NHPC decides to replace Robbins with Seli for TBM works at Kishenganga HEP: Robbins may drag the utility to court

May 11: US-based TBM (tunnel boring machines) operator Robbins has expressed shock and dissent at NHPC`s apparently arbitrary and unilateral decision to replace the company with an Italian firm Seli in the PSU`s 330 MW Kishanganga project in Jammu and Kashmir, as reported by Energylineindia.com through an article Italy based Seli to replace Robbins to take up TBM related work for the HRT at NHPC`s 330 MW Kishanganga project dated May 1, 2008.
 8" We have not received anything in writing from the main civil contractor Hindustran Construction Company, nor NHPC," said Shyam Chengalath, Managing Director, Robbins, adding that, " If this is true, it a clear transgression of the contract. The company is fully convinced that it has no reason to be on the wrong end, and so, will not take anything like this lying down. It is but natural that the TBM operator may take recourse to legal action to defend its interests. If we find this true then, we will try to bear the full strength of the law of the country, and will surely win since we are on the truth," said Chengalath. By Imran Naqvi   Details

Robbins not a fly-by-night operator, claims 100 km tunneling business for the fiscal 2008-09

May 11: The TBM operator Robbins --which is facing perils of being unilaterally driven out of the Kishenganga project by NHPC--claims it is not fly-by-night operator. It claims to be an acknowledged leader in the hard rock tunneling technology. The U.S-based company has workforce of a 100 people in India working on various projects. " We have some 25 resident expatriates who are powering our business in India through their world-class expertise," Shyam Chenglath, MD, Robbins, told our website. The company has managed a turnover of Rs 45 crore in  2007-08 and plans to clock a turnover of Rs 100 crore by next year.   Details

UPERC issues suo-moto order for promoting procurement of power from captive and non-conventional sources

May 11: The Uttar Pradesh Electricity Regulatory Commission (UPERC) has de taken an initiative to push the cause of captive power and and non-conventional sources of power generation-- like wind, hydro, solar and biomass, bagasse, biogas, municipal waste and industrial wastes -- by issuing a suo-moto order spelling out guidelines for procurement of power from such sources by the distribution licensees of the state. Click on our Reports section for more information.By Imran Naqvi

Power Ministry contests Nitish Kumar's complaints of inadequate power allocation to state

May 11: Replying to a letter from Bihar's Chief Minister Nitish Kumar, the power ministry has said that it is doing its best to bail out the state of its power crisis. Kumar had complained of inadequate power allocation to the state despite the fact that it hosts various NTPC' power projects. In a recent communication to the state government, the Union Power Minister Sushilkumar Shinde has clarified that Bihar has the maximum share of allocation fron NTPC stations in comparison to other Eastern region states. The state has an allocation of 1170 MW of power from such stations to take care of a peak demand of around 1500 MW. In addition, the Central Electricity Authority (CEA) has recommended 60 MW additional allocation from un-allocated quota of Eastern Region NTPC stations. Besides, Bihar has also been assured of 189 MW of firm share from Kahalgaon II STPS (3x500 MW) and 55 MW from NHPC Teesta - V HEP. What is more, 500 MW power from the Jharkhand Ultra Mega Power Project at Tilaya has also been earmarked for the state, the communication claims. More power has been assured to Bihar by Shinde from various projects. Click on Details to know these projects.   Details

Bihar government complains of inaction on its coal linkage-applications : MoP clarifies

May 11: The Bihar government has lodged a complaint with the power ministry that a set of coal-linkage applications from the state has not been endorsed to the coal ministry by  Shram Shakti Bhavan. Bihar has sought linkages for five power projects with cumulative generation capacity of 11250 MW. The projects are: Nabinagar JV project (4000 MW), Pirpainti TPS (4000 MW), Katihar TPS (2000 MW), Muzaffarpur expansion project (750 MW) and Barauni expansion project (BSEB). On its part, the ministry has clarified that these projects are not included in the 11th Plan projects finalized by the Central Electricity Authority (CEA). Even so, the ministry has recommended the projects for allocation of linkages, the coal ministry is only considering those projects which are going to come up in the 1th Plan period. Consequently, coal linkages to these projects cannot be tied up at the moment.
Our readers will recall that the CEA had urged the coal ministry to consider tying up linkages for the 12th Plan projects as well so that their financial closure  -- which depends on award of linkages -- can be taken up advance. This would help put these future projects on the fast-track right away, CEA has argued. Considering the quantum of fresh capacity these Bihar projects envisage, the coal ministry should give the suggestion serious consideration. Click on Details for these coal blocks.   Details

PFC told to disburse Rs 2000 crore in North Eastern region by mid-June, 2008

May 11: The power ministry has asked the Power Finance Corporation -- in a recent review of its performance -- to explore ways of tying up business with the North Eastern states. The ministry has asked the power sector lender to proactively customise it lending deals with the North Eastern region to suit their peculiar requirements. MoP has advised the central sector company to ramp up its liaisoning activities with these states. To this end, PFC has been told to target sanctions of upto Rs 2000 crore by mid-June 2008 in order to expand its footprints in the area. The ministry has argued that the risks associated with the unstable geology and politics of the region dampens the private sector interest to some extent and, in this context, there is a need for a stimulus--in terms of low-interest loans-- to encourage private ventures. The ministry has aruged that PFC's support can come in handy for such projects.  Click on Details for more information.   Details

PFC comes under criticism for lowering investments in R&M schemes

May 11: The Power Finance Corporation came in for intense criticism from the power ministry for its inability to disburse adequate funds on renovation and moderinsation (R&M) projects apart from the fresh capacity addition projects. Power secretary Anil Razdan has reinforced the need to promote more R&M schemes after it turned out in a review meeting that sanctions and disbursements have come down, instead of going up, in R&M/R&U related activities.
8In the review meeting, PFC argued that R&M schemes have not been on its priority list particularly as they as scheme extending subsidised financing to them was not extended beyond the 10th Plan. Moreover, PFC is apprehensive that shifting of focus from capacity addition may lead to dilution of its mandate.
Click on Details for more information on this interesting debate.   Details

JITPL seeks main plant package supplier for its Chattisgarh and Orissa projects

May 11: Jindal India Thermal Power Ltd (JITPL), a B.C  Jindal  Group company, is seeking a contractor for the supply  of  five  sets  of  boiler(SG),  turbine  generators (TG)  and control & instrumentation (C&I) packages on  EPC  basis with a capacity of  600mw/660 mw  +10%  for its upcoming projects in Chhatisgarh and Orissa. Pertinently, JITPL is setting  up 2x 600  MW/660  MW+10%  coal-based Super-Critical  Thermal Power Plant in Chattisgarh and another 3x 600  MW/660 MW+10%  coal-based Super-Critical Thermal Power Plant in Orissa. For the Boiler and Turbine Generator packages, the bidder should have designed, engineered, manufactured, installed, tested and commissioned at least three units of 600 MW or higher capacity of the type to be offered in the bid for the project with Supercritical parameters having Main Steam Pressure range of 242 kg/cm2 to 250 kg/cm2 or, Turbine inlet temperature of 565 Deg C or better and Re-heater outlet temperature 565 to 595 degree C or better. Click on Reports for related documents.   Details

Hindalco's captive power projects: Download presentation

May 11: The website carries here details about various captive power project sbeing planned or operated by the Aditya Birla Group`s flagship company Hindalco. Pertinently, the company has recenlty commissioned its 100 MW captive project in Hirakund. The units consists of three boilers and a single turbine. The company expected to achieved full load capacity on May 7, 2008. Hindalco has also placed the EPC contract for its 900 MW power project on DCPL, Kolkatta. It plans to commission this project by September 2012. The private company has generated 8960 MU of energy during the fiscal 2007-08, as against 8269 MU produced in the previous fiscal 2006-07, registering a 4% growth. Meanwhile, the work for its 750-900 MW captive power unit at Belgaum is proceeding as per schedule. Environment clearance has also been obtained for this unit from the Ministry of Environment and Forests (MoEF). Click on Reports for the presentation encompassing these details.

PFC Briefs

May 11: 8State-owned Power Finance Corporation Ltd net profit has slipped 20 per cent to Rs 295.4 crore for the quarter ended March 31, 2008,  as compared to Rs 371.2 crore during the same period a year ago. The total income has increased to Rs 1366.9 crore during this period, up from Rs 1238.2 crore during the previous year's same quarter.
Meanwhile, the PSU has posted a net profit of Rs 1206.8 crore for the whole fiscal 2007-08,  as compared to Rs 986.1 crore for the previous fiscal. The total income for the entire fiscal has increased from to Rs 5040 crore from Rs 3927.7 crore during the previous fiscal.
8The central sector PSU has informed the BSE that its Board of Directors at its meeting held on May 10, 2008 has recommended a final dividend of 10% on paid up capital of the company. This is in addition to already declared interim dividend of 25% of the paid up capital, thereby making total dividend of 35% of the paid up capital of the company for the financial year 2007-08.

Gas shortage: Madhya Pradesh CM pitches for extra PMT gas allocation to NTPC

May 8: Madhya Pradesh Chief Minister Shivraj Singh Chauhan has shot off a missive to the Union Petroleum Minister Murli Deora, requesting allocation of extra gas from PMT fields to NTPC on priority basis. In his recent letter, Chauhan has urged the minister to allocate around  7-8 MMSCMD gas -- out of an additional PMT gas availability of 11-12 MMSCMD -- to NTPC. This was sought to bail out the power utility from the precarious situation it has found itself in with respect to the Kawas and Gandhar power stations, which supply power to the state. Chauhan has argued that on account of shortage of gas, the power major is forced to buy expensive RLNG and Naptha from the open market to drive its plants, which, in turn,  has escalated the generation costs resulting in higher consumer tariff. Incidentally, Madhya Pradesh has been allocated 158.5 MW of power from Kawas and 135.7 MW of power from Gandhar. This, Chauhan claims, has burdened the state with additional financial stress that results from the increased cost of generation from these stations. Click on Details for more information.   Details

MoP pushes NTPC's cement manufacturing venture: Asks the utility to expeditiously finalise JV partner

May 8: The power ministry has asked NTPC to put on fast-track its plans to set up fly ash based cements units at is six power stations at Badarpur, Sipat, Ramagundam, Barh, Kahalagaon and Rihand . In this connection, the power secretary Anil Razdan has asked the power major to quickly finalise its JV partner for the proposed foray by August 2008 instead of September while reviewing the utility's performance in a recent meeting. As many as 11 firms have expressed their desire to to tie-up with NTPC for the cement grinding units. However, Razdan has clarified cement units may not get a dedicated supply of power from the unallocated power pool though he assured that a suitable solution would still be worked out in line with a recent directive from the Supreme Court. Clearly, the power ministry is prescient about the eroding interest of the private players in case dedicated supply of power cannot be assured. Click on Details for more information.   Details

Monnet seeks restructured contours for its Utkal B2 coal block, moves coal ministry

May 8: Monnet Ispat and Energy Limited has pleaded an intervention from the coal ministry for restructuring the contours of Utkal B2 coal block in Talcher Coalfileds of  Mahanadi Coalfields Ltd, which was allocated to its to meet the feedstock requirements of its captive power plant at Angul in Orissa. The private company has asked for allocation of the Singhara Johr block on the northern side of Utkal B2 as an additional block, arguing that the latter's triangular symmetry has severely hampered mining operations. Moreover, Monnet has buttressed its claims by saying that extractable reserves of the allocated block account for only 35-40% of what has been envisaged -- 114.33 million tonnes -- in the geological report prepared by the Coal Mine Planning and Design Institute Limited (CMPDIL). The company has further contended that it may not be possible for any other entity to economically excavate the low quality coal that lies in Singhara Johr block alone and, in this context, attaching it with the Utkal B2 block made sense. The Singhara Johr block spans across an area of 0.5 km to the north of Utkal B2. Click on Details for more information.   Details

CARE reaffirms ‘credit watch’ rating assigned to MSEB bonds

May 8: Rating agency CARE has retained the ‘CARE BBB – (SO)’ (triple B minus (structured obligation)) rating assigned to the outstanding bonds (Series VII and Series VIII) issued by erstwhile Maharashtra State Electricity Board (MSEB). The bonds continue to be on ‘credit watch’ on account of implications that could arise out of unresolved issues pertaining to unbundling of the erstwhile MSEB. The rating has factored in the track record of debt servicing of rated bonds and improving financial condition of  the government  of Maharashtra, as exhibited in reduction of revenue deficit, improvement in composition of fiscal deficit and comfortable liquidity position along with above average socio-economic infrastructure in existence in the state. But at the same time, the rating remains constrained by high levels of committed expenditure, large stock of budgeted and off-budgetary liabilities, high level of outstanding debt of the state government and lack of clarity as to which of the unbundled entities would service the bonds in future. Click on Details for more information.   Details

Open access cannot be denied by the distribution license to captive units: MERC

May 8: Can an entity which is not a consumer of a distribution licensee -- but whose premises are situated within the area of supply of the licensee -- be eligible for open access to the distribution system of that area's licensee for supply of power from a captive power plant? The Maharastra Electricity Regulatory Commission has clarified -- in an appeal by Nagpur-based Yash Agro Energy Ltd against Maharashtra State Electricity Distribution Company Ltd (MSEDCL) seeking a direction to the latter for allowing open access to its assets for the supply of power -- that the captive plant owner need not obtain a licence to sell surplus power to either any licensee or to any eligible consumer or person, whose premises are situated within the area of supply of MSEDCL. Pertinently, the state distribution company had denied access to its distribution assets while directing it to obtain a distribution license for the purpose. The state regulator has affirmed that the captive plant need not construct dedicated feeder lines for such purpose as access can be denied by MSEDCL, in line with the provisions of the Electricity Act, 2003 read with Electricity Rules, 2005. Click on the `Reports` section to download a copy of the order.

Yash Agro Energy has a right to sell the power to a third party right from the start: MERC clarifies to MSEDCL

May 8: The Maharashtra Electricity Regulatory Commission has reaffirmed its earlier order granting approval to Nagpur-based Yash Agro Energy Ltd's demand for selling the energy generated by its 8 MW co-generation project to third parties. The captive unit owner was nudged to move the state regulator to seek clarifications on an earlier order -- after MSEDCL contested its right to sell the power to a third party other than itself -- as per the provisions of the Energy Purchase Agreement (EPA) signed between Yash Energy and Maharastra State Electricity Board (MSEB). It is pertinent to note that Maharashtra State Electricity Distribution Company Ltd.has taken over the rights of MSEB  pursuant to being vested with distribution functions after the unbundling of the Electricity Board . The earlier order of the regulator clearly said, “The developer of the co-generation projects should be allowed to sell the energy generated by the co-generation project, to third parties, from the beginning itself, if they choose to do so. However, in such a situation, there should be no liability on the part of the MSEB to compulsorily off-take the energy generated by the project. The state regulator has now ruled: ” There is nothing in Clause 8.4 of the EPA that precludes Yash Agro Energy to exercise its choice to opt out of the EPA for sale to third parties from the beginning itself. The STU and Licensees shall facilitate such third party sale and enter into an Energy Transmission/Wheeling Agreement with the Petitioner to enable such third party sale". Click on the `Reports` section to download a copy of the order.

RINL seeks alternative to Mahal coal block

May 8: Rashtriya Ispat Nigam Limited (RINL) has pleaded with the coal ministry to consider allocating an alternate coal block --preferably the one at Tenughat which the company had earlier applied for-- in lieu of the  allocated Mahal coal block in Jharkhand. The private player has argued that the poor geological conditions in the block coupled with high cost of operation makes working on the Mahal block unviable.. The feasibility report too has shown that that the block cannot be operated economically.The private player has now urged the ministry to exempt it from paying the Rs 10 crore fee on the geological report on the Mahan block. Click on Details for more information.   Details

NTPC briefs

May 8: 8NTPC has informed the power ministry that by 2011-12, the demand for power in Delhi would be around 6000 MW but supply arrangements have been made for around 7400 MW power. This leaves scope for allocating a chunk of of this surplus capacity to other states like Jammu and Kashmir, which has sought additional 200-250 MW of power from Delhi after the Commonwealth Games are over.
8Power Secretary Anil Razdan has asked the central utility to provide technical assistance to captive power units in the country so that the resultant reclaimed capacity can be made available to the public. This will help mitigate power shortages. Significantly, the country has a total capacity of 20,000 MW of captive generation.
8The public sector generator has pleaded an intervention from the power ministry for weeding out the discriminatory UI charges that are effective for the generators. NTPC has complained that while the maximum incentive for over generation in coal stations is Rs.4.06 per unit, the penalty can go up to Rs.10/kwh. This needs a corrective intervention for creating a level-playing field, the company has argued.

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