InfraInsights Weekly - 01, April 2013

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InfraInsights

Weekly

April 01

2013This document covers news related to Indian energy and infrastructure domain with exclusive

insights on areas like policy and regulatory changes, project status, state of finance and likelychange in dynamics impacting these sectors.

Volume 19, April 01, 2013

For the period March 25 to March 31, 2013

InfraInsightsAnalytics ConsultingResearch


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Confidential

Renewable Pages 9-13

Solar energy helps save water in India (With InfraInsightsPoV)

India hit by China's solar energy war(With InfraInsightsPoV)

KSK Energy Ventures and MiaSole Commissions

11.6MW Solar Project in Rajasthan

National Solar Mission: 70% of projects using imported

modules(With InfraInsights PoV)

750 MW solar power projects in Andhra waiting

clearance(With InfraInsights PoV)

NTPC commissions 5MW solar plant in Port Blair(WithInfraInsights PoV)

Hyundai reviewing solar power option for plant in

India(With InfraInsights PoV)

Mahindra sees 500 Mw opportunity in solar(WithInfraInsights PoV)

Wind power base to rise 50% by 2015(With InfraInsightsPoV)

TN emerges renewable energy hub(With InfraInsightsPoV)

PetrochemicalsPages 14-18

ONGC hopes to double oil, gas production in India

by 2030

India to continue Iran oil imports as trade rises:

Indian official(With InfraInsights PoV)

Gujarat state-owned firm wants LNG price for KG

gas(With InfraInsights PoV)

Coal bed methane takes on fuel oil in India (WithInfraInsights PoV)

JSW Group Sees Profit as Gas Shortage Worsens:

Corporate India(With InfraInsights PoV)

Department of Fertilisers not in favor of changing

priority for gas allocation

Kochi-Mangalore gas pipeline turning into

mirage(With InfraInsights PoV)

BPCL seeks bids from suppliers for LNG import

Bids invited by IOC for construction of LNG terminalat Ennore

Government may introduce bidding process for

urea unit investments

Power Pages 4-8

Gas swap mooted to bail out AP from power crisis:

CEA(With InfraInsights PoV)AP hikes power tariff for all consumers(WithInfraInsights PoV)

No more power cuts in Maharashtra, even in

summer(With InfraInsights PoV)

Power tariff in Karnataka may go up again (WithInfraInsights PoV)

ONGC to set up its own power plants (WithInfraInsights PoV)

Prospects for Indian power sector bleak, says

Moody's(With InfraInsights PoV)

Power cut in entire Tamil Nadu, except Chennai,

has increased(With InfraInsights PoV)

NTPC Kaniha shuts down one unit of 500 MW dueto non-availability of coal(With InfraInsights PoV)

Chhattisgarh discoms lose Rs 1000 cr due to line

losses(With InfraInsights PoV)

Coal Pages 19-21

CIL's coal more expensive than global benchmarks(With InfraInsights PoV)

Coal India Ltd invites bids from firms for third party

coal sampling(With InfraInsights PoV)

Coal India's board extends FSA renewal with non-

power customers(With InfraInsights PoV)

India's Feb coal output falls 4.7% y-o-y(WithInfraInsights PoV)

Coal India to convert loans to BCCL into preference

shares

Indian Coal Imports Rise 35% in

February,Interocean Data Show


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Confidential

InfrastructurePages 22-23

JN Port overturns decision to scrap DBC contract

Land acquisition hits NH projects in Bengal,

Kerala(With InfraInsights PoV)

BRICS plan development bank to fund infrastructure

projects

Cushman & Wakefield to offer debt financing

Housing projects, super corridor infrastructure focus

areas

Cement and Steel Sector Page 24-25

Iron ore, coal shortages hurt profitability of steel

makersSteel Exchange India bags order from RINL

Tata Steel VP says sector will suffer loss this year

Steel prices in India fall below world levels

Cement sales damp in peak season


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Confidential

Gas swap mooted to bail out AP from power

crisis: CEA

(Policy Initiative)

In a bid to temporarily bail out Andhra Pradesh, now

crippling under severe electricity crisis, a proposal is

being mooted for gas swapping to help the Southern

state produce 1,500MW of power, said Central

Electricity Authority (CEA) Chairman AS Bakshi.

The proposal involves an arrangement between AP andthe surplus power states like Gujarat and Maharashtra

wherein AP would bear the power costs of fertilizer

units in these states and use their quote of gas from the

KG basin. The agreement between the AP and other

states would have to be approved by the empower

group of ministers (EGoM). The gas swap could enable

AP get some 6.5mmscd of gas that helps it generate

some 1,500MW of power

As against an energy demand of 318.53 million units

now, the state is able to meet 254.17 million units,

leaving a deficit of 64.36 million units as on Saturday,

according to the AP State power Transmission

Corporation (AP Transco). The Corporation anticipates a

peak demand of 13,518 MW and meets some 10,518

MW, leaving a deficit of at least 3,000 MWRead More

Source: The Economic Times ^Back to Headlines

Infrainsights POV

This will be a good initiative to enable supply of

gas to gas starved power projects in AP. Over

2000 MW of IPPs in the state is facing severe gas

shortage as a result unable to generate

electricity. KG D6 gas output is at the lowest point

and the output is unlikely to show any significant

uptick in the immediate 1-2 years.

However, the state will have to look beyond the

temporary gas supply and execute its gas

procurement strategy to fall back when needed

and the only option seems to be through LNG.

The state is also eyeing some relief from the soon

to be commissioned Kudankulam nuclear power

project.

AP hikes power tariff for all consumers

(Power Tariff)

Power consumers in Andhra Pradesh will have to pay

up more from April 1, 2013 with the Andhra Pradesh

Regulatory Commission passing a new tariff order for

next financial year.

The tariffs have been hiked for all categories, low

tension domestic, commercial and high tension

industrial consumers.The average hike is estimated tobe about 15 per cent. On an average, for low tension

consumers it is up by 58 paise per unit, for high

tension consumers it has been hiked by Rs 1.12 per

unit and for LT commercial, it has gone up by Rs 1.13

per unit.The HT general industrial category tariff has

been hiked from Rs 4.80 per unit to Rs 5.73 paise per

unit.In the domestic category, where consumption is

less than 50 units per month, consumers pay at Rs

1.45 per unit, there is no change. With this, about 97.4

lakh consumers of 2.24 crore consumers will benefit.

For ferro alloys units, the tariff has been hiked by 93

paise per unit to Rs 5.41 per unit. The aggregate

revenue by the discoms has been projected at Rs

40,639 crore. The total energy requirement is 89,845

million units.Read More

Source: The Hindu Business Line ^Back to Headlines

Infrainsights POV

The tariff hike comes at a point when the state is

struggling from power crisis and is most likely to

see huge power shortfall as the onset of summer

advances to its peak.

The time at which this hike comes has created

uproar amongst the political parties with

opposition party TDP choosing to protest against

the tariff hike.Ignoring Opposition protests and

despite an unprecedented electricity shortage,

Andhra Pradesh government on Saturday hiked

the electricity tariff by about 15 per cent,

imposing over Rs 6,000 crore burden on people.

InfraInsights Weekly Power sector news and InfraInsights View Points
http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/gas-swap-mooted-to-bail-out-ap-from-power-crisis-cea/articleshow/19295521.cmshttp://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/gas-swap-mooted-to-bail-out-ap-from-power-crisis-cea/articleshow/19295521.cmshttp://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/gas-swap-mooted-to-bail-out-ap-from-power-crisis-cea/articleshow/19295521.cmshttp://www.thehindubusinessline.com/news/states/ap-hikes-power-tariff-for-all-consumers/article4564598.ecehttp://www.thehindubusinessline.com/news/states/ap-hikes-power-tariff-for-all-consumers/article4564598.ecehttp://www.thehindubusinessline.com/news/states/ap-hikes-power-tariff-for-all-consumers/article4564598.ecehttp://www.thehindubusinessline.com/news/states/ap-hikes-power-tariff-for-all-consumers/article4564598.ecehttp://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/gas-swap-mooted-to-bail-out-ap-from-power-crisis-cea/articleshow/19295521.cms


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Confidential

No more power cuts in Maharashtra, even in

summer

(Regulatory Development)

After more than a decade, Maharashtra has finally

become completely load-shedding free, despite the

fact that more than half a dozen projects with a total

capacity of 10,000MW are stuck due to non-

availability of land.

"It is our biggest achievement. We have been able to

meet the peak hour demand, and so, there is no load-

shedding in the state. We expect to maintain this even

in summer," a senior bureaucrat told TOI on Thursday.

He admitted that certain parts of the state were

experiencing power cuts, but it was not owing to

shortage, but due to defaulters. "We had warned the

erring consumers. As there was no response from

them and there were mounting arrears, we resorted

to load-shedding in such areas. If they pay the arrears,

they, too, will receive uninterrupted supply," he said.

With the existing electricity demand ranging from

14,500MW to 14,700MW, and the actual available

power ranging from 14,000MW to 14,300MW, the

deficit has reduced from 18% in 2005 to 3% in 2013,said the official. "We are in a position to fill up the gap

between the demand and supply, but it has been kept

deliberately to implement load-shedding in high loss

and non-paying areas," he saidRead More

Source: The Times of India ^Back to Headlines

Infrainsights POV

The power scenario in Maharashtra has certainly

improvedover the time but the bold statement

made by the state utility is most likely to be

tested this summer, where power cuts have

already got initiated and it has no direct

correlation with non-paying customers.

Power tariff in Karnataka may go up again

(Power Tariff)

The State power regulator is set to issue its tariff order

on Thursday on petitions filed by all the five electricity

supply companies (escoms) seeking a revision in tariff.

According to sources, the average power tariff is

expected to be broadly in the range of 20 to 25 paise a

unit though it may be slightly higher for some

consumer categories.

The escoms had filed separate tariff petitions before

the Karnataka Electricity Regulatory Commission

(KERC) on December 10 last year seeking an averagehike of 70 paise a unit for all consumer categories

barring irrigation pumpsets below 10 hp and

BhagyaJyothi and KutirJyothi consumers to bridge a

revenue deficit of about Rs. 2,232 crore.

The KERC has held a series of public hearings on the

tariff hike petitions besides examining official records

and analysing the financial position of the escoms.

The ongoing tariff revision exercise has caused

concern in the power sector as the State has already

witnessed four tariff hikes in the last three and a halfyears, starting from November 2009. The State has not

witnessed such frequent tariff revisions in this span of

time before. The last revision was effected in April 30,

2012 when the tariff was hiked by an average 13 paise

a unit. The KERC granted a hike of 28 paise a unit in

October 2011, 23 paise a unit in December 2010 and

34.16 paise a unit in November 2009Read More

Source: The Hindu ^Back to Headlines

Infrainsights POV

The investable is unfolding in most of the states

infact every state that chose defy business logic

over populist logic. The tariff shock comes as a

result of prolonged period of no tariff hike leading

to bankruptcy of all the discoms.

The phase wise steady tariff hike could have eased

the situation currently being witnessed both by

consumer and the political class in India
http://articles.timesofindia.indiatimes.com/2013-03-29/mumbai/38124798_1_agriculture-sector-feeders-load-sheddinghttp://articles.timesofindia.indiatimes.com/2013-03-29/mumbai/38124798_1_agriculture-sector-feeders-load-sheddinghttp://www.thehindu.com/news/national/karnataka/power-tariff-may-go-up-again/article4555144.ecehttp://www.thehindu.com/news/national/karnataka/power-tariff-may-go-up-again/article4555144.ecehttp://www.thehindu.com/news/national/karnataka/power-tariff-may-go-up-again/article4555144.ecehttp://www.thehindu.com/news/national/karnataka/power-tariff-may-go-up-again/article4555144.ecehttp://articles.timesofindia.indiatimes.com/2013-03-29/mumbai/38124798_1_agriculture-sector-feeders-load-shedding


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Confidential

ONGC to set up its own power plants

(Power Project)

State-run exploration giant ONGC today said it plans to

set up its own power plants, not just gas-based but

also facilities based on nuclear, wind and other

conventional energy sources.

"We intend to set up our own power plants, not just

gas- based but also power plants based on

conventional energy sources besides wind power,

nuclear power plants," ONGC Chairman and Managing

Director SudhirVasudeva said.

He was speaking after inaugurating the monetisationand production operations from the first onshore

marginal gas fields in KG basin at Ponnamanda village

in East Godavari district of Andhra Pradesh. The fields

are to be operated by KEI-RSOS Petroleum & Energy

Ltd (KRPEL), a private entity.Read More


Infrainsights POV

Although its a good diversification strategy in the

times when the entire oil and gas downstream isgetting deregulated. In the time when entire

power sector is reeling under severe fuel shortage

the likes of ONGC, RIL need to get their act

together in getting more gas or securing energy

assets in overseas market to ensure a fuel crunch

situation doesnt completely bring the entire

energy sector to a halt.

Integrated energy policy needs to now move from

thought leadership or blue print to actual roadmap

for implementation

Power cut in entire Tamil Nadu, except Chennai,

has increased

(Power Shortage)

Power cut in entire Tamil Nadu, except Chennai, has

increased; 12-14 hours of power cut is certainly

unacceptable. Chennai suffers only two hours of

power cut, because of which people in power and

decision-making positions do not experience the

seriousness of the problem. Power cuts are the result

of neglect of the power sector by successive State

governments. It is true that they cannot be eliminated

overnight. But the government and power companies

can work sincerely towards self-sufficiency. Blaming

the previous regime or the Centre will not solve theproblem.

In the short term, the government can purchase

power from captive power plants, co-gen plants, other

States and independent power plants. Solar

generation can be encouraged to reduce the impact of

power shortage. In the simplest form, every rooftop

can have a solar power generator with no cost to

government by way of infrastructure, etc.Read More


Infrainsights POV

Ten years ago, Tamil Nadu had surplus power and

today, the state reels under severe power

shortage. Tamil Nadu is known for its high

proportion of renewable power in total power

portfolio but the state reels under severe

shortage, which indicates that the issue is at the

last mile of the power value chain.

The problem is typical of that seen in every state

and infact is a traditional problem where bulk of

the effort goes in concentrating on generation

and not managing the demand& efficient delivery

of electricity
http://articles.economictimes.indiatimes.com/2013-03-28/news/38099360_1_gas-prices-own-power-plants-fieldshttp://articles.economictimes.indiatimes.com/2013-03-28/news/38099360_1_gas-prices-own-power-plants-fieldshttp://articles.economictimes.indiatimes.com/2013-03-28/news/38099360_1_gas-prices-own-power-plants-fieldshttp://www.thehindu.com/opinion/letters/power-cuts/article4555316.ecehttp://www.thehindu.com/opinion/letters/power-cuts/article4555316.ecehttp://www.thehindu.com/opinion/letters/power-cuts/article4555316.ecehttp://www.thehindu.com/opinion/letters/power-cuts/article4555316.ecehttp://articles.economictimes.indiatimes.com/2013-03-28/news/38099360_1_gas-prices-own-power-plants-fields


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Confidential

Prospects for Indian power sector bleak, says

Moody's

(Critical Assessment)

Even as the power sector in Asia offers bright

prospects, the outlook for India's power sector looks

negative, according to a report by Moody's Investors

Service.

The report titled "Asian Power Utilities (ex-Japan):

Broad Stable Outlook; India an Outlier" says the

outlook for power utilities in Asia will remain stable for

the next 12-18 months, primarily driven by

government and regulatory policy continuity as well as

easing fuel prices.However, it forecasts a bleakprognosis for India.

"Moody's sees the Indian power sector as an outlier

because of continued inefficiencies across the value

chain, spanning feedstock supply and power

generation to transmission, distribution and retail,"

said Ray Tay, assistant vice-president at Moody's, in a

statement

he report - authored by Mic Kang, Moody's vice-

president and senior analyst, Ivan Chung, vice-

president, and Tay - covered the power sector in nine

countries - China, Hong Kong, India, Indonesia, Korea,Malaysia, the Philippines, Singapore and Thailand.

"The policy pillars of governments and regulators

across the region will ensure that the major power

utilities will maintain their dominant or monopolistic

positions, while independent power producers will

benefit from reliable purchase contracts," said Kang in

a statementRead More

Source: Business Standard ^Back to Headlines

Infrainsights POV

The report is in sync with the lull that prevails in

the power sector in India. The problems associated

with the power sector are not new. Only

dimension that got added recently is severe fuel

shortage. For long India was known for its huge

coal reserves but now its known for its increasing

dependence on imported coal for meeting its coal

demand.

Fuel constraint led brake on capacity addition,

unreasonable tariffs, near bankrupt discoms,

pseudo open market in the form of power

exchanges that are tightly regulated my CERC.

NTPC Kaniha shuts down one unit of 500 MW

due to non-availability of coal

(Fuel Shortage)

The 3000 mw NTPC-Kaniha power plant was forced to

shut down one 500 mw unit due to shortage of coal

supply from Mahanadi Coalfield Limited (MCL) on

Thursday evening. Besides, it has to operate other five

units partially due to coal scarcity.

According to official sources, instead of its capacity of

generating 3000 mw per day, it now produces about

2000 mw. NTPC Kaniha power plant is the second

largest power plant in India.

According to NTPC sources, the plant has been

receiving less than 40,000 tonnes of coal for the last

seven days instead of its daily demand of 55,000

tonnes to run all the six 5000 mw units in full load. The

stock has plummeted to record low of 40,000 tonnes

which cannot meet emergency situation.

As a result, NTPC has cut down supply to the States

that are dependent on it including Odisha. The official

sources also feared that other units may also shut

down if the situation does not improve in coming

days.Meanwhile, talking to Press at the annual mediaappreciation meet at Kaniha on Friday, Executive

Director of the plant VB Fednabis ruled out any early

solution to the coal problem as the nearest Kaniha

open cast coal mine is not ready to dispatch coal even

if NTPC has already laid railway tracks...Read More

Source: The New Indian Express ^Back to Headlines

Infrainsights POV

The situation is only likely to worsen in the times

to come, the critical stock levels at various powerplants across the country has reached alarming

levels in the past few months. The same has just

been taken a note of but no action plan drawn yet

to tide over such crisis situation. If the situation

like this if faced by NTPC plants then the IPPs and

other state Gencos power plant conditions are not

very difficult to fathom.

Summer after summer, the only news item

appears in dailies are about power shortage but no

lesson is drawn from such situation. The only thing

that changes are the authorities effort to just find

right reason for summer power crisis.
http://www.business-standard.com/article/economy-policy/prospects-for-indian-power-sector-bleak-says-moody-s-113032800028_1.htmlhttp://www.business-standard.com/article/economy-policy/prospects-for-indian-power-sector-bleak-says-moody-s-113032800028_1.htmlhttp://newindianexpress.com/states/odisha/article1522823.ecehttp://newindianexpress.com/states/odisha/article1522823.ecehttp://newindianexpress.com/states/odisha/article1522823.ecehttp://newindianexpress.com/states/odisha/article1522823.ecehttp://www.business-standard.com/article/economy-policy/prospects-for-indian-power-sector-bleak-says-moody-s-113032800028_1.html


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Confidential

Chhattisgarh discoms lose Rs 1000 cr due to line

losses

(AT&C Losses)

The Chhattisgarh power generation and distribution

companies are incurring losses to the tune of nearly Rs

1000 crores every year on account of transmission and

distribution losses, which stand close to 32%. Believe it

or not, cutting down these losses even by half could

pull the power discoms out of the red, besides

ensuring a "no power tariff hike" regime for the

residents of the state.

While India has a dismal record of line losses, with a

national average of 27.5%, as compared to 4% to 8 %in developed countries, Chhattisgarh is one of the 10

states in the country with the highest percentage of

transmission and distribution losses. According to data

available with the Planning Commission of India, in

2011-12 line losses in Chhattisgarh were 32.7% as

compared to J&K (58.5%), Jharkhand (40.8%), Sikkim

(38.8%), Manipur (38%), Bihar (35%), Arunachal

Pradesh (34.5%), and, Mizoram (34.3%).

According to officials, line losses in the state in 2012

(till Dec) were close to Rs 885 crore. Of this Rs 558

crores were on account of "technical losses" and theremaining Rs 327 crores were due to other reasons,

including power theft. The losses stood at Rs 1304

crore in the last fiscal.

An official of Chhattisgarh State Power Distribution

Company Limited ( CSPDCL) said the distribution losses

stood at 25.35 percent till December 2012. While the

state hit a low in 2008-09 with losses touching 34.36%,

officials claim that things have been improving since

then. The losses stood at 31.25% and 29.47 % in 2009-

10, and 2010-11 respectively, they claim..Read More


Infrainsights POV

Has R-APDRP initiative failed to deliver results?

With the aim of restoring the commercial viability

of the distribution sector by putting in place

appropriate mechanism so as to substantially

reduce the Aggregate Technical and Commercial

(AT&C) losses, R-APDRP with total outlay of

Rs.51,577 Cr was launched in the backdrop of

failed APDRP initiative.
http://timesofindia.indiatimes.com/city/raipur/Chhattisgarh-discoms-lose-Rs-1000-cr-due-to-line-losses/articleshow/19274657.cmshttp://timesofindia.indiatimes.com/city/raipur/Chhattisgarh-discoms-lose-Rs-1000-cr-due-to-line-losses/articleshow/19274657.cmshttp://timesofindia.indiatimes.com/city/raipur/Chhattisgarh-discoms-lose-Rs-1000-cr-due-to-line-losses/articleshow/19274657.cmshttp://timesofindia.indiatimes.com/city/raipur/Chhattisgarh-discoms-lose-Rs-1000-cr-due-to-line-losses/articleshow/19274657.cms


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Confidential

Solar energy helps save water in India

(Solar Applications)

India is becoming increasingly concerned with the

effects of climate change. Warmer weather and

lingering drought-like conditions are threatening

water supplies throughout the country. Water canals

throughout India have been shrinking due to

evaporation and the impact of these shrinking canals

is beginning to have an effect on the agricultural

sector. In an effort to save the countrys water, several

of these canals are not being covered with solar

panels, which are meant to generate solar energy and

mitigate the effects of evaporation by protecting

water from the sun.

Gujarat State Electricity Corporation launched a pilot

project in April 2012. The pilot project that was

launched last year was designed to show off the

capabilities of solar energy and how an array of

strategically placed solar panels could help mitigate

the effects of evaporation. The project was backed by

Sardar Sarovar Narmada Nigam, which owns the canal

networkin Gujarat StateRead More

Source: Hydrogen Fuel News ^Back to Headlines

Infrainsights POV

The outlined layout is a win win solution for both

solar power and water resources. Land availability

for forthcoming solar pv projects is likely to

become a huge challenge and use of space

available over water canals would make the

power generated from solar pv competitive

compared to the on land solar pv projects.

Similar hybrid solution could be used in vast track

of lands that are available in the wind farms and

can be utilized to tide over the land availability

issue.

India hit by China's solar energy war(RE Adoption)

Notwithstanding the economic slowdown, several

countries across the globe are engaged in a bitter fight

for firmer control over solar energy - a key energy

source in future.

The epicenter of the war is China, which has flooded

the global market with its cheaper variants of solar

equipment. However, the major economies are trying

to hit back using trade restrictions.

The year 2012 witnessed the US announcing its anti-

dumping tariff against Chinese manufacturers, which

was followed by the European Union's restrictions

against Chinese solar equipment. But China hit back

soon after with the announcement of its own anti-

dumping case against the poly-silicon suppliers from

the US, EU and South Korea.Now, India has also been

hit by this syndrome....Read More

Source: The Hindustan Times ^Back to Headlines

Infrainsights POV

Economies of scale prevail over any trade

restrictions that get imposed on manufacturer for

the world, China. Many solar panel manufacturers

in the US went bankrupt at the time when they

looked promising in terms of growth in the sector

that is booming worldwide. The industrialization of

solar pv as technology has being driven largely on

account of government support in the form of

feed-in-tariff or other subsidies that has led China

for full scale in terms of increasing its scale of

production of solar modules.

InfraInsights Weekly Renewable sector news and InfraInsights View Points
http://www.hydrogenfuelnews.com/solar-energy-helps-save-water-in-india/859747/http://www.hydrogenfuelnews.com/solar-energy-helps-save-water-in-india/859747/http://www.hindustantimes.com/India-news/NewDelhi/India-hit-by-China-s-solar-energy-war/Article1-1031660.aspxhttp://www.hindustantimes.com/India-news/NewDelhi/India-hit-by-China-s-solar-energy-war/Article1-1031660.aspxhttp://www.hindustantimes.com/India-news/NewDelhi/India-hit-by-China-s-solar-energy-war/Article1-1031660.aspxhttp://www.hindustantimes.com/India-news/NewDelhi/India-hit-by-China-s-solar-energy-war/Article1-1031660.aspxhttp://www.hydrogenfuelnews.com/solar-energy-helps-save-water-in-india/859747/


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Confidential

KSK Energy Ventures and MiaSole Commissions

11.6MW Solar Project in Rajasthan

(Solar Project)

KSK Energy Ventures, a leading India power

development and generation company, and MiaSole,

the leading manufacturer of copper indium gallium

selenide (CIGS) thin-film photovoltaic solar panels and

system solutions, today announced that the

commissioning of an 11.6MW solar photovoltaic

project occurred on February 26, 2013. The project is

under India's Jawaharlal Nehru National Solar Mission

and is one of the largest solar power plants in

Rajasthan, India.

U.S. Export-Import Bank will provide $9 million of debt

financing for the project, marking the second MiaSole

project in India that the U.S. Export-Import Bank has

supported. "This project financing facilitates exports

from MiaSole's California manufacturing center, will

boost California's economy and help to create

hundreds of local jobs," said U.S. Export-Import Bank

Chairman Hochberg.

The KSK project highlights MiaSole's ability to scale

solar technology at a price that is attractive for both

solar developers and utilities and underscores thecompany's position as the leading supplier of high-

efficiency CIGS modules and solar solutions in India.

Over the past year, MiaSole has completed projects in

Rajasthan, Gujarat, Maharashtra and Tamil Nadu,

making MiaSole one of India's leading providers of

solar energyRead More

Source: PR News wire ^Back to Headlines

National Solar Mission: 70% of projects using

imported modules

(Solar Projects)

Despite the local procurement conditions stipulated

for solar power projects that are set up under the

National Solar Mission, 70 per cent of them have used

imported modules or cells.

According to information provided by the Ministry of

New and Renewable Energy, in the last three years

148 grid-connected solar power plants of a total

capacity of 551 MW have been commissioned under

the National Solar Mission. Of these 77 projects of 391

MW capacity, or 70 per cent of the total capacity, are

using foreign solar cells or modulesimplying that the

governments local procurement policy has not quite

worked.

The first phase of the solar mission was rolled out in

two batches. For the Batch I projects, the developers

needed to use only local modules. The cells that are

made into modules could be imported. However, for

the Batch II products, even the cells had to be locally

produced. However, these stipulations applied only to

crystalline technology and not to thin film there is

no thin film manufacturing capacity in the country,

This lacuna had the effect of several project

developers going in for imported thin film modules,

which are cheaper.

While the domestic cell and module manufacturers

want some protection, the solar project developers

are totally opposed to itRead More


Infrainsights POV

Its a chicken and egg situation for the governmentthat has to weigh what is that it wants its solar

energy strategy to deliver, does it want to use this

as an source of energy to alleviate the situation of

power crisis and also diversify the power

generation portfolio that is largely skewed

towards coal or does it want solar pv for

developing the indigenous market for solar pv

procurement. Former is what can be achieved if

level playing field is created but the later one

would not make solar pv attractive compared to

price at which power gets generated from

traditional fuels like coal. Subsidy will cease and

is not sustainable for long.
http://www.prnewswire.co.in/news-releases/ksk-energy-ventures-and-miasole-announce-commissioning-of-116mw-solar-project-in-rajasthan-india-199847551.htmlhttp://www.prnewswire.co.in/news-releases/ksk-energy-ventures-and-miasole-announce-commissioning-of-116mw-solar-project-in-rajasthan-india-199847551.htmlhttp://www.thehindubusinessline.com/industry-and-economy/national-solar-mission-70-of-projects-using-imported-modules/article4544528.ecehttp://www.thehindubusinessline.com/industry-and-economy/national-solar-mission-70-of-projects-using-imported-modules/article4544528.ecehttp://www.thehindubusinessline.com/industry-and-economy/national-solar-mission-70-of-projects-using-imported-modules/article4544528.ecehttp://www.prnewswire.co.in/news-releases/ksk-energy-ventures-and-miasole-announce-commissioning-of-116mw-solar-project-in-rajasthan-india-199847551.html


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April 01, 2013


Confidential

750 MW solar power projects in Andhra waiting

clearance

(Policy Hurdle)

Notwithstanding the claims by Andhra Pradesh

government that it is taking all steps including

promoting solar power to overcome the electricity

shortage, 750 MW solar power projects are stranded

in the state for want of clearances, said a leading

industry body.

The Federation of Andhra Pradesh Chambers of

Commerce and Industry (FAPCCI) said following the

solar power policy announced by the state

government in September last year, applications forsetting up 750 MW of solar power projects were

submitted and many more were in the pipeline.

The industry, which is bearing the brunt of the crisis

with 40 to 60 percent power cuts, hailed the policy as

solar power has the potential to add 1,000 to 2,000

MW generation capacity in six months.

The industry body, however, said the policy did not

envisage any investment subsidy from the government

or the Andhra Pradesh Transmission Corporation

(APTRANSCO) or Andhra Pradesh DistributionCompanies (APDISCOMS).

"While the public and legislators are agitated on one

hand at the continuing power shortage, on the other

hand the APERC (Andhra Pradesh Electricity

Regulatory Commission), TRANSCO and DISCOMS

seem to remain unconcerned of the gravity of the

problem," said FACCI secretary general M. V.

RajeshwaraRao in a statement.Read More

Source: News Track India ^Back to Headlines

Infrainsights POV

Concerted effort by all stakeholders is the only

options to ensure Andhra Pradesh comes out of

the power crisis its witnessing currently.

A Portfolio approach is essential to ensure all

options are explored and are simultaneously

executed to derive maximum results that could

alleviate the situation prevailing in the state.

The disconnect between planning and execution

and ignorance to learn from past mistakes

continue to make power shortfall a perpetualproblem that gets aggravated in peak seasons

NTPC commissions 5MW solar plant in Port Blair

(Company Development)

NTPC Ltd has commissioned and synchronised a 5-MWsolar photo-voltaic power project in Port Blair,

Andaman & Nicobar Islands.

It is the first Grid-connected Solar PV Project in these

islands. It is also NTPCs first greenfield renewable

solar PV project.

Overcoming serious challenges, including lack skilled

manpower, machinery and inclement weather

conditions on the islands, NTPC commissioned the

plant in a record six-and-a-half months. The project

was executed by Photon Energy Systems over 10hectares.

The power major is in the process of implementing

several renewable energy projects in the country. A

few of these projects are coming up in South India,

including one near the NTPC Ramagundam thermal

power project in Andhra Pradesh. In phase one of the

project, the company plans to set up 10 MW of solar

PV farm at Ramagundam and possibly later raise it to

25 MW.

NTPC is also working on wind farms in Karnataka andKerala..Read More


Infrainsights POV

NTPC has ambitious renewable energy plans. The

company expects to have renewable energy

capacity of about 1,000 MW by 2017. By 2032, we

target to have 28% of our installed capacity from

non-fossil sources

In all the company has added 10 MW of solar PV

during FY12-13 and plan to add another 20 MW

solar PV during FY 13-14
http://www.newstrackindia.com/newsdetails/2013/03/26/307--750-MW-solar-power-projects-in-Andhra-waiting-clearance-.htmlhttp://www.newstrackindia.com/newsdetails/2013/03/26/307--750-MW-solar-power-projects-in-Andhra-waiting-clearance-.htmlhttp://www.newstrackindia.com/newsdetails/2013/03/26/307--750-MW-solar-power-projects-in-Andhra-waiting-clearance-.htmlhttp://www.thehindubusinessline.com/companies/ntpc-commissions-5mw-solar-plant-in-port-blair/article4564760.ecehttp://www.thehindubusinessline.com/companies/ntpc-commissions-5mw-solar-plant-in-port-blair/article4564760.ecehttp://www.thehindubusinessline.com/companies/ntpc-commissions-5mw-solar-plant-in-port-blair/article4564760.ecehttp://www.thehindubusinessline.com/companies/ntpc-commissions-5mw-solar-plant-in-port-blair/article4564760.ecehttp://www.newstrackindia.com/newsdetails/2013/03/26/307--750-MW-solar-power-projects-in-Andhra-waiting-clearance-.html


12/28

12 | P a g e

April 01, 2013


Confidential

Hyundai reviewing solar power option for plant

in India

(Sustainable Development)

Tamil Nadu's crippling power problems is prompting

some of its bigger industrial players to look for off-the-

grid alternatives. The latest to "contemplate" such

alternative sources of power is Hyundai Motor India.

According to the Tamil Nadu government mandated

policy, industrial power consumers in the state will

need to either buy alternative power from a third

party or buy certificates or produce alternative power

for themselves to make up for the grid shortfall.

Parent HMC's Asan factory in Korea has just initiated

some solar power initiatives. The Korean government

has supported the installation of solar roofs in that

plant and top company executives said similar options

are being reviewed for India as well though nothing

has been decided so far.

Tamil Nadu's power crisis caused considerable

heartburn among industrial consumers increasing

power costs significantly. The government's new

policy is expected to ease the burden on the grid by

mandating alternative sources of off-grid power forindustrial units. Companies like Bosch are already

working on offering industrial consumers end-to-end

solar solutions..Read More


Infrainsights POV

In anticipation of power crisis that likely to unfold

in Tamil Nadu the company seems to be headed in

right direction to insulate itself from any impact

from the power crisis like situation. As the companys parent in South Korea is moving

towards sustainable development strategy by

making use of solar power, extension of same

seems to be making inroad to its India

manufacturing set up.

The gap between diesel and other liquid fuel fired

power generation and emerging technologies like

Solar PV and Fuel Cells (Life Cycle Cost Approach)

is creating a compelling business case for energy

intensive companies like that in automotive sector

to weigh option of grid power vs captive power vs

renewable power and top of its a strong drive to

move towards sustainability

Mahindra sees 500 Mw opportunity in solar

(New Opportunity)

Mahindra group's three-year-old foray into the solar

power sector is in the midst of takeoff. The company

says that it could set-up as much as 500 megawatts of

solar power in the next 24-36 months.

This opportunity however is not restricted just to the

projects it had won during the national solar mission.

It has already set-up a five megawatt power project,

and yet another 33 megawatts power project, both

under the tariff-based bidding as a part of National

Solar Mission.

In addition to these, the company is looking at a

private power purchase agreements to set up rooftop

solar power installations for private companies as

well.

The company is also looking to leverage strong

presence of the group in rural areas. Mahindra &

Mahindra has extensive distribution in villages across

the country owing its tractors and farm equipment

business...Read More


Infrainsights POV

InfraInsights is the opinion that the real utility of

solar pv is not in utility scale projects but the roof

top projects. Grid congestion is biggest challenge

and penetration of more off-grid solutions are

essential to ease out the grid related issues.

Rooftop solar is a sustainable option that can drive

solar pv penetration in both rural and urban areas

at an economical price points.

Mahindra is already an active company in power

backup solutions and supplies engine based dg

sets. Solarizing the telecom towers, hybrid solar

power and roof top solar power is a strategic

diversification opportunity against the backdrop

where the dg sets business is likely to see pressure

on account of increasing diesel fuel prices
http://timesofindia.indiatimes.com/business/india-business/Hyundai-reviewing-solar-power-option-for-plant-in-India/articleshow/19280046.cmshttp://timesofindia.indiatimes.com/business/india-business/Hyundai-reviewing-solar-power-option-for-plant-in-India/articleshow/19280046.cmshttp://timesofindia.indiatimes.com/business/india-business/Hyundai-reviewing-solar-power-option-for-plant-in-India/articleshow/19280046.cmshttp://www.business-standard.com/article/companies/mahindra-sees-500-mw-opportunity-in-solar-113032900153_1.htmlhttp://www.business-standard.com/article/companies/mahindra-sees-500-mw-opportunity-in-solar-113032900153_1.htmlhttp://www.business-standard.com/article/companies/mahindra-sees-500-mw-opportunity-in-solar-113032900153_1.htmlhttp://www.business-standard.com/article/companies/mahindra-sees-500-mw-opportunity-in-solar-113032900153_1.htmlhttp://timesofindia.indiatimes.com/business/india-business/Hyundai-reviewing-solar-power-option-for-plant-in-India/articleshow/19280046.cms


13/28

13 | P a g e

April 01, 2013


Confidential

Wind power base to rise 50% by 2015

(Wind Growth Estimates)

With a generation-based incentive of 50 paise per unit

being introduced in the Union Budget, India's wind

power capacity is poised to grow from 18,000

megawatts (MW) to 27,000 MW in the next two years,

according to turbine makers and wind power

producers.

According to chairman of the Indian Wind Turbine

Manufacturers Association, said order inflows have

recently increased. Gamesa serves orders up to 900

MW a year and is prepared to expand to 1,500 MW.

Vineet Mittal, MD, Welspun Energy said it is very likely

that up to 9,000 MW wind capacity would be added by

2015. "The government should remove certain

hurdles. Some manufacturers have blocked sites with

high wind energy potential. This has to be dealt with,"

he said.

Welspun has plans to install 1,000 MW wind power

capacity by 2016. It will soon be commissioning a 50

MW wind farm.

Increasing diesel cost will also work to the advantage

of wind energy sector as many industrialists mayreplace diesel generator sets with wind turbines,

added KymalRead More

Source: Hindustan Times ^Back to Headlines

Infrainsights POV

Despite removal of accelerated depreciation

benefit and generation based incentive, India

continued to add new wind energy capacities and

been among the top wind energy markets in the

world. After having got the early starter advantage in the

renewable energy landscape for years, wind

energy lost its sheen to solar when compared to

the government support extended to solar or the

focused solar push given in the form of JNNSM.

Wind clearly is the most mature RE technology

compared to any other technology including solar

and its fullest potential is yet to be tapped in the

country. The re-introduction of GBI is a step in

right direction and is most certainly likely to

accelerate the new capacity addition plans in the

sector

TN emerges renewable energy hub

(RE Success Story)

Tamil Nadu has clearly established itself as a hub for

renewable energy with a diverse spread of clean

power options, including wind, solar, and biomass-

fuelled power and co-generation power.

While the installed conventional power generation

capacity is 10,722 MW, that of renewable energy is

about 8,100 MW.

Wind energy is the biggest contributor to the share of

renewable energy with more than 7,100 MW capacity

followed by biomass and cogeneration contributingover 600-700 MW.

Solar power generation is the newest on the block

with the State Government unveiling a solar energy

policy last year and setting a target of 3,000 MW of

grid-connected solar power over the next three years.

In addition, it has announced a programme of roof-top

power generation as a part of a major housing project.

Right now, solar contributes around 7 MW of power.

However, investors have a grouse on the policy and

tariff front, which can be corrected and the States fullpotential can be exploited, say industry

representatives..Read More


Infrainsights POV

In the times when wind energy was the only

renewable technology added in Indias power

generation portfolio that was heavily skewed

towards coal and other traditional fuels, Tamil

Nadu emerged as the leader in exploiting the windenergy potential available in the state to the

fullest.

Consistent policy, attractive buy back price,

allowance of third party sale, all ensured TN

emerges as wind energy hub in the country and

other states followed suit, the same seems to be

now happening in terms of solar energy where the

state is fast catching up with leaders like Gujarat

and Rajasthan.

Going by the flexibility reflected by the TN

government on policy front, it is certain that the

state will do everything right to facilitate RE

deployment
http://www.hindustantimes.com/business-news/WorldEconomy/Wind-power-base-to-rise-50-by-2015/Article1-1033842.aspxhttp://www.hindustantimes.com/business-news/WorldEconomy/Wind-power-base-to-rise-50-by-2015/Article1-1033842.aspxhttp://www.thehindubusinessline.com/features/tn-emerges-renewable-energy-hub/article4551598.ecehttp://www.thehindubusinessline.com/features/tn-emerges-renewable-energy-hub/article4551598.ecehttp://www.thehindubusinessline.com/features/tn-emerges-renewable-energy-hub/article4551598.ecehttp://www.thehindubusinessline.com/features/tn-emerges-renewable-energy-hub/article4551598.ecehttp://www.hindustantimes.com/business-news/WorldEconomy/Wind-power-base-to-rise-50-by-2015/Article1-1033842.aspx


14/28

14 | P a g e

April 01, 2013


Confidential

ONGC hopes to double oil, gas production in

India by 2030

(Market Development)

The Oil and Natural Gas Corporation (ONGC) is

contemplating putting buying stakes in power sector -

hydro, solar, hydel and nuclear - and plans are afoot to

double the oil and gas production in India by 2030.

Launching the production operations from the first

onshore marginal gas fields in Krishna-Godavari Basin

at Ponnamanda on Thursday, Chairman said the ONGChas 110 marginal fields across India, a few of which

were allotted to private parties. Five marginal fields

were given to KEI-RSOS Petroleum and Energy Limited,

a part of the KEI Group in Krishna-Godavari Basin.

They waited for a period of seven years for the

production of gas. Under phase-I, about 65,000 cubic

metres of gas will be produced per day from these

wells. All clearances were given to the group relating

to the operations. Investing in gas fields will benefit

the entrepreneurs in view of the demand for gas in the

country, he explained.

ONGC Rajahmundry Asset group general manager P

Krishna Rao said that the per-day gas production is 35

lakh cubic metres and 900 metric tonnes of oil

currently, and added that hydrocarbons located in

Mukkamnala, Magatapalli, Bantumilli will soon be

allotted to private parties....Read More

Source: The New Indian Express ^Back to Headlines

India to continue Iran oil imports as trade rises:

Indian official

(Oil Imports)

A senior Indian official says trade ties between Iran

and India are on the rise, stressing that New Delhi

will not halt oil imports from the Islamic Republic.Any

kind of permanent halting of oil shipments from Iran is

not feasible at this point of time, the Indian daily The

Hindu quoted a senior Commerce Ministry official as

saying.

The comments came only days after Indias Petroleum

and Natural Gas Minister M. Veerappa Moily rejected

the recent Western reports that that his country might

halt imports of Iranian crude over the US-led sanctions

against Tehran's energy sector.

An Indian oil official also recently announced that

details of an insurance fund for Iranian oil shipments

would be outlined in the near future, adding that

India's national insurance companies, the Oil India

Development Board as well as other major players in

the nations oil industry will contribute to theinsurance fund. India is among Asias major importers

of energy, and relies on the Islamic Republic to satisfy

a portion of its energy requirements..Read More

Source: PRESS TV ^Back to Headlines

Infrainsights POV

Can India afford to stop crude imports from Iran?

The answer is No. Iran is the second largest crude

supplier to the country after Saudi Arabia andaccounts for about 12% of India's annual oil

needs.

Mangalore Refinery & Petrochemicals, a

subsidiary of ONGC, is the biggest consumer of

Iranian crude in the country. The company, which

has a 12mt capacity refinery on the south-west

coast, depends on Iranian crude for more than

half of its annual processing capacity. Essar Oil, a

private firm, buys about 5mt of crude from Iran

annually. Reliance Industries Limited is the only

major Indian refiner, which does not import

crude from Iran.

InfraInsights Weekly Petrochemicals news and InfraInsights View Points
http://newindianexpress.com/states/andhra_pradesh/article1521344.ecehttp://newindianexpress.com/states/andhra_pradesh/article1521344.ecehttp://newindianexpress.com/states/andhra_pradesh/article1521344.ecehttp://www.presstv.ir/detail/2013/03/31/295883/india-to-keep-iran-oil-ties-as-trade-rises/http://www.presstv.ir/detail/2013/03/31/295883/india-to-keep-iran-oil-ties-as-trade-rises/http://www.presstv.ir/detail/2013/03/31/295883/india-to-keep-iran-oil-ties-as-trade-rises/http://www.presstv.ir/detail/2013/03/31/295883/india-to-keep-iran-oil-ties-as-trade-rises/http://newindianexpress.com/states/andhra_pradesh/article1521344.ece


15/28

15 | P a g e

April 01, 2013


Confidential

Gujarat state-owned firm wants LNG price for

KG gas

(Sector Development)

After Reliance Industries Ltd, GSPC, the firm floated by

Narendra Modi government, plans to sell natural gas

from its KG basin fields at imported LNG rate of $14.2

per mmBtu.

In a nearly month-long, elaborate market price

discovery exercise, Gujarat State Petroleum Corp

(GSPC) found hoards of buyers willing to pay a rate

equivalent to what India pays to Qatar for importing

gas in its liquid form (LNG).

In all 37 companies put in as many as 53 bids for about

75 million standard cubic meters of gas per day, more

than 14 times the peak output of 5.24 mmscmd

GSPC's DeenDayal West (DDW) gas field in block KG-

OSN-2001/3, industry sources said.

The company had on February 25 asked bidders to

quote a positive or a negative number to be added to

India's liquefied natural gas (LNG) import formula of

12.67 per cent of Brent crude oil plus $0.26 per million

British thermal unit.Read More


Infrainsights POV

Its quite unlikely that the proposal will find any

taker in the Ministry.

The demand for gas is increasing at a faster pace

and this demand is a desperate demand which

willing to source higher priced gas to keep the

losses under check. The opportunist would find

the prevailing situation favorable for a wind fall

business opportunity but the same is unlikely to

be accepted by PNGRB or MoPNG given that an

analogy can be drawn between the pricing under

current gas scenario and merchant power tariffs

in the power crisis situation.

Coal bed methane takes on fuel oil in India

(Fuel Switch)

London-listed Great Eastern Energy Corp Ltd(GEECq.L)

(GEECL), is set to deliver its first annual net profit this

year as it ramps up CBM output ahead of a share sale

in its home country.

GEECL makes its money persuading industrialists in

West Bengal to convert their generators from heavy

fuel oil, or furnace oil, to natural gas. The gas is fed to

their doorsteps through GEECL's proprietary pipelines

from rich virgin coal deposits less than 60 kilometres

away.

The selling point? It's half the price of furnace oil and

other liquid oil fuels, still the second most important

industrial energy source in the country behind coal.

Modi offers his customers gas at $12 per million

British thermal units (mmBtu) delivered via its own

100 kilometre pipeline network to the steel works and

food processors of Asansol, Raniganj and Durgapur.

"Some industry is even setting up in West Bengal

specifically to take advantage of our gas," Modi told

Reuters in an interview. Conversion costs can berecovered in less than a month, he said, and can result

in fewer clean-up stoppages due to the cleaner-

burning nature of gas.

Modi would not disclose his costs of production, but

asked about a figure below $2 per mmBtu he said that

was "in the right ball park"Read More

Source: Reuters ^Back to Headlines

Infrainsights POV

The road map planned for phased wise de-

regulation of diesel is likely to change the

landscape of fuel consumption dynamics in Indian

market. Liquid fuels are likely to be uneconomical

compared to some of the emerging solutions like

CBM, Syngas, Fuel Cells and other competing

energy options.
http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/gujarat-state-owned-firm-wants-lng-price-for-kg-gas/articleshow/19303731.cmshttp://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/gujarat-state-owned-firm-wants-lng-price-for-kg-gas/articleshow/19303731.cmshttp://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/gujarat-state-owned-firm-wants-lng-price-for-kg-gas/articleshow/19303731.cmshttp://in.reuters.com/article/2013/03/28/methane-india-fuel-yogendra-modi-idINDEE92R08D20130328http://in.reuters.com/article/2013/03/28/methane-india-fuel-yogendra-modi-idINDEE92R08D20130328http://in.reuters.com/article/2013/03/28/methane-india-fuel-yogendra-modi-idINDEE92R08D20130328http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/gujarat-state-owned-firm-wants-lng-price-for-kg-gas/articleshow/19303731.cms


16/28

16 | P a g e

April 01, 2013


Confidential

JSW Group Sees Profit as Gas Shortage

Worsens: Corporate India

(Opportunity)

Indias JSW Group (SWH), controlled by the billionaire

Jindal family, plans to spend 40 billion rupees ($736

million) to build its first liquefied gas terminal as

sliding output at home spurs demand for imports of

the fuel.

JSW Infrastructure Ltd., a closely held builder of ports

in which Eton Park Capital Management LP owns 10

percent, is seeking government approval to set up the

regasification unit in Jaigarh on the west coast, 356

kilometers (211 miles) south of Mumbai, B.V.J.K.Sharma, joint managing director at the company said

in an interview. The facility, expected to be

operational by December 2016, will be operated by a

partner, he said.

JSW is joining Oil & Natural Gas Corp. (ONGC), Indias

biggest energy explorer, and Indian Oil Corp., the

nations largest refiner, to announce plans for such

terminals as demand surges for gas used by power

plants and fertilizer makers. Domestic output in Asias

second-biggest fossil fuel consumer, has declined

every month since November 2010 as the biggest fieldoperated by billionaire MukeshAmbanis Reliance

Industries Ltd. (RIL) yields less, making the case for

higher imports to stoke growth.

Considering the kind of energy requirement the

country will have, which is very high, this is going to

happen all over India, Sharma said in the interview.

We are in the process of environmental clearance

after which we will build it..Read More

Source: Bloomberg ^Back to Headlines

Infrainsights POV

JSW is in sync with what other players like IndianOil, ONGC, Hiranandani Group, Gazprom, Gail are

sensing the opportunity in current scenario where

its a sellers markets.

LNG is likely to play long terms structural roleeven if gas from KG-D6 or new options like shale

gas emerges as the demand is likely to outpace

the supply when fuel shortages in other fuels are

also factored in.

Department of Fertilisersnot in favor of

changing priority for gas allocation

(Policy Development)

Gas being a resource of national importance, the

Central government allocates available gas to various

sectors fertilisers, power, petrochemicals, sponge

iron, and household consumption.

Historically, this job was performed by the Gas Linkage

Committee (GLC) an inter-ministerial platform

chaired by Secretary, Ministry of Petroleum and

Natural Gas (MPNG).Now, this responsibility rests with

the Empowered Group of Ministers (EGoM).

In the current scheme of allocation, the EGoM has

given top priority to fertilisers, power and other

industries in that order. The distribution of gas from K-

G fields of RIL (estimated at 80 mmscmd committed)

was also done on this basis.Gas from K-G fields started

flowing from 2010. To begin with, supply was 40

mmscmd; this was to be scaled up progressively to

reach 80 mmscmd. Far from that, supplies have

declined progressively and have now plummeted to

below 20 mmscmd!

This has led to substantial shortfall in availability foralmost all the industries vis-a-vis their respective

requirement. It has also triggered a clamour from

various sectors to garner a bigger slice of available gas.

Ideally, Governments response should be to distribute

shortage on a pro-rata basis but not alter the

priorities. Thus, if the share of any industry in total

allocation is X this should remain at X (even after

cut).Ignoring the above fundamentals, reportedly, the

Ministry of Petroleum and Natural Gas is putting up a

note for EGoM seeking to change the priority for gas

allocation in favour of power. This has led to

consternation in the fertiliser sector.Read More

http://www.bloomberg.com/news/2013-03-25/billionaire-sees-profit-as-gas-shortage-worsens-corporate-india.htmlhttp://www.bloomberg.com/news/2013-03-25/billionaire-sees-profit-as-gas-shortage-worsens-corporate-india.htmlhttp://www.bloomberg.com/news/2013-03-25/billionaire-sees-profit-as-gas-shortage-worsens-corporate-india.htmlhttp://gastopowerjournal.com/markets/item/1552-indian-gas-consumption-on-the-rise-despite-infrastructure-insufficiencieshttp://gastopowerjournal.com/markets/item/1552-indian-gas-consumption-on-the-rise-despite-infrastructure-insufficiencieshttp://www.thehindubusinessline.com/opinion/dont-play-around-with-gas-allocation/article4562168.ecehttp://www.thehindubusinessline.com/opinion/dont-play-around-with-gas-allocation/article4562168.ecehttp://www.thehindubusinessline.com/opinion/dont-play-around-with-gas-allocation/article4562168.ecehttp://www.business-standard.com/article/economy-policy/centre-to-consider-gas-starved-power-producers-demand-for-pooling-113032000535_1.htmlhttp://www.business-standard.com/article/economy-policy/centre-to-consider-gas-starved-power-producers-demand-for-pooling-113032000535_1.htmlhttp://www.business-standard.com/article/economy-policy/centre-to-consider-gas-starved-power-producers-demand-for-pooling-113032000535_1.htmlhttp://www.thehindubusinessline.com/opinion/dont-play-around-with-gas-allocation/article4562168.ecehttp://gastopowerjournal.com/markets/item/1552-indian-gas-consumption-on-the-rise-despite-infrastructure-insufficiencieshttp://www.bloomberg.com/news/2013-03-25/billionaire-sees-profit-as-gas-shortage-worsens-corporate-india.html


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Confidential

Kochi-Mangalore gas pipeline turning into

mirage

(Gas Infrastructure)

The Tamil Nadu government's decision to not allow

GAIL to run its Kochi-Bangalore natural gas pipeline

across agricultural lands in the state will hamper the

prospects of the 5 million tonne per annum LNG

terminal at Puthuvype near here.

Tamil Nadu Chief Minister J Jayalalitha's statement in

the Assembly has left the terminal in the doldrums.

The terminal is ready to receive natural gas from

December onwards. Petronet LNG, which built the

terminal, had earlier decided to commission theproject in 2012 itself. But, it had not yet taken a final

call due to the various issues that cropped up over the

inter-state pipeline. It is a pre-condition for the

terminal as it has to supply LNG without hindrance,

once it commences operation.

The line was supposed to pass through the industrial

corridor of the state, connecting Coimbatore, Tirupur,

Salem, Dharmapuri, Erode, Namakkal and Krishnagiri.

Almost 50 per cent of the LNG transported through

this line could be used by the industrial units in these

centres, he said.

But, the latest stand of Jayalalitha would even

question the functional viability of the Puthvype LNG

terminal. The terminal, which has been delayed by

almost three years is now complete and is ready for

pumping gas imported from countries like Australia

and QatarRead More


Infrainsights POV

In the PESTEL analysis P Politics and S Social are the most difficult scenarios to pre-empt

in any investment market. Situation like these are

equivalent to Force Majeure clause of any

contract.

The over 3000 crore projects fate depends onhow the political stance shapes as incase its not

resolved and pushed to abide by the TN

government alignment will mean the cost will

treble for the project whose biggest beneficiary

will be industrial units in Tamil Nadu

BPCL seeks bids from suppliers for LNG import


State-owned Bharat Petroleum Corp Ltd (BPCL) has

sought bids from liquefied natural gas (LNG) suppliers

for short-term import of the fuel to meet domestic

demand.

BPCL plans to import LNG from the spot market to

meet the deficit arising from fall in output from

domestic natural gas fields. It wants to import LNG at

Dahej terminal in Gujarat or at Kochi in Kerala.

The company has called for Expression of Interest by

May 2 for signing a Master Sales and Purchase

Agreement with LNG suppliers.

"BPCL's preferred mode of purchase of the spot

cargoes would be through short notice tenders, which

would be invited from panel of suppliers who have

signed MSPA with BPCL," it said in the tender

document. "BPCL may enter in to MSPA for a

minimum period of five years."

LNG is natural gas that has been cooled to become

liquid for ease of shipping. At the import site, it is

reconverted into gas, a process called regassification.

The eligibility criteria includes the applicant having a

minimum annual turnover of USD 50 million and a

networth of USD 25 million.

Suppliers who have traded at least 2 cargoes of

capacity 75000 cubic meter each as spot cargoes or

long term/short term of LNG during last one year or

has an agreement with any existing LNG producer to

market LNG on their behalf in India can also apply, the

tender documents said.Read More

http://www.business-standard.com/article/economy-policy/kochi-mangalore-gas-pipeline-turning-into-mirage-113032800515_1.htmlhttp://www.business-standard.com/article/economy-policy/kochi-mangalore-gas-pipeline-turning-into-mirage-113032800515_1.htmlhttp://articles.economictimes.indiatimes.com/2013-03-29/news/38125609_1_petronet-lng-ltd-lng-import-terminal-dahej-terminalhttp://articles.economictimes.indiatimes.com/2013-03-29/news/38125609_1_petronet-lng-ltd-lng-import-terminal-dahej-terminalhttp://articles.economictimes.indiatimes.com/2013-03-29/news/38125609_1_petronet-lng-ltd-lng-import-terminal-dahej-terminalhttp://articles.economictimes.indiatimes.com/2013-03-29/news/38125609_1_petronet-lng-ltd-lng-import-terminal-dahej-terminalhttp://www.business-standard.com/article/economy-policy/kochi-mangalore-gas-pipeline-turning-into-mirage-113032800515_1.html


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April 01, 2013


Confidential

Bids invited by IOC for construction of LNG

terminal at Ennore

(Tender Related)

Seeking to give a thrust to liquefied natural gas (LNG)

trade, state-owned Indian Oil Corporation (IOC) has

invited bids for construction of the 5 million tonne a

year LNG terminal at Ennore in Tamil Nadu to be

constructed at a cost of Rs. 4320 crore.

According to IOC officials, expression of interest (EoI)

proposals for a lump sum engineering, procurement

and construction contract for the LNG import and re-

gasification terminal. The last date for submitting EoI

is April 16. IOC has drawn up plans to build a LNGterminal at Katupalli in Ennore by 2016. It will have an

initial capacity of 5 million tonne which could be

expanded to 10 to 15 million tonne per year

Officials said that talks are underway with Russian

giant Gazprom for a 26 per cent stake in the project in

lieu of gas supplies. Ennore will be the third LNG

terminal on the East Coast with state-owned gas utility

GAIL India building a facility at Kakinada in Andhra

Pradesh and Petronet LNG Ltd setting up a 5 million

tonne facility at Gangavaram in Andhra Pradesh. Royal

Dutch Shell also plans to set up a floating LNG terminalat Kakinada.

According to the EoI offer, the bidder, having a

minimum annual turnover of $200 million during last

three years and a net worth of at least $55 million,

should have carried on its own design, engineering,

procurement, construction, commissioning and

project management for these facilities. IOC also plans

to lay 1,175 Km of pipelines to transport gas imported

at the Ennore LNG terminal to consumers.Read More


Government may introduce bidding process for

urea unit investments

(Policy Development)

The government may ask companies looking to set up

new urea factories to bid for them instead of clearing

investment proposals on a first-cum-first-served basis,

although the minister who made the proposal has since

left office.

Former fertilizer minister M.K. Alagiri had, in a 20 March

internal note, written to fertilizer secretary Sudhir Mittal

that an open and transparent bidding process should

be put in place to clear investment proposals. Mint has

seen a copy of the note.

Alagiri had asked Mittal to ensure that a mechanism on

bidding be put up before the cabinet within a month.

Interestingly, Alagiri sent this letter shortly before he

resigned from the cabinet, after his party, the

DravidaMunnetraKazhagam, withdrew support to the

Congress-led United Progressive Alliance government at

the centre.

Junior minister Srikant Kumar Jena took charge of the

ministry after Alagiris departure.

In his letter, Alagiri said that after the government

announced a new investment policy in January this year,

four proposals to set up new urea manufacturing units

and eight for capacity expansion in existing units had

been received. These proposals are in addition to at

least three expansion projects that are already

underwayRead More

Source: Live Mint ^Back to Headlines
http://www.thehindu.com/business/Industry/bids-invited-by-ioc-for-construction-of-lng-terminal-at-ennore/article4561892.ecehttp://www.thehindu.com/business/Industry/bids-invited-by-ioc-for-construction-of-lng-terminal-at-ennore/article4561892.ecehttp://www.thehindu.com/business/Industry/bids-invited-by-ioc-for-construction-of-lng-terminal-at-ennore/article4561892.ecehttp://www.livemint.com/Politics/hJbrBR952ApHOghG3jTEOP/Government-may-introduce-bidding-process-for-urea-unit-inves.htmlhttp://www.livemint.com/Politics/hJbrBR952ApHOghG3jTEOP/Government-may-introduce-bidding-process-for-urea-unit-inves.htmlhttp://www.livemint.com/Politics/hJbrBR952ApHOghG3jTEOP/Government-may-introduce-bidding-process-for-urea-unit-inves.htmlhttp://www.thehindu.com/business/Industry/bids-invited-by-ioc-for-construction-of-lng-terminal-at-ennore/article4561892.ece


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April 01, 2013


Confidential

CIL's coal more expensive than global

benchmarks


If you thought the government supplied coal to

domestic consumers at a significant discount to global

rates, think again. State-owned miner Coal India Ltd

(CIL) has been selling 18 per cent of its annual 435-mt

output at a price higher than, or at least at par with,

global benchmarks. The new trend following a

massive decline in global prices, coupled with a rise in

domestic rates has serious ramifications for crucial

coal reforms, including price pooling and auction ofreserves.

With the global prices of thermal coal recently

plunging below CILs price of best-quality coal, the

traditional price differential between domestic and

international rates has been somewhat eliminated.

This implies, the impact of the price-pooling

mechanism on domestic companies would be less

severe. In fact, the narrowing of the gap between

domestic and international prices has negated the

entire basis of pooling differential with cost of

imports raising doubts on whether the mechanismis even required.

The fundamental reason for pooling is to spread the

price differential between domestic and imported coal

evenly across projects that have coal linkages with CIL.

A narrowing gap between the prices voids that

assumption and, hence, might alleviate the need for

price pooling.Read More


Infrainsights POV

Finance Ministry and Plan Panel is alreadyopposing the coal price pooling mechanism to

spread the incremental cost of imported coal over

the overall coal supply base. The coal price of CIL

being higher than international benchmarks

defeats the utility of overall coal price pooling

mechanism as a formula to bring in parity

between indigenous coal and imported coal.

Coal India Ltd invites bids from firms for third

party coal sampling


State-run Coal India Ltd (CIL) has invited bids from

firms for collection of dry-fuel from mining heads and

preparation of samples with analysis.

The development comes in the backdrop of PSUs like

NTPC demanding independent sampling of coal.

The government earlier this month had said that there

is a proposal to engage an independent third-partysampling agency for sampling and analysis of coal in

view of general demand from the Public Sector

Undertakings / Power Generating Companies after the

introduction of Gross Calorific Value (GCV).

As per FSA, supply of coal to power stations is made

under joint sampling and analysis at loading ends and

payment of coal by the power stations is made as per

analysed grade.Besides, provisions are also stipulated

in the FSA for compensation of stones, jointly

measured at the power house end in every month.

These provisions are part of FSA which was accepted

by the coal companies and the consumers including

NTPC..Read More

Source: Economic Times ^Back to Headlines

Infrainsights POV

This will ensure transparency on the front of

quality of coal that agreed to supply as per the

FSA and that received at the power plant gate

.CIL has consistently failed in delivering quality of

the coal as committed in its supply agreements

which made this initiative almost inevitable for

bringing in transparency and making CIL

accountable

InfraInsights Weekly Coal sector news and InfraInsights View Points
http://www.business-standard.com/article/companies/cil-s-coal-more-expensive-than-global-benchmarks-113030600037_1.htmlhttp://www.business-standard.com/article/companies/cil-s-coal-more-expensive-than-global-benchmarks-113030600037_1.htmlhttp://www.business-standard.com/article/companies/cil-s-coal-more-expensive-than-global-benchmarks-113030600037_1.htmlhttp://articles.economictimes.indiatimes.com/2013-03-25/news/38010180_1_gross-calorific-value-coal-companies-coal-indiahttp://articles.economictimes.indiatimes.com/2013-03-25/news/38010180_1_gross-calorific-value-coal-companies-coal-indiahttp://articles.economictimes.indiatimes.com/2013-03-25/news/38010180_1_gross-calorific-value-coal-companies-coal-indiahttp://articles.economictimes.indiatimes.com/2013-03-25/news/38010180_1_gross-calorific-value-coal-companies-coal-indiahttp://www.business-standard.com/article/companies/cil-s-coal-more-expensive-than-global-benchmarks-113030600037_1.html


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April 01, 2013


Confidential

Coal India's board extends FSA renewal with

non-power customers


The board of state-run Coal India Ltd (CIL) has agreed

to renew the fuel supply pacts it has entered with

existing non-power consumers.

"After detailed deliberations, board accorded its

approval for renewal of fuel supply agreements (FSAs)

with the existing non-power consumers (including

captive power plants) for further period of three

months," CIL said in a letter to its subsidiaries.

The issue of renewal of the FSAs with existing non-power consumers due to expire in March/April on

completing the term of five years was placed for

consideration before the company's board meeting

held a fortnight back, it said.

"Accordingly, necessary action may be taken at your

end for intimating the consumers falling under this

category for renewal of the agreement for further

period of three months," the letter said.

As far as CIL entering into FSAs with power producers

is concerned, the Coal Ministry had earlier stated thePSU had signed pacts with 56 power plants so far.

The deadline set by the Prime Minister's Office for

signing of FSAs between CIL and power producers

expired in January.

A total of 143 FSAs are to be signed by CIL in respect of

identified power projects of 60,000-Mw capacity,

which have been assured for coal supply during the

next five years ..Read More


Infrainsights POV

This certainly provides a relief to the non-power

producing sector which is anticipated to be the

hardest hit under the prevailing coal shortage

condition.

CIL needs to accelerate on its FSA signing to

comply by the PMO directive which it has failed to

even achieve till end of March.

India's Feb coal output falls 4.7% y-o-y

(Coal Production)

Production of coal, whichfuels more than half of

India's power generation, fell 4.7% in February on an

adjusted basis from a year earlier to50.75 million

tonnes, provisional figures obtained from

agovernment source showed.

Coal production has failed to keep pace with capacity

growthin the power sector in India, where energy

production falls farshort of the demands of a fast-

growing economy, Asia's thirdlargest, and an

increasingly affluent population.

Coal output in the world's fourth-largest importer of

thefuel was further affected by a two-day nationwide

strike calledby all major trade unions. Mining,

transport and financialservices were the worst hit.

But India, the world's third-largest coal producer,

raisedoutput by 4.3 percent during April to February

from a yearearlier on an adjusted basis to 486.30

million tonnes, thefigures obtained by Reuters

showed.

The comparisons are adjusted for the leap year effect,asthere were 28 days last month compared with 29

days in February2012.

Another demand from NTPC that has irked CIL is billing

for quality of coal received at its end (power plant). CIL

has rejected the demand, calling it absolutely

illogical. Nobody can accept such a condition. How is

a seller responsible for what happens to coal en-

route? We can enforce any rigorous quality check, but

only at the loading end. Once the coal is loaded and

leaves CILs premises, it is not our responsibility, the

executive said.Read More

Source: Reuters ^Back to Headlines

Infrainsights POV

Accountability and Responsibility of CIL needs to

be strongly defined to ensure that the monopoly

players in the coal sector in India delivers and also

ascertains correct quantity and quality of coal is

delivered to the customer as agreed in the FSAs
http://www.business-standard.com/article/companies/coal-india-s-board-extends-fsa-renewal-with-non-power-customers-113033000006_1.htmlhttp://www.business-standard.com/article/companies/coal-india-s-board-extends-fsa-renewal-with-non-power-customers-113033000006_1.htmlhttp://www.business-standard.com/article/companies/coal-india-s-board-extends-fsa-renewal-with-non-power-customers-113033000006_1.htmlhttp://www.reuters.com/article/2013/03/28/india-coal-output-idUSL3N0CK6Y220130328http://www.reuters.com/article/2013/03/28/india-coal-output-idUSL3N0CK6Y220130328http://www.reuters.com/article/2013/03/28/india-coal-output-idUSL3N0CK6Y220130328http://www.reuters.com/article/2013/03/28/india-coal-output-idUSL3N0CK6Y220130328http://www.business-standard.com/article/companies/coal-india-s-board-extends-fsa-renewal-with-non-power-customers-113033000006_1.html


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April 01, 2013


Confidential

Coal India to convert loans to BCCL into

preference shares


Setting aside a proposal for waiver, Coal India Ltd.

(CIL) has decided to convert Rs.2,539 crore of loans

and current account balance of its subsidiary Bharat

Coking Coal Ltd. (BCCL) into non-convertible

cumulative preference shares.

The move will help BCCL to turn net-worth positive

without impacting the bottomline of CIL, which is now

a listed company. The waiver proposal was part of the

Board for Industrial and Financial Reconstruction

(BIFR) package, it was learnt. This decision was takenat a CIL board meeting on Monday. The company said,

in a filing to the exchanges, that the conversion to 5

per cent non-cumulative preference shares was

recommended by its audit committee and approved

by the board.

Board members felt that since BCCL had been making

profits (since 2006) there was no point in giving it a

waiver, which would impact CILs bottomline.

BCCL, the only coking coal miner in the CIL stable, is

likely to close this fiscal with a profit of Rs.2,000 crore.BCCL said that its production was on a steady rise

since the initiation of its revival process. Production is

set to increase to 34 million tonnes next fiscal from

22.31 million tonnes in 2004-05..Read More


Indian Coal Imports Rise 35% in February,

Interocean Data Show


Coal imports to India, the worlds third-largest

consumer, rose 35 percent in February from a year

ago, shipping data show.

Adani Enterprises Ltd. (ADE), Tata Group (TPWR), JSW

Group (JSTL) and Steel Authority of India Ltd. were

among importers who brought in 12.6 million metric

tons of the fuel last month, up from 9.34 million in the

same period a year ago, according to figures from the

Interocean Group. India received 10.3 million tons of

steam coal and 2.3 million of coking coal through 23 of

the 28 ports listed by Interocean, a New Delhi-basedshipper.

The port of Mundra, operated by Adani Group, Indias

biggest importer of the fuel, received the most coal at

2.35 million tons, according to Interocean. The eastern

ports of Krishnapatnam, Gangavaram and

Visakhapatnam took in 1.26 million tons, 1.23 million

tons and 791,272 tons respectively, the data show.

Magdalla and Dahej, on the western coast, admitted

901,887 tons and 660,475 tons.

Indonesia supplied the largest amount of the fuel at

9.2 million tons. Australia provided 1.52 million tons

and South Africa shipped 1.45 million tons, the datashowed. U.S. shipments to the country totaled

324,442 tons. Companies also received 68,500 tons

from Mozambique and 32,500 tons from Latvia,

according to the dataRead More

Source: Bloomberg ^Back to Headlines
http://www.thehindu.com/business/Industry/coal-india-to-convert-loans-to-bccl-into-preference-shares/article4547270.ecehttp://www.thehindu.com/business/Industry/coal-india-to-convert-loans-to-bccl-into-preference-shares/article4547270.ecehttp://www.thehindu.com/business/Industry/coal-india-to-convert-loans-to-bccl-into-preference-shares/article4547270.ecehttp://www.bloomberg.com/news/2013-03-27/indian-coal-imports-rise-35-in-february-interocean-data-show.htmlhttp://www.bloomberg.com/news/2013-03-27/indian-coal-imports-rise-35-in-february-interocean-data-show.htmlhttp://www.bloomberg.com/news/2013-03-27/indian-coal-imports-r

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InfraInsights Weekly - 01, April 2013