MAJOR NEWS IN THE POWER SECTOR



[pic] MAJOR NEWS IN THE POWER SECTOR [pic]

June 1st to 30th 2008

TATA POWER

Tata BP designs solar-powered hoardings

Tata BP Solar has come up with solar-powered hoardings to protect environment and save energy. As per the company’s claim, the use of solar energy in lighting up hoardings would save more than 50% of the energy consumption. Such hoardings can replace conventional hoardings by solar retro-fits replacing consumption of conventional sources of energy. The company is planning to launch its product called I-Sign by September this year stated Tata BP Solar CEO K Subramanya.

(The Economic Times, June 5, 2008)

Windfall for Tatas as Bumi yields more

Tata Power’s $1.2 billion investment in the coal assets of Bumi Resources has hit pay dirt, with the Indonesian mining company announcing a huge coal discovery. Dileep Srivastava, senior vice-president, investor relations, at Bumi Resources told DNA Money from Jakarta that an additional 442 million tonne of reserves have been found in the Pedayak region. Bumi is extremely bullish and has pegged a higher coal price assumption of $75.56 tonne against the previous $53.92 per tonne. Bumi will make another reserve up gradation announcement in August. Tata Power had acquired a 30% stake in the KPC and Arutmin mines owned by Bumi Resources through a special purpose vehicle in July 2007. The two mine blocks currently have proven reserves of 1.1 billion tonne.

(DNA, June 11, 2008)

Tata rejects REL's claims on hike in power tariffs

In what can become a bitter war in days to come, Tata Power Company (TPC) has hit back against Reliance Energy Ltd (REL) for distributing leaflets in the suburbs which blames the former for rise in electricity tariff. The leaflets have been distributed along with the latest bills calculated as per the hiked tariff. TPC released a statement outright rejecting the claims of REL. Tatas have said REL, in its capacity as a distribution licensee, failed to protect the interest of suburban consumers as it delayed signing a formal PPA. REL, on the other hand, has said that TPC showed undue haste in tying up a deal for 800 MW with BEST to deny it adequate power.

(The Times of India, June 13, 2008)

(Also appeared in The Economic Times, DNA, Maharashtra Times, Navbharat, Loksatta etc)

Tata Agrico ties up with Tata BP Solar

Tata Agrico, a division of Tata Steel, has entered into an agreement with Tata BP Solar for distributing solar products of the latter, primarily in the rural hinterland of the country. This initiative is primarily aimed at targeting consumers who are deprived of regular electricity supplies owing to poor infrastructure. Tata Agrico would be leveraging its extensive distribution network in the country to promote the solar products of Tata BP. Both the Companies would primarily focus on products such as solar lanterns, street-lights and water-heating systems.

(Financial Express, June 13, 2008)

Tata Power in talks to buy six big ships for $600 mn

India’s biggest private power utility, Tata Power Co. Ltd, is talking with shipbuilders in South Korea to construct six big ships, which it will use to carry coal from its mines in Indonesia to feed its ultra mega power plant at Mundra in Gujarat. The company will have to invest $550-600 million (Rs2,359-2,574 crore) to buy the ships. TPC Energy Asia is a special-purpose vehicle incorporated in Singapore by Tata Power, for owning ships and trading in fuels. Hyundai is the world’s biggest shipbuilder and STX is ranked fifth, in terms of capacity and order size. Tata Power estimates it would need 8-9 ships to haul coal for the Mundra power project. Tata Power is in a hurry to place orders for new ships and hire more on long-term contracts as they have to be ready by 2012, when its Rs17,000 crore, 4,000MW power plant becomes operational.

(Mint, June 17, 2008)

Tata power subsidiary wins award

Tata Power Company’s subsidiary North Delhi Power Limited (NDPL) has received the first power distribution utility from India to have received the Edison Award. The Award was presented to NDPL, in recognition of its operational excellence in the electric industry, for innovatively utilizing and integrating its geographical Information System (GIS) with other applications for network planning, operations, commercial and asset management.

(Afternoon Despatch, June 18, 2008)

(Also appeared in Deccan Herald, The Tribune, Punjab Kesri, Hari Bhoomi and Virat Vaibhav)

CIL, Tata to form venture for power from washery rejects

Coal India Ltd and Tata Power plan to form a 40:60 joint venture to produce 12 MW power by using washery rejects and mine air (containing methane). The Rs 50-crore project will be taken up under clean development mechanism and is projected to earn approximately Rs 6 crore annually through trading of certified emission reduction, popularly known as carbon credit. Though CIL would hold 40 per cent equity in the project — through its wholly-owned subsidiary Bharat Coking Coal Ltd — the revenues from carbon credit would be distributed equally between the joint partners (CIL and Tata Power).

(The Hindu Business Line, June 22, 2008)

TPC profit rises on capacity spike, overseas play

Tata Power Company (TPC), the utility major from the Tata group, on Monday said its net profit for 2007-2008 grew 25% due to increased capacity and benefits from its acquisition of coal mines in Indonesia. TPC said its net profit for the year ending March 2008 rose to Rs 869.90 crore, while revenue in the same period jumped 25.4% to Rs 5,915.91 crore. TPC said its sales during the year grew 4% to 14,959 million units (MU), compared to 14,422 MU and also had the highest annual generation at 14,717 MU, compared to 14,269 MU in the previous year. The Trombay thermal power station recorded the highest ever generation of 10,002 MU, with a PLF of 86%.

(The Economic Times, June 24, 2008)

(Also appeared in Business Standard, The Hindu Business Line, The Financial Express, Mint, The Times of India, The Indian Express, Hindustan Times, DNA, Asian Age, The Free Press Journal, The Statesman, The Telegraph, The Hindu among others)

Tata Power, RPL projects get CRZ nod for coal jetties

Even as Tata Power and Reliance Power have expressed their inability to commission first unit of their 1,600 MW and 4,000 MW power projects in Maharashtra by 2009 due to delays in land acquisition process, the companies have received a major relief after the ministry of environment and forests (MoEF) has granted Coastal Regulatory Zone (CRZ) clearances for exclusive coal jetties. Tata Power plans to construct a captive coal berth and cooling water intake and outfall structures for the proposed power plant near Dehrand or Shapur in Maharashtra. Tata Power and Reliance Power would have to obtain a ‘no objection’ from the Maharashtra State Pollution Control Board before initiating the project.

(Financial Express, June 24, 2008)

Tata BP Solar invests Rs 400 crore to make solar cells

Tata BP Solar, a JV between Tata Power and BP Solar said it has invested Rs 400 crore in the current fiscal to manufacture solar cells and modules. Tata BP Solar provides services to the defence forces, and to North East Bihar, Jharkhand and Chhattisgarh.

(The Economic Times, June 24, 2008)

TPC: Spotting revenue sources

Acquisition of two coal mines in Bumi Resources, better performance of its subsidiaries and greater chances of achieving its ambitious targets would serve well for Tata Power Company (TPC) as the potential revenue sources. This augurs well for the company and analysts believe that TPC has a very realistic chance of achieving its ambitious targets. The company is embarking on multiplying its generation capacity by four-fold to 10GW in the next five years and six-fold to 13GW in the next seven years. It plans to add around 590 MW capacity in FY09E.

(Financial Express, June 26, 2008)

Green signal to Tata’s power plant in Alibaug

The opposition to the land acquisition for Tata Company’s power plant in Raigad district is likely to be resolved with farmers giving their consent on the issue with a rider that they be adequately compensated. Farmers and the Shahpur and Dehrand villages submitted their consent to the Collector for the proposed power plant project with some demands. A letter signed by 226 farmers was submitted to the Collector saying that the problems between the management of the company and villagers have been sorted out.

(Free Press Journal June 29, 2008)

COMPETITION/ CONSUMERS

← RELIANCE ENERGY LIMITED (REL)

Financial closure soon for Reliance Power

The financial closure of the Krishnapatnam ultra mega power project of Reliance Power Ltd would be achieved in the coming three months. The 4,000 MW coal fired project is located near Krishnapatnam in Andhra Pradesh. It is approximately 3 km from the nearest port where imported coal would be delivered to supply fuel for the project. The project would have five units of 800 MW each. Lenders to the Rs 20,000-crore project, led by IDBI, have to commence due diligence for the project. Awarding contracts for boiler, turbine and generators would be completed in two months. These critical components component constitute 50 per cent of the project cost. Total land requirement for the project is 2,625 acres. The company has been able to purchase about 65 per cent of the land required for the project. The Andhra Pradesh Government is in the process of acquiring the remaining land for it.

(The Hindu Business Line, June 03, 2008)

SC won't restrain MERC from fixing tariff for Mumbai

The Supreme Court (SC) today refused Anil Ambani-owned Reliance Energy's plea seeking to restrain the state power regulator from fixing the distribution tariffs for Mumbai without considering its application for equitable distribution. While admitting TPC's plea, the apex court on May 14 had stayed the tribunal judgment that had in effect declared the power purchase agreement (PPA) between TPC and Brihanmumbai Electric Supply and Transport (BEST) as null and void. The tribunal had also called for equitable distribution of available power to all the city's consumers, irrespective of prior arrangements between power suppliers.

(Business Standard, June 04, 2008)

(Also appeared in The Economic Times)

Now, a power shock for Mumbai suburbs

Close on the heels of a steep hike in petroleum prices, residents of Mumbai's suburbs will have to absorb a moderate hike in electricity tariff with effect from June 1. State power regulator MERC on Thursday cleared an average tariff hike of 10.22% across categories for consumers of Reliance Energy Limited (REL), the supplier in suburbs. While residential consumers will have to deal with a 6.3% hike, commercial users will have to pay 15% more. In general, MERC has continued with its policy of penalizing the heavy power users while sparing those with consumption of less than 300 units per month. Significantly, MERC has approved the new tariff keeping in mind lower allocation of cheap electricity to REL from the Tata Power Company which produces 1,777 MW at its Trombay plant.

(The Times of India, June 06, 2008)

(Also appeared in The Economic Times, Business Standard, The Financial Express, DNA and Yuva)

R-Power pips Lanco, bags UP projects

Anil Ambani-controlled Reliance Power has emerged as the lowest bidder to build two power projects in the Allahabad district of Uttar Pradesh, pipping Lanco Infratech, National Thermal Power Corporation and two other bidders. Reliance Power agreed to supply power at Rs 2.64 a unit for the 1,980-MW project in Bara and Rs 2.60 a unit for the 1,320-MW project in Karchchna. The other bidders for the 3,300-MW projects included Jindal Steel and Power (JSPL) and CESC. NTPC and JSPL bid Rs 3.205 and Rs 3.348 for Bara project respectively. At Karchchna, CESC and JSPL bid Rs 3.129 and Rs 3.276 respectively.

(Business Standard, June 14, 2008)

Reliance Power project to get loan from ADB

Anil Dhirubhai Ambani-promoted Reliance Power will get a $500-million (approximately Rs 2,000 crore) loan from the Asian Development Bank (ADB) for the 4,000-MW ultra mega power project (UMPP) coming up at Krishnapatnam in Andhra Pradesh. With this, the company is expected to achieve financial closure shortly, say sources, adding that it is also talking to a few financial institutions for debt. The project may cost over Rs 18,000 crore, of which about 80 per cent will be debt. The coal-fired Krishnapatnam project is the third of the nine UMPPs planned by the central government to bridge the 20,000-MW power deficit in the country. The shortage is expected to shoot up 15-20 per cent every year.

(Business Standard, June 17, 2008)

Reliance Infra to invest $7 billion for expansion

Reliance Infrastructure Ltd(RIL), a power generator controlled by billionaire Anil Ambani, plans to invest $7 billion in the next three years to expand its engineering and construction business in India and acquire assets overseas. The proposed investments will be separate from the $28 billion that its 45% owned unit Reliance Power, plans to spend on adding generation capacity in India in five years.

(The Times of India, June 20, 2008)

Coal ministry approves mining plan for Sasan

The government has approved the mining plan for the coal block that Anil Ambani Group firm Reliance Power plans to use for setting up 4,000-MW Ultra Mega Power Project (UMPP) at Sasan in Madhya Pradesh. Sasan Power Ltd is a Special Purpose Vehicle (SPV) set up by Power Finance Corp for the Reliance Power's 4,000-MW Sasan Ultra Mega Power Project. The coal from the Moher-Amlori coal block would be used to generate power for Sasan UMPP. As per the conditions of the plan, the mining company has been asked to take all precautions regarding safety of mine workers and the additional land to be acquired, which would not encroach any other coal block.

(Business Standard, June 23, 2008)

(Also appeared in The Economic Times, The Times of India)

Rel Power Sasan order for group firm

Anil Ambani-led Reliance Power Ltd on Tuesday awarded a Rs12,000-crore engineering procurement construction contract for its so-called ultra-mega power project in Sasan, Madhya Pradesh, to group company Reliance Infrastructure Ltd. Reliance Infrastructure will take 42 months beginning July to commission the first unit of 660MW of the 4,000MW project. The remaining five units will be commissioned at intervals of three months.

(Mint, June 25, 2008)

Rel Power Sasan order for group firm

Reliance Infrastructure has roped in US-based power engineering consultant Black & Veatch as an independent project monitor for its Sasan and Krishnapatnam ultra mega power projects with a view to allaying apprehensions over reliability of Chinese generation equipment. Reliance has zeroed in on Shanghai Electric of China for supply of key equipment such as boilers, turbines and generators for the Sasan project.

(The Times of India, June 27, 2008)

Reliance Infra gets Rs 12,000-cr contract from group's power company

Reliance Infrastructure Ltd has been awarded the Rs 12,000-crore engineering procurement and construction (EPC) contract for the Sasan ultra-mega power project by its group company Reliance Power Ltd. Reliance Power Ltd is developing the 4,000-MW project through its subsidiary Sasan Power Ltd. Reliance Infrastructure is currently developing projects of 1,200 MW. It has two major EPC contracts — one from the Haryana Government and another from Damodar Valley Corporation. This is the first internal contract. It will soon float a sub-contract for critical equipment such as boiler, turbine and generators. Reliance Infrastructure has tied up with power plant engineering consultant Black & Veatch, USA (B&V) for engineering consultancy services for Sasan and Krishnapatnam ultra mega power projects.

(The Hindu Business Line, June 29, 2008)

← MAHARASHTRA STATE ELECTRICITY BOARD (MSEB)

10% drop in demand could ease power bill

Maharashtra’s demand for power has come down from a peak of 14,685 MW on June 2. Monsoons have brought a big respite for state utility MSEB which reported a significantly lower demand of 12,200 MW on June 10. The shortage touched an all-time low of just 1600 MW on June 9 as rains swept across the state. When compared to a huge shortage of 4,000 MW just last month, rains are more than welcome.

(The Times of India, June 13, 2008)

← NATIONAL THERMAL POWER CORPORATION (NTPC)

NTPC aims to add 7,000 MW hydel power by 2017

The state-run NTPC, which has launched the capacity addition programme of 25,000 MW, for the 11th Plan, has already started preparations to add nearly 7,000 MW in the hydro sector by the end of the 12th Plan (2016-17). NTPC’s investment in the eight upcoming hydro projects would be around Rs 35,000 crore. NTPC’s move is crucial especially when the power ministry and the Central Electricity Authority had recently called upon the state and central undertakings and the private sector to start planning beyond the 11th Plan. NTPC is currently in the process of developing three hydel projects —Koldam (800 MW) in Himachal Pradesh, Loharigang Pala (600 MW) and Tapovan Vishnugad (500 MW) in Uttarakhand. These projects are likely to be developed within the 11th Plan period.

(Financial Express, June 03, 2008)

NTPC pact with discoms

A power purchase agreement (PPA) has been signed between NTPC and two discoms, BSES Rajdhani and BSES Yamuna, for purchase of electricity from Dadri, Badarpur and other power stations of NTPC located in the northern region. By this agreement 1,721 MW power would be supplied by the NTPC to the discoms.

(The Times of India, June 06, 2008)

PFC sanctions Rs 10,000 cr credit to NTPC

NTPC, which generates nearly 30,000 MW, is aiming at a capacity of 50,000 MW by 2012. In its biggest-ever credit line, the Power Finance Corporation (PFC) will lend Rs 10,000 crore to the country's largest power producer, NTPC, for various projects to be completed in the current 11th Five-Year Plan. NTPC, which generates nearly 30,000 MW, is aiming at a capacity of 50,000 MW by 2012. It has lined up over Rs 13,200 crore capital expenditure in the current financial year and the PFC loan will be partly used for projects being undertaken in 2008-09. It reported capex of Rs 8,621 crore in 2007-08.

(Business Standard, June 20, 2008)

NTPC,Bharat Forge JV

The National Thermal Power Corporation said it had formed a joint venture company with Bharat Forge to establish a manufacturing facility for castings, forgings, fittings, balance of plant equipment for power projects. The JV is named BF-NTPC Energy Systems.

(The Hindu, June 21, 2008)

(Also appeared in DNA)

NTPC operationalises 500 MW plant

Country’s largest power producer NTPC on Friday said that the first 500 MW unit at Sipat Super Thermal Power Project, Stage -II, in Chhatisgarh started commercial operations. The unit touched its full load on May 30 and the second unit is expected to start commercial operations by October this year. These two 500 MW units form Stage-II of the project, while the three supercritical 660 MW units form Stage-I. The boilers for these three units would be supplied by a South Korean company, Doosan and turbines by Russian firm Power Machines.

(The Financial Express, June 21, 2008)

(Also appeared in The Hindu Business Line)

NTPC to add 3,000 MW

State-run NTPC will add 3,000 MW (21 billion units) of power for commercial use in the current financial year, a move that would give the PSU an additional revenue of Rs 500 crore annually. The company plans commercial operation of its various units in Sipat, Kahalgaon and Bhilai which would generate 3,000 MW power in this fiscal, NTPC Chairman and Managing Director R S Sharma told reporters. Electricity from two units of 500 MW each of the 1,000 MW Sipat Super Thermal Power Project Stage -II would be added to the grid for commercial purpose, he said adding the first 500 MW unit of the said project in Chhattisgarh has already started commercial operation last week.

(The Economic Times, June 23, 2008)

(Also appeared in The Hindu Business Line, The Financial Express, Business Standard and Times of India)

NTPC to set up 4,000 MW power plant in UP

Uttar Pradesh government has given its nod to the proposal of National Thermal Power Corporation (NTPC) to set up a 4,000 Mega Watt power plant in Lalitpur district of the state. The state government would hold 30 per cent equity in the plant while 75 per cent of power generated would be used in Uttar Pradesh. The government would provide a subsidy of Rs 200 per quintal on seeds provided by government outlets and Rs 120 per quintal on other outlets resulting in extra burden of Rs 65 crore on the exchequer.    

(Business Standard, June 26, 2008)

INDUSTRY

← STATE / GOVERNMENT/ REGULATOR / POLICY

Fuel shortage hits nuclear power projects

A sustained shortage of nuclear fuel has put a question mark on the sustenance of existing and commissioning of new atomic power projects in the country. The two new nuclear power projects—the fifth unit (220 MW) of Rajasthan Atomic Power Project (RAPP) at Rawatbhatta and the fourth reactor of Kaiga Atomic Power Project (220 MW) in Karnataka—that were scheduled for commissioning in June 2008 now face undue delays. The uranium shortage has affected existing atomic power plants, which are running below capacity. Due to insufficient uranium supply, power production at NPC’s plants fell to about 16,960 million units in 2007-08 from 18,000 MU a year earlier. Nuclear Power Corporation has highlighted this problem at various forums.

(The Financial Express, June 04, 2008)

$600 bn needed to meet power demand

India will need to spend $600 billion on adding capacity to meet electricity demand, which may triple to 3,35,000 megawatts by 2017 if the current growth rate is maintained, according to consultant McKinsey & Co. The second-fastest growing major economy needs to add as much as 40,000 megawatts each year to meet the predicted demand, which exceeds current estimates by 1,00,000 megawatts, McKinsey said in a report. The projected requirement is more than double India’s generation capacity of 141,080 megawatts as of January 31.

(DNA, June 05, 2008)

India's power demand to rise 120 GW to 335 GW

With soaring crude oil prices, the time has come for the Indian power sector to explore substitutes. If India continues to grow at an average rate of 8% for the next 10 years, power demands may rise from the present 120 gigawatt (GW) to 315-335 GW by 2017, 100 GW higher than current estimates, states a six month long study ‘Powering India: The Road to 2017’. The McKinsey & Company’s Electric Power and Natural Gas Practice study shows a radical approach to increase power capacity. India is gradually progressing towards a service-led economy from an agrarian economy, says the study. Supply and production have increased but demand has doubled. According to the study, the demand can only be met through a five to 10-fold rise in power production. This means investments in the power sector will increase over $600 billion (Rs 24 lakh crore) in the next 10 years. Consumer demand across rural and urban sectors is growing at 14% over the next 10 years, whereas India’s GDP growth is just 8% a year. The second reason is the government’s plan to provide electricity to everyone by 2012.

(The Economic Times, June 05, 2008)

'Green tags' to enable trading of renewable power on the anvil

The development of a ‘Renewable Energy Certificate’ (REC) mechanism is on the anvil. It is aimed at evolving a mechanism to designate ‘green power’ as a tradable commodity and promote inter-State sales of renewable generation. The Government is in the process of hiring consultants for the development of a REC mechanism for India on the lines of ‘green tags’ being used in the US and the UK, which would provide a platform for trading between renewable energy surplus and deficit States, with provisions for a clearing house mechanism and energy accounting framework to recognize RECs as a tradable commodity.

(The Hindu Business Line, June 07, 2008)

NHPC, JKPDC in talks for power JV

Power producer NHPC is likely to sign an agreement with Jammu and Kashmir Power Development Corporation for harnessing 2,100 MW of power from Chenab basin in the state at an estimated cost of Rs 15,000 crore. Minister of state for power Jairam Ramesh said the draft for the MoU has been prepared and work on the projects would be started by the proposed joint venture company immediately after it has been signed by the two sides. The JV would construct three projects in Chenab basin. The total cost of the projects would be around Rs 15,000 to Rs 16,000 crore.

(The Economic Times, June 08, 2008)

Powermin okay with global equipment firms

The power ministry, in order to avoid slippages in the capacity-addition of 78,577 MW in the 11th Plan period, unlike 8th, 9th and 10th Plan periods, has been working hard to offer a red carpet treatment to manufacturers of boilers and turbines and other power equipment in the country. The power ministry has received a positive response from global players such as Toshiba, Alstom, Ansaldo, BWE and Skoda for setting up of manufacturing facilities. The ministry in its recent communication to the Prime Minister has argued that the reason for shortfall in achieving the capacity-addition of previous plans was the delay of award of works, besides delay in supply/erection of suppliers and contractors.

(The Financial Express, June 13, 2008)

IIFC for rise in fund ceiling to 30% for IPPs

India Infrastructure Finance Company (IIFC), which has been formed under the aegis of the finance ministry to fund long-term debt requirement of infrastructure sector, has called upon the Centre to increase the ceiling for funding private sector projects, set up as Independent Power Projects I(PPs) from 20% to 30%. This is in view of a number of power projects which are coming up to meet the growing deficit of power in the country. The centre has already launched the capacity addition of 78,577 MW during 11th Plan period of which more than 11,000 MW are being developed by the private sector. The Centre has projected an investment of Rs 10 lakh crore for the proposed capacity addition.

(The Financial Express, June 17, 2008)

Take small hydropower sector seriously, says energy consultant

Prof V.K. Damodaran, an energy consultant on UNIDO (United Nations Industrial Development Organization) Mission, tells India to be serious about hydropower and to have a proper policy in place. Prof Damodaran is also a managing director of the International Network on Small Hydro Power, headquartered in Hangzhou, China. The organization has been sponsored by the UNIDO and the United Nations Development Programme, to promote small hydropower development for rural electrification.

(The Hindu Business Line, June 17, 2008)

Power regulator pulls the plug on inter-state trading licence

The Central Electricity Regulatory Commission (CERC), in a path breaking order, ruled that it will be a violation of the Electricity Act to grant inter-state power trading licence, when the transmission company and the trading company are owned by one entity and controlled by the board of directors headed by a single person. CERC observed that the Electricity Act prohibits the transmission unit (STU) and the State Load Despatch Centre (SLDC) from engaging in the business of trading in electricity. The main purpose of the statutory is to insulate these entities from the business of trading in electricity and to ensure impartiality in their functioning. The STU and SLDC have crucial roles in implementing non-discriminatory open access under the Electricity Act. The functions assigned to these entities under the law are such that there should be no semblance of their discriminating against anyone.

(The Financial Express, June 20, 2008)

Centre to set up nuclear plant in Meghalaya

The Centre is exploring options to set up a small nuclear power plant in Meghalaya. The proposed plant would use the locally available uranium as fuel. The state has one of the richest sources of nuclear fuel in the country but mining is yet to begin there. The Centre’s plan is being seen as a compromise formula to open up uranium mining in the state. The issue had earlier led to controversy due to the export of raw material and other health-related issues. It is understood that the proposal for the power plant is being considered at the behest of Meghalaya chief minister who has strongly favored the move to contain opposition to uranium mining in the state.

(The Economic Times, June 20, 2008)

Maharashtra power situation may improve with Ratnagiri Gas supply

Power supply in Maharashtra has improved and it is expected to get even get better with the additional 500 MW being supplied from Ratnagiri Gas and Power Pvt Ltd, Dabhol, by September, said Dr A.B. Pandey, Managing Director of Maharashtra State Electricity Distribution Company Ltd. Since restarting operations in May 2006, the plant has never reached its full capacity of 2,150 MW due to inadequate supply of natural gas and technical problems with its turbines. In the last two years, the plant has only been able to scale its power from 100 MW to 900 MW. It sells power to the State utility at Rs 3.10 a unit.

(The Hindu Business Line, June 22, 2008)

Tepid response to open access power plan

While the Delhi government has been talking of making the power sector competitive by permitting open access for domestic consumers, Delhi Electricity Regulatory Commission (DERC), the power regulator, is perplexed at the poor response from stake holders for the public hearing on open access scheduled for June 27. DERC had invited comments from all stake holders, Delhi government, NGOs and consumer activists on open access. Based on the feedback received, it will be passing an order by July. From July 1, the final phase of open access regulations will be enforced, whereas delivery of electricity for use by consumers with the connected load of 1 MW and above will be permitted. In the earlier two phases, 5 MW and 3 MW connected load had been allowed by DERC. Like the government, DERC is keen to extend open access in the domestic sector in the Capital, claiming that there is no competition in the power sector.

(The Times of India, June 23, 2008)

Bengal first to generate 2MW from the Sun

West Bengal Green Energy Development Corporation Ltd, along with DPSC Ltd, is setting up the country’s first grid connected solar power plant at Asansol in Burdwan district. The project is expected to be completed by December 2008. The power from the 2-MW plant, to be generated to the extent of 3 million units annually, will be fed into the DPSC grid directly. This will be the first large size solar power plant in the country, the estimated cost of which is about Rs 40 crore. WBGEDCL will execute the project and the entire power will be purchased by DPSC.

(The Hindu Business Line, June 25, 2008)

Supply of gas halts power generation from Ratnagiri

The problem in the gas supply and other technical snags have forced the Ratnagiri Gas & Power Pvt Ltd (RGPPL) to stop nearly 900-mw of power generation at the Ratnagiri project in the coastal Ratnagiri district from the past three days. The major compressor problem at Dahej has led to the suspension of gas supply 4 million metric standard cubic meter per day (mmscmd) by GAIL India. It is expected that the gas supply would be restored from June 28 onwards in phases.

(The Financial Express, June 27, 2008)

Fiscal sops to boost wind power sector

With crude prices rising and thermal power failing to keep up with the growing demand for energy in the country, the Centre has been increasingly working towards developing alternative energy sources. While it stutters in its attempts to open up the nuclear energy option thanks to political posturing by its allies, the government has also been paying significant attention to the renewable energy sector. The Centre announced fiscal incentives for the wind power sector. Under the new policy, the ministry of new and renewable energy (MRES) would provide the generation based-incentive of 50 paise per unit for period of 10 years to eligible promoters through Indian renewable energy development agency (IREDA). The incentive would be available to those wind power units with a minimum installed capacity of five mega watt (MW).

(The Financial Express, June 28, 2008)

← BHARAT HEAVY ELECTRICAL LIMITED (BHEL)

BHEL plans to diversify into ultra deep water rigs

Domestic power equipment major Bharat Heavy Electricals Ltd (Bhel) is planning to diversify into manufacturing of deep and ultra deep water oil rigs. Bhel has initiated talks with overseas rigs manufacturers for a technology tie up and has proposed a joint venture arrangement to undertake this diversification. Bhel’s entry into the offshore rig manufacturing is crucial especially when ONGC and RIL have sought rig holiday for want of availability of deepwater and ultra deepwater rigs in the global market. In fact, RIL has already announced its plans to make its foray into offshore rig manufacturing. Ultra-deepwater rigs can drill in water depths of over 1,000 metres. There is an acute shortage of such rigs worldwide leading to spiraling of dry-rates.

(The Financial Express, June 10, 2008)

BHEL bags Rs 3,588-cr deal

State-run Bharat Heavy Electricals (BHEL) today said it has won Rs 3,588 crore turnkey order to set up a Combined Cycle Power Plant (CCPP) at Bawana here through International Competitive Bidding. Combined Cycle Power Plant produces electricity and the waste heat is used to make steam to generate additional electricity via steam engine. The order has placed by Pragati Power Corporation Ltd and also involves supply and commissioning of four gas turbines for Pragati-III CCPP.

(Business Standard, June 10, 2008)

(Also appeared in The Economic Times, The Hindu Business Line, The Economic Times etc)

Bhel set to get contract for 50 onshore oil rigs from West Asia

State-owned Bharat Heavy Electricals Ltd (Bhel) is close to receiving an order for 50 onshore oil rigs from West Asia, expected to be worth around Rs5,000 crore and the firm’s first significant win in a business where it sees significant opportunity—oil exploration and production. Bhel isn’t new to the oil rig business. It used to make them till it exited the business 25 years ago. In April 2007, the firm announced its re-entry into the segment, and later, attracted by potential opportunities in the domestic and global markets, it decided to enter the offshore rigs segment as well.

(Mint, June 12, 2008)

Bhel outbids Alstom to bag EPC contract for Tripura project

The state-run Bharat Heavy Electricals Ltd (Bhel) has outbid Alstom to emerge as the L1 bidder for EPC contract for the 740 MW gas-based Pallatana power project in Tripura. The project is being developed by the ONGC, Tripura government and the IL&FS. While Bhel quoted Rs 2,500 crore, Alstom’s quote was of the order of Rs 5,000 crore. ONGC Tripura Power Company (P) Ltd (OTPC), which had received bids from Bhel and Alstom for EPC contract in December. As reported by FE, OTPC opened the bid last week in which Bhel emerged as the lowest bidder.

(The Financial Express, June 19, 2008)

ONGC unit awards contract to BHEL, GE

State-run explorer Oil and Natural Gas Corp said its unit had placed a Rs 2200 crore ($512 million) order with a consortium of Bharat Heavy Electricals Ltd and General Electric. ONGC Tripura Power Co, 50 percent owned by ONGC, has given the order for generation of 720 megawatts of power in the north-eastern state of Tripura.

The Economic Times, June 24, 2008)

(Also appeared in The Hindu Business Line, Mint, DNA)

BHEL Tiruchi in advanced stages of tech transfer

BHEL’s boiler plant located at Tiruchi completed its capacity augmentation equivalent to an overall manufacturing capacity of 10,000 MW and is now adding further capacities to take the total to 15,000 MW by December 2009. This augmentation involves 9,70,000 sq ft of expansion for new shops/bays and 76 new machines. The integrated fabrication facility at Tiruchi has, meanwhile, been increasing its sub-contracting activity to ensure that projects are met on schedule. The sub-contracting activity increased from 1,32,000 tonnes in FY 2007 to 1,68,000 tonnes in FY08. The company hopes to increase this activity by at least 60 per cent for the current financial year.

(The Hindu Business Line, June 25, 2008)

BHEL bags Rs 506 crore ONGC order

Bharat Heavy Electricals Ltd (BHEL) announced it has bagged a Rs 506 crore contract from Oil Natural Gas Corporation (ONGC) for upgradation of drilling rigs. Under the contract, BHEL would upgrade 12 onshore drilling rigs and supply new rig equipment to ONGC. The scope of the order also includes overhauling of rotating and hoisting equipment, revamping electrical systems and site erection and commissioning of these equipment. The company recently won Rs 3,588-crore turnkey order for a combined cycle power plant at Bawana.

(The Hindu Business Line, June 27, 2008)

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