Power Corporation (OHPC), has asked the state government to provide 300 acre land in central Odisha for development of solar power plants. "After the government provides us land, we will create all necessary infrastructure for establishment of power plants and private developers would be invited to install their solar projects," said Sahadev Khatua, managing director of Gedcol at Odisha Solar Conference 2013, organised by Bhubaneswar chapter of The Indus Entrepreneurs (TiE). The newly-created corporation has asked the government to provide land in Kalahandi, Bolangir and Boudh districts, where the intensity of sun generated heat is higher. Apart from using government provided land, OHPC is also planning to use large amount of unused land available with it for generation of solar energy. "We have about 700 acres lying unused with us, out of which about 200 acres are in Kalahandi district only. We are planning to develop solar plants on this land with the help of private developers," Khatua added. Khatua, however, declined to comment about the amount of solar energy to be generated once all the plans of Gedcol get implemented. As per a policy decision of Odisha government, target has been set at 80 Mw solar power generation by 2014-15. At present, 13 Mw is produced in the state by small solar power developers. The state government aims to generate additional 10 Mw from its scheme to install roof-top solar power projects, conceived earlier this year. "We will complete the detail project report for generating solar power from roof top of every government establishments in Cuttack-Bhubaneswar area by December this year. By March 2014, the bidding for the project will be completed and in the next financial year, construction work will start," said the top official of Gedcol, which is the nodal agency for implementing the project. If the government initiative to generate roof top solar power becomes successful, the state government would take steps to encourage private players to take up such projects in future, he added. Renewable energy potential in Odisha has been assessed at 11,820 Mw, with solar energy having the highest potential at 10,000 Mw among all green energy sources. The potential for solar photo-voltaic source is pegged at 8,000 Mw followed by solar thermal and wind power at 2,000 Mw and 910 Mw respectively. Potential for power generation from biomass paddy husk and bio-mass paddy straw has been assessed at 250 Mw each.

 

AP signs PPAs for 142 Mw solar power

BS Reporter | Hyderabad November 08, 2013

AP power utilities have entered into power purchase agreements (PPAs) with solar power developers for 147 Mw and issued letters of intent (LoIs) for another 142 Mw. The move comes after the state government decided to encourage private entrepreneurs to set up an installed capacity of 1,000 Mw in solar power late last year. This was informed to Ratan P Watal, secretary, Ministry of Natural

Resources and Energy at a review meeting. The present installed capacity in the state is about 61.24 Mw. A statement by the energy department said the Union Secretary complimented the authorities for eliciting a competitive rate of Rs 6.49 per unit payable to the developers. However, a relatively lower purchase price fixed afterwards dampened the excitement. In addition to this, a separate policy for the industries either for captive use or third party sale had been announced by the state and a set of clarifications were awaited from the state Electricity Regulatory Commission (APERC) to realise about 1,483 Mw of solar power under this policy, it said.

 

Power capacity story fades as demand ebbs

Sudheer Pal Singh | New Delhi November 09, 2013

India's power generation capacity, which boasted of record addition for two successive years, seems to be running out of steam in 2013-14. The third-largest economy in Asia added only 4,798 Megawatt (Mw) in the six months ended September, against a target of 7,936 Mw. With this, India missed realising investment worth over Rs 16,780 crore in 3,138-Mw capacity scheduled for first half of 2013-14. This would come as a double whammy for an economy that had expanded at a decadal-low of 5.3 per cent in 2012-13. The power capacity addition between April and September was also 37 per cent lower than the 7,636 Mw added during the corresponding period last year, according to the latest power ministry data. The new trend, which could partially dent economic growth, was a result of a confluence of factors - ranging from bureaucratic delays to subdued demand to companies delaying the start of commercial operations. In the quarter ended June, the country added only 2,612 Mw of the targeted 4,432 Mw. About 1,800 Mw slipped from schedule, including a 270-Mw project of GVK Industries in Punjab, a 300-Mw project of Dhariwal Infrastructure in Maharashtra, a 135-Mw unit of Vandana Vidyut in Chhattisgarh, three 250-Mw projects by hydro major NHPC and three 865-Mw projects by the power generation firms of Madhya Pradesh, Rajasthan and Tamil Nadu. The situation worsened in the second quarter, with only 820 Mw of the targeted 4,423 Mw coming on stream. The capacity that slipped from the second quarter included the 350-Mw Kamalanga project of GMR in Odisha and the 270-Mw Nashik project by Indiabulls in Maharashtra. Not one of the 10 projects planned to be commissioned in the central and state sectors during the three-month period fructified. These included ONGC's 363-Mw plant in Tripura and projects by the Delhi, Gujarat and Chhattisgarh governments.

"A major reason for the dip in capacity addition could be because companies are delaying announcing commercial operation declaration fearing not being able to service debt because of fuel constraints, leading to these being classified as non-performing assets," Debashish Mishra, senior director at accounting and consultancy firm Deloitte Touche Tohmatsu, told Business Standard. The new trend of slowdown in power capacity addition comes on at the back of Reserve Bank of India Governor Raghuram Rajan's recent statement that revival of stalled projects has begun, which would help spur economic growth towards the end of the year. He had referred to the recent approvals granted by the Cabinet Committee on Investment (CCI) to stalled infrastructure projects. The CCI has so far cleared 171 projects involving an estimated Rs 1.6 lakh crore worth of investment. However, bulk of these are power and coal sector projects, apart from a few others in roads, petroleum and defence sectors. India wants to add 17,092 Mw power capacity in the current financial year. The target for the current Five-Year Plan period (2012-17) stands at 88,537 Mw of which 25,420 Mw, or 28 per cent, had been achieved at the end of September.