NEEPCO to sort out issue of early recovery of expenditure with KSK Ventures

Feb 7: With NEEPCO`s demand for reimbursement of expenditure incurred on the Dibbin Dam project, as a part of the handover of four hydro electric projects (HEP) in Arunachal Pradesh to private players, falling on deaf ears, the public sector utility has now decided to directly deal with KSK Ventures to ensure that the developer remits the payment at the earliest.
 8Till now, NEEPCO`s efforts to adhere to the Ministry of Power`s (MoP) directive, which entails the PSU to recover the entire amount due from the private developers up to the date of handing over of the Detailed Project Reports (DPRs), have been in vain, with only one developer having reimbursed the full expenditure for the 160 MW Talong HEP.
 8The remaining 3 developers, including KSK Ventures, have paid little heed to NEEPCO`s constant reminders and have become increasingly reluctant to hand over the up-to-date expenditure on the projects located in Arunachal Pradesh. With no other alternative in sight, the utility had sought the intervention of the Central Electricity Authority (CEA) to recover the amount due from the private developers.
 8As per NEEPCO`s request, CEA has agreed to take care of the matter pertaining to the payment associated with the Kameng Dam, Kameng-II, Kapak Leyak and Panganadi stage-II projects at the time of concurrence of DPRs of these hydel projects.
  (Click on `Details` for more information)   Details

SC meeting on power system planning of NER-I: Revised transmission system in place for NEEPCO's 60 MW Tuirial HEP

Feb 7: In an attempt to mitigate the risks faced by the transmission system of NEEPCO's 60 MW Tuirial hydro electric project (HEP) from landslides in the region, the Standing Committee (SC) on power system planning of the North Eastern (NE) region has approved the revised routes of power evacuation from the project.
 8During the SC's recently convened 3rd meeting, it has been decided that the revised system would comprise of a Tuirial HEP–Kolasib 132 kV S/C line, in place of the existing Tuirial HEP-Aizawl (Mizoram) 132 kV S/C line, and the loop in loop out (LILO) of Jiribam-Aizawl 132 kV S/C line at Tuirial HEP, as already agreed upon earlier.
 8While the proposal was readily accepted by the concerned committee, there was a slight difference in opinion pertaining to the agency who should be made accountable for the execution of the required transmission lines.
 8Powergrid was of the view that the government of Mizoram should undertake this responsibility since it has already signed a Power Purchase Agreement (PPA) with NEEPCO for off-taking all the power that will be generated from the project.
 8On the other hand, though NEEPCO suggested that the LILO of Jiribam-Aizawl 132 kV S/C line be implemented by Powergrid, it said that the final allocation from the project would be decided by the power ministry.
 8After careful consideration of all viewpoints, it has been decided that the Tuirial HEP-Aizawl (Mizoram) would be implemented by the state government whereas the LILO of Jiribam-Aizawl 132 kV S/C line at Tuirial HEP would be executed by Powergrid.
  (Click on our 'Reports' section for more information)

SC meeting on power system planning of NER-II: Four developers take up execution of common transmission system

Feb 7: In accordance with the provision of connectivity and Long Term Access (LTA) to generation projects, being developed by KSK Dibbin, Patel Hydro, SEW Nafra and Adishankar Khuitam, a slew of transmission systems, aimed at strengthening the inter-connection of existing lines in the NE region, have been given the go-ahead by the SC for execution.
 The proposed systems will facilitate pooling of power from different generation projects as well as dispersal of power to various parts of the regional grid. The details of the transmission system, that falls under the scope of the generation projects, have been listed below:
 KSK Dibbin Hydro Power Private Limited
8KSK Dibbin – Dinchang PP 220kV D/c line along with associated line bays at both ends and 31.5 MVAR Bus Reactor at KSK Dibbin generation switchyard.
 Patel Hydro Private Limited
8Saskang Rong – Gongri 132kV D/c line along with associated line bays at both ends
8Gongri – Dinchang PP 220kV D/c line along with associated line bays at both ends and 31.5 MVAR Bus Reactor at Gongri generation switchyard
 Adishankar Khuitam Power Private Limited
8Khuitam – Dinchang PP 220kV D/c line along with associated line bays at both ends and 31.5 MVAR Bus Reactor at Adishankar Khuitam generation switchyard.
 SEW Nafra Power Corporation Limited
8Nafra – Dinchang PP 220kV D/c line along with associated line bays at both ends and 31.5 MVAR Bus Reactor at SEW Nafra generation switchyard
 Pertinently, the Dinchang PP has been proposed to be developed as a part of the common transmission system that envisages establishment of a pooling station at Dinchang for pooling of power from generation projects, such as KSK Dibbin, Patel Hydro (2 out of 4 projects), Adishankar Khuitam and SEW Nafra, in Kameng basin.
  (Click on our 'Reports' section for more information)

EPSL to set up new TPP in Gujarat-I: 600 MW CFBC, pet coke based project expected to cost Rs 3,125 crore

Feb 7: Essar Power Salaya Limited (EPSL), an Essar Group company, is setting up a new 600 MW pet coke and imported coal based Thermal Power Plant (TPP) in the Jamnagar district of Gujarat. The project, which will utilize the Circulating Fluidized Bed Combustion (CFBC) Technology, is estimated to cost the company a substantial Rs 3,125 crore.
 8This cost estimate, which also includes interest during construction (IDC) and financial charges, will come to about Rs 5.2 crore per MW of installation capacity in energy charges.
 8However, the company will not take the PPA route to sell power. After meeting its internal auxiliary power requirement, EPSL will instead sell the generated power to neighboring states on a mercantile basis.
 8As far as the implementation schedule of the 150x4 MW project is concerned, the commercial operation date (COD) of the first 150 MW unit is envisaged in 33 months reckoned from the effective zero date, followed by the rest of the units every 3 months. Financial closure is expected to be achieved within 24 months of the zero date.
 8Essar hopes to lessen the yawning demand supply gap in the western grid region in general and Gujarat in particular through this project. According to EPSL, the proposed power project is likely to reduce Gujarat's peak power deficit of 9,000 MW 'to some extent'.
  (Click on our 'Reports' section for more information)

EPSL to set up new TPP in Gujarat-II: Salient features

Feb 7: The website carries here, the salient features of Essar Power Salaya Limited's (EPSL's) upcoming pet coke and imported coal based 600 MW thermal power project in Gujarat. Some of the important features of the project are described as follows:
 8Pre construction activities
 8Project cost
 8Construction activities
 8Statutory Requirements
 8Need and justification of the Project
 8Promoters and their background
 8Plant description--steam turbine generator and accessories, plant cycle, ash handling system, generators, power evacuation etc.
  (Click on our 'Reports' section for more information)

NEEPCO seeks Assam government's intervention for enhancement of gas supply to 291 MW plant

Feb 7: Concerned with the current generation level of the Assam gas based power plant (AGBP), NEEPCO has requested the government of Assam to take up the matter of increasing the quantum of gas, from the existing 1.4 mmscum per day to 1.65 mmscum per day, with the Ministry of Petroleum and Natural Gas (MoP&NG) so that the 291 MW plant can be operated at maximum load.
 8In lieu of lesser gas availability and the present calorific value of gas, the generation level in the range of 190 to 210 MW has been rendered plausible for the Assam plant. In this regard, NEEPCO had approached Oil India Limited to enhance gas supply for AGBP so that the plant may be able to operate at a plant load factor (PLF) of 80%.
 8However, with OIL clarifying that the enhanced supply will be possible only from new exploration, to be taken up by the state-owned company, NEEPCO had no other alternative but to approach the state government to resolve this pending issue and arrive at a feasible solution.
 8To note, the gas based project is located in the Dibrugarh District of Assam. It has been partly financed by a loan of 37.272 billion Yen under bilateral credit arrangement with the Overseas Economic Cooperation Fund of Japan. It utilizes natural gas available in the oil fields of Upper Assam and comprises of 6 gas turbines with associated waste heat recovery boilers and 3 steam turbines arranged in a modular fashion. 
  (Click on 'Details' for more information)   Details

Bikram coal block: Both opencast and underground mining proposed

Feb 7: The Bikram coal block - allocated to Birla Corporation Limited (BCL) to fuel its captive power and cement plant - has been proposed to be mined by both underground and opencast mining methods. The block, located in the Sohagpur coalfields of Madhya Pradesh, is expected to commence production by 2014.
 The details of the said methods are as follows:
 OC mining
 8Conventional methods of mining, employing shovel-dumper combination, will be used for coal excavation. The total extractable reserves, using this method, will be 3.758 MT. The capacity of the mine will be 0.16 MTPA, except during the second year when the capacity will be 0.36 MTPA.
 UG mining
 8Under this method, simple bord and pillar method of development with solid blasting and loading, by a side dump loader of extra low height is proposed. This will load on to the chain conveyor or pony belt conveyor. It will then be transferred on to the gate belt and trunk belt conveyor.
 8The operation will commence from the second year and will be carried out through two sets of inclines from the surface. The total extractable reserves will be 5.682 MT at an annual rate of production of 0.2 MT.
 The coal block, located in the Shahdol district of Madhya Pradesh, was allotted to BCL with net geological reserves of 20.975 MT. Of this, the mineable reserves stand at 18.078 MT. The gradewise percentage of recoverable coal will be 26.5% C, 34.7% D, 24.5% F and rest A, B, E & G.
  (Click on our 'Reports' section for more information)

Chinda OC expansion mine-I: Production capacity to be enhanced to 0.65 MTPA to meet growing demand of linked TPPs

Feb 7: The production capacity of the Chinda opencast (OC) expansion project, located in the Chhindwara district of Madhya Pradesh, has been proposed to be increased from 0.18 MTPA to 0.65 MTPA.
 8This move, to enhance the production capacity beyond the sanctioned capacity of 0.65 MTPA without any increase in the mine lease area, has been proposed to meet the demand of the thermal power plants linked to the mines of Pench area.
 8It may be noted that the expansion project was sanctioned in July 1996 at a cost of Rs 1,779.42 crore for a production capacity of 0.18 MTPA.
 8The purpose was to convert the underground mine into OC as the former was incurring heavy losses due to unfavorable mining conditions.
  (Click on our 'Reports' section for more information)

Chinda OC expansion mine-II: Present status of HEMM by HOE

Feb 7: The website carries here, for our readers' perusal, the present status of the heavy earth moving machinery (HEMM) by HOE with regards to the Chinda opencast (OC) expansion mine.
 8Two hydraulic excavator PC-300 with 2.1 cum B/A BKT capacity are engaged in overburden (OB) removal
 8One hydraulic excavator PC-300 with 2.1 cum B/A BKT capacity will be engaged in lifting of coal
 8Six 17 M3 tippers, five 10 Mle tippers, two 18.2 Mle tippers and one 18.7 M3 tipper will be engaged with the excavator
 8Two drills for OB and coal work, two dozer will be supporting coal production and OB work
 8One water tanker is engaged for spraying water on the haul road
  (Click on our 'Reports' section for more information)

Tara coal block struggling with critical milestones

Feb 7: The Tara coal block, which was allocated to Chhattisgarh Mineral Development Corporation Limited (CMDCL) to meet the coal requirements of Chhattisgarh State Electricity Board's 500 MW Bhaithan thermal power station (TPS), has been struggling to complete its stipulated project milestones.
 8The most pressing of these can be traced back to the Ministry of Environment and Forests (MoEF), which has been less than accommodating with clearances to the block.
 8Only stage-I forest clearance has been awarded to the block, and the lack of forest clearance to the block is hampering the achievement of other critical milestones as well. 
 8For instance, the process of acquisition of 477 ha private land, which has already been cleared by the the collector (Surguja), is held up for want of forest clearance.
 8As far as environment clearance is concerned, a compliance report has been submitted to MoEF, and a decision on the matter is still awaited.
 8Another critical milestone - approval of the mining lease from the government - is also awaiting clearance. This has a direct bearing on CMDCL obtaining the explosive license, which can only be applied after the mining lease has been granted.
 8It may be noted that the Tara coal block has almost 500 million tonnes in reserves, and is located in the Hasdeo Arand coalfields. The block was allocated to CMDCL in August, 2003
  (Click on our 'Reports' section for more information)

Three gas pipelines-I: IOC board defers investment approval over doubts in gas availability and demand

Feb 7:  In the absence of a clear roadmap for gas demand as well as availability, the IOC board has deferred its decision to accord an investment approval for laying three natural gas pipelines in consortium with GSPL, BPCL and HPCL. These pipelines are the Mallavaram-Bhopal-Bhilwara-Vijaypur pipeline (MBBVPL), the Mehsana-Bhatinda pipeline and the Bhatinda-Jammu-Srinagar pipeline (BJSPL).
8The three pipelines are proposed to be implemented through two joint ventures companies, one for MBPL and BJSPL -- since both pipelines are in continuation -- and the other for MBBVPL, at an estimated cost of a whopping Rs 13,706 crore.
8GSPL is the lead partner of the consortium with 52% equity holding, followed by IOC with 26% and HPCL and BPCL holding 11% each.
8While these pipeline projects have been ascertained to be financially viable, doubts are being expressed with regard to gas demand as well as availability.
8The direction from the board came after a presentation was made to it on the sourcing and availability of gas, price affordability and gas demand by major customers in connection with the pipelines.
8The board now wants the management to engage an independent agency to carry out a more realistic assessment of gas demand, availability and pricing so that a clear picture emerges.
 (Click on Details for more information)   Details

Three gas pipelines-II: IOC board shoots down earlier estimates on gas sourcing and availability

Feb 7: The IOC board has opted to stay on the fence and has refused to accord an investment decision for laying the three gas pipelines -- the Mallavaram-Bhopal-Bhilwara-Vijaypur pipeline (MBBVPL), the Mehsana-Bhatinda pipeline and the Bhatinda-Jammu-Srinagar pipeline (BJSPL) -- as it was unhappy with the internal estimates on gas sourcing and availability, based on which the viability of the pipelines was worked out. The corporation -- wary of the fact that gas availability may be a major constraint when going for new pipeline projects -- has refused to see any merit in the gas sourcing projections worked out by the consortium GSPL, BPCL and HPCL.
 The capacity has been estimated internally to eventually be of the order of 76.25 mmscmd for all three pipelines. The capacity utilization will be 20% in the first year and 32% in the fifth year and 58% in the 10th year and 83% in the 25th year, according to estimates.
 The internal exercise conducted by the four JV partners over gas availability looked at projections going up to 2020-21, based on progress made in respect of domestic E&P activities as well as LNG re-gas terminals. The following assessment was made with respect to gas sourcing for MBPL and BJSPL:
 Domestic sources:
8Additional gas from RIL's D-6 block: 2014-15: 30 MMSCMD; 2017-18: 30 MMSCMD; 2020-21: 30 MMSCMD
8GSPC-Oilex Cambay gas field: 2014-15: 5 MMSCMD; 2017-18: 10 MMSCMD; 2020-21: 10 MMSCMD
 Gujarat LNG terminals:
8Expansion of PLL LNG terminal (from 10 to 18 MMTPA): 2014-15: 11.3 MMSCMD; 2017-18: 30.1 MMSCMD; 2020-21: 30.1 MMSCMD
8Expansion of Mundra LNG terminal (from 06 to 10 MMTPA): 37% of the volume to be used for MBPL and BJSPL
8Expansion of Hazira LNG terminal (from 3.7 to 10 MMTPA): 2014-15: 8.6 MMSCMD; 2017-18: 8.6 MMSCMD; 2020-21: 23.7 MMSCMD
8Floating Storage Re-gasification Unit at Pipavav (3 MMTPA): 2014-15: 11.3 MMSCMD; 2017-18: 11.3 MMSCMD; 2020-21: 11.3 MMSCMD
 The IOC board was unhappy with the fact that the internal gas availability exercise had arbitrarily assumed that 37.1% of the above volumes will be used for the two pipelines. The board felt that there was rigour to the arithmetic and wanted more data on how the availability of gas will pan out for the pipelines.
 Comment: The cost of putting together the three pipelines is a staggering Rs 13,706 crore. The PNGRB has already approved the pipelines and the public sector quarter will have to pay penalties if the projects don't come up within the 36-month deadline. The fact that so little homework was done on gas availability will seem galling in the face of such a large amount of money that will be spent on building the pipeline network.
 (Click on Details for more information)   Details

Three gas pipelines-III: Gas sourcing estimates for Mallavaram-Bhopal-Bhilwara-Vijaypur pipeline also flawed, says IOC

Feb 7: Internal gas sourcing prognosis worked out for the last of the three pipelines -- the Mallavaram-Bhopal-Bhilwara-Vijaypur pipeline (MBBVPL) -- has also been criticised by IOC. The company has called for a more realistic set of projections on gas availability for MBBVPL. The following assessment was made with respect to gas sourcing for MBBVPL in July 2011 by the consortium headed by GSPL:
 Domestic sources:
8Additional gas from RIL's D-6 block: 2014-15: 30 MMSCMD; 2017-18: 30 MMSCMD; 2020-21: 30 MMSCMD
8ONGC's KG-DWN-98/2 block: 2014-15: NIL; 2017-18: 29 MMSCMD; 2020-21: 29 MMSCMD
8GSPC KG basin: 2014-15: 10 MMSCMD; 2017-18: 20 MMSCMD; 2020-21: 20 MMSCMD
 Gujarat LNG terminals:
8Expansion of PLL LNG terminal (from 10 to 18 MMTPA): 2014-15: 11.3 MMSCMD; 2017-18: 30.1 MMSCMD; 2020-21: 30.1 MMSCMD
8Expansion of Mundra LNG terminal (from 06 to 10 MMTPA): 2014-15: 22.6 MMSCMD; 2017-18: 22.6 MMSCMD; 2020-21: 37.6 MMSCMD
8Expansion of Hazira LNG terminal (from 3.7 to 10 MMTPA): 2014-15: 8 MMSCMD; 2017-18: 8.6 MMSCMD; 2020-21: 23.7 MMSCMD
8Floating Storage Re-gasification Unit at Pipavav (3 MMTPA): 2014-15: 11.3 MMSCMD; 2017-18: 11.3 MMSCMD; 2020-21: 11.3 MMSCMD
8Floating Storage Re-gasification Unit or LNG terminal on the east coast: 2014-15: NIL; 2017-18: NIL; 2020-21: 11.3 MMSCMD
 What came in for criticism from the board is that here again, the internal estimate merely took 26% of the above availability figures as gas to be made available to the pipeline without providing a valid rationale for doing so.
 (Click on Details for more information)   Details

Coal ministry approves third revision in mining plan for Gotitoria coal block

Feb 7: The standing committee, under the Ministry of Coal, has approved the mining plan, including the mine closure plan (MCP), of the Gotitoria coal block, allocated to BLA Industries Limited.
 8This is the third revision in the said plan. The revision was mainly on account of change in technology-- de-pillaring by opencast (OC) method instead of underground (UG) mining as the coal seams in the block have been affected by heat and lava flow, leading to de-volatization and associated deterioration.
 8The committee has now approved the said plan with the following conditions:
 --The mining company will take all necessary precautions regarding the safety of mine workings and people deployed.
 --Mining lease, which is to be acquired, must not encroach into any other coal block.
 8The Gotitoria (east) and Gotitoria (west) coal blocks were allotted to the mining company to meet the coal requirements of the private company's 24 MW captive power plant to be set up in Madhya Pradesh. The first revision in the plan recommended OC mining in non-forest area and UG mining in forest area which was approved for an annual output of 0.24 MT.
 8The mining plan was again revised for extending OC mining into forest land of Gotitoria (west) and enhancing the production capacity to 0.30 MTPA, which was also subsequently approved.
  (Click on our Details for more information)   Details

IEA report on energy efficiency finance: Download

Feb 7: The International Energy Agency has come out with a report titled 'Joint Public-Private Approaches for energy efficiency finance'. The report describes the use of joint public-private approaches, also known as public-private
 partnerships (PPPs) to encourage and promote private-sector investment in energy efficiency (EE) projects.
 8The report, in this regard, gives an example of KfW bank of Germany, which has provided a dedicated credit line of EUR 50 million to the Small Industries Development Bank of India (SIDBI) to finance EE projects in micro, small and medium enterprises (MSMEs) in India. The credit line provides SIDBI the capacity to encourage MSMEs to undertake energy-saving investments in plant and machinery and production processes.
 8This project, according to IEA, is one of the many ways in which energy efficiency can be increased through an effective public private partnership.
 8However, there are other means, apart from credit lines, to encourage PPPs in energy efficiency projects.  
 8The report describes these in details, and covers the following important topic areas:
  --Barriers to energy efficiency finance
  --What are public-private partnerships in energy efficiency finance?
  --Why are public-private partnerships important in financing energy efficiency?
  --How to design effective PPPs for EE finance: the policy pathway
   (Click on our 'Reports' section for more information)

Agenda note for SC meeting of power system planning in ER-I

Feb 7:  8The Jharkhand State Electricity Board (JSEB) has sought approval from the Standing Committee on Power System Planning in the eastern region to construct the 400kV Ranchi (PG) – Patratu D/C line in order to avail the state’s share from upcoming projects such as Essar Power and Corporate (Abhijeet) Projects. Another reason for this is to facilitate evacuation from the existing Tenughat and Patratu thermal power stations. Accordingly, JSEB has requested for two 400kV line bays at PGCIL's 400kV Ranchi sub-station.
8JSEB has also requested the standing committee to provide two 220kV line bays at the 400/220kV Maithon substation (PGCIL) for the construction of the 220kV Maithon (PG) – Dumka D/C line.
8Further, Power Grid Corporation of India Limited (PGCIL) has asked the standing committee for additional spare converter transformers (single phase unit) for the 2x500 MW Gazuwaka/Vizag and 1x500MW Sasaram HVDC back-to-back (B-t-B) stations.
  (Click on our 'Reports' section for more information)

Agenda note for SC meeting of power system planning in ER-II

Feb 7: 8The board of directors of West Bengal State Electricity Transmission Corporation Limited (WBSETCL) has approved the establishment of a 400/220/132 kV sub-station at the Raghunathpur area of Purulia district in the 12th plan. The 400 kV substation is expected to meet the already committed bulk demand of West Bengal State Electricity Distribution Corporation Limited (WBSEDCL) to various metal and steel companies as well as the forthcoming bulk consumers in that area, including the normal system demand of the district and its adjoining areas.
  --The entire scheme will be executed by WBSETCL at its own cost.
 8WBSETCL has proposed augmentation of transformation capacity with third integrating current transformer (ICT) of 1x135 MVA 400/220 kV capacity at Subhashgram (PG). Presently, Subhashgram (PG) sub-station (s/s) has 2x315 MVA 400/220 kV ICTs catering to the load requirement in the area. These ICTs are loaded at around 75% of its capacity. Due to potential load growth at and around Subhashgram area and additional 220 kV interconnections being set up with the adjoining s/s of WBSETCL, these ICTs would be highly overloaded and unable to meet contingency.
 8Both the transmission and distribution companies - WBSETCL and WBSEDCL - have proposed that PGCIL develop WBSETCL's 400 kV PPSP WB-Ranchi D/C and 400 kV Kharagpur WB-Chaibasa D/C transmission lines, for which 100% transmission charges will be borne by the said state utilities. This is in view of the difficulty being faced by WBSETCL to develop the said lines due to the transmission assets lying in both states i.e. WB and Orissa.
  (Click on our 'Reports' section for more information)

News Briefs

Feb 7: 8Reliance Power's Samalkot power project, a 2,400 MW gas based plant, is ready for synchronization and commercial operation in a record time of 15 months. The Rs 10,000 crore project, located close to the country's east coast in Andhra Pradesh, is India's largest gas-based power plant.
 8The board of directors of ABB Limited will convene on February 23, 2012 to consider the annual audited accounts for the financial year ended December 31, 2011 and recommend a dividend, if any. The board will also take on record the audited financial results for the fourth quarter ended December 31, 2011.
 8R P Singh has been appointed as whole time CMD of SJVN Limited with effect from January 31, 2011. Consequently, he has relinquished the post of Director (electrical) of the company with effect from the said date.

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