Monthly Archives: December 2013

Indian contractor resumes work on Rahughat hydro

Civil works of Rahughat Hydropower Project, a priority project of the government, have finally started, three years after the Nepal Electricity Authority (NEA) awarded contract to IVRCL Infrastructure of India.

If things go as planned, the project will be completed by June 2018.

NEA had awarded contract to IVRCL Infrastructure in December 2010. As per the contract, the contractor had to start works in December 2012. It was supposed to complete the work in 42 months.

However, IVRCL Infrastructure couldn´t start work in time because of the delay in appointment of consultant by NEA. After the consultant was appointed, the contractor applied for compensation citing rise in prices of construction materials because of the delay.

Project officials at Beni said the contractor started civil works this week after it received Rs 39.3 million as compensation from NEA. The board of NEA had decided to pay compensation amount to the contractor a couple of weeks ago.

IVRCL Infrastructure had sought Rs 310 million as compensation.
Though the compensation amount is lower than what the company had sought, it has been learnt that the contractor returned to work following directions of the Government of India.

The 32-megawatt project based in Myagdi district is being developed with soft loan worth US$ 67 million of Exim Bank of India. The civil works contract is worth $31 million.
According to officials, the process to appoint consultant got delayed because of the objection of the Government of India over the appointment of a Chinese consultant for the project in 2011.

Though Water and Power Consultancy Services had issued ´letter to proceed´ to the contractor in December 2012, the latter had denied and approached NEA for compensation.
A study committee led by NEA board member Laxman Agrwal had recommended to NEA to pay only Rs 14 million as compensation to the Indian contractor. Later, the consultant recommended paying Rs 39.3 million as compensation to the contractor.

Officials at the project site office in Beni said preparatory works on construction camp, crushing plant and security camps have already begun. The contraction is also making preparation to build access road and 6-kilometer tunnel.

Meanwhile, the process to award contract for electromechanical works is underway. The package also includes works to build 28-kilometer transmission line to Modi 2 hydropower project in Parbat to evacuate power generated by the project.

After the government put Rahughat Hydropower Project in priority list, independent power developers have expedited process to develop Mistri Khola and Upper Rahughat projects hoping to use access road and transmission line built by the project.

Source: myrepublica

Highly volatile Indonesian coal caused fire at Mundra project – TATA Power

PTI quoted TATA Power as saying that the susceptibility of Indonesian coal to spontaneous combustion was the main reason behind last month’s fire incident at its 4,000 MW Mundra plant, where operations have been normalised.

The fire had broken out at the site of the Mundra ultra mega power project on November 14th temporarily affecting electricity generation.

The plant is operated by Coastal Gujarat Power Limited, a wholly owned subsidiary of TATA Power and is fired with coal imported from Indonesia.

Mr KK Sharma CEO of CGPL said that “Since Indonesian coal has a high calorific value, it is highly volatile and susceptible to spontaneous combustion. Our protective system worked well. The plant is now working nicely.”

Without divulging financial details, he said that damage due to the fire as well as repair costs were minimal.

TATA Power said that “The fire occurred in the coal conveyor gallery at the coal handling plant at CGPL on November 14th. Coal feeding to the plant was impacted due to fire and the repair works that followed. Restoration of the impact of fire on conveyor was achieved on November 20th 2013. The company has processed the insurance claim as per coverage.”

The Mundra project, located in Gujarat has 5 units, each with 800 MW of generation capacity. Electricity from the plant is supplied to Gujarat, Rajasthan, Maharashtra, Haryana and Punjab.

According to Mr Sharma, who is also executive director at CGPL “One unit is currently shut due to a technical problem and will become operational in the next few days.”

He said that “Following the fire incident, measures are being initiated as part of a comprehensive risk review process to strengthen overall monitoring.”

Source – Economic Times

Uttar Pradesh Signs Contracts for Solar Plants

Moser Baer India Ltd. (MBI), a solar manufacturer based in New Delhi, won a contract to sell power from a proposed plant in Uttar Pradesh state, allowing it to proceed with the project.

State officials signed contracts with developers for 110 megawatts of solar power in total, Namrata Kalra, project officer at the Uttar Pradesh New and Renewable Energy Development Agency, said today. Azure PowerIndia Pvt., a company backed by the World Bank, was also among the winners.

Uttar Pradesh in northern India is among states expanding solar generation to meet government-set targets. The country, which suffers peak-hour power shortages of as much as 25 percent in some regions, is developing large-scale renewable plants to diversify its energy mix and reduce a current-account deficit exacerbated by fuel imports.

State-run Uttar Pradesh Power Corp. agreed to buy power from six planned solar plants at tariffs ranging from 8,440 rupees ($136) a megawatt-hour with Jakson Power Solutions to 9,330 rupees with DK Infracon Pvt., Kalra said by telephone. Essel Infraprojects Ltd. and Refex Energy Ltd. also won deals.

Those tariffs will be fixed for the first 12 years of the contracts, then reset for the remaining 13 years at the prevailing rate for conventional power, she said. Uttar Pradesh plans to auction as much as 390 megawatts of additional solar capacity after the state government approves funding, she said.


Vedanta seeks nod to use IPP power for smelter

Vedanta Aluminium Ltd (VAL), a unit of Anil Agarwal controlled Vedanta Resources, has sought the nod of the Odisha government for using 600 Mw power from Sterlite Energy (also a Vedanta Group firm) to run its smelter at Jharsuguda.

VAL’s 1.25 million tonne per annum (mtpa) aluminium smelter set up as a sector specific Special Economic Zone (SEZ) at Jharsuguda is lying idle presently for want of power. Sterlite Energy, an independent power producer (IPP), runs 2,400 Mw (4×600 Mw) coal-fired station at Burkhamunda near Jharsuguda.

“We have set up our aluminium smelter in Jharsuguda in line with the state’s SEZ policy 2003 and are awaiting approval. We will be very pleased if approval can be granted immediately. The company also requests the government to allow use of 600 Mw power plant to run our smelter for value addition which is lying idle,” Vedanta Resources chairman Anil Agarwal wrote to Odisha Chief Minister Naveen Patnaik. Agarwal said a quick decision by the government can help start operations of the smelter resulting in generation of economic activities, huge local employment and additional revenue creation for the state.

The company had recently sought extension of SEZ benefits for its aluminium smelter project at Jharsuguda.

Read more…
Source: Business Standard

ONGC gets nod to offer 10 per cent stake in Tripura Power Company to Bangladesh

The government has given an in-principle approval to state-run Oil & Natural Gas Corporation’s (ONGC) proposal to offer 10% equity stake to Bangladesh in ONGC Tripura Power Company and supply 250 mw electricity to the energy-deficient neighbour. The move is expected to strengthen the Sheikh Hasina government ahead of the crucial general elections in Bangladesh next month.
Confirming the development, ONGC chairman Sudhir Vasudeva told ET, “Our plant in Tripura could not run on optimum capacity because of environment issues. But the new environment minister is very dynamic and we expect him to remove hurdles expeditiously.”

ONGC can supply energy to the neighbouring country after meeting the requirements of the northeast, a senior central government official with direct knowledge of the matter said.

The 726.6 mw project is currently producing just 180 mw because the company has been unable to lay transmission lines between the Palatana plant and Bongaigaon to connect to the national grid for want of green clearance. The second phase of the project, which was expected to be commissioned by July this year, has, therefore, been delayed until March 2014.

Read more…
Source: ET

OIPL drafting PPA for Odisha UMPP

The Odisha Integrated Power Ltd (OIPL), a fully owned subsidiary of Power Finance Corporation (PFC) is in the process of preparing the draft power purchase agreement (PPA) for the first ultra mega power plant (UMPP) in the state.

The maiden UMPP with a capacity of 4,000 Mw is coming up at Bhedabahal in Sundargarh district. OIPL is a special purpose vehicle formed for implementing the UMPP. Odisha would get 1,300 Mw as state share from this power project. The project will be implemented as per the terms and conditions of the PPA.

The selection of bidder is being done as per the tariff based competitive bidding guidelines issued by the Central government on design, build, finance, own and transfer (DBFOT) basis.

The Request for Qualification (RFQ) for the UMPP was issued on September 25. OIPL has received applications from nine prospective developers — Adani Power Ltd, CLP India Ltd, Jindal Power Ltd, JSW Energy Ltd, Larsen & Toubro Ltd (L&T), National Hydro Power Corporation Ltd (NHPC), NTPC Ltd, Sterlite Infraventures Ltd and Tata Power Ltd.

The award under Section 11 (of Land Acquisition Act) for private land measuring 2,733.54 acres was issued by the Sundargarh collector from August 8-10 this year in all affected villages- Kandabahal, Kirei, Rupidihi, Kopsingha, Lankahuda and Bhedabahal.

Read more…
Source: Business Standard

Kerala must plan switchover to 100% renewable energy

Kerala must plan for a transition to 100 per cent renewable energy for sustainable development and energy security.

The State has meagre fossil fuel resources and most of the hydro potential is already harnessed, says G.M. Pillai, Founder Director-General of Pune-based World Institute of Sustainable Energy.


He was here to attend a function to officially release ‘The Energy Report-Kerala’ brought out by the Institute in partnership with WWF-India.

The report maps energy requirements up to 2050 in order to assess the feasibility of meeting 100 per cent of the energy demand through renewable resources.

Emissions from coal or gas-based power projects may adversely affect both the forests and the fragile marine ecosystems and could also pose a public health hazard.

Given such constraints, the State faces a threat to its energy security, Pillai said. On the other hand, most renewable energy technologies have low environmental impacts.

The Energy Report assesses that the State has a potential for 60,000 MW in renewable energy across multiple sources.

Read more…
Source: Business Line

Tamil Nadu launches free CFL bulb scheme

Tamil Nadu government today launched the first phase of providing free compact fluorescent light bulbs to over 14 lakh hut-dwellers in the state, an energy-saving measure aimed at saving 40 mw of power.

Chief Minister Jayalalithaa also launched over Rs 500 crore worth of projects under the Energy Department through video conferencing from her camp office at Kodanadu in the Nilgiris district.

The scheme of providing free CFL bulbs was launched with an objective of promoting power-saving, a state government release here said.

In the first phase of the Rs 8.77 crore project launched today, Jayalalithaa gave away one nine-watt CFL bulb to seven persons each marking its roll out, the release said, adding the initiative will help the government save about 40 mw.

A total of 14.62 lakh domestic consumers coming under the hut-dwellers category will benefit with seven lakh o ..

Read more…

Source: ET

PSERC passes on customs duty benefit of Rs.600 crore to consumer

PSERC passes on customs duty benefit of Rs.600 crore to consumer
Monday December 30 2013

Punjab State Electricity Regulatory Commission (PSERC) has decide to pass on custom duty benefit of Rs. 600 crore availed by Sterlite Energy limited on account of grant of mega power project status to Talwandi Sabo thermal project be passed on to consumers.

PSERC in its order of December 27 on petition no. 41 directed the Sterlite Energy limited executing theTalwandi Sabo thermal project to render true and full account of benefits to PSPCL that ought to have accrued to it on account of grant of mega power status to project.

The Punjab consumer is going to benefit to the tune of Rs. 104 crore per annum for the next 25 years as the fixed charges of project will come down by 8 paise per unit. With a generation potential of the plant being 13000 million units, the Punjab consumer shall gain by Rs. 2600 crore over a period of next 25 years.

PSPCL has filed a petition before Commission seeking directions to Sterlite Energy limited on account of mega power status granted to 1980 MW Talwandi Sabo project and pass on all financial benefits claimed to PSPCL as per power purchase agreement.

PSPCL has claimed that the benefits of status were not applicable at the time of bidding in 2006 as per existing laws .In December 2009 Government of India revised the policy guidelines and modified the mega power policy. Talwandi Sabo thermal project was granted this status in August 2010.

Punjab Government issued the essentiality certificate to obtain necessary customs duty benefits and the company executing the project gave the undertaking and claimed all the benefits The company claimed that it is not liable to pass the benefits of new policy to PSPCL claiming that this was not a change of law. The benefits were granted to keep the power tariff low in the public interest.

Sterlite has been benefitted to the tune of Rs. 600 crore for duty draw back the non – payment of customs duties. As per article 13 of power purchase agreement the fixed charges of 135.4 paise per unit comes down by 8.064 paise per unit.
Similarly the Commission had granted a relief of Rs 74 crore per annum last November from power generated from Rajpura thermal plant on similar grounds thereby passing on a benefit of 8 paise per unit totaling to Rs.1850 crore to the consumers over next five years.
Round up of PSERC in 2013
Punjab consumer is going to gain about Rs. 300 crore during 2013-14 on as an impact of fuel audit conducted by PSERC for reducing the use of coal and other fuels at PSPCL thermal plants. This will reduce tariff by about 7.5 paise per unit.
Thus the vigilant eye of PSERC on private and PSPCL thermal plants is likely to reduce the electricity tariff by about 23.5 paise per unit during 2014-15, thus reducing the burden of 63 paise per unit proposed to be passed on to the consumer by PSPCL to 40 paise per unit.
According to In case PSERC applied the regulations strictly on PSPCL ‘s ARR petition in stringent manner ,there is a possibility of reducing the tariff during 2014-15 keeping in view the profit of PSPCL and PSTCL during 2012-13 and 2013-14 . These sources indicate that courtesy consistent tariff rises given by PSERC, the profits of PSPCL and PSTCL during last 2 years have crossed a figure of few hundred crore which the companies are hiding from the public to manage a rise in tariff during 2014-15.

Adani Power Board approves demerger of transmission business

Adani Power’s board approved the demerger of its transmission lines business and has appointed Vinod Bhandawat as Chief Financial Officer of the generation company.

“Board of Directors of Adani Power in a meeting, on December 28, approved the demerger of the transmission line business of the Company to its wholly owned subsidiary company (WOS),” the company said in a regulatory filing to the stock exchanges.

This demerger is subject to requisite approvals, the company added.

Adani Power also announced the appointment of Vinod Bhandawat as Chief Financial Officer of the company.

Shares of Adani Power were trading at Rs 39.40 apiece, down 0.25 per cent on the BSE





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