InfralinePlus June 2016

June 2016
Volume 5 | Issue 2 | `100
www.InfralinePlus.com
The Complete Energy Sector Magazine for Policy and Decision Makers
Game Changer:
India strengthens energy
ties with WEST ASIA
Hike in domestic coal Financing woes

prices to increase cost may cast shadow on
of power Indias solar plans
Umesh Agrawal Rajiv Ratna Panda Debasish Mishra DV Giri

Director Head-Technical Partner Secretary General, Indian Wind
Energy, Utilities & Mining, PwC SARI/EI/IRADe Deloitte Touche Tohmatsu India LLP Turbine Manufactures Association
Power sector Need to institutionalize Low PLF We are not for

heading towards cross border electricity of power plants bad for competitive bidding in
consolidation trade in South Asia consumers wind projects
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&2016 Yearbook
DirectorY
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Key Highlights
Sector Performance Review: FY 2015-16
Key Policy and Regulatory updates
Extensive Database of Sector specific Companies including
Manufacturers, Developers, EPCs, BFSIs and Consultants
Top management with contact details
Direct exposure to top decision makers and influencers
tory 2016 tory 2016 ory 2016

Yearbook & Directory 2016 Renewable
Yearbook & Direc Yearbook & Direc ory 2016 Yearbook & Direct
Yearbook & Directory 2016 Oil & Gas
Yearbook & Direct

Yearbook & Directory 2016 Roads
Yearbook & Directory 2016 Power
Power Oil & Gas Energy

Renewable Roads
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InfralinePlus
The Complete Energy Sector Magazine for Policy and Decision Makers
June 2016 | Volume 5 | Issue 02
Editors Letter Editorial

Shashi Garg, Editor
India turned a new leaf in its quest for energy security
with Prime Minister, Narendra Modis recent visit to Iran
followed by Qatar. Historically, Iran has been a major ally News Team
of India as far as meeting its crude oil requirements are Chetan Gupta
concerned. However, the relationship between the two
countries had hit a roadblock following imposition of
sanctions by the US. The relationship was once again Analysts
revived with Modis recent visit, with both countries Akshay Kirti
signing the historic Chabahar port agreement which Mohd. Arif
has the potential of becoming Indias gateway to
Afghanistan, Central Asia and Europe. India would invest
about $500 million building two terminals and five cargo berths at the Iranian seaport Content Consultants
of Chabahar. The Port will also give India a key strategic advantage to India by News Monster
providing a precious sea outlet that bypasses Pakistan. There is potential for over Rs
1 lakh crore of investment in the Chabahar free trade zone in setting up industries
ranging from aluminum smelter to urea plants.
Further, given that Iran is now free to export oil and gas reserves and with Iranian Business Development
government racing to boost its oil production, this augurs well for India, which is Manoj Narang, Director
Irans biggest customer for its energy exports, after China. Similarly, Modis visit to Tel.: 0120-6799106 / 100
Qatar was crucial, given that the Gulf country accounts for close to 65 per cent of Email: manoj.narang@infraline.com
Indias LNG imports.
Back home, the power sector is staring at higher tariffs in the backdrop of Coal
India Limiteds recent notification to revise the prices of pit head run of mine prices
of all grades of non-coking coal. On average, prices of coal sold through the fuel Advertisement
supply agreement route have increased 6.3%. The revision is applicable to all its Anshul Sharma
subsidiaries, as well as to consumers in both the regulated power sector and the Tel.: 0120-6799136
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consumers into a tizzy. Email: advertising@infraline.com 1
There have also been talks of India being power surplus in 2016-17 in the wake of
increased generation. However, doubts are being expressed over the forecasting
methodology while arriving at demand supply projections. In this regard, we feel
Circulation & Subscription
there is an urgent need to have precision in power demand forecasts to arrive at the
true picture. Sneha Pandey
On the other hand, India continues to make swift progress in renewable energy. Tel.: 0120 6799125
In a major milestone, for the first time, renewable plants, mainly wind and solar, Email: sneha.pandey@infraline.com
surpassed the capacity of large hydroelectricity projects. According to experts, India
is on track to becoming one of the worlds largest producers of green energy and
will surpass many developed countries in this endeavour. However, solar power still
faces certain issues. In this regard, we provide an analysis on the financing issues
which are likely to crop up in future in solar sector.
In May, 2016, Infraline conducted a forum on National Pipeline Integrity Management Form IV
to highlight the growing safety and environmental concerns facing pipeline Periodicity of its Publication: Monthly
Printers / Publishers /
management which have led to new regulations and stricter requirements for Editors / Owners
Mrs Shashi Garg
pipeline operators. This forum connected multiple stakeholders from the industry to Nationality Indian
discuss the current and future perspectives of pipeline integrity management which 14-D, Atmaram House, 1, Tolstoy Road
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Signature of the Publisher
June 2016
InfralinePlus
Contents
Editors Letter
1
Cover Story 32
Energy hungry India ready to tango with
West Asia
India is intensifying engagement with West
Asian countries in order to boost its energy
security, secure cheaper funding to support
infrastructure boom and expand trade and
economic ties. Remittances from the region
are also critical for India in meeting its
Current Account Deficit (CAD), which poses
vulnerability to the macroeconomic stability
due to heavy dependence on energy imports.
32
India is also soliciting investment from cash-
rich sovereign wealth funds to finance its
infrastructure boom.
2
Power Coal
4 22
News Briefs p4 News Briefs p22
Expert Speak: Umesh Agrawal, Director Energy, In Conversation: Debasish Mishra, Partner, Deloitte
Utilities & Mining, PwC p8 Touche Tohmatsu India LLP p25
Expert Speak: Vijay Kumar Kharbanda, Project Director In Depth: Hike in domestic coal prices to increase cost
and Rajiv Ratna Panda, Head-Technical, SARI/EI/IRADe of power p27
P11 Statistics p30
In Depth: Need to have precision in power demand
forecasts P16
Financial Results: Q4 and Annual results announced
during May 2016 P18
Statistics p20
Topics Covered Topics Covered
Regional cooperation Power tariffs
Power trading Coal production
Power forcast Coal imports

June 2016
Oil and Gas Renewable

39 56
News Briefs p39 News Briefs p56
Expert Speak: Mohd Arif, Oil and Gas Analyst, Infraline In Conversation: DV Giri, Secretary General, Indian
Energy p42 Wind Turbine Manufactures Association p60
Event Snapshot: Infralines National Pipeline Integrity In Depth: Financing woes may cast shadow on Indias
Management forum p47 solar target p62
Financial Results: Q4 and Annual results announced Financial Results: Q4 and Annual results announced
during May 2016 p53 during May 2016 p65
Statistics p54 Statistics p66
Topics Covered Topics Covered

Pipeline integrity management Wind turbines
3
Gas storage Competitive bidding
Crude import Funding issues
Expert Speak/Interview
Debasish Mishra Mohd Arif

Partner, Deloitte Touche Tohmatsu Oil and Gas Analyst, Infraline
India LLP Energy Off Beat
68
In Depth: Surging crude prices spell trouble for airlines
Reports & Studies

71
People in News
Vijay Kumar Kharbanda
Project Director
DV Giri
Secretary General, Indian Wind
72
SARI/EI/IRADe Turbine Manufactures Association
June 2016
NewsBriefs | Power National

PowerGrid may lose ownership of the countrys electricity transmission network BHEL commissions three 660
MW Supercritical thermal units at
the state-run company would continue Lalitpur within 85 days
to develop projects, but would not own
them. The ministry has completed inter-
ministerial consultations and moved
the proposal to hive off ownership of
transmission projects from PowerGrid
Corp. The government had in 2014
separated management of electricity
grids from PowerGrid. It is learnt that
the proposal provides for the creation
of an independent entity that will own, Setting a new benchmark in project
PowerGrid Corp may soon lose ownership manage and regulate power transmission commissioning, Bharat Heavy Electricals
of the countrys electricity transmission lines. Power Finance Corp and Rural Limited (BHEL) has commissioned all the
network as the power ministry has Electrification Corp will continue to bid out 3 supercritical units of 660 MW each at
approached Cabinet with a proposal transmission projects and PowerGrid will the 1980 MW coal-based Lalitpur Super
aimed at attracting private investment in participate to bag projects. Thermal Power Project (STPP) in Uttar
the transmission space. As per the plan, Pradesh within a span of just 85 days.
This has been achieved as a result of
Panel set up to look into rising NPAs of power PSUs enhanced focus on project execution by
way of innovative erection techniques
The government has constituted a committee and meticulous project management.
to look into the sharp rise in non-performing Located in Lalitpur in Bundelkhand district
assets of state-run power sector financiers, of Uttar Pradesh, the 3x660 MW Lalitpur
Power Finance Corporation (PFC) and Rural STPP has been developed by Lalitpur
4 Electrification Corporation (REC), over the last Power Generation Company Limited,
financial year. Gross non-performing assets promoted by the Bajaj Hindusthan group.
(NPAs) of PFC were 3.15% of its loan assets The main plant package contract of this
as on March 31 this year against 1.16% a year 1980 MW power plant is being executed
ago. Net NPAs rose to 2.55% of the loan as- by BHEL. Significantly, all the three units
sets as on March 31 from 0.93% in the year- have been synchronized by BHEL 3 to 4
ago period. Gross NPAs of REC stood at about March last year. The three-member commit- months ahead of the schedule agreed
1.71% of its loan assets, while net bad loans tee will comprise independent directors of the between LPGCL and BHEL. This was made
were at 1.36%. In 2014-15, gross NPAs of the companies and a senior official of the power possible by compressing the erection and
company were at 0.74% while net NPAs were ministry. RECs gross NPAs stood at Rs 7,519 commissioning cycle, by the joint efforts of
at 0.54%. Gross NPAs of state-run banks rose crore of the total loan assets of Rs 238,920 BHEL and LPGCL.
to 7.30% in December 2015 from 5.43% in crore as on March 31 this year.
Cabinet clears India, Japan pact on thermal power
The Cabinet recently gave ex-post facto ap- of them. It provides for implementation of
proval to a pact between India and Japan for full-fledged diagnosis and/or other available
promoting sustainable and low-carbon ther- and effective measures including Residual
mal power development. The Union Cabinet Life Assessment (RLA) and Conditional As-
chaired by Prime Minister Narendra Modi sessment (CA) study with priorities on, but
granted ex-post facto approval to the MoU be- not limited to the target power stations under
tween India and Japan for promoting sustain- the Pre-Primary Study and the Cooperation.
able, stable and low-carbon thermal power The number of target power station(s)/unit(s)
development in India, a statement said. The will be decided through mutual consulta-
MoU will help India address issues and barri- tion by CEA and JCOAL. It also provides for
ers in this area. The proposal includes under- be addressed through mutual collaboration consideration of justifiability and feasibility of
taking of activities such as update on the cur- by the Central Electricity Authority (CEA) and individual cases of power development based
rent and future policy trend in Indian power Japan Coal Energy Centre (JCOAL). Both on thermal power generation technologies in
sector with wide coverage from R&M and Life nations will identify issues to be addressed terms of funding from the existing financial
Extension (LE) to new power development in regarding existing and upcoming facilities, instruments and/or other available bilateral
India. It will also identify barriers that could and also operation and maintenance at either financial schemes.
June 2016
NewsBriefs | Power National

For the first time in history, India will not have power deficit situation in FY17 USAID and ministry of power launch
portal to promote net zero energy
non-peak hours during 2016-17, latest buildings
data from the Central Electricity Authority
shows. This is the first time that the
country has declared a year of no shortage
though many regions have had power
surplus for shorter periods. In 2015-16,
the peak hour deficit stood at -3.2% while
non-peak hour deficit was at -2.1%. The
deficit was as high as 13% about a decade
ago. The data, based on gap between
India has, for the first time in history, demand raised and demand met, shows
declared that it will not have a power that June onwards the country will have The United States Agency for
deficit this year, a situation officials say is more electricity than required. Half of the International Development (USAID)
an outcome of the current governments states will be surplus, while others may and the union ministry of Power have
initiatives to resolve burning issues like fuel face shortage in varying degrees. The NDA launched Indias first integrated
scarcity. The country will have a surplus government says power surplus scenario web portal designed to promote and
of 3.1% during peak hours and 1.1% during as one of its big achievements. mainstream Net Zero Energy Buildings
(NZEB) in India. A first of its kind, the
India wont need extra power plants for next three years, says government report portal provides complete information
about Net Zero Energy Buildings -
India wont need any new power plants for those that generate as much energy
the next three years as it is flush with genera- as they use - as well as how to achieve
tion capacity, according to a government near-zero energy status through the
assessment. The country can manage for the use of efficient lighting and equipment,
next three years with existing plants that are integration of renewable energy 5
currently under-utilised, and those that are technologies, and best practice design
under construction and upcoming renewable strategies. In addition, the portal hosts
energy projects, assessment made by the the NZEB Alliance, an industry-wide
power ministry for reviewing the National body setup to drive the Indian markets
Electricity Policy shows. The policy, originally toward highly energy-efficient buildings.
issued in 2005 as a roadmap to the Electricity should back off, a power ministry official The portal, www.nzeb.in, was launched
Act of 2003, is being altered in the backdrop said. India has power plants with capacity by Secretary, Ministry of Power Pradeep
of changes in the power sector. India is to generate 300 GW. These are operating at Kumar Pujari and Ambassador and
expected to be power sufficient without any 64% capacity because of inability of state USAID mission director to India
addition. This clearly signals that any thermal distribution utilities to purchase electricity Jonathan Addleton.
power plant that is yet to begin construction and sluggish economic growth.
Nepal, India plan setting up energy bank
India and Nepal are planning to setting import from India during times of crisis,
up an energy bank so that they can help said Mukesh Raj Kafle, managing director
each other to overcome the problem of of the Nepal Electricity Authority. India is
power shortage. The two countries have agreeable to the concept, but there is no
conducted informal discussions regard- open access to India due to legal complica-
ing the energy bank before, but this is the tions. The proposal is good, but we have
first time that Nepal has made a formal to clear a number of regulatory provisions.
proposal. According to the energy bank We will start to work on it, Khanal quoted
concept, Nepal would export electricity to Indian officials as saying. According to
India during the summer season and im- Nepali officials, it depends on Indias will-
port power from India in the winter when ingness. Nepal has also requested India to
output drops sharply resulting in crippling resume production from the 15 MW Gandak
power shortages. The Power Trade Agree- two countries to establish an energy bank. Powerhouse. The plant was constructed as
ment signed by Nepal and India in 2014 The concept of an energy bank is clear: per the Gandak Agreement. Similarly, Nepal
during Prime Minister Narendra Modis visit We export to India when our production has also requested India to build the Birpur
to Kathmandu has opened the way for the exceeds domestic consumption and we Powerhouse as soon as possible.
June 2016
NewsBriefs | Power States

National
Surplus TN allows generators to sell power outside state UP to hike transmission capacity of
power lines
on May 31. The last time the government
withdrew the section was in 2014 but within
a few months, it re-imposed the section due
to shortage. According to the order, there
is surplus power to the extent of 300 MW.
Along with Kudankulam unit 2, the surplus
may increase in the coming months. In
addition to the above, theres some 430MW
of standby power from independent power
producers as well as 500MW from long
With the power situation improving in the term sources. So even if there is a surge in
state, the Tamil Nadu government has demand up to 1,000MW, Tamil Nadu will be The state government has stepped on
allowed private power companies to sell comfortably placed to handle it. Last year the gas to increase the transmission
electricity to other states by lifting Section some wind power companies went to the capacity of UPs power lines. The energy
11 of the Electricity Act 2003. An order to court seeking an order to the government to department is learnt to have asked the
this effect was issued by the government lift the section. It is a great decision. UP Transmission Corporation Limited
(UPTCL) to get the total transmission
Haryana likely to bridge gap in power demand and supply capacity (TTC) increased from the exist-
ing 6000Mw to over 7000Mw in the next
Haryana may not be self sufficient in couple of months. A key factor in wheel-
power generation but has been able to ing power into the grid from sources
bridge the gap between power demand outside the state, the TTC is limited to
and supply as per latest Central Electricity 6000Mw in UP. The state cannot bring
Authority (CEA) report. CEA in its report more than that into the state from sourc-
6 has projected that power supply position es outside, including power exchange and
will be comfortable round the year bilateral trading. This capacity is now
mainly due to long term power purchase proposed to be increased by 1200Mw
agreements with private generators. The to 7200Mw. UPTCL managing director,
annual power requirement of state is likely Vishal Chauhan said that the corporation
to be 49800 million units; whereas the has completed the construction of the
power availability will be 51069 million Focus CEA has projected the above after much-needed high-power substations to
units, thus there will be power surplus to taking into consideration the proposed ease the congestion. This will also help
the tune of 2.5 per cent. Even the expected maintenance schedule of the units during in increasing the TTC so that more power
peak requirement of 8950 MW will be the year. could be brought into the state grid in
met by peak availability of 9263 MW. In times of crisis, he said.
Gujarat govt decides to overhaul power generation technology
With an aim to improve its power genera- Ukai Thermal Power Station has total six
tion efficiency, Gujarat government has power generation units two units of 120
decided to completely overhaul its power MW, three units of 200 MW and one unit of
generation technology in state-owned 500 MW power generation capacity. The
power stations in the state. And as part Wanakbori Thermal Power Station, on the
of the plan, Gujarat State Electricity other hand, has total power generation
Corporation Limited (GSECL) is going to capacity of 1,470 MW with total six units
change the turbines of two of its ther- of power generation capacity of 210 MW
mal power units in Ukai of South Gujarat each. Overhauling of the two power gen-
and Wanakbori of Central Gujarat at the eration units will start in December this
cost of around Rs 208 crore. The current year and is likely to be completed within
turbine technology of Ukai and Wanakbori eight to ten months. During this period,
power stations was more than 25 years the unit will witness shut down of around
old and it had outlived its lifespan. And 100 days.
therefore, the Energy and Petrochemi- to overhaul the turbines in the thermal
cals Department had initiated the move power stations. The sources said that the
June 2016
NewsBriefs | Power International

ABB wins US$11m tender for supporting Java-Bali electricity project Ghana to issue $2 bln bond to help
clear power firms debt
substations, said ABB power grid division
president Claudio Facchin. The upgrade
applies to design, engineering, supply and
installation. Along with the controlling
and maintenance, the jobs duration is two
years. It is not about doing the upgrades
and maintenance, but also supporting our
customers with the software and expertise
that we have, he said. All the products
used in the project, Claudio said, would
Swiss electricity supplier ABB has won a be made in Indonesia. However, several Ghana plans to issue a 10-year
tender worth US$11 million to supply sup- foreign technicians would be involved in syndicated $2 billion bond before year
porting equipment for the enhancement the installation. This is not the first time end to clear legacy debt among its
project of the Java-Bali power plants. ABB has worked with PLN as it previously power utilities. The lions share of the
The contract will be financed by state- supplied miniature circuit breakers (MCB ) proceeds of the bond was meant for
owned electricity firm PLN with an Asian for house installations. power generation company, Volta River
Development Bank loan to upgrade 12 Authority, with the rest spread between
GRIDCo and the Electricity Company
Iran ready to connect its electricity grid to Europe of Ghana, said the chief director in
the petroleum ministry, Thomas
Iran is ready to synchronize its electric- Akabzaa. What we are trying to do
ity grid with those of European countries, as a government is to put all the debt
the Islamic Republics energy minister, into one portfolio. The three entities
Hamid Chitchian, said. The Islamic Republic all have big legacy debts (in total)
currently trades electricity with seven hovering around $1.5 billion, Akabzaa 7
neighboring countries, Chitchian said, adding said. The bond will be issued before
Iran and Russia have agreed to connect the end of the year, certainly, Akabzaa
their power grids. Chitchian added that said. He said the government was
Tehran and Baku has reached agreement electricity to regional countries per year. putting the final touches to the bond,
to synchronize their power grids, and via Tehrans electricity import also stands at with issuance protocols for the bond
Azerbaijan the Iranian electricity network four GWh annually, Chitchian added. Rusnak expected to be finalised at the end of
will join to Russias grid. Iran is ready to link in turn said that the issue can be discussed June. Discussions have been held with
its electricity network with Europe as well, with European countries, if Iran submitters a number of banks, including Standard
if the other side agrees, Iranian minister a proposal including its current electricity Bank unit Stanbic, Ecobank and
added. He said that the Islamic Republic capacity, needs and future plans. Standard Chartered Bank, he added.
exports over 11 gigawatt hour (GWh) of
Nuclear power key for UAE energy security
Nuclear power is the best way for the is now more than 87 per cent complete,
world and the UAE to meet its energy unit 2 is 68 per cent complete, unit 3 is
demands, according to experts. The UAE 47 per cent complete and unit 4 is 29
is fast entering the nuclear world and per cent complete. Overall, construction
by 2020, the countrys nuclear power of units 1 to 4 is now more than 62 per
plant in Barakah will supply around a cent complete.The country, which has
quarter of the emirates electricity needs. a nuclear power plant, moves to a new
Despite events such as Chernobyl and level in terms of science, technology,
Fukushima, more developing countries industry and education, said Rosatom
are opting for nuclear power plants. The State Atomic Energy Corporation director-
UAE started construction on four units general Sergei Kiriyenko.
of 1,400 megawatt each to generate
5,600MW on April 1, 2010, with drilling
work on the site in Barakah, about 53km
from Ruwais in the Western Region. In Corporation (Enec) confirmed that the
April this year, Emirates Nuclear Energy project is progressing steadily, as unit 1
June 2016
ExpertSpeak
Power sector heading towards
consolidation
Umesh Agrawal, Director Energy, Utilities & Mining, PwC,
share his outlook on the power sector and feels that industry
consolidation, universal access and sustainable growth will
be the key growth drivers.
The Electricity Act, 2003 and the anticipation of consistent development

subsequent actions by the government, fuelled significant rise in demand of
regulators, investors and other stake- power and an industry-wide investment
holders have helped create a situation sentiment. Accordingly, a huge capacity
of unprecedented level of generation addition of cost effective coal based
capacity addition in last five years. power generating stations took trac-
While, it has led to reducing levels of tion in order to meet the spiraling
deficits, the issues with distribution demand. India has a coal based
8 utilities have led to situation of many installed genera-
Umesh Agrawal, Director Energy, Utilities &
assets being stranded owing to lack tion capacity of
of commensurate demand impact- 185.2 GW Industry Mining, PwC
ing investor sentiment for the sector. as on 31 consolidation there are concerted efforts by
Meanwhile, Government has increased March, a healthy sign many players to reduce the level
the focus on sustainable developments 2016 helping to build a of debt by undertaking various
both in terms of generation of energy whereas strong competitive corporate actions. We have seen
as well as consumption of energy there almost 78.9 sector benefiting may deal announcements in the
by focusing on building a sustainable GW of coal recent past and might see many
all stake-
energy ecosystem. Further, the focus on based genera- more going forward. This industry
making power available to all is really tion capacity is
holders consolidation is a healthy sign helping
a significant step to achieve the objec- in various stages of to build a strong competitive sector
tives set out with the promulgation of completion.While the capacity addition benefiting all stakeholders. Similar
the Electricity Act 2003. has led to a situation of better avail- actions are also visible in the renewable
ability of power, in the short-run, it has energy space as well.
Beginning to see industry created a situation of excess capacity,
consolidation thereby creating stress in the sector. The Making power for all a reality
The Electricity Act, 2003 recom- stress has led to a situation where many The government has set an ambi-
mended a structure for the sector with power plants are ready for dispatch but tious goal of 24x7 power for all by
well-defined goals of de-licensing the there are no off-takers. The financial 2019 which indicates three specific
generation of power and provision for health of the utilities are also playing a aspects of the business, viz. building of
competition in the licensed businesses role in lack of demand even when the adequate generation, transmission and
of Transmission and Distribution. reality is that there are rampant power- distribution capability.
Subsequent regulatory framework along cuts in various part of the country The most ailing area among the
with the National Electricity Policy, except few cities. three is distribution sector. Being a
2005and Tariff Policy, 2006 provided While this has been a short-run licensed business, most of the licensees
guidance towards development of the problem, the nature of the business are state owned utilities with the onus
sector. The prolific growth being wit- which is highly leveraged is already of collection of revenue from the con-
nessed by the nation coupled with the creating trouble for promoters and sumers, which pays for the whole value
June 2016
chain. Over the years, the discoms feeders / consumers in the urban areas, The transmission network capacity
have significant accumulated losses ensure IT enablement of distribution has also served as a bottleneck for des-
and debts. Inefficiencies of these state sector and strengthening of distribution patch of power. While the integration
owned utilities result in poor upkeep of network for completion of targets laid of the NEWS Grid has been achieved
the equipments and therefore, frequent down under Restructured Accelerated and the transmission capacity building
power cuts and poor power quality. Power Development and Reforms Pro- across the NEW and Southern Grid is
To tackle this, the government has gramme (R-APDRP). The highlight of in progress, it is critical that other bot-
proposed Ujwal DISCOM Assurance these schemes is the provision for inte- tlenecks in transmission are addressed.
Yojana (UDAY), wherein about 75% grated third party Project Monitoring The government achieved addition of
of the debt of the utilities will be Agency which updates the ministry of 28,114 circuit km (ckt km) in trans-
taken over by the state, which will the execution of the projects under- mission network, 27% higher than the
further be funded through non-SLR taken under these schemes. The gov- capacity addition in the previous year.
bonds (SDL) with maturity period of ernment has moved towards achieving The Power Ministry initiated Project
10-15 years. This would reduce the the accelerated target of Rural Electrifi- Green Energy Corridor to connect
interest burden of the utilities and cation by December, 2016. the RE projects to the grid and ensure
permit capacity to make investments evacuation of power. Traditionally,
to ensure efficient operations. erection of transmission line lagged the
In addition to the financial health, The transmission net- construction of a conventional thermal
meeting the goal of power for all will work capacity has also power plant. However, in case of a RE
entail complete rural electrification served as a bottleneck based power plant, the erection and
around the country. The government is commissioning takes significantly less
for despatch of power.
investing significantly in development time as compared to the time required
of Distribution Network in both urban While the integration to draw a transmission line to the plant,
and rural areas. Deendayal Upadhyaya of the NEWS Grid has which delays evacuation of power from 9
Gram Jyoti Yojana intends to separate been achieved and the such plants.
agricultural and non-agricultural
feeders, strengthen and augment sub-
transmission capac- Developing efficient
transmission & distribution infra- ity building across the and sustainable energy
structure in rural areas and achieve NEW and Southern ecosystem
rural electrification from a budget of Grid is in progress, it is The government has made
Rs. 43,033 Crores. Integrated Power environmental commitments towards
Development Scheme (IPDS) intends
critical that other bottle- controlling the emissions as the country
to strengthen sub-transmission and necks in transmission moves towards development. In the
distribution network in the urban areas, are addressed UN Climate Change Conference
metering of distribution transformers / held in Paris, India has proposed
to reduce the emission intensity by
33% to 35% by 2030 from the 2005
level and to create an additional
carbon sink of 2.5 to 3 billion
tonnes of CO2 equivalent through
afforestation by 2030 as its Intended
Nationally Determined Contribution
(INDC). In order to achieve this on
the long run, the government has
notified Environment (Protection)
Amendment Rule, 2015 to minimize
pollution by reducing Particulate
Matter (PM), SO2, NOx and Mercury,
thereby improving the Ambient
Air Quality (AAQ) in and around
thermal power plants. It requires that
all new coal based thermal power
June 2016
ExpertSpeak
Capacity Addition Rate large margin. This capacity addition is

complemented by the rate discovered
25%
during the solar power procurement,
which favorably competes with the
20% conventional energy rates. A rate of Rs
4.34 per unit of solar power generated
% increase in C apacity
was discovered during the international

15% competitive bidding held for NTPCs
Bhadla solar park tender in January
2016 as against Rs. 4.63 per unit
10%
discovered in the previous year. While
some doubts are raised on sustainability
5% of projects at such competitive rates, the
biddings continue to attract aggressive
bids. Recently, SunEdison filed Chapter
0% 11 bankruptcy in United States is likely
FY 2014 -15 FY 2015 -16 to act as a dampener in future bids as
investors take extra precaution to seek
Increase in Renewable Capacity Increase in Total Capacity profitable growth.
However, the government has been
plants configurations are incorporated FY 2015-16 as against an 8% increase supporting and bullish of the renewable
with Flue Gas Desulphurization and in the previous year whereas the sector in the time to come. It has
Selective Catalytic Reducers to ensure conventional capacity grew by 11% initiated various agencies like Inter-
10 that the emission levels are met. The and 10% respectively for FY 2015-16 national Solar Alliance headquartered
New Tariff Policy also mandates an and FY 2014-15. The trend is expected in India for promotion of solar energy
aggressive Renewable Procurement to continue since the ministry has set globally. It has also notified a national
Obligation and introduces Renewable an ambitious target of 175 GW of offshore wind energy policy, 2015 for
Generation Obligation. Renewable Energy Capacity by 2022. incentivizing offshore wind generation.
In line with the environment targets A total wind power capacity of Further, the government has also focused
set by India and the forecasted rise 3414.65 MW and a total solar power on distributed generation in the form of
in demand, the government intends capacity of 3018.8 MW was added in rooftop solar generations by providing
to meet the capacity requirement by FY 2015-16 taking the total Grid con- financing assistance for grid connected
increasing the non-fossil fuel based nected RE capacity to 42,752.2 MW. rooftop solar setup for residential, com-
generation capacity significantly. This The total RE capacity addition achieved mercial and institutional consumers.
can be observed by noticing the 22% (7,052 MW) also exceeds the target While all the above poised well for
increase in the RE capacity addition in capacity addition of 4,460 MW by a a sustainable growth, as the renewable
capacity increases, the issues with
respect to integrating renewable energy
in the grid is extremely important.
Recently, the government has come
out with number of measures to ensure
that renewable energy sources are made
responsible to schedule as per available
technology, the system operators have
visibility of the renewable sources to
take actions for grid stability and overall
help develop a robust commercial
market for ancillary services.
(With inputs from RohitJadye, Senior Consultant,
Energy, Utilities & Mining, PwC)
The views in the article of the author are personal

For suggestions email at feedback@infraline.com
June 2016
ExpertSpeak
Need to institutionalize cross border
electricity trade in South Asia
Vijay Kumar Kharbanda,
Project Director and Rajiv
Ratna Panda, Head-Techni-
cal, SARI/EI/IRADe, feel that
the only long-term solu-
tion for balanced growth of
energy sector in South Asia
is the sustained increase in
regional energy cooperation
among these nations.
All the South Asian countries are

currently facing power and energy 11
Vijay Kumar Kharbanda, Project Director - SARI/ Rajiv Ratna Panda, Head-Technical, SARI/EI/
shortages which are negatively impact- EI/IRADe IRADe
ing the economy. Adequate supply of
energy is pre-requisite for all the devel- rate of 6% as measured by GDP per solution is the sustained increase in
opment pursuits in South Asia ranging capita. Yet despite this impressive mac- regional energy cooperation among
from economic progress to scientific roeconomic growth, the energy sector South Asian nations.
research, education, healthcare, quality in the South Asian region has not been
of life, and prosperity in the region. In able to keep pace, and continues to ex- Present status
recent past, South Asia has been one perience chronic problems of shortage Cross Border Electricity Trade (CBET)
of the fastest growing regions in the of supply and poor quality of service. in South Asia is currently being under-
world, with an average annual growth Given this dilemma the only long-term taken in the form of bilateral trade and
is limited between India-Nepal (250
Figure 1- Electricity Import by India from Neighbouring MW approx.); India-Bangladesh (600
Countries MW); and India-Bhutan (1400 MW ap-
prox.). The CBET historically has been
70.0
mainly through bilateral (Government
60
60.0 to Government) arrangements based
50.0
50 on case to case negotiations, though
40 in the recent past market-based CBET
40.0 35 began between India-Bhutan and India-
30.0 25
Bangladesh. It is expected that going
in future the CBET in south Asia will
20.0 15
be more of market oriented. Region is
10
10.0 8
3.5 4 5
7 endowed with vast potential of clean
1.5 1.5 1.5 3
0.0
energy i.e. hydro power of 350 GW (of
2007 2012 2017 2022 2032 2037 2042 2047 which only 14% has been developed)
Import Least Eort( GW) Import Dertermined Eort ( GW) which can be developed successfully
Import Aggressive Eort ( GW) Import Heroic Eort ( GW) through CBET. CBET has the poten-
Source: The IESS, 2047, Niti Aayog tial to improve energy security of the
June 2016
ExpertSpeak
Figure 2- Electricity export by India to Neighbouring

Countries The historic Power
Trade Agreement (PTA)
12.0
10
signed between India-
10.0
Nepal, opens up whole
8.0 7 range of new possibil-
6.0 5 ity for trade electricity
4.0 3.5 between Nepal-India,
2.0
2
1.5
2 2 2 and also gives an ac-
1 1 1
0.2 0.2 0.2 0.2 cess to Nepal Power
0.0
2007 2012 2017 2022 2032 2037 2042 2047
Developers to Indian
Export Least Eort ( GW)
Export Aggressive Eort ( GW)
Export Dertermined Eort ( GW)
Export Heroic Eort ( GW)
Power Market. India-
Source: The IESS, 2047, NitiAayog)
Bangladesh and India-
Bhutan are taking steps
Figure 3- SAARC regional transmission capacity by 2033-34 to enhance quantum of
Cross Border Electric-
ity Trade
region and provide adequate and af-
12 fordable electricity in the region.
CBET is expected to increase sig-
nificantly in coming future (Fig1&2).
For facilitating such CBET, several
new transmission interconnections are
being planned/proposed across South
Asian countries (fig-3) which will
enable greater Integration of Power
Systems of South Asian Countries
(SACs). Such power system integration
shall also enable trading on a multi-
lateral basis wherein two countries
having no common border could trade
electricity through a third country
acting as transit.
The political climate is becoming
increasingly more and more conducive
for CBET both at the bilateral and as
well as at the multilateral level as eight
member states of SAARC countries
signed SAARC Framework Agreement
of Energy (Electricity) Cooperation.
Further, the historic Power Trade
Agreement (PTA) signed between India-
Nepal, opens up whole range of new
possibility for trade electricity between
Nepal-India, and also gives an access
to Nepal Power Developers to Indian
Soure: MoP,GoI, Draft Perspective Transmission Plan for Twenty Years (2014-2034) Power Market. India- Bangladesh and
June 2016
Figure 4: Brief Summary of Regional Regulatory Guidelines
13
India-Bhutan are taking steps to enhance promoting/facilitating CBET exist in there is a need to have common/coordi-
quantum of Cross Border Electricity some South Asian Countries (SACs) nated set of regulations which facili-
Trade (CBET) in manifold. In coming but are not exhaustive in nature. Cur- tates/addresses the mechanism of cross
future Bangladesh is planning to import rently, South Asian countries are at border interconnection. There is a need
6000-7000 MW from regional grid to different stage of power sector reforms to have common/coordinated set of reg-
meet the power demand. and have different electricity regulatory ulations, policies, and legal framework
Policy/Regulatory Provisions and environment. To enhance CBET within which addresses the mechanism of
Institutional frameworks required for two or more countries in South Asia, interconnection, recognizes the CBET,
June 2016
ExpertSpeak
Figure 5: International best practices on Regional Regulatory Institutional Mechanism
14
open access to transmission network,

licensing, imbalance settlement In the South Asian regional context, the risks
mechanism, coordinated procedures for associated with forging an intra regional CBET
integrated system operation, dispute project would be greatly minimized if each
resolution, etc. Moreover the existing
electricity regulatory, policy and legal participating country adopts complementary
frameworks of SACs primarily address regulatory frameworks to facilitate cross border
domestic power sector issues and are interconnection and electricity trade
not necessarily developed to address
issues related to CBET.
Without consistent and coherent would be greatly minimized if each through a regional regulatory institu-
regional regulatory framework in participating country adopts comple- tional mechanism such as forum/agen-
place, investment opportunities and mentary regulatory frameworks to cy/association of electricity regulators
consequently large scale CBET facilitate cross border interconnection to take care of CBET regulations is
between nations that could benefit both and electricity trade. critical for smooth and rapid expan-
importing and exporting nations may sion of trade of electricity among the
not happen. In the South Asian regional Suggestions for future south Asian countries and for creating a
context, the risks associated with A transparent, stable regional regula- conductive environment for investment
forging an intraregional, CBET project tory framework for CBET supported in CBET.
June 2016
Development Community looks after

South Asia Forum of Electricity Regulators (SAFER) regulatory coordination and ensure that
a neutral and transparent institution aims to the regulatory & contractual aspects
done through common set of regulatory
coordinate with various stakeholders to promote guidelines. As per the study conducted
Regional Regulatory Guidelines in the form of by SARI/EI, formation of a Forum
common regulations, rules and protocols in technical, of Electricity Regulators i.e. South
Asia Forum of Electricity Regulators
operational and legal matters for promoting CBET in
(SAFER) a neutral and transparent
the South Asian Region. institution will aim to coordinate
with various stakeholders to promote
Integrated Research and Action needs a strong institutional sponsor and Regional Regulatory Guidelines in the
for Development (IRADe), a regional the study has recommended formation form of common regulations, rules and
think tank and the implementing of forum of regulators i.e. South protocols in technical, operational and
partner of USAIDs current phase of Asian Forum of Electricity Regulators legal matters for promoting CBET in
South Asia Regional Initiative for (SAFER).This Forum of Regulators the South Asian Region.
Energy Integration (SARI/EI) has i.e. SAFER is proposed to manage The SAARC framework agreement
recently concluded a study on detailed the process of coordination of regula- for energy cooperation (electricity) also
review of coordination of policies/ tions with various regional bodies i.e. suggests Article 15-Member States
regulations/legal framework prevailing SAARC Energy Secretariat, Regu- shall develop the structure, functions,
in each SACs and published Regional latory Commissions/authorities in each and institutional mechanisms for
Regulatory guidelines (RRGs). The SACs and other relevant institutions in regulatory issues related to electricity
objective of these RRGs (fig-4) is to member countries in the area of facili- exchange and trade.
provide national regulators/empowered tating cross border electricity trade. Recently, in the 2nd SAARC Energy 15
entities of South Asian countries with International experiences (fig-5) Regulator meeting held at Colombo,
a common course of action that can also shows that various regional power Sri-Lanka on 08th 9th February 2016,
be referred to for decision making systems in the globe have taken steps the members considered to form a
on CBET in their respective coun- to form regional regulatory institutional Regional Energy Body/ Forum (Elec-
tries. RRGs ensure consistency in the structures/mechanisms to coordinate tricity). Therefore, formation of an
CBET transactions and removes the regulations for promoting CBET. In institutional mechanism such as Forum/
constraints that are often plagued or Europe, the Agency for the Cooperation Association/Agency of Electricity
delayed because of the unclear and of Energy Regulators (ACER) is an Regulators is critical for the success of
complicated regimes. In summary, independent agency, which fosters CBET in South Asian region.
the guidelines and the framework cooperation among European energy While there is a consensus on need
are sufficiently flexible to work with regulators and ensures that market of a Regional Regulatory Institutional
different national legal, policy, and integration and the coordination of Mechanism for coordination/harmo-
regulatory frameworks. The provisions regulatory frameworks are achieved nization of electricity regulations and
allow accommodating different country within the framework of the EUs for developing a regional regulatory
circumstances, yet have a sufficiently energy policy objectives and issues framework for CBET in the South
broad application to promote consistent non-binding opinions and recommen- Asian region, the time has come
decision making and for any appro- dations to national energy regulators institutionalize the process by formally
priate updating and modification. and transmission system operators establishing Regional Regulatory Insti-
For implementation of RRGs and for facilitating CBET. Similarly the tutions such as Forum of South Asia
for coordination/harmonization of elec- Regional Electricity Regulators Asso- Energy (Electricity) regulators or any
tricity regulations for promoting CBET, ciation (RERA) of Southern African other appropriate institutions, identi-
fying its role, responsibilities, structure
SAARC framework agreement for energy cooperation etc. which is also critical for brining
much needed investment in CBET
(electricity) Calls for Institutional Mechanisms for projects in the south Asian region.
Coordination of Regulations for Promoting CBET in
the South Asia Region. The views in the article of the author are personal
June 2016
InDepth
Need to have precision in
power demand forecasts
16
Ministry of Power estimates electricity demand in 2017-22 to be 20% less than original estimate
Power plants currently operate at less than full capacity to cater to a power demand of 140-150 GW
By Team InfralinePlus
Demand forecasting is an attempt to even blackouts, whereas over-forecast- power demand by the end of the 13th
predict future electricity needs, which ing incurs unnecessary costs. Plan period (2017- 2022) as per this
informs future plans for transmission and An Electric Power Survey (EPS) survey was 289 gigawatt (Gw).
electricity generation. There is an urgent is conducted by Central Electricity Current efforts to electrify all
need for precision in the demand fore- Authority (CEA) to forecast year-wise villages and provide uninterrupted
casts. Accurately forecasting electricity Electrical Energy Requirement and electricity for all by 2019, the
demand is crucial to make sure that grid Peak Electric Load at Power Station expected electrification of more
operators plan for adequate generation Bus Bars (utilities only) for all States/ railway lines and the emphasis
and transmission but do not over-procure UTs in India. The 18th Electric Power on usage of electric vehicles for
or over-build, which can lead to over- Survey of India was conducted in transportation are expected to drive
charging electricity customers. An under 2013 which made the forecast for the future electricity demand. Though
estimation could lead to under capacity, 2017-22 period based on the demand present installed power generation
which would result in poor quality of projection for the 12th Five Year Plan capacity of the country is 289 GW,
service including localized brownouts, or period of 2012-17. The estimated power plants operate at less than full
June 2016
capacity to cater to a power demand of side management with CFL and LED total renewable capacity to 38,000 MW.
140-150 GW. lamps and signage for promoting Renewable energy runs at an average
Ministry of Power while prepa- efficiency at the supply side have PLF of 20 per cent during off peak hours
ration of state-specific action plans for already been taken up in the country. and 80 per cent during peak hours. With
providing 24x7 power for all by 2019 In November 2015, Union cabinet surplus installed generation capacity and
discovered the variations in demand approved, Ujwal Discom Assurance low demand, the domestic power plants
projections. The demand was estimated Yojana (UDAY), a scheme to improve are expected to operate at low capacity
at 298 GW on the back of high growth the operation and financial efficiency of of 55-60 per cent in that period, which is
in states at the time of preparation of the State owned Discomssets targets for the international average.
EPS coupled with a low base in previous utilities to cut their transmission losses. In addition to the existing
years led to the over estimations for the The government is also promoting generation capacity of 289 GW, the
13th plan. The demand was growing at energy-efficient agriculture pumps, National Democratic Alliance (NDA)
a reasonable rate till the last three years. fans and air-conditioners through government plans to add 175 GW of
Economic slowdown, its corresponding power distributors. renewable power capacity by 2022
impact on power demand lag in trans- As per 12th Five Year Plan, capacity which means the system will have
mission planning, the weak financial addition of 88,537 MW has been more than adequate generation units
state of state owned power distribution planned from conventional sources to take care of 239 GW requirement.
companies and cyclical correction has led (thermal, hydro and nuclear). Renewable The power generation plants have some
to a decline in demand. After interactions power generation has witnessed extra room to serve more demand if
with various states, ministry realized that unprecedented growth. In the last economy grows better than assumed
the power requirement is lower. financial year solar power and wind growth rate of eight per cent.
Based on estimated annual gross power exceeded its generation target by
domestic product (GDP) growth rate 116 per cent and 38 per cent to taking the For suggestions email at feedback@infraline.com
of eight per cent in the 2017-22 period, 17
during which electricity generation
is expected to grow annually at 7.2
percent , Ministry of Power estimates
countrys electricity demand in the
2017-22 period to be 20% less than
what was originally estimated. The
altered demand projection is 239 Gw
by 2022 from the earlier estimated 289
Gw. The revised projections also take
into account improvements in energy
efficiency and corrections for the slight
overestimation made in the 18th EPS.
Energy intensity, or the units of energy
required to produce one unit of GDP, is
presently recorded at 0.91 by the 12th
Five Year Plan document. A figure of
less than one indicates efficiency.
Power industry is at its spiralling
best of optimized use of energy and
efficiency in all its business segments
namely generation, transmission,
distribution and end-user. In recent
past, supply of coal and gas has also
improved which has contributed to
stagnation of power demand. There are
significant steps in energy saving and
optimization with better technology.
Initiatives such as smart grid, demand-
June 2016
FinancialResults
NTPC Q4 net dips 7.73% to Rs 2,716.41 crore on low sales PFC Q4 profit slides by 19%, NPAs
increase
Rs 19,229.94 crore in the year ago period.
The company supplied 57.95 billion units of
electricity during the period as compared
to 57.38 billion units in the corresponding
quarter of the previous fiscal. For the entire
2015-16, the company supplied 224.926
BUs as compared to 225.007 BUs in 2014-
State-run power giant NTPC reported 7.73 15. The companys plant load factor (PLF)
per cent drop in its standalone net profit at or proportion of generation capacity utilised
Rs 2,716.41 crore in the March quarter due was 62.28 per cent in 2015-16 as compared
to low demand from discoms resulting in to 64.25 per cent in the year-ago period. Its
sales dip. The companys standalone net average tariff of electricity was Rs 3.18 per
profit in the March quarter last year was Rs unit during the recently concluded fiscal.
2,944.03 crore. Total standalone income The company reported a standalone net
of the company dipped from Rs 19,879.38 profit of Rs 10,242.91 crore in 2015-16 as
crore in th fourth quarter of 2014-15 to Rs compared to Rs 10,290.86 crore in 2014-15. Power Finance Corporation (PFC) posted a
18,560.70 crore during the period under Total income too dipped during the year decline in profit by 19.3% to Rs 1259.6 crore
review. The companys standalone net from Rs 75,337.36 crore in 2014-15 to Rs for the quarter ended March 31, 2016. The
sales of electricity was at Rs 17,990 crore 71,696.07 crore in 2015-16. profit in corresponding quarter in FY15 was
during the quarter under review as against Rs 1560.7 crore. The total income during
the same period increased to Rs 6,787
BHEL Q4 profit drops 60% to Rs 360 crore
crore in Q4FY16 from Rs 6,422.4 crore in
State-run power equipment maker BHELs Q4FY15. On an annual basis, the company
standalone net profit declined 59.5 per cent has posted a net profit of Rs 6113.4 crore
18 to Rs 359.58 crore in the quarter ended for the year ended March 31, 2016 as
March 31, 2016, due to lower income from compared to Rs. 5959.3 crore for the
operations. The company had posted a net year ended March 31, 2015. Total income
profit of Rs 888.35 crore in the correspond- increased by 10% during the same period to
ing quarter of 2014-15. Total income Rs 27564.3 crore in FY16.
from operations fell by 21.5 per cent to
Rs 10,004.77 crore during the January-
March quarter 2015-16 compared to that
of Rs 12,745.19 crore in the same period
of previous fiscal. However, total expenses interest and share of profit of associates of
decreased to Rs 9,883.76 crore, over Rs Rs 1452.38 crore for the year ended March
11,345.53 crore in the year-ago period. On 31, 2015. The board of directors recom-
the consolidated basis, BHEL posted a net mended a final dividend of Rs 0.40 per share
loss of Rs 895.93 crore for the year ended (Face value Rs 2 per share). The company
March 31, 2016. On the consolidated basis, it has an outstanding order book position of Rs
had posted a net profit after taxes, minority 1,10,730 crore at the end of 2015-16.
PowerGrid Q4 net profit up 13.20% at Rs 1,599 crore
State-run Power Grid Corp posted a Rs 6,026.72 crore in 2015-16 compared to

13.2 percent jump in standalone net Rs 4,979.17 crore in previous fiscal. The
profit at Rs 1,599.05 crore for the March companys total standalone income from
quarter on higher revenues from power operations too increased to Rs 20,802.22
transmission business. The company in 2015-16 fiscal compared to Rs 17,177.23
had reported a net profit of Rs 1,412.48 crore in the previous financial year.
crore in the January-March of 2014-15. The Board of Directors of the company
The companys standalone income from recommended final dividend of Rs 1.51 per
transmission business increased to Rs to Rs 5,760.07 crore in the fourth quarter share (face value Rs 10 each). The total
5,485.89 crore in the quarter under review of this fiscal compared Rs 4,703.22 crore dividend (including interim dividend) for
from Rs 4,426.40 crore in the year-ago in the preceding financial year. Power Grid the financial year 2015-16 is Rs 2.31 per
period. Its income from operations rose Corp reported a standalone net profit of share (face value Rs 10 each).
Law- Assemble
India Summit
Indias First Legal Conference
for the Energy Industry
27-28 July 2016, New Delhi

Some of the Confirmed PartiCiPantS
Ministry of Petroleum & Natural Gas
Theme: EnErgy
Essar Power Pvt. Ltd
Powergrid Corp. Ltd
GAIL
Singapore International Arbitration Centre
ONGC
National Highway Authority of India
Amarchand MangalDas
American Express
Lanco Infratech Ltd
Dr Surat & Associates
Ideal Legal Translation
To know more, please contact:

Aditya Chopra, Email: aditya.chopra@infraline.com, +91-120-6799127 (D), +91-9910910880 (M)
June 2016
StatisticsPower
Tentative Generation Capacity Addition Target for the Year 2016-17
Capacity
State Project Developer Unit Fuel
(MW)
Central Sector
Bihar Nabinagar TPP, NTPC 2 Thermal 250
Bihar Kanti TPS St-II NTPC 4 Thermal 195
Maharashtra Mauda STPP-II NTPC 4 Thermal 660
Chhattisgarh Lara STPP NTPC 1 Thermal 800
Karnataka Kudgi TPP NTPC 1 Thermal 800
Tripura Agartala Gas Based Power Project NEEPCO ST-1 Thermal 25.5
West Bengal Teesta Low Dam-IV NHPC 3 Hydro 40
West Bengal Teesta Low Dam-IV NHPC 4 Hydro 40
Ar Pradesh Kameng NEEPCO 1 Hydro 150
Ar Pradesh Kameng NEEPCO 2 Hydro 150
Ar Pradesh Pare NEEPCO 1 Hydro 55
Ar Pradesh Pare NEEPCO 2 Hydro 55
Tamil Nadu Kudankulam NPP NPC 2 Nuclear 1000
Tamil Nadu PFBR Kalpakkam BHAVINI 1 Nuclear 500
State Sector
Assam Namrup CCGT APGCL GT+ST Thermal 100
Bihar Barauni TPP, BSEB 8 Thermal 250
Gujarat Bhavnagar TPP BECL 1 Thermal 250
Gujarat Bhavnagar TPP BECL 2 Thermal 250
Karnataka Yermarus TPP KPCL 2 Thermal 800
Maharashtra Koradi TPP MSPGCL 10 Thermal 660
Telangana Singreni TPP SCCL 2 Thermal 600
Chhattisgarh Marwa TPS CSPGCL 2 Thermal 500
West Bengal Sagardighi TPS-II WBPDCL 4 Thermal 500
AP Nagarujana Sagar TR APGENCO 1 Hydro 25
AP Nagarujana Sagar TR APGENCO 2 Hydro 25
HP Kashang-I HPPCL 1 Hydro 65
20
HP Sainj HPPCL 1 Hydro 50
HP Sainj HPPCL 2 Hydro 50
Telangana Lower Jurala TSGENCO 5 Hydro 40
Telangana Lower Jurala TSGENCO 6 Hydro 40
Telangana Pulichintala TSGENCO 1 Hydro 30
Telangana Pulichintala TSGENCO 2 Hydro 30
Meghalaya New Umtru MePGCL 1 Hydro 20
Meghalaya New Umtru MePGCL 2 Hydro 20
Private Sector
Chhattisgarh Nawapara TPP TRN 1 Thermal 300
Chhattisgarh Nawapara TPP TRN 2 Thermal 300
Uttar Pradesh Bara TPP Jaypee 2 Thermal 660
Odisha Utkal TPP Ind Barath 2 Thermal 350
Chhattisgarh Ucchpinda TPP RKM 3 Thermal 360
Tamilnadu ITPCL TPP ILFS 2 Thermal 600
Odisha Lanco Babandh TPP Lanco Babandh 1 Thermal 660
Uttar Pradesh Lalitpur TPP LPGCL 3 Thermal 660
Maharashtra Nashik TPP, Ph-I Rattan Power 2 Thermal 270
Maharashtra Nashik TPP, Ph-I Rattan Power 3 Thermal 270
Andhra Pradesh NCC TPP NCC 1 Thermal 660
Andhra Pradesh NCC TPP NCC 2 Thermal 660
Chhattisgarh Binjkote TPP SKS 1 Thermal 300
Chhattisgarh Athena Singhitari TPP Athena Chhattisgarh 1 Thermal 600
West Bengal Haldia TPP India Power 1 Thermal 150
Sikkim Teesta- III (*) Teesta Urja Ltd 1 Hydro 200
HP Chanju-I IA Energy 1 Hydro 12
Sikkim Dikchu Sneha Kinetic Power Projects Pvt. Ltd. 1 Hydro 32
Sikkim Tashiding Shiga Energy Pvt. Ltd. 1 Hydro 48.5
Sikkim Tashiding Shiga Energy Pvt. Ltd. 2 Hydro 48.5
All India 16654.5
(*)w.e.f. 6th August, 2015 Teesta Urja Ltd. is a Government of Sikkim enterprise.
June 2016
Generation Capacity Addition from 2007-08 to 2015-16 (MW)

Capacity Addition in MW
Year Thermal Hydro Nuclear Total
Target Achievement Target Achievement Target Achievement Target Achievement
2007-08 9007 6620 2372 2423 660 220 12039 9263
2008-09 5773.2 2484.7 1097 969 660 0 7530.2 3453.7
2009-10 13002 9106 845 39 660 440 14507 9585
2010-11 17793 11250.5 1346 690 1220 220 20359 12160.5
2011-12 13611 19078.7 1990 1423 2000 0 17601 20501.7
2012-13 15154.3 20121.8 802 501 2000 0 17956.3 20622.8
2013-14 15234 16767 1198 1058 2000 0 18432 17825
2014-15 14988 20830.3 842 736.01 2000 1000 17830 22566.31
2015-16 17346 22460.6 1691 1516 1000 0 20037 23976.6
Transmission (Substation) Capacity Addition from 2007-08 to 2015-16 (in MVA)

Substation (in MVA)
800 KV HVDC 500 KV HVDC
765 KV 500 KV 400 KV 220 KV Total
Year Terminals Terminals
Achieve- Achieve- Achieve- Achieve- Achieve- Achieve- Achieve-
Target Target Target Target Target Target Target
ment ment ment ment ment ment ment 21
2007-08 0 0 0 1000 2169 4500 0 0 12635 10265 11020 9658 25824 25423
2008-09 0 0 0 0 0 0 0 0 9885 7995 14943 11234.5 24828 19229.5
2009-10 0 0 2500 0 0 0 0 0 13860 5225 14260 11735 30620 16960
2010-11 0 0 0 0 0 0 0 0 15960 13970 11776 17687 27736 31657
2011-12 0 0 0 0 4315 20500 0 0 8410 17165 14655 16622 27380 54287
2012-13 0 0 0 3750 9500 24000 0 0 8370 16795 13799 19120 31669 63665
2013-14 0 0 0 0 12000 30000 0 0 13400 9630 9963 13700 35363 53330
2014-15 0 0 0 0 30000 38500 0 0 9340 14970 8531 12084 47871 65554
2015-16 1500 1500 0 0 18000 19500 0 0 19390 17045 11652 24804 50542 62849
June 2016
NewsBriefs | Coal National

Adani may abandon Australian coal mine project Government forms inter-ministerial
group to discuss Coal India share
buyback
Stating that he was disappointed, the
companys founder and chairman Gautam
Adani said that the pit to plug project was
yet to receive the green light after six years
of environmental assessments and court
battles. You cant continue just holding. I
have been really disappointed that things
have got too delayed,Adani said. Adani said
he hoped the court challenges to Australias
Bogged by a six-year delay, Adani may pull largest proposed coalmine would be
out from the proposed $21.5 billion rail and finalised in early 2017. However, with one
mine project in Australia amid a series of court case yet to be heard in the Federal A difference of opinion with Coal
legal challenges from environmental groups Court, and at least two groups threatening India over share buyback has led the
against the Indian energy giants plans to High Court action, Adani warned he could government to form an inter-ministerial
build one of the worlds largest coal mines. not wait indefinitely. group to discuss the pros and cons of
the proposal as well as the optimum
Green panel defers green clearance to Coal India washery in Odisha quantum. The state-run monopoly
miner, the largest coal company in the
A high-level panel has deferred green world, is sitting on cash reserves of at
clearance to Coal Indias 10 MTPA washery least Rs 40,000 crore. CIL management
in Odisha and sought more information has been holding on to the reserves for
from the company, a move that may hit financing the expansion of the company
governments plan to provide quality fuel. which is targeting output of 1 billion
22 The state-owned company has plans to set tonnes a year by 2020 from about 550
up 15 washeries by next year. The proposal million tonnes at present. The Centre,
was for grant of environment clearance on the other hand, wants CIL to hand
to Jagannath washery of 10 MTPA in over its reserves to the government and
village Hensmul, district Talcher, Odisha tap into the debt market to finance its
of Mahanadi Coalfields, a Coal India arm. capex. Officials said the government
The proposal was deferred by the Expert wants CIL to buy back 25% of its stake
Appraisal Committee (EAC) for want of proponent. The project proponent is also and add about Rs 6,000 crore to the
inputs/clarification. The environment minis- required to give data on emission factor for governments kitty. The Centre, on the
try panel noted that the proposed washery various sources of fugitive emissions, which other hand, wants CIL to hand over its
with its technology firmed up, was yet to would be generated from the washery. reserves to the government and tap into
get the approval of board of the project the debt market to finance its capex.
Coal Indias price hike makes imported coal cheaper in coastal regions
India Ratings estimates the recent hike in Rs 100 per tonne and Rs 150 per tonne,
prices by Coal India will make imported translating into an increase of around eight
coal at coastal regions cheaper by 5.45% on paise per unit. This comes over and above
an average. A 13% to 19% hike in the base the Rs 300 per tonne increase caused by
prices of lower grade coal by Coal India this the clean energy cess since 2015 and the
week will negatively impact ailing thermal recent increase in royalty to 18% from 14%.
power generators in India and result in a Higher cost may cause many of these plants
shift to imported coal from domestic coal, to shift their consumption to imported coal
especially for the coastal power plants, said from domestic coal. Ind-Ra estimates, ener-
India Ratings and Research. The rating firm gy charge based on domestic coal at Rs 1.66
believes the price hike will squeeze thermal per unit across a sample of power plants
power generators operating margins, on the eastern and western coasts of India,
since they will need to absorb some of the their plant load factors in order to cut which is around the same as the energy
increase in costs. It is of the opinion that losses. Prices of most consumed varieties, charge based on imported coal for coastal
some generators may be forced to reduce G11 to G13 grade will move up between plants due to their proximity to ports.
June 2016
NewsBriefs
| Coal National National
Forest ministry seeks bar on 417 coal blocks Coal India hopes to win orders
from Bangladesh
rivers. The coal ministry has objected to

this and asked that the partial ban of mining
should be limited to only 49 coal blocks. In
order to pare down the list of restricted coal
blocks, the coal ministry has asked the en-
vironment ministry to once again dilute the
inviolate forest area policy, which has been
in the works since the National Democratic
Alliance (NDA) government came to power.
This time, the coal ministry wants mining to
be allowed till river boundaries, leaving just As the domestic demand for coal has
International
Of the 835 coal blocks surveyed, the envi- 15 metres of protected area. It has asked started dwindling with surplus stock at
ronment ministrys Forest Survey of India that protection of waterways be limited power plants, Coal India has started
(FSI) has found that mining would have to to first order streams and not the larger exploring export opportunities, hoping
be partly restricted in 417 to safeguard the streams and rivers. to enter Bangladesh with the upcoming
Maitree super-critical thermal project
Coal India to cut down on production as demand falls there. A team recently visited Bangla-
desh and is likely to table its report
Lack of demand and huge inventories have soon. State-owned power generator
forced Coal India to cut production growth NTPC is developing a 1,320-Mw thermal
plan drastically this summer. According to power project in Khulna, Bangladesh,
figures released recently, both production in partnership with Bangladesh Power
and off-take grew by approximately 4 per Development Board (BPDB). A company,
cent in May, compared to the same period Bangladesh India Friendship Power 23
last year. For the April-May period, off-take Company, with a 50:50 ownership ratio
(sales volume) grew by less than 1 million has already been floated in this endea-
tonne (mt) and production remained flat at vour. NTPC, together with BPDB, will
82 mt. When compared against the target, select the lowest bidder. This puts Coal
production in the April-May period was 93 India in direct competition with Chinese
per cent of the planned volume and off-take maintaining 4 mt of higher inventory when and Indonesian coal suppliers. Signing
was 86-per-cent of projected sales. As compared to the corresponding period last of Financial Services Authority will
against targeted sales of 102 mt, the miner year. Though the power utilities have diluted depend on the price quoted by lowest
sold a total of 88 mt. Though having diluted 6.23 mt coal stock, they are still having bidder and as such there will not be any
the pithead stock by 5 mt to 52 mt during more coal than the prescribed 21 days preference for any particular company
the last two months, the company is still requirement. or country, an NTPC official said.
Coal ministry releases Rs 210 crore to states towards auction fees
The Ministry of Coal has released Rs auctions were initiated after the CAG
210.33 crore as upfront payment to had, in a report tabled in Parliament in
states towards auction of coal blocks. 2012, pegged the notional loss to the
The amount is for coal bearing host national exchequer at Rs 1.86 lakh crore
states of Odisha, Jharkhand, West Bengal, on account of improper allocation of coal
Chhattisgarh and Maharashtra. Odisha mines done by the UPA government. The
has the highest share in the payment first round of coal auctions is likely to
among states at Rs 144.14 crore for fetch the Odisha government a revenue
auction of Talabira-I, Talabira-II & of Rs 45,630 crore. The projected amount
III and the Utkal D&E coal blocks.The would accrue to the state government by
amount has accrued from 14 coal blocks way of e-auction proceeds, royalty fees
that have gone under the hammer in and fixed reserve price. So far, nine coal
these five states. Auction of coal blocks blocks from the state have been put to
is expected to mop up Rs 3.45 lakh crore auctions. All blocks have been earmarked
to the national exchequer. Coal block for the power sector.
June 2016
NewsBriefs | Coal International

Chinas leading coal-producing region reports sharp output decline BHP Billiton sells Indonesian coal
assets to Adaro
churned out 58.2 million tons of raw coal

last month, the provincial statistics bureau
said Monday. The northern region faces se-
vere overcapacity as the countrys economy
slows. Last year, the coal mining industry in
Shanxi reported a massive loss of 9.4 billion
yuan, or roughly 10 yuan per tonne of coal.
Last month, local coal mines were ordered
to operate below 84 percent of production
capacity. Many mines were ordered to halt BHP Billiton has agreed to sell its coal
Coal output in Shanxi province, Chinas production or stop construction. The Shanxi assets in Indonesia to its partner, Adaro
largest coal-producing region, was down provincial government said earlier this Energy, following a slump in prices for
21.3 percent year on year in April as local month that it would stop approving new coal metallurgical coal. BHP did not disclose
authorities moved to cut capacity. Local coal mining projects and slash coal production the price for its 75 percent stake in Indo-
mining companies with annual revenues capacity by over 100 million tons in the Met Coal, which it first flagged was up for
of more than 20 million yuan ($3.1 million) years leading up to 2020. sale in April. After a detailed review of
IndoMet Coal, we concluded that although
Glencore to close Australian coal mine due to low price
the project could support a larger scale
Glencore will close its Tahmoor coal development, BHP Billiton has a range of
mine in Australia by early 2019, the latest other growth options in the portfolio that
example of low coal prices decimating the are more attractive for future investment,
sector. Glencore is one of Australias larg- IndoMet Coal asset president James
est coal producers running 18 mines and Palmer said. Analysts said in April BHP
24 employing some 7,650 workers. Glencore would be lucky to fetch $200 million for
said it begun consultation with the 350 the stake, well below the $335 million
employees at the Tahmoor mine, which has Adaro paid for a 25 percent stake in Indo-
been operating since 1979 and last year Met in 2010, due to regulatory uncertainty
produced 2.1 million tonnes of metallurgi- Glencore has been hit hard by the collapse in Indonesia and the sharp slump in coal
cal coal used in steel making. The decision in commodity prices linked to slowing de- prices. IndoMet holds seven coal contracts
has been made as a result of continued low mand from China. It has also slashed pro- of work in Central and Eastern Kalimantan,
prices in global coal markets, which has duction of copper and oil as well as cutting including the 1 million tonnes a year Haju
meant the economic return from reserves investment and costs. Global metallurgical mine, which started producing last year.
still available at Tahmoor are not sufficient coal prices have dropped from more than Haju made up less than 2 percent of BHPs
to warrant the investment required to mine $300 a tonne in 2011 to around $94 in step metallurgical coal output in the first nine
them, Glencore said. Like other miners, with weakening steel prices. months of this year.
Japans export bank agrees $3.4-billion loan for Indonesian coal station
The Japan Bank for International Coopera- delayed as dozens of landowners refused
tion (JBIC) agreed on a $3.4 billion loan for to give up their paddy fields for the power
the controversial Batang coal power project, plant. Bhimasena Power Indonesia (BPI)
after years of delay. .JBIC will contribute - a joint venture set up by Indonesian coal
just over $2 billion to the loan to fund the miner PT Adaro Energy Tbk and Japans
2,000 megawatt coal-fired power plant Itochu Corp and Electric Power Develop-
in Central Java. Other Japanese banks ment Co (J-Power) - is building and operat-
including Sumitomo Mitsui, Mizuho and ing the project. Japan is one of the few
Bank of Tokyo-Mitsubishi are also joining industrialized economies that still promotes
the loan, JBIC. Financial close of the loan coal heavily, including technology to reduces
for the coal-powered station was delayed carbon emissions from the worlds dirtiest
two months, just one of many hitches for fossil fuel. Critics say the reductions are too
the project. Indonesias Supreme Court had government to take over the remaining land small to justify the expense, especially as
earlier thrown out a landholders lawsuit on for the project. Construction was meant renewable energy sources become cheaper.
technical grounds, paving the way for the to begin in 2012, but has been repeatedly
June 2015
InConversation
Low PLF of power plants
bad for consumers
India is heavily dependent on coal to meet fast-growing electricity
requirement of its economy. But there is a growing urgency to
limit emissions because of global warming concern, which could
in turn constrain Indias flexibility to use its vast coal reserves for
electricity generation. Clean coal technologies are a possible
solution. But the question is how far can India depend on them?
Meanwhile, mindful of rising concern over emission-intensity of
coal, India is ramping up capacity in renewable power and it
has also chalked up ambitious plans for nuclear generation as
an alternative option. Will these remedies work for India? In an
interview to Infraline Plus, Debasish Mishra, Partner, Deloitte
Touche Tohmatsu India LLP, fields questions relating to the future
roadmap of the Indian electricity sector. Excerpts:
Debasish Mishra, Partner, Deloitte Touche
Tohmatsu India LLP
25
With international public opinion as environmental protection
turning against burning of coal, objective is concerned? ity law and the massive capital cost
how can India make use of its Washed coal definitely helps in involved in LWR plants, the whole
vast coal reserves? Do you think reducing pollution as it reduces the program has been a non-starter. For
technology can come to the volume of coal transported over longer the next 20 years, nuclear power is
rescue? distances. It reduces operation & unlikely to replace coal based thermal
India will continue to use coal to maintenance (O&M) cost in thermal capacity in the base load.
meet the requirement of base load plant. It also reduces ash handling-
of electricity in the next couple related costs. How credible is the option of
of decades. As the government is setting up power plants in
determined to have Power for All Can nuclear plants replace coastal areas based on imported
target that would ensure 24X7 power. coal-fired generating stations as coal for meeting countrys fast-
This is not going to be possible without base-load source of electricity growing electricity requirement
availing coal based thermal generation. and if so, to what extent, given given the history of volatility in
As committed in COP21, while India the difference in their cost international coal market?
will make a huge push towards energy economics? In certain geographies such as South
efficiency and renewable energy and India has mastered the PHWR technol- and West, imported coal based coastal
make sure by 2030 at least 40 per cent ogy. But the real strategic objective of thermal plants are competitive vis--vis
power comes from non-fossil fuel India in nuclear power is to reach the those using domestic coal transported
sources, still the predominant source third stage of development by using from coal bearing regions of East and
of power will remain coal. Technology Thorium, which is available in plenty Central India. International commodity
would definitely help in reducing level in India. But for that the country must prices will always be volatile and will
of emission from coal plants. have enough quantity of enriched ura- be drain on our foreign exchange. Given
nium, which is only possible by having the new governments push to increase
How effective will be the large LWR power plants. Given the domestic coal production, it is unlikely
strategy of using washed coal concerns that the major LWR players that there will be many more coastal
in power generation so far have around Indias nuclear liabil- plants coming up in next few years.
June 2015
InConversation
Can India meet the target of At least 10 per cent power sourced due to unavailability of gas at the right
producing 1.5 billion tonne of from Natural gas based power plant price. Government has launched a
coal by 2019-20 without allowing is very much essential for any power programme to partially utilise the gas
private players entry into system, given the ramp up and ram power generation capacity. Until long
commercial coal mining? down flexibility that it provides like term availability of gas at prices around
Based on Coal Indias stellar perfor- hydro power. Unfortunately, low avail- 6 dollar per MMBTU is confirmed, it
mance, there has been robust increase ability of natural gas in the country and is unlikely that investors are going to
in coal production in last two years. hitherto prevailing high LNG prices invest in gas based power project in In-
Government has set Coal India a have been a big hindrance for the sec- dia, which would be rather unfortunate.
target of 1 billion tons and the rest of tor in India. Today we have 24 GW of
the players another 500 MT (public gas based power projects either com- What is your take on low plant
sector entities 250 MT and private pletely stranded or partially utilised load factor (PLF) of coal-based
sector captive miners 250 MT). As power plants? Is it good from
long as the country is producing more Today we have a situa- consumers perspective?
coal than the domestic requirement, tion where 55 MT coal Low PLF can never be good for the
the overall target achievement should IPP, for their lenders, DISCOMs
not matter. Today we have a situa-
is not lifted from mines. and even the consumers. When any
tion where 55 MT coal is not lifted But the government is infrastructure asset is created and paid
from mines. But the government is ready with coal blocks by the users, it should be used till the
ready with coal blocks for bidding by for bidding by commer- technical limits for giving consumers
commercial miners. Given the nega- best value for money. Power plants
tive outlook of the commodity in the
cial miners. Given the with PPA running at low PLF is bad
global market, there may not be many negative outlook of the for DISCOMs and consumers, as they
26 takers for these blocks even if they are commodity in the glob- would already be paying full fixed cost.
put to bid. al market, there may
How far will governments
What do you think of the
not be many takers for initiatives like Make in India
prospect of natural gas/LNG these blocks even if and Digital India boost demand
replacing coal in electricity they are put to bid. for electricity in coming days?
generation? Given that, is there any need
for reassessment of Indias
electricity requirement in
coming years?
In the last five years, India has seen
massive capacity addition (more than
10 per cent CAGR per year) and a
demand slowdown due to industrial
slowdown. This has resulted in the
country having stranded power projects
and many power plants running at
low PLF. More realistic projection of
demand is definitely required. Modi
government has been determined to
increase share of manufacturing in the
GDP and programmes like Make in In-
dia, Industrial corridors, etc, are geared
towards that. If they succeed, it would
be big positive for the demand growth
in electricity sector.

June 2016
InDepth
Hike in domestic coal prices
to increase cost of power
27
Thermal plants, especially coastal, to see a shift to imported coal from domestic coal
While the overall price hike is 6.2%, the effect on regulated sector would be around 8%
Despite several measures adopted both December 2015 raised the royalty from was likely to shoot up Coal Indias
at policy and regulatory level post last 14% to 18.5% for funding the district average notified coal price by around
budget (2015-16), the power sector is mineral fund (DMF) and the National 20 per cent. Couple of months later, the
still plagued by weak health of power Mineral Exploration Trust (NEMT). In inevitable has happened.
distribution companies, fuel-related the Union Budget 2016-17 announce- Coal India Limited (CIL) issued a
issues and transmission constraints ments, clean energy cess on coal has notification on May 29, 2016 revising
and will continue to do at least in short been renamed as Clean Environment the prices of pit head run of mine
to medium term. Post Union Budget Cess and the cess amount has been (ROM) prices of all grades of non-
2015-16 announcements, lot of changes doubled from INR 200 per tonne to coking coal effective from midnight
have taken place in the Indian coal INR 400 per tonne. It was expected that of May 30, 2016. On average, prices
sector. The central government in increased cess proposed in the Budget of coal sold through the fuel supply
June 2016
InDepth
agreement (FSA) route have increased

6.3%. The revision is applicable to all
its subsidiaries, as well as to consumers
in both the regulated power sector and
the non-regulated sectors -- cement,
sponge iron, and fertiliser.
The development comes when
stockyards of power plants and pit-
heads of Coal India subsidiaries are
full to the brim with coal, leading to a
reduction in sales. A 13% to 19% hike
in the base prices of lower grade coal
by Coal India this week will negatively
impact ailing thermal power generators
in India and result in a shift to imported
coal from domestic coal, especially for
the coastal power plants.
Presently, CIL offers 17 grades of
non-coking coal with the gross calorific
value (GCV) ranging from over 2200 Presently, CIL offers 17 grades of non-coking
kilo calorie per kg to over 7000 kilo coal with the gross calorific value (GCV)
calorie per kg. The CIL board has
approved the differential price for
ranging from over 2200 kilo calorie per kg to
28 the non-regulated sector at a reduced over 7000 kilo calorie per kg. The CIL board
rate of 20 per cent over the price of has approved the differential price for the
regulated sector for G6 to G17 grades
of coal. In the mechanism of rationali-
non-regulated sector at a reduced rate of 20
sation, the prices of G-1 to G-5 grades per cent over the price of regulated sector for
of coal have been reduced between 2% G6 to G17 grades of coal
and 29% to make it competitive with
international prices. The prices of G-6 to increase the cost of generation for PPAs, the impact on the margins will
to G-17 has been increased between coal based power plants by about 9-10 be dependent on the extent of escal-
13% and 19%. According to a CIL paise/unit. According to it, Power able energy charge component in the
statement, while the overall price hike generating companies (Gencos) / tariff structure.
is 6.2%, the effect on the regulated Independent Power Producers (IPPs)
sector would be around 8%. For the with cost plus based PPAs would Companies with cost-plus
non-regulated sector, it remains almost be able to pass on such increase in PPA may not be impacted
at the present level, with a slight tilt in cost of fuel to their off-takers, which Companies having cost-plus power
favour of the consuming sector. are mainly state-owned distribution purchase agreements (PPAs) like
utilities. For domestic coal based IPPs NTPC will not get impacted, as fuel
Hike depends on grade of which have competitively bid based costs are a pass-through. However,
coal used
According to industry sources, the Coal GCV Range Old New Price Revised % Increase in cost
Grade (Kcal/kg) Price (INR/MT) Price Revision of generation
variable cost of power per unit will (INR/MT) (INR/MT) (Paise/Unit)
go up depending on the grade of coal
G10 4300-4600 860 980 120 14% 9
consumed by the power plant. For a
power producer using G5 grade of G11 4000-4300 700 810 110 16% 9
coal (GCV range between 5800 and G12 3700-4300 660 760 100 15% 9
6100 kcal/kg), the unit cost may go G13 3400-3700 610 720 110 18% 9
up by around 12-14 paise. However,
G14 3100-3400 550 650 100 18% 10
according to rating agency ICRA,
G15 2800-3100 510 600 90 18% 10
increase in coal prices is estimated
June 2016
some companies which sell more than

Coal imports on a decline
20 per cent of coal-fired capacity in the
open market and therefore exposed to Indias coal imports have declined by 15% y-o-y to 15.9 million tons (MT) as
short-term and merchant rates, might of April 2016 which has resulted in saving an estimated INR 240 bn in for-
feel the pinch since costs will not be eign exchange, almost all of the imports is set to be replaced by Coal India
pass-through. which can improve deliveries going forward. Also, power producer NTPC,
Indias regional electricity dis- which initially targeted to stop coal imports by 2020, is now 4 years ahead of
tributors (state-owned distribution schedule to curb imports as supplies from Coal India has reduced its need
companies) are curtailing purchases, to import the fossil fuel.
forcing generators to leave at least
a third of the countrys power plant CIL managed to increase its volumes by 7.1% y-o-y in FY15 and 9% y-o-y in
capacity unused. Distributors had FY16 after reporting flat growth of 1.8% CAGR over FY10-14. In line with the
unpaid loans of almost 4 trillion rupees Governments plan of doubling production to 1bn tons by FY20, the com-
as of last year and are in the process pany has been on track in FY16. Relaxation in environmental regulations,
of transferring 75 percent of that debt governments focus and completion of long-delayed connectivity projects
to states as part of a federal effort would lead to a strong volume push going forward.
to make the companies profitable
(UDAY scheme). In the last 13 years, 2,98,000 MW. However, recent years utilisation of the countrys power
generating capacity to the tune of have seen tardy growth in electricity plants. In the last one year the average
1,50,000 MW has been successfully demand, especially industrial load, has PLF of thermal capacity has plum-
commissioned, effectively doubling led to a sustained drop in the plant load meted by about 8 percentage points,
the countrys installed capacity to factor (PLF) an indicator of capacity with the PLF of generating stations in
the central and private sector estimated
at just a tad above 60 per cent.
Last fiscal year, CIL sold 534 million tonnes Last fiscal year, CIL sold 534
29
(MT) of coal, out of which that sold through million tonnes (MT) of coal, out of
which that sold through the FSA route
the FSA route accounted for 447.72 MT. The accounted for 447.72 MT. The price
price hike will fetch the company additional hike will fetch the company addi-
revenue of about INR 3,234 crore this year. tional revenue of about INR 3,234
crore this year. CIL has also reduced
CIL has also reduced the premium it charged the premium it charged the non-reg-
the non-regulated sector to 20% from 35% ulated sector to 20% from 35%. Coal
accounts for more than 60 percent of
Indias power generation capacity and
more than 75 percent of the nations
electricity production.
For Coal India, the price hike comes
at a time its average realisation per
tonne is going down because of the
lack of demand, especially from power
plants, which are flush with coal with
an all-India average stock of 22 days
as on May 26. However, consumers
of coal will be facing the heat of coal
price hikes for the third consecutive
time in the last six months, since before
the revision of coal prices in by CIL
board, there were increases in royalty
and clean energy cess.

June 2016
StatisticsCoal
Indonesian Coal Prices - HBA - FY 2015 - 2016
HPB MARKER (kcal/kg GAR) (USD/Ton)
HBA 6322
Gunung Prima Pinang Indominco Melawan Enviro- Jorong
Month kcal/kg Ecocoal
Bayan I Coal Coal IM East Coal coal J-1
(USD/ton)
7000 6700 6150 5700 5400 5000 4400 4200
Apr-15 64.48 69.04 70.16 63.37 52.89 52 49.34 39.71 36.43
May-15 61.08 65.36 66.72 60.27 50.14 49.55 47.18 37.96 34.88
Jun-15 59.59 63.75 65.21 58.91 48.94 48.48 46.23 37.19 34.19
Jul-15 59.16 63.28 64.77 58.52 48.59 48.17 45.95 36.97 34
Aug-15 59.14 63.26 64.75 58.5 48.58 48.15 45.94 36.96 33.99
Sep-15 58.21 62.25 63.81 57.65 47.82 47.48 45.35 36.48 33.56
Oct-15 57.39 61.36 62.98 56.91 47.16 46.89 44.83 36.06 33.19
Nov-15 54.43 58.16 59.98 54.21 44.77 44.76 42.95 34.54 31.83
30
Dec-15 53.51 57.16 59.04 53.37 44.02 44.1 42.36 34.07 31.41
Jan-16 53.2 56.82 58.73 53.09 43.77 43.88 42.16 33.91 31.27
Feb-16 50.92 54.36 56.42 51.01 41.93 42.24 40.71 32.73 30.23
Mar-16 51.62 55.11 57.13 51.65 42.5 42.74 41.16 33.09 30.55
June 2016
Monthly Coal Production during FY12 to FY16 (Million Tonnes)

31
Month 2015-16 2014-15 2013-14 2012-13 2011-12
April 48.87 45.38 43.52 41.46 39.84
May 49.23 45.58 43.23 44.09 40.76
June 46.49 43.75 40.42 41.36 38.5
July 42.27 42.34 39.94 39.27 38.71
August 43.63 43.46 38.38 35.84 32.37
September 44.95 43.97 41 35.76 29.53
October 53.33 49.73 42.73 44.26 39.66
November 56.59 54.62 47.71 46.17 47.56
December 61.95 58.37 54.23 53.69 52.78
January 62.89 58.08 57.13 56.47 54.29
February 60.12 58.34 52.26 50.75 55.1
March 69.41 69.2 65.3 64.06 63.62
Total (Apr-Mar) 637.87 609.18 565.85 553.18 532.72

June 2016
CoverStory
Energy hungry India ready to
tango with West Asia
32
Narendra Modi, Prime Minister, India &

Hassan Rouhani, President of Iran
Chabahar port to open up new possibilities for Indias energy sector

India seeks West Asian investments for its E&P and refining sector
India is intensifying engagement with Meanwhile, the trilateral transport being developed by China in Pakistan.
West Asian countries in order to boost and transit agreement signed by India, India has promised to invest over $20
its energy security, secure cheaper Afghanistan and Iran recently and the billion in urea, petrochemical, phar-
funding to support infrastructure boom proposed Chabahar port promises to maceutical, IT and rail projects in the
and expand trade and economic ties. open up a new possibility for India Chabahar Special Economic Zone
Remittances from the region are also to gain access to mineral and energy provided gas is made available at $1.5
critical for India in meeting its Current resources in Afghanistan, Iran and per mmbtu price. For its part, Iran has
Account Deficit (CAD), which poses Central Asian countries. Besides, the offered gas at $2.5 per mmbtu for fer-
vulnerability to the macroeconomic new route will also give a big boost tiliser and petrochemical projects.
stability due to heavy dependence on to Indias international trade as the Kazakhstan in Central Asia has huge
energy imports. India is also soliciting country will not have to depend on deposits of uranium. As India ramps
investment from cash-rich sovereign Pakistan for transit facility. India has up its nuclear power generation, it will
wealth funds to finance its infrastruc- been asked to build Irans Chabahar need to import uranium. Kazakhstan
ture boom. port which could rival the Gwadar port can meet Indias uranium requirement.
June 2016
Chabahar port can prove Indias

stepping-stone to the Central Asia
and to the politically volatile West
Asia, said Anil Bhardwaj, secretary
general, trade body FISME. Stating
that Iran has the most diversified
industrial infrastructure in the West
Asia, Bhardwaj said that trade with
Iran will boom once the port becomes
operational.
The agreement also holds immense
geopolitical significance for India as
it will nullify Pakistans geographical
advantage of providing the sole
land access to Afghanistan. Now the
moot question is, can India and Iran
use their soft power to strengthen
political stability in Afghanistan,
something which has been elusive
despite military interventions by two Saudi Arabia
superpowers, the US and erstwhile Maintaining vibrant ties Experts say there is a consensus in
Soviet Union. with Saudi Arabia is im- Indias foreign policy establishment
perative to its national that maintaining vibrant ties with Saudi
West Asia interest. Today, Saudi Arabia is imperative to its national 33
Indians working abroad sent home interest. Today, Saudi Arabia is Indias
Arabia is Indias larg-
$100 billion in remittances in 2014, largest supplier of crude oil. India
nearly double what the country got in est supplier of crude meets nearly 80 per cent of its crude
foreign direct investment. The West oil. India meets nearly oil requirement from imports, bulk
Asia accounted for more than half 80 per cent of its crude of which comes from Saudi Arabia.
of the remittances. Indian workers oil requirement from Besides, India is the largest recipient of
in United Arab Emirates alone sent imports, bulk of which foreign remittances from the kingdom.
$13 billion, according to data com- Of the 11 million Indians working in
comes from Saudi
piled by the World Bank. Sovereign West Asia, nearly three million are in
wealth funds from UAE, Qatar and Arabia. Besides, India Saudi Arabia. Therefore, stability in the
Saudi Arabia have shown interest to is the largest recipient region, and particularly in Saudi Ara-
invest in Indias infrastructure through of foreign remittances bia, is high on Indias core agenda. But
National Investment and Infrastructure from the kingdom bilateral relations have gone beyond
Fund (NIIF). the economic realm in recent years,
Merchandise trade between Indian India exported goods worth $4 acquiring a strategic sense and pushing
and Gulf Cooperation Council -- a billion dollar to Iran while imports both countries to beef up their security
six-member group comprising Saudi from the country were put at $9 billion. partnership, experts add.
Arabia, Bahrain, UAE, Kuwait, Oman Obviously, there is a significant scope During Prime Minister Narendra
and Qatar -- in 2014-15 was valued for India to ramp up exports to West Modis two-day visit to Saudi Arabia
at $133 billion dollar. While India Asia and Iran given the huge trade in the first week of April, the two sides
exported goods worth 49 billion dollar, deficits. agreed to expand economic coop-
its imports from the region were valued If GCC is Indias gateway to the eration. The bilateral trade India and
at 84 billion dollar. Apart from that, Arab world spanning Levant to Arab Saudi Arabia is estimated at $39 billion
trade between India and Iran during the Maghreb, Iran provides the most prom- dollar in 2014-15. The two sides agreed
same period was valued at $13 billion ising entry point to Central Asia and to expand bilateral trade, especially
despite western sanctions on the latter Afghanistan where Indian trade will be non-oil trade, during PMs visit to the
which led to a drastic reduction in oil routed through Irans Chabahar port, kingdom. The Indian side highlighted
import from there. say analysts. its key initiatives to improve the ease of
June 2016
CoverStory
doing business in the country and Indias in the energy-sector to one of deeper India-Saudi Arabia Ministerial Energy
key efforts to simplify and rationalise partnership focusing on investment Dialogue.
existing rules and relax the foreign direct and joint ventures in petrochemical Both leaders emphasised the impor-
investment norms in key areas, including complexes, and cooperation in joint tance of continued promotion of scien-
railways, defence and insurance. exploration in India, Saudi Arabia and tific and technological collaboration,
Inviting Saudi Arabia to be a in third countries. including in the areas of renewable
partner in Indias growth story, the The two sides also agreed to energy, including solar, Information
Indian side encouraged Saudi Aramco, focus on areas of training and human and Communication technology, space
SABIC and other Saudi companies resources development and coop- technology, sustainable development,
to invest in the infrastructure sector eration in research and development arid agriculture, desert ecology, urban
in India and to participate in projects in the energy sector. In this regard, development, healthcare and bio-tech-
creating mega industrial manufac- the two leaders expressed the need for nology. The two sides further agreed to
turing corridors, smart cities as well regular meetings under the umbrella of collaborate on areas of food security.
as the Digital India and Start up India
programmes. The Saudi side expressed Qatar
its interest in investing in infrastructure The bilateral trade be- The bilateral trade between India and
development in India, especially in tween India and Qatar is Qatar is estimated at $15 billion dollar
priority areas such as railways, roads, estimated at $15 billion in 2014-15. While India exported goods
ports, and shipping. The Saudi side dollar in 2014-15. While worth 1 billion dollar, its imports were
welcomed interest of Indian side in India exported goods from the country were valued at 14.6
investing in the Kingdom, especially worth 1 billion dollar, its billion dollar. During Indian Prime
taking advantage of the competitive imports were from the Ministers recent visit to Qatar, the two
investment opportunities offered by the sides agreed to further expand economic
Saudi economic and industrial cities.
country were valued at cooperation while expressing satisfac-
34
Keeping in view the importance
14.6 billion dollar. During tion at the LNG trade. Specifically, the
of energy security as a key pillar of Indian Prime Ministers two sides agreed to focus on enhancing
the strategic partnership, the two recent visit to Qatar, cooperation in energy, covering the areas
sides expressed satisfaction at their the two sides agreed of training and human resources devel-
growing bilateral trade in the energy to further expand eco- opment and cooperation in research and
sector, acknowledging Saudi Arabia nomic cooperation while development and through promotion of
as the largest supplier of crude oil expressing satisfaction joint ventures in petrochemical complex-
to India. The two leaders agreed to at the LNG trade es and cooperation in joint exploration in
transform the buyer-seller relationship India and other countries.
The Indian side highlighted the
interest of its energy companies to
pursue opportunities of mutual interest
in Qatar, with Qatar Petroleum and
other companies, in order to jointly
explore new fields as well development
of discovered oil and gas assets and
exploit the existing resources of natural
gas and crude oil in Qatar.
The Indian side invited Qatar
to invest in Indias exploration and
production sector by bidding for the
exploration blocks in India under the
new Hydrocarbon Exploration and
Licensing Policy and Discovered
Small Fields Policy. The Indian side
also invited Qatar to participate in the
second phase of the strategic reserves
storage facility being created in India.
June 2016
UAE
UAE is the only GCC member with
whom India has trade surplus. In
2014-15, India exported merchandise
worth $33 billion while its imports
were valued at $26 billion. During the
recent visit of the crown prince of Abu
Dhabi, Sheikh Mohammed bin Zayed
Al Nahyan, to New Delhi, a number
of pacts were signed by the two sides
to expand economic cooperation. The
Indian side highlighted the major initia-
tives taken by it to improve the ease of
doing business in the country. Indias
key efforts to simplify and rationalise
existing rules and relax foreign direct
investment caps in key areas, including
railways, defense, and insurance were
also noted. Prime Minister Narendra
Modi invited the UAE to be a partner
in Indias growth story, and to partici- intention of the Abu Dhabi National
pate in projects creating mega indus- UAE is the only GCC Oil Company (ADNOC) and the Indian
trial manufacturing corridors, including member with whom In- Strategic Petroleum Reserves Ltd.
the Delhi-Mumbai Industrial Corridor dia has trade surplus. In (ISPRL) to sign a Memorandum of 35
as well as the Digital India and Start up 2014-15, India exported Understanding on the Establishment of
India programs. merchandise worth $33 a Strategic Petroleum Reserve in India,
The two sides discussed their plans and agreed to conclude negotiations in
billion while its imports
for infrastructure development. The the near future.
Indian side highlighted the expe-
were valued at $26 bil- The two sides said they looked
rience and expertise its companies
lion. During the recent forward to increased cooperation in
had acquired in infrastructure devel- visit of the crown prince the crude oil sector, including through
opment, including in power generation of Abu Dhabi, Sheikh training, and human resources devel-
and transmission, civil construction, Mohammed bin Zayed opment. The Indian side conveyed
railways and metros, hospitals, airports, Al Nahyan, to New Delhi, the keen interest of its oil companies
housing and roads. It conveyed the a number of pacts were in forming joint ventures with and
interest of Indian companies to be a signed by the two sides offering equity participation to UAE
partner in the infrastructure projects to expand economic co- companies, as well as in seeking
being undertaken by the UAE in prepa- operation participation in prospective exploration
ration for the World EXPO, which will rounds in the UAE and in opportunities
be held in Dubai in 2020, as well as in investors in infrastructure projects in for joint exploration in third countries.
the UAEs development plans. India. The two sides described these The two countries agreed to
The UAE noted its interest in developments as important steps expand their collaboration in
investing in infrastructure development towards reaching the 75 billion dollar renewable energy and in international
in India, especially in priority areas target for UAE investments in Indias negotiations on climate change,
such as railways, roads, ports, and infrastructure development plans. under the United Nations Framework
shipping. The two leaders welcomed Recognizing that energy is a central Convention on Climate Change. They
the opening of DP Worlds new smart pillar of the economic relationship, also agreed to continue to extend
port Nhava Sheva in Mumba and the the two leaders expressed satisfaction strong support to the International
signing of a framework Memorandum at their growing bilateral trade in the Renewable Energy Agency (IRENA).
of Understanding between the UAE energy sector, noting that the UAE is They welcomed the signing of a
and India which will serve to facilitate one of the largest suppliers of crude General Framework Arrangement for
and expand the participation of Emirati oil to India. They welcomed the Cooperation in Renewable Energy,
June 2016
CoverStory
which will lead to deeper exchanges in Its reach could extend to the depths of the International North-South Trade
these areas. the Central Asian countries. Corridor (INSTC) and bring India
The successful implementation of closer to the Eurasian Economic Union
Iran the Chahbahar project may re-energise (EAEU), which includes Armenia,
India has struggled to maintain its Belarus, Kazakhstan, Kyrgyzstan and
trade ties with Iran in recent years India has offered to Russia. India has already set up a joint
due to western sanctions imposed on invest more than $20 study group to explore the possibility
that country. India-Iran bilateral trade of signing an FTA with the EAEU.
was valued at $13 billion in 2014-15.
billion in fertiliser, phar- Moreover, India and Pakistan will
While India exported goods worth 4 maceutical petrochemi- be joining the Shanghai Cooperation
billion dollar, its imports were valued cal, IT and rail projects Organisation (SCO) this year. Iran
at $8.9 billion. India has offered to in- in the Chabahar special is also expected to join soon. These
vest more than $20 billion in fertiliser, economic zone (SEZ) of political and geo-economic develop-
pharmaceutical petrochemical, IT and the Persian Gulf country ments may force Pakistan to have a
rail projects in the Chabahar special provided natural gas is fresh look at its trade and transit policy
economic zone (SEZ) of the Persian provided at a competi- towards India.
Gulf country provided natural gas is Pakistan may be forced to consider
provided at a competitive price of 1.5
tive price of 1.5 dollar allowing Indian goods to pass through
dollar per mmbtu. per mmbtu. its territory to benefit from volumes
India took its first step towards
unlocking the investment potential India eyes Irans energy resources
for its companies in Iran when the
PM visited that country in May. A
36 trilateral transport and transit cor-
ridor agreement was also signed by
Afghanistan, India and Iran to allow
Indian goods access to the Central
Asian countries market without using
Pakistans territory. Commenting on
the signing of the historic agreement,
Indian PM said, The agreement on the
establishment of a Trilateral Transport
and Transit Corridor can alter the
course of history of this region. It
is a new foundation of convergence
between our three nations.
The corridor would spur unhindered
flow of commerce throughout the
region. Inflow of capital and tech- Over Rs 1 lakh crore investment can happen in Chabahar free trade zone
nology could lead to new industrial Iran, Gadkari said, has cheap natural gas and power that Indian firms are
infrastructure in Chabahar. This would keen to tap to build a 0.5-million tonne aluminium smelter plant as well as
include gas based fertiliser plants, pet- urea manufacturing units.
rochemicals, pharmaceuticals and IT. Nalco will set up the aluminium smelter while private and co-operative fer-
The key arteries of the corridor would tiliser firms are keen to build urea plants provided they get gas at less than
pass through the Chabahar port of Iran. USD 2 per mmBtu.
Its very location, on the mouth of Gulf India Ports Global Pvt, a joint venture of the Jawaharlal Nehru Port Trust and
of Oman, is of great strategic signifi- the Kandla Port Trust, will invest USD 85 million in developing two container
cance. Afghanistan will get an assured, berths
effective, and a friendly route to trade India recently submitted a reworked master development plan for Irans
with the rest of the world. The arc of Farsi natural gas block. The block is estimated to have reserves of up to
economic benefit from this agreement 21.68 trillion cu. ft (tcf), with recoverable reserves of around 12.8 tcf.
would extend beyond our three nations.
June 2016
India, a fast-growing economy,

needs access to overseas energy and raw
material reserves. The Chabahar pact
ends the countrys economic isolation
from Central Asia, opening access that
was blocked by a hostile Pakistan since
1947. Ultimately, Indias connectivity
could expand to Russia and Europe,
adding economic vibrancy to the India-
Iran-Afghanistan arc, say experts. Iran
has always been worlds leading energy
supplier. Now it is also emerging as the
gateway between Central Asia and India
and promises to create a junction of
cheap energy and Afghan raw materials
for Indian markets.
Afghanistans mineral
resources
Nitin Gadkari, Minister, Road Transport, Highways and Shipping Impoverished Afghanistan is a min-
eral rich country. The US Geological
that would be crucial to making some Survey has verified previous Soviet
of these infrastructure projects viable.
The recent pact be- finds. Afghanistan may hold 60 million
To make the Chahbahar port less tween India and Iran to tonne of copper, 2.2 billion tonne of 37
attractive, Islamabad may also allow build Chabahar port in iron ore, and 1.4 million tonne of rare
extension of the Afghanistan-Pakistan Iran has the potential to earth elements such as lanthanum,
Transit and Trade Agreement (APTTA) alter the dynamics of Af- cerium and neodymium, in addition to
to India, feel experts. Initial work is aluminium, gold, silver, zinc, mercury,
ghanistans geopolitics.
already underway on extending the and lithium. Rare earth deposits in
agreement formally to Tajikistan. Once
The pact will add new Helmand province alone are valued at
the APTTA is expanded to include players to the game and 89 billion dollar.
Central Asia and India, this small initial construct a compelling Total Afghan mineral wealth is esti-
project could become a serious eco- economic dimension mated at $1-3 trillion according to the
nomic force of integration, add experts. U.S. Geological Survey. Such mineral
also help India to expand its options in deposits have remained untapped
Chahbahar initiative well- Central Asia. due to the lack of connectivity to a
timed Experts also say that the recent major economy, among other factors.
The Chahbahar project has been under pact between India and Iran to build No more, with new connectivity to
discussion for years. However, it was Chabahar port in Iran has the potential India. Afghanistan might be able
the Modi government that put its to alter the dynamics of Afghanistans to jump-start the engine of modern
political weight behind the project. geopolitics. The pact will add new economic growth and move beyond
However, the success of projects will players to the game and construct a poppy cultivation. Also, a successful
critically depend on economic integra- compelling economic dimension. It corridor further enforces Afghanistan
tion of the region. Analysts say that also has the potential for a new security as a transit route for oil and natural
the Chahbahar initiative is well-timed. paradigm to bring about a geopolitical gas exports from Central Asia to the
After removal of sanctions, Iran is shift in the region. The development Arabian Sea.
now looking to expand business ties. of Chabahar port and the connecting
Moreover, Indian energy companies transport-and-trade corridor has Skepticism over
are open to purchasing more Iranian the potential for India to unlock the involvement in Afghanistan
oil, making swap deals and investing untapped energy and mineral riches of Afghanistan has been the graveyard
in Iranian oil fields where they have Iran, Afghanistan, and Central Asia, of superpowers. Can India and Iran
already made discoveries. This will say experts. succeed where the Britain, the US
June 2016
CoverStory
and Russia have miserably failed? the one the West has successfully used of Pakistans territorial borders. A pact
Perhaps yes, say experts. They cite to keep the oil-rich West Asia stable, of such magnitude among Pakistans
economics, connectivity, and security said another expert. The Indian road bordering states, aimed at excluding
as key factors working to the ad- to Afghanistan leads through Iran. In Pakistan, is an enormous indictment of
vantage of India and Iran. An expert event of internal chaos in Afghanistan, Pakistans policies with its neighbours
explained that the British, Soviet, and India and Iran will be required to and a sharp reminder of its isolation in
American campaigns were military collaborate closely in bringing about the region. But Pakistani losses extend
interventions of occupation, with peace. This makes the two coun- beyond the symbolic to the tangible.
hardly any direct economic benefit tries with civilisational links newest The advantage Pakistan enjoyed due to
for Afghanistan. strategic partners in The Great Game, its geography has been minimised and
The Chabahar corridor is not an with a direct stake in long-term peace will perhaps be eliminated over time,
intervention. This corridor unleashes and prosperity, said one geopolitical say experts.
economic opportunities that did not analyst. Second, they add, Pakistan loses
exist in the past and it offers Afghan- The undeclared but principal its stranglehold over the land-locked
istan the most tangible prospect to paradigm-breaking impact of this Afghanistan. After the Soviet with-
build a modern economy. The past gov- deal is on Pakistan. India, Iran, and drawal, Pakistan managed near
ernments in Kabul lacked credibility Afghanistan constitute over 95 percent absolute control over Afghanistan
among masses as they were dependent through Taliban. As the Americas
on foreign aid. The Chabahar corridor Afghan campaign began, Pakistani lev-
They believe that the tax generated eraged its supply lines passing through
from mining and mineral exports
is not an intervention. Karachi port to increase its closeness
could facilitate a resourceful and This corridor unleashes with the US.
strong government in Kabul that can economic opportunities Finally, compared to Chabahar, the
38 assert authority across the country. Job that did not exist in alternative ChinaPakistan Economic
creation from economic activity would the past and it offers Corridor looks lop-sided. This cor-
increase peoples stakes in peace and Afghanistan the most ridor links the restive Chinese west,
stability. This potentially offers a sus- the autonomous Xinjiang region
tainable model that had been missing in
tangible prospect and autonomous Tibet region, to the
the past superpower-led expeditions in to build a modern Pakistani port of Gwadar in the equally
Afghanistan. economy. The past restive Balochistan province. The
Thanks to land connectivity, India governments in Kabul economic complementarities are obvi-
and Iran will be able to play a far lacked credibility ously missing, giving rise to question
bigger role in Afghanistan by sup- among masses as they as to who will benefit from the infra-
porting democratic forces. Mineral structure, add experts.
wealth can reduce the cost of such
were dependent on
support. The model can be similar to foreign aid
June 2016
NewsBriefs | Oil & Gas National

Government weighs doubling capacity of LNG import terminal ONGC to invest Rs 4,000 crore in four
coal bed methane gas blocks
up new terminals and expand existing
facilities will push up LNG terminal
capacity to 47.5 million metric tonne per
annum (mmtpa) by 2022 from the current
21.3 mmtpa. In 2015-16, the natural gas
consumption in the country rose barely
2 per cent to 52 billion cubic meters,
of which 40 per cent was imported as
LNG. But in the last few months, the
consumption has soared, rising 14 per State-owned Oil and Natural Gas
cent in April, banking on cheaper imports Corp. Ltd (ONGC) has decided to invest
that rose 45 per cent. As the economy Rs.4,000 crore to develop its four coal
India plans to more than double its expands and industries and households bed methane (CBM) gas blocks. Two
liquefied natural gas (LNG) import increase their consumption of natural gas, of the four blocksin North Karanpura
terminal capacity in six years to cater to the dependence on imported LNG will only and Bokaro, in Jharkhandwould start
the rising natgas demand from refineries, increase since the domestic output has production by the second half of 2017-18.
fertilizer and power plants. Plans to set been declining for years. Methane is a form of natural gas extract-
ed from coal beds. The company has sold
KG Basin to see huge investments over 5-7 years a 25% stake in its North Karanpura CBM
block to Prabha Energy Pvt. Ltd (PEPL),
Union Petroleum Minister Dharmendra a unit of Deep Industries Ltd. The block
Pradhan has said that the KG Basin is likely in Bokaro would be developed by ONGC.
to see investment of over Rs. 1 lakh crore The venture with PEPL is on a joint op-
over next 5-7 years as ONGC, Reliance eratorship model and PEPL would make
Industries Limited and GSPC execute investments proportionate to its 25% 39
their plans and expand their operations. interest in North Karanpura. We expect
Along with investments from ONGC, GSPC to begin CBM production by the later half
and RIL, from this financial year to the of year 2017-18. The cumulative plateau
next 5-7 financial years, I am visualising production after development of all the
new investment of Rs 1 lakh crore in four blocks is estimated to the tune of 1.7
Krishna-Godavari Basin, creating new million metric standard cubic metres per
employment and setting up downstream where oil and gas is available at a depth of day (mmscmd), said a spokesperson for
industry, Pradhan said. Indias east coast, 100 to 200 meters whereas in east coast, ONGC. ONGC was allocated nine CBM
particularly Krishna-Godavari Basin has rich the same is available at a depth of 2,000 to blocks, of which it holds four, located
hydrocarbon deposits. Though there is a 3,000 meters, he pointed out. in Jharia, Bokaro, North Karanpura and
difference when compared to Mumbai High, Raniganj in West Bengal.
Centre creates 4 dealer groups to boost LPG service
The government has created four categories PM. We want to clear the smoke in the daily
of liquefied petroleum gas (LPG) distributor- lives of poor women who still have to use
ship to more effectively cater to the varying unhealthy fuels for cooking... make clean
needs of consumers in urban, rural areas cooking fuel available to entire population by
with urban infrastructure - also known as 2018, oil minister Dharmendra Pradhan said.
rurban, rural and geographically inaccessible Pradhan said plan to meet additional demand
areas. Simultaneously, the oil ministry has of LPG has been put in place and work on all
also started the process of appointing 10,000 the verticals is going on simultaneously to
dealerships under a unified guideline to ex- avoid any lag. There are 27 crore registered
pand the network to meet increased demand LPG consumers, of which 16.7 crore are ac-
for the clean fuel expected from Ujjwala - the tive. This covers nearly 60% of the population.
scheme to provide free connections to five The government expects about 3 crore new
crore poor households in the next three years. consumers from the APL (above poverty line)
We have been able to change the oil minis- man in the last two years. We achieved it households to join the list in addition to the 5
trys orientation from corporates to common with the support and encouragement of the crore Ujjwala consumers in the non-BPL.
June 2016
NewsBriefs | Oil & Gas National

Oil refining companies worried over ban on diesel vehicles Mega refinery: India says ready to offer
stake to Saudi Arabia
because 45 per cent of a refinerys output
after refining the crude oil is diesel, said
Sanjiv Singh, Director (Refineries) at Indian
Oil Corporation. Singhs comments come
in the wake of the National Green Tribunal
hearing a case to extend the ban on sales of
diesel cars and sports utility vehicles (SUVs)
with engine capacity beyond 2,000 cc across
cities in eight more States Maharashtra,
Uttar Pradesh, Bihar, Tamil Nadu, Andhra
Discouraging the use of diesel as a transport Pradesh, Punjab, West Bengal and Karnataka. India has offered Saudi Arabia a stake in
fuel is fast becoming a cause of concern Maharashtra, Tamil Nadu, Uttar Pradesh and the mega oil refinery and petrochemicals
not just for automakers but for domestic Karnataka are among the four top-five States project proposed in coastal Maharashtra
oil refiners, too. According to the Indian oil for diesel sales from retail outlets. In 2015- at an estimated cost of Rs 1.5 trillion. Re-
refining and marketing companies, diesel 16, retail outlets in these four States sold cently, I met Saudi officials with an offer
cannot simply be wished away. Technically, it 22.56 million tonnes diesel to passenger cars, of a stake in the proposed mega refinery
is not possible to completely eliminate diesel, SUVs and commercial vehicles. project in Maharashtra, for which we have
already appointed Engineers India as the
Reliance Industries arm sells stake in African trading and marketing company to Total PMC (project management consultants).
We have also finalised the contours of the
Reliance Industries is in pact to sell its special purpose vehicle that will carry out
76% stake in Mauritius-incorporated Gulf this large project, Union Petroleum Min-
Africa Petroleum Corporation (GAPCO) to ister Dharmendra Pradhan said. The state-
French energy company Total Marketing ment assumes significance as the minister
40 & Services. RIL, through its arm Reliance had earlier said that Saudi Aramco is
Exploration & Production DMCC held keen to enter the domestic oil distribution
the stake in GAPCO, which is the holding market. It is also a sign of the growing
company with operating subsidiaries bilateral ties between New Delhi and Ri-
in Tanzania, Kenya and Uganda. The yadh. On December 28 last year, Pradhan
target company is primarily engaged in had sprung a surprise by asking the three
petroleum product import, and trading, operates 108 retail outlets and owns 260 state-run oil refiners -- IndianOil, BPCL
storage, distribution, marketing, supply and TKL of storage capacity. The proposed and HPCL -- to get ready to set up the
transportation of oil products in East Africa. transaction is subject to regulatory largest refining and petrochemicals com-
RIL acquired the 76% stake in GAPCO in approvals and other closing conditions that plex in the public sector before 2017-end
2007. The latter is one of leading petroleum are customary for similar transactions, on the west coast of Maharashtra with an
marketing company in East Africa and RIL said. investment of Rs 1.5 trillion.
ONGC Videsh completes $1.3 billion stake acquisition in Russian field
ONGC Videsh Ltd has announced in Russia. The field, which has recoverable
completion of acquisition of 15 per cent reserves of 2.5 billion barrels, will give
stake in Russias second biggest oil field of OVL 3.3 million tonnes per annum of oil
Vankor from Rosneft for $1.268 billion, its production. OVL said that the deal to
fourth biggest acquisition. The overseas acquire stake in Vankor was signed by
arm of state-owned Oil and Natural its Managing Director & CEO Narendra K
Gas Corp (ONGC) said the acquisition Verma and Rosneft head Igor Sechin in
of 15 per cent stake in JSC Vankorneft early September last year. Further to that,
-- a company organised under the law of Rosneft agreed to sell another 11 per cent
Russian Federation, which is the owner stake in Vankor to OVL. Details of this deal
of Vankor Field and North Vankor licence are yet to be finalised. The acquisition
-- was completed recently. Rosneft, the strengthens OVLs presence in Russia and
national oil company of Russia continues is consistent with stated strategic objective
to hold the remaining 85 per cent shares Vankor oil and gas condensate field in of adding high quality international assets
of JSC Vankorneft, the developer of the Turukhansky district of Krasnoyak Territory to its existing E&P portfolio.
June 2016
NewsBriefs | Oil & Gas International

Russian oil output falls slightly in May to 10.83 million bpd Pakistan GasPort Plans LNG Terminal
Listing, Double Capacity
a fall in global oil prices as a weaker
rouble helped to offset oil companies
losses. Arkady Dvorkovich, Russian deputy
prime minister, said that Russia was still
ready to discuss an oil production freeze
if all OPEC nations supported the idea.
Russia is not a member of the cartel. Of
course, if everyone has a united position
then Russia of course will look into this
question, Dvorkovich said. Preliminary
data from the Russian energy ministry Pakistan GasPort Ltd., which won a gov-
Russian oil output stood at 10.83 million showed that Russia produced 45.79 ernment contract to build the countrys
barrels per day (bpd) in May, slightly down million tonnes of oil last month - or 10.83 second liquefied natural gas terminal,
for a second straight month but still close million bpd as an average, down from plans to list the project in two years and
to a record high reached earlier this year. 10.84 million bpd in April. Russian oil double capacity, taking advantage of a
Russia, the worlds top oil producer, had output hit its highest in nearly 30 years in global glut. The terminal which costs
been steadily increasing oil output despite March at 10.91 million bpd. $135 million will initially handle 600
million cubic feet a day at Karachis Port
U.S. oil exports rise 7-fold in first 3 months Qasim. GasPort plans to add another
terminal to double capacity by 2018 and
The 40-year ban on exporting U.S. crude will be followed by the construction of a
was lifted last December. Since then, theres 500 megawatt power plant. GasPort was
been a sevenfold increase in Americas oil awarded the contract by the state-owned
exports to destinations other than Canada, Pakistan LNG Terminals Ltd. after offer-
which was excluded from the ban. The ing the lowest bid. South Asias second 41
frenzy of export activity, while still relatively largest economy became one of the new
small, is noteworthy given the depressed buyers of the super chilled fuel last year
environment in the oil patch these days. Not after a global price slump and plans
only is the U.S. pumping less oil, but there to use it as a fuel, along with coal, to
remains a lingering glut of oil around that add new power plants to end an energy
world that earlier this year caused crude to March, with only 7.7 million of those barrels crisis by 2018. The GasPort terminal will
crash to 13-year lows. Yet U.S. oil exports going to Canada. Japan and Italy were the be supplying gas to 3,600 megawatts
hit an important milestone in March. For the biggest buyers, importing more than 1 mil- of power plants being established by
first time since 2000, the majority of U.S. lion barrels of American crude apiece. Inter- the government and will be built in 12
crude exports were to destinations other estingly, the U.S. also exported an average of months after the deal is signed, Ahmed
than Canada, according to JBC Energy. The 75,000 barrels per day to the tiny Caribbean said before the agreement.
U.S. exported 15.7 million barrels of oil in island nation of Curacao.
IEA sees slower global gas demand growth to 2021
Growth in natural gas demand will slow to an as production shrinks in Europe and U.S. gas
average 1.5 percent a year globally through production hovers around flat next year as
2021, as stagnation in Europe and uncer- lower gas prices cut into investment. Longer
tainty about Chinese consumption offsets term, the U.S. shale industry is expect to help
robust growth in India, the International drive recovery in production to reach 100 bil-
Energy Agency (IEA) said. After growth of lion cubic metres (bcm) by 2021, or one-third
2.5 percent over the last six years, gas is of the global supply rise over the period. The
facing competition from renewable energy IEA puts forward prices of shipping U.S. LNG
and cheap coal, meaning the global gas to Europe below those of oil-linked Russian
market will remain over supplied. In Europe, gas or hub prices, creating a stark change
Russian gas export monopoly Gazprom will Growth will be led by India, at an average of in Gazproms operating environment, it said.
be challenged by the prospect of a glut of 6 percent per year, while Chinese demand Although its exports to Europe are locked in
liquefied natural gas (LNG) as export capacity is likely to recover, spurred by a switch from via take-or-pay contracts, the IEA estimates
rises 45 percent by 2021, even as demand coal to gas-fired power generation, the IEA Gazprom needs to win an additional 15 to 20
drops in key markets in Japan and Korea. said. However, new supplies are also limited bcm to hang on to its market share last year.
June 2016
ExpertSpeak
India needs storage facilities
for natural gas
Mohd Arif, Oil and Gas Analyst, Infraline Energy, throws
light on the need and urgency to set up gas storage facilities
in India and discuses various options that can be considered
in this regard.
India is the worlds fifth largest MMSCMD as on March 2016, whereas

energy consumer and its appetite R-LNG consumption stood at 67.98
for energy is only going to grow MMSCMD. Any kind of interruptions
further in future. Owing to crude oil in natural gas supply can lead to a
reserve depletion and deteriorating standstill in industrial operations.
environmental conditions, a clean Therefore, in order to have
fuel like natural gas is the most uninterrupted natural
feasible and sustainable option to meet gas supply,
nations complex energy requirements there stands Gas
42 as currently India is moving towards a need to storage Mohd Arif, Oil and Gas Analyst, Infraline Energy,
a gas-based economy. Natural gas is establish facilities are and short term flexibility, management
majorly used by City Gas Distribution natural required to be of ramp gas and better maintenance
(CGD) companies and industries such gas established on a management of production plants and
as, Fertilizer, Power, Petrochemicals/ storage pipelines.
priority basis
LPG, among others. Natural gas is facilities Currently, India does not have any
made available to various industries in India. In natural gas storage facility, which
via domestic gas and imported LNG. addition, natural cannot be undermined in coming
Domestic gas consumption by gas storage facilities future, as the share of natural gas in
five major sectors stood at 63.99 carries huge potential to provide long Indias energy mix will increase in
subsequent years.
Natural Gas Demand vs Consumption (March 2016) in
Natural Gas Demand vs Consumption
mmscmd
(March 2016) in mmscmd
Natural Gas storage facilities:
Sectoral demand Total Consumption (Domestic gas +RLNG) An Overview
(2015-16) There are four major types of natural
gas storage facilities such as, under-
33.29 ground gas storage, LNG storage
tanks, gas holders and line packs.
41.96
Underground gas storage is further
189 37.29
113
classified into depleted fields, aquifers
17.39 1.32
39 25
72 0.72 and salt caverns. There are more than
8
600 underground natural gas storage
facilities in the world with 450 deplet-
ed reservoirs, 80 deep aquifers and 70
salt caverns with a working capacity
of more than 300 BCM. Depleted
field is the most common type of gas
storage facility and is comparatively
Source: Working Group report XIII Annual Plan
June 2016
Projected Natural Gas Demand

Projected Natural Gas Demand
350
300
250
200
150
100
50
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Demand Projections (mmscmd) 227 240 254 264 269 280 285 292 300 306 314
Source: ICRA
easy to develop. The cost to develop extracting salts with the help of water.
a depleted reservoir lies between Multiple factors such as withdrawal
$176.6 million to $247.2 million per rate, working volume, injection
BCM of working gas capacity. period, development duration and There are four major
Aquifers are natural water res- location are to be considered for the types of natural gas
ervoirs where natural gas can be establishment of underground gas
stored, with additional dehydration storage facility. In addition volu- storage facilities
43
process on extraction. Salt caverns are metric efficiency of natural gas can be such as, underground
formed from existing salt deposits, increased by 600 times if it is being gas storage, LNG
which can be used to store gas after stored in liquefied form at -162C.
storage tanks, gas
Table 1: Status of Natural Gas storage facilities around the holders and line
world as on 2015 packs. Underground
Country/Region Active gas storage Working Capacity gas storage is further
facilities (BCM) classified into depleted
U.S. (Lower 48 States) 385 131.9
fields, aquifers and
Germany 51 25
France 16 13
salt caverns. There
Rest of EU-28 86 71.27 are more than 600
Russia 26 >72 underground natural
Ukraine 12 32 gas storage facilities in
Turkey 3 2.86 the world
Source: Gazprom, EIA, Eurogas and Naftogaz Europe
Table 2: Comparison of different underground gas storage facilities

Depleted Reservoirs Aquifers Salt Caverns
Working Volume Medium to Large Large Small
Withdrawal Flow Rate Medium (Depending upon porosity Medium (Depending upon porosity and High
and permeability) permeability)
Injection Period 150 to 250 days 150 to 250 days 20 to 40 days
Withdrawal Period 100 to 150 days 100 to 150 days 10 to 20 days
Development Duration 5 to 8 years 10 to 12 years 5 to 10 years
June 2016
ExpertSpeak
Table 3: Cost associated with different types of gas storage

facilities
Multiple factors such
Type Cost Associated
Depleted Reservoir Acquisition cost+ Development cost+ Gas gathering as withdrawal rate,
cost+ Cost of cushion gas+ Annual storage cost working volume,
Aquifers Cost associated with depleted reservoir+ Explicit Cost+
Implicit cost injection period,
Salt Caverns Cost associated with depleted reservoir+ Explicit Cost+ development duration
Implicit cost
and location are to
Explicit cost Implicit Cost be considered for
Survey cost Diminishing of agriculture in the area
the establishment
Water handling cost Impact on wildlife
Managing the site Hidden costs etc. of underground gas
Cost of unrecoverable gas etc. storage facility
Figure 1: Underground gas storage facilities

At present, India has no liquefaction
facility available. Excluding geo-
logical and geographical constraints,
pressurized natural gas can be stored
in aboveground gas holders. In
44 addition, natural gas can be stored in
pipelines, depending on the quality of
the material; quantity of natural gas
stored can be increased by manipu-
lating the pressure of natural gas.
Fringe benefits of Natural

Gas storage
Stored natural gas has the potential to
meet base load and peak load require-
ments. Base load facilities are used to
satisfy long term demand whereas peak
load facilities are used to satisfy short
Figure 2: Aboveground gas storage tank term surges in demand. Additionally,
for base load facilities there is a long
injection and withdrawal period whereas
peak load facilities attract a short injec-
tion with shorter withdrawal period. De-
pleted reservoirs are most common type
of base load facilities and Salt caverns
contributes to peak load facility.
Probable locus points

India has 26 sedimentary basins
covering an area of 3.14 million sq.
kms. Depending upon the state of the
reservoir, natural gas can be stored. For
depleted reservoirs there is a potential
June 2016
Table 4: Locations along with in North Gujarat and for salt caverns,
possible storage type Storage facilities require Bikaner can emerge as a potential loca-
pipelines for injection, tion. However, for deep aquifers, Kota
Location Possible Storage
Type
withdrawal and distribu- and Bhubaneswar could be potential
tion of natural gas. The sites. In addition, North Western part
of Rajasthan, Aravalli ranges and some
North Gujarat Depleted Reservoir importance of pipeline
part of Eastern Ghats holds a potential
Bikaner Salt Cavern
infrastructure can be for underground gas storage. However,
highlighted by the non where underground facilities are not
Devgarh Deep Aquifer utilization of existing feasible, LNG storage and gas hold-
Kota Deep Aquifer strategic petroleum re- ers can be used as potential storage of
serves (SPR). Mangalore natural gas.
Katni Deep Aquifer and Padur are still under Hurdles on the highway
Bhubaneswar Deep Aquifer construction of pipeline Storage facilities require pipelines for
infrastructure in order to injection, withdrawal and distribution
Bijapur Deep Aquifer transport crude oil of natural gas. The importance of pipe-
line infrastructure can be highlighted
by the non utilization of existing strate-
gic petroleum reserves (SPR). Manga-
lore and Padur are still under construc-
tion of pipeline infrastructure in order
to transport crude oil. To utilize the
storage facility, it is essential to have a 45
well established pipeline infrastructure.
Currently, Indias existing natural gas
pipeline network consists of 17,421
kilometer of gas pipelines majorly
in Gujarat, Maharashtra and U.P. On
the other hand, states such as West
Bengal, Bihar, Jharkhand, Chhattisgarh
and Odisha are deprived of sufficient
gas pipeline infrastructure, creating a
strong regional imbalance.
Scanning the horizon

At present, total numbers of CNG
stations in India are 1026 and total
number of PNG connections stood
at 30 lacs, as on January, 2016. Any
interference in natural gas supply will
dampen the natural gas business in the
entire nation. Hence, it is imperative
to secure the supply of natural gas by
focusing more upon natural gas storage
facilities in near future.
Countries such as, U.S., China,
Ukraine, Russia, among others have
acknowledged the importance of
natural gas and are already ahead
in establishing natural gas storage
Source: DGH
June 2016
ExpertSpeak
Natural Gas Pipelines in India In midst of the efforts

being made by other
countries, India is still
not under consideration
of its pilot project owing
to the lack of awareness
in the country and lack
of resources like funds,
technology, robust gas
grid etc.
in adverse conditions like war.

Natural gas storage will be helpful in
meeting the domestic demand in such
conditions. Moreover, geopolitical
issues prevailing all across the globe
are potential barriers to natural
gas imports. To securitize nations
Source: Infraline natural gas supply, storage facilities
46 are required to be established on a
facilities. In midst of the efforts being be taken care of by including foreign priority basis. In addition, India can
made by other countries, India is still players in the establishment of gas focus on exploitation and storage of
not under consideration of its pilot storage facilities. the unconventional resources such
project owing to the lack of awareness Increasing issues with neighboring as shale gas, CBM and gas hydrates
in the country and lack of resources countries such as Pakistan and China aswell.
like funds, technology, robust gas could turn out to be the potential
grid etc. Funds and technology can barrier for the natural gas supply For suggestions email at feedback@infraline.com
June 2016
Event Focus
Infraline Conducts National Pipeline
Integrity Management Forum
47
by Team InfralinePlus
If oil and gas represent the lifeblood programs becomes more crucial than from the industry to discuss the current
of Indias energy, transportation and ever before. and future perspectives of pipeline
manufacturing sectors, then the oil and Growing safety and environmental integrity management which is the
gas pipeline system can be considered concerns regarding pipeline man- need of the hour.
the blood vessels. This network has agement have led to new regulations The event witnessed a gathering of
evolved and expanded over several and stricter requirements for pipeline leading pipeline operators and oil and
decades to meet the growing energy operators to demonstrate and document gas companies like GAIL, ONGC,
needs of Indian consumers and its their facilitys safe operations. GSPL, EIL, etc. along with key
increasing age is a cause for concern Considering the importance of the policy makers from the ministries and
among pipeline owners and operators. issue, InfralineEnergy, in association innovative technology providers who
Added to this is the fact that many with Engineers India Limited (EIL) highlighted and showcased some very
pipeline systems run through high- as the Knowledge Partner, orga- efficient technologies and solutions
consequence areas, such as fragile nized the National Pipeline Integrity for PIM. The speakers focused on the
ecosystems and well-populated Management Forum on 25th May needs and challenges of the PIM along
communities, and the need for routine 2016, in New Delhi. This forum was a with the adoption of new technologies
pipeline inspection and maintenance ladder to connect multiple stakeholders such as MTM, ILI etc. The importance
June 2016
Event Focus
of information technology in PIM has Industry Perspectives

been highlighted by tools like real time Dr. Bharat Bhargava, Director General- ONGC Energy Centre
GIS, SCADA etc. Furthermore, the Bio-fuels and Hydrogen will be the significant sources
need of adequate infrastructure and for energy in the coming future. It is a high time to think
PIM for hydrogen and bio fuels trans- about the pipeline infrastructure for economic transpor-
portation has been accentuated. tation of these fuels.
Mr. Niraj Sethi, Executive Director- Rail and road transport is used for the hydrocarbon
Projects, Engineers India Limited, transportation, which is not economical vis-a-vis pipeline
delivered the transportation.
keynote address in As hydrogen is light and high compression is required thus traditionally available
which he high- materials for pipelines are not suited for the transportation of hydrogen. Moreover,
lighted the welding in the conventional pipelines may become source of leakage.
importance of Bio technology, nano technology and solar technology are important param-
Pipeline Integrity eters in pipeline design and management.
Management and Modern technologies like 3D and seismic techniques can be used for site
some of the best practices and strat- selection for hydrogen production and pipelines.
egies in order to ensure most efficient Simulation can be used for estimation of life and safety of a pipeline, U.S. is
integrity management of pipelines. Sethi doing work on this.
raised the following key points
GDP growth of various regions is Mr. M.K Sogani, Deputy General Manager, GAIL (India) Limited
directly dependent on the pipeline As per PNGRB guidelines, integrity assessment tools
infrastructure include- In line inspection (ILI), Hydro testing, Direct
Governments plan is to increase assessment and evaluation, CP Monitoring, Surveil-
48 the existing capacity of pipelines lance, thickness assessment and periodic reviews.
under Public-Private-Partnership For health assessment of piggable and non piggable
(PPP) mode pipelines, Magnetic Tomography Method (MTM) is
Pipeline Integrity Management is used. This technology evaluates the relative change
required in all the three phases of in mechanical stress without physical contact with the
a pipeline, namely Design phase, pipeline through the pipeline magnetic field, this helps in locating both time
Construction phase and Operation dependent and time independent threats. Health assessment of Kurikhera to
phase. Bimetal, a non piggable pipeline of GAIL was carried out using MTM.
Rupturing, Fire, Pilferage, Sab- MTM is more accurate than ILI, this is evident by MTM inspection of Chainsa
otage, Soil Erosion, H2S, Sulfur, etc. to Faridabad piggable pipeline.
can impact pipeline integrity along MTM is new in India and it can be used in offshore pipelines. Currently
with site welding that can somewhat Petronas is using MTM for offshore pipelines.
infringe the pipeline operations.
Mr. Paresh K Patel, Sr. Manager (Operations & Maintenance), Gujarat
Slug catchers, full cathodic protection,
State Petronet
corrosion inhibitors, intelligent pigging,
hydro-testing, inline protection, Important softwares for IMP are C-FER, Advantica, GE,
SCADA, thickness assessment etc. PII, MUHLBAVER. Moreover, operating company may
are some of the assessment tools have its own tailored software as per their requirement
for pipeline integrity management. Geographical Information System (GIS) is increasingly
However, rigorous quality control of being used to manage huge and complex data base
pump, valves etc. need to be carried Pipeline operating company should have good HSE
out at a regular interval. policy, procedures for O&M and a good quality system
In India, PNGRB has given guide- in place, like ISO 9000, ISO 14000, and OHSAS 18000.
lines for prescriptive type integrity PNGRB has issued regulations for IMS of natural gas pipelines. It follows
management. In prescriptive type, ASME B31.8S-2010 standard. Different threats as per ASME B31.8S are time
the risk is categorized and the dependent and time independent.
matrix is prepared for risk and con- GSPL experienced pipeline integrity issues due to heavy backwater at Narmada
sequences, action plan is prepared River. HDD crossing, cold cutting, removing of existing section, hooking up with
on the priority basis. the new section, and pigging of complete pipeline segment was done.
June 2016
Mr. K.K Tandon, Director-Technical, Bhotika Pipeline Services Co. Pvt. Ltd.
Pipeline pigging is required at various stages during the life cycle of a pipeline. Pipeline pigging
requirements have to be duly considered at the design & construction stage of the pipeline.
During construction stage pigging is done to remove debris, conducting hydro testing etc.
During operating stage pigging is done to remove condensate, to apply inhibitors etc. and during
inspection stage, pigging is done to check the physical damage.
Pipeline can be non piggable if there is no provision for launchers/receivers, less 3D bends, low
flow conditions, very high flow rates and reduced bore mainline valves and check valves.
40% of existing pipelines are non piggable.
Inline inspection tools and technologies like External Corrosion Direct Assessment (ECDA), Internal Corrosion Direct
Assessment (ICDA), Stress Corrosion Cracking Direct Assessment (SCCDA), Guided Wave Inspection Technology,
Project Specific Inline Inspection Tools and Magnetic Tomography Method are used for integrity assessment of non
piggable pipelines.
Tele Test system based on Long Range Ultrasonic Testing (LRUT), this system is suitable for short length of pipelines
(200 m) and it is generally used in Rail crossing and road crossing areas. HPCL use this system and TWI (U.K.) is the
original inventor.
Mr. Yatinder Suri, Country Head, Outokumpu India Pvt. Ltd.

Stainless steel saves money in the long run.
Duplex products provide high strength, high corrosion resistance and enhanced resistance to
stress corrosion cracking. Moreover, they do not need to be painted or coated.
The total life cycle cost for a duplex stainless pipe in the ground is less than for a coated carbon
steel pipe as soon as a major repair/maintenance is made on the carbon steel.
Outokumpu provides products for subsea applications to combat corrosion. Forta SDX 2507 49
provides excellent strength and corrosion resistance.
First stainless steel raw water pipe in India was installed in Chennai. This resulted in low maintenance cost and increased
life expectancy.
Mr. Sanjiv Malhotra, Executive Director & Head- Business Development, KSS Petron Pvt. Ltd
Challenges pertaining to large diameter pipeline are: ROW, not enough contractors, site condi-
tions, government support, commercial reasons etc.
India is having pipelines of up to 48 inches in diameter; however, 50-70 inches diameter can come
up in future.
Pipeline infrastructure is not adequate in India.
Pipelines face many social and developmental challenges and thus, there is a need for capacity
building and for this it is imperative to have the support of the local bodies
Radical thinking, incumbency free ROW, security, mass education program, revise commercial conditions, government
support and innovative techniques are some of the way forward.
Mr. Chanchal Dasgupta, Application Marketing Manager, Borouge (India) Pvt. Ltd.
For 3LPE/PP coating of steel pipes, there are few major international standards but every client
develops their own specific standard as per their project specifications. In some cases, these
standards may not be optimal due to lack of understanding of the terminology, test method,
polymer properties or due to inclusion of raw materials.
Everyone is reluctant to change an existing standard.
Criteria for selection of coatings include temperature, transport, storage, Installation and
handling.
Some of the errors in representation can be minimized by mentioning that whether the values are maximum or minimum,
avoiding generating more errors in correcting typo errors etc.
It is better to specify the target properties of the coating and leave the Melt Flow Rate (MFR) selection to the raw material
manufacturer. Most of the international specifications do not specify MFI values.
June 2016
Event Focus
3LPP coating is recommended for up to 110 C design temperature in onshore and up to 140 C design temperature for
offshore pipelines.
Methods for impact strength include Charpy, Izod, Brittleness temperature and falling weight.
Mr. Krishna Rao TVB, Technology Architect, ESRI India

GIS is the key to pipeline integrity and Indian pipeline integrity regulations are similar to those in
the U.S.
GIS supports pipeline integrity, asset operations, business management, customers and regu-
lators, HSE and asset development.
ArcGIS provides an integrated web GIS platform for vertically integrated gas companies.
Real time GIS captures the real time data for utilities and pipelines and provides feature like
mapping along with feature layers in the interface.
Mr. Nikhil Deshpande, Director- Oil & Gas, Du Pont

Poor operational discipline has led to major catastrophic events like Piper Alpha, Texas City
Refinery Explosion etc.
Operational discipline offers leadership by example, employee engagement, teamwork, absence
of shortcuts etc. Moreover, it alleviates risk.
There are fourteen operational discipline characteristics that are classified in three groups Lead-
ership/Cultural, Processes and Standards.
OD facilitates a process of continuous and enhanced safety improvement through a structured
process and it changes a paper safety program into an action program.
50 Mr. Asim Prasad, Deputy General Manager, GAIL (India) Ltd.

As the natural gas market evolved in the country, acts, standards, guidelines, operating proce-
dures to enhance safety and integrity are also formulated.
In India, a perspective approach is used rather than a performance based approach.
GAILs maintenance policy guideline includes intelligent pigging in 5 years and cleaning pigging
in 3 years.
Work execution includes the following sequence of PIG; Foam, Gauge, Brush, Magnet, Combo of
brush and magnet-I and Combo of brush and magnet-II
Challenges include location challenges, weather conditions, safety challenge and system challenge.
Casing pipe is provided at critical crossings to avoid damage to career pipe. In addition, any misalignment of the
casing pipe with respect to the career pipe will result in a defect.
The roles and interactions of the three main components of PIM- people, processes and technology needs to be clearly
identified.
Threats need to be classified along with mitigation action. Furthermore, proactive approach rather than reactive
approach is required.
Mr. Atiq Khan, Deputy Manager- Corporate Strategy & Business Development,
Engineers India Limited
Pipeline Integrity Management System (PIMS) life cycle includes making policies and strategies,
forming methodologies, collecting data, using software systems and tools, analyzing and finally
conducting inspection at regular intervals.
In internet of things, pipelines have network connectivity which allows them to send and receive
data so that pipeline integrity can be enhanced.
Installed operational hardware and software in pipelines, results in a reduction of risk and helps in
improving networks overall reliability.
Systems such as SCADA, GIS among others are valuable for pipeline integrity resulting in improved life cycle.
June 2016
51
June 2016
Event Focus
Summary
Key outcomes
The event concluded at a very posi-
tive note and with a clear vision to
Pipeline companies and utilities are aware of the new requirements, and
strengthen the countrys pipeline
a wide range of levels of integrity management related improvements infrastructure. This requires technol-
have been made or are contemplated to help them ensure regulatory ogy advancement; skill set develop-
compliance, increase safety of operations, and improve system reli- ment and policy support from the
ability. regulators and the local bodies. Proper
pipeline integrity management is vital
Pipeline operators are moving away from prescriptive approaches to to every operators profitability and
pipeline design and operation, to risk management as the safest and regulatory compliance. The systematic
most cost effective means of maintaining and improving safety levels in and streamlined PIM approach can
help operators achieve environmental
pipelines.
compliance and make the best use of
Intelligent Technology is Essential for Modern Integrity Management their integrity management budget,
regardless of their pipeline systems
Pipeline companies have at their disposal a host of monitoring tools,
location, age or size.
techniques and methodologies to record data and analyze pipeline While technology in this area is
systems for integrity threats, such as internal and external corrosion, evolving, it has developed to the
accidental strikes upon the line during excavation by third parties, man- point that it is not practical to wait
for additional major improvements to
ufacturing or construction defects, and acts of nature such as storm
come along. Now is the time to start
damage or earthquakes. building strategy for the automation
52 Some PIM systems focus attention on a single problem at a specific to support the next generation of
location in the pipeline, rather than taking a more global look at the integrity.
As the pipeline industry continues
integrity of the entire system. As a result, some areas of the pipeline
to evolve, so will new regulations,
may not be adequately inspected or treated. This can eventually lead operational processes, and man-
to pipeline ruptures that damage the companys reputation and cost agement practices to keep up with the
much more in repairs, cleanup and fines levied by regulatory agencies. latest technologies. Organizations that
capitalize on progressive ideas and
Automation of the management process is becoming a foundational technological advancements will see
requirement for many utilities that are actively creating systems to themselves move to the forefront of
accommodate the next level of integrity management. the pipeline industry.
GIS anchors automated integrity management. Most utilities now have

GIS and are at least using it for map production.
Software applications, available from a number of providers, are
GIS-based in the sense that they interact with the GIS and utilize the
integrated information as a base for analytics. Risk-management
software typically provides the capability to run custom or stock models
for pipeline assessment risk analysis.
Trending technologies such as 3LPE/PP coatings and cathodic pro-
tection holds a strong position in Pipeline Integrity Management.
Stainless steel pipelines are more economical in the long run, as they
possess less maintenance cycle time.
Program such as Operational Discipline holds the potential to enhance
the safety and performance of the pipelines.
June 2016
FinancialResults
IOC net profit at record Rs 10,399 crore in 2015-16 ONGC posts Rs 4,416 crore Q4 net
profit
profit in 2015-16 was almost double of Rs
5,273.03 crore net profit in the previous fiscal,
company Chairman B Ashok said. Refineries
processed a record 56.2 million tons of
crude oil 2015-16, up from 53.6 million tons
in the previous year while fuel sales soared
6 per cent to record 72.7 million tons. IOC
maintained its leadership position with 45.5
per cent market share. Petrochemical sales
Indian Oil Corp (IOC) reported a record were up 2 per cent to 2.538 million tons.
net profit of Rs 10,399 crore in 2015-16 to Turnover, however, dipped 11.4 per cent to Rs State-owned explorer Oil and Natural Gas
become nations second most profitable 450,738 crore on back of drop in oil prices. Corp. Ltd (ONGC) reported a 12.2% jump
PSU, even as it posted an 80 per cent drop in The profit was aided by sharp drop in revenue in net profit for the three months ended
March quarter earnings because of inventory loss or under-recoveries on sale of LPG and March to Rs.4,416 crore, partly due to
losses. Net profit of Rs 10,399.03 crore in kerosene because of crash in international an accounting provision resulting from a
fiscal year ended March 31, 2016 was second oil prices. Under-recoveries dropped from Rs rebound in oil prices. The company wrote
only to Oil and Natural Gas Corps Rs 16,004 39,758 crore in 2014-15 to Rs 7,757 crore in back part of the impairment charge it had
crore net profit in 2015-16 fiscal. IOC net 2015-16. made previously made when oil prices
HPCL Q4 net profit drops 28% to Rs 1,553 crore were lower. ONGC reported revenue of
Rs.16,424 crore in the fourth quarter of
State-run Hindustan Petroleum Corpora- FY2016, a 24.3% contraction from a year
tion Ltd (HPCL) reported a 28% drop in its ago. ONGC chairman D.K. Sarraf said the
March quarter net profit on provisioning for company had in the fiscal third quarter
rise in rentals and foreign exchange losses. taken an impairment charge of Rs.3,994
The company also announced investing Rs crore because of an oil price slump. The 53
26,000 crore in expanding its Mumbai and rise in oil prices led to a revision of the
Vizag refineries. Net profit of Rs 1,552.94 figure and the recognition of Rs.752 crore
crore in January-March 2016 was 28.18% in the profit statement. In addition, the
lower than Rs 2,162.39 crore in the same decision to develop the Krishna Godavari
period a year ago. The profit was lower as basin assets required recognising Rs.1,585
the company provisioned Rs 215 crore for tonnes in the fourth quarter of 2014-15 crore in income, reversing a provision
rise in lease rental by the Delhi government, financial year. Surana said HPCL will invest made earlier when the company had held
HPCL Chairman and Managing Director M Rs 18,000 crore in raising Vizag refinery the view that developing the field was
K Surana said. Also, there was a foreign capacity from 8.33 million tonnes to 15 mil- un-viable, ONGCs director (finance) A.K.
exchange loss of Rs 203 crore in the quarter. lion tonnes. It will invest another Rs 8,200 Srinivasan said. In the full fiscal year, net
Another Rs 81 crore was set aside as provi- crore in raising Mumbai refinery capacity to profit declined 9.8% to Rs.16,004 crore.
sions towards arbitration on cost of LPG 9.5 million tonnes from current 6.5 million ONGC reported a total dividend of 170%
cylinders. Crude oil processing was higher at tonnes. Also, HPCL is raising capacity of for the year. It produced 26 million tonnes
4.7 million tonnes from 4.45 million tonnes its joint venture Bhatinda refinery from 9 of crude oil in 2015-16, same as a year ago
in the previous year. Fuel sales also soared million tonnes to 11.25 million tonnes by and 22.5 billion cubic metres of gas, 4%
to 9.05 million tonnes from 8.19 million February/March 2017, he said. lower than its output last year.
BPCL Q4 net drops 10.6% to Rs 2,549-crore on low oil prices
State-owned Bharat Petroleum Corp Ltd at 0.54 million tons. The company earned
(BPCL) reported a 10.6 percent drop in its USD 6.59 on turning every barrel of crude oil
March quarter net profit on back of slump in into fuel in 2015-16 as opposed to a gross
oil prices. Net profit in January-March quarter refining margin of USD 3.62 a barrel in the
fell to Rs 2,549.08 crore from Rs 2,852.89 previous fiscal. It got fully compensated for
crore in the same period a year ago. Sales the loss it makes on selling domestic cooking
were down to Rs 44,197.09 crore in the fourth gas LPG and PDS kerosene at subsidised
quarter of 2015-16 fiscal from Rs 51,346.12 rates. It received Rs 1,598.49 crore from the
crore, a year-ago. The company turned 6.22 government as fuel subsidy and another Rs
million tons of crude oil into fuel, up from 6.11 Fuel sales also rose to 9.78 million tons from 198.01 crore as dole from upstream firms like
million tons in the fourth quarter of 2014-15. 8.69 million tons. Exports were however flat ONGC.
June 2016
StatisticsOil & Gas

Import/Export of crude and petro products (000 Metric Tonnes)
IMPORT/EXPORT APRIL TOTAL
IMPORT*
CRUDE OIL 17960 17960
PRODUCTS
LPG 800 800
MS/ Petrol 74 74
Naphtha 265 265
ATF/Aviation Turbine Fuel 18 18
SKO/ Kerosene 0 0
HSD/ Diesel 508 508
LOBS/ Lube oil 157 157
Fuel Oil 50 50
Bitumen 64 64
Others 1103 1103
PRODUCT IMPORT 3039 3039
TOTAL IMPORT 20999 20999
PRODUCT EXPORT
LPG 27 27
MS/ Petrol 1368 1368
Naphtha 493 493
ATF/Aviation Turbine Fuel 674 674
54 HSD/ Diesel 2119 2119
SKO/ Kerosene 2 2
LDO 0 0
LOBS/ Lube Oil 0 0
Fuel Oil 88 88
Bitumen 0 0
Others 158 158
TOTAL PRODUCT EXPORT 4930 4930
NET IMPORT 16069 16069
Source: Oil Companies. All figures are Provisional.
Note: POL imports by private parties taken from raw data of DGCI&S which is with a 2 month lag period.
IOCL: Nepal sales taken in exports of IOCL. For Nepal exports , average US$ exchange rate considered .
BPCL: For Nepal and Bhutan exports , average US$ exchange rate considered
*LNG import not included
LPG consumption (April,2016) (Thousand Metric Tonne)
April*
LPG category 2013-14 2014-15 2015-16*
2015 2016 Growth (%)
1. PSU Sales :
LPG-Packed Domestic 14,411.60 16,040.40 17,182.50 1,305.90 1,392.30 6.6
LPG-Packed Non-Domestic 1,073.60 1,051.00 1,464.00 100.5 130.2 29.6
LPG-Bulk 245.7 315.7 316.4 23.3 30.4 30.6
Auto LPG 194.3 163.8 170.8 13.8 13.2 -4.6
Sub-Total (PSU Sales) 15,925.20 17,570.90 19,133.70 1,443.50 1,566.10 8.5
2. Direct Private Imports 368.5 429.2 417.3 36.2 34.8 -3.8
Total (1+2) 16,293.60 18,000.00 19,551.00 1,479.70 1,600.80 8.2
* Provisional
June 2016
Consumption of Petroleum Products (April,2016) (TMT)
Products 1-April
(A) Sensitive Products
LPG 1601
SKO 516
Sub total 2117
(B) Major Decontrolled Products
MS 1996
HSD 6774
Naphtha 1184
ATF 556
LDO 34
Lubricants & Greases 253
FO & LSHS 626
Bitumen 622
Sub total 12043
(C ) Other Minor Decontrolled Products
Petroleum coke 1555
Others 530
55
Sub total 2086
All Product total 16245
NOTE :
i) All figures are provisional
ii) The source of information includes Oil Companies, DGCIS & Major
consumers.
iii) The consumption estimates represent market demand and is aggregate of :
(a) sales by oil Companies in domestic market , and
(b) consumption through direct imports by private parties.
While data for company sales are actual, that of private direct import are
estimated, which may undergo change on receipt of actual data.
Sectoral Demand and Consumption of Natural Gas (April,2016) (Qty. in MMSCMD)
Sectoral Domestic gas R-LNG Total Consumption

Sector Demand 2016- consumption in consumption in (Domestic gas
17* April 2016 April , 2016 +RLNG) in April,2016
Fertilizer 113 23.4 16.45 39.86
Power 207 24.97 6.96 31.93
City Gas 46 11.27 7.73 19
Industrial 27 0.5 0.63 1.13
Petrochemicals/ Refineries/ Internal
consumption/LPG Shrinkage/ 72 10.9 30.62 41.52
manufacture/ Miscellaneous
Sponge Iron/Steel 8 0 0.72 0.72
Total 473 71.04 63.11 134.16
*Source : Report of the Working Group on Petroleum and Natural Gas Sector for the 12th Five Year Plan for Sectoral Demand
It may be seen that against a consolidated demand of 473 MMSCMD for the year 2016-17 the actual consumption in the month of April,2016 was 134.16
MMSCMD.
June 2016
NewsBriefs | Renewable National

India-US ink MoU to boost energy security, clean energy cooperation Indian Navy to contribute towards
initiatives under the MoU would be, among renewable energy generation
others, US-India Energy smart Cities
Partnership; Greening the Grid; Promot-
ing Energy Access through Clean Energy
(PEACE) expansion; energy efficiency
including space cooling; renewable energy,
energy security, and accelerating in-
novation on clean energy, the statement
added. During the Dialogue, it was also
India and the United States recently agreed to explore addition of smart grids
signed an MoU to enhance cooperation on and energy storage for grid application as
energy security, clean energy and climate the fourth stream under PACE-R. Discus-
change, ahead of Prime Minister Narendra sions were also held in the working groups The Indian Navy has pledged 1.5 per cent
Modis Washington visit. The Memoran- on financing of clean energy technology of its budget towards renewable energy
dum of Understanding was signed by as well as on innovative financing for generation, Ministry of Defence (MoD)
Indias Power Secretary P.K. Pujari and US renewable energy microfinance and micro said. As part of navys Green Initiatives
Ambassador Richard Verma. The priority enterprises. programme, impetus has been given to
reduce the overall carbon footprint with
Govt plans Rs 30K crore corpus to establish integrated solar manufacturing facility
the focus on not only addressing the
To encourage companies to set up root cause of the problem, which lies in
integrated solar manufacturing units in the the way energy is used. Creation of an
country, the government will come out with energy and environment cell at Naval
a brand new policy to aid equipment makers Headquarters in January to monitor pan
by disbursing Rs 30,000 crore as subsidy. navy implementation of green measures is
56 Integrated solar manufacturing units will a concrete step in this direction. This cell
produce everything from solar cells, solar has been tasked to making the navy an
photovoltaic modules, ingots and wafers. environmentally responsible force which is
The subsidy support will be given on the not only energy and resource efficient, but
basis of a reverse bidding process so those also resilient to energy costs, the Indian
interested in setting up such plants can bid is being prepared following the suggestions Navy said. Through efficient ship design
for the least amount of subsidy required from an inter-ministerial panel that was set and operations along with mass energy
to be competitive in the market. Under the up by the department of industrial policy conservation awareness drives that are
project, the government plans to distribute and promotion. The government has revised conducted regularly at all commands and
total Rs 30,000 crore worth subsidy to the target of National Solar Mission (NSM) repair yards, the navy has saved approxi-
manufacturers and will also give them from 20,000 mW to 1,00,000 mW by 2022. mately Rs.12 crore annually. Furthermore,
business assurances. The proposed policy the navy has set itself an aggressive
target of 21 mw solar installation, to be
JNPT gears up to procure its power via solar energy
implemented in three phases. The initia-
project is expected to generate 32 lakh to tive is in line with the national mission of
35 lakh units. The long-term project, along mega watt to giga watt towards achieving
with a smaller solar project, that JNPT has 100 gw of solar installations by 2022, the
rolled on is likely to be commissioned next statement said. Additionally, the navy has
month. Already, Prime Minister Narendra pledged 1.5 per cent of its works budget
Modi has chosen JNPT as the hub for his towards renewable energy generation.
dream project of Make in India for export- Under this scheme, solar projects are
led growth. The project, also known as solar being undertaken at various naval stations
Jawahar Lal Nehru Port Trust (JNPT), farm, is in the tendering stage. It is expected across all commands. Naval Stations, with
the countrys biggest container cargo to be operational by 2017. The mega project scarce available land, have resorted to the
handling port, has embarked upon a major requires 125 hectares of land. Currently, deploying rooftop solar panels, it added.
solar power project. The 25MW project, documentation work is going on. The project The navy is also exploring the possibility of
estimated to cost around Rs 170 crore, has can be equated with the capacity to power harnessing renewable energy from oceans
the potential to meet nearly 55% of the 10,000 city homes. While JNPT is still to and feasibility of exploiting ocean thermal
ports requirement. JNPT requires about approach MSEDCL for the formalities, the energy and wave energy as sources of
60 lakh units of power a month. The solar project would be the biggest in the area. power, are being discussed.
June 2016
NewsBriefs | Renewable International National

With solar boom, MNRE targets 16,660 MW of fresh capacity Government plans to unveil solar zones
current fiscal, solar segment is expected policy in June
to achieve its highest-ever annual capacity
as the target has been set at 12,000 MW,
followed by wind (4,000 MW), bio power
(400 MW), small hydro (250 MW) and
waste-to-power (10 MW). The Ministry is
confident of achieving its significant capacity
addition in solar this fiscal as it had tendered
20,000 MW worth projects during the
previous year. During the first month (April)
The Union Ministry of New and Renewable of this fiscal, renewable energy sector has
Energy (MNRE) has set the highest ever added about 237 MW of capacity of which
capacity addition target for the clean power 235 MW came from solar sector. As of
sector this fiscal. It has set a new capacity April, 2016, total grid-connected installed
addition target of 16,660 MW close to renewable power capacity stood at 43,087
four times the capacity target that the MW. Total installed capacity of wind power
government set in the previous year. In the stood at 26,867 MW. To encourage solar power generators and
equipment manufacturers, the New and
Govt lines up over Rs 16k crore to support rooftop solar projects
Renewable Energy Ministry will unveil
The government has lined up almost $2.5 a policy on solar zones that would be
billion (about Rs 16,800 crore) for providing spread over one or more districts of a
low cost finance to achieve the target of state. We have been working on a new
installing 40 GW grid-connected solar rooftop policy for solar zones, which would be
systems. The ministry is in negotiations with spread over one or even more districts of
the KfW Development Bank to secure soft a state to encourage generators as well 57
loans of 1 billion euro. They have already as equipment manufacturers, Ministry
provided $100 million funding, The Ministry of New and Renewable Energy Joint
of New and Renewable Energy (MNRE) Secretary Tarun Kapoor said. The work
Secretary Upendra Tripathy said. The on the policy is almost complete and it
World Bank has committed a loan of $620 rates, Tripathy said. The secretary further will be launched next month, he added.
million, with the Asian Development Bank said in the current fiscal, MNRE is trying to Under the policy, the developer will be
and the New Development Bank pledging arrange an investment of Rs 6,000 crore for provided with inputs like land availability
$500 million and $250 million, respectively, rooftop solar projects. The power generated and power evacuation locations for plan-
he added. This will enable participating from solar rooftop plants installed even today ning his project, the official said. Unlike
commercial banks such as SBI, PNB and is almost at par with the commercial tariff for solar parks, the developer would have to
Canara Bank to extend loan at or near base consumers in many states. acquire land for the project and the min-
istry in collaboration with the states will
Govt eyes 10,000 solar, wind, and biomass projects in 5 years
provide input about availability of land.
of the draft national policy on renewable The developer will be free to arrange
energy-based micro and mini grids released land for the projects as he would have
by the Union ministry of new and renew- option of either buying or getting land on
able energy (MNRE). A mini grid includes lease for the purpose. Government would
a renewable energy power generator with develop transmission network in each
a capacity of 10 KW and above, supply- solar zone for evacuation of power at dif-
ing electricity for residential, commercial, ferent points to facilitate the developers,
institutional or other users. Micro grids are Kapoor said. He further said that each
similar, but will have capacity below 10 KW. solar zone would have a central office,
The ministry has sought comments from all which will be set up with the support of
stakeholders by 20 June. The objective of state governments to guide the develop-
The central government has set a target the policy is to promote the deployment of ers. Government plans to add 10,500 MW
to start at least 10,000 solar, wind and micro and mini grids powered by renewable of solar power generation capacity during
biomass-based power projects in five years, energy sources such as solar, biomass, pico the current fiscal. Besides it wants to
which will serve small groups of customers, hydro, wind in un-served and underserved encourage solar equipment manufactur-
especially in rural areas. The target is part parts of the country, said the draft policy. ing capacity in the country.
June 2016
NewsBriefs | Renewable States

Delhi govt aims to generate 1,000 MW solar power in five years
Maharashtra makes most power, but
solar power capacity in Delhi by the year taps little from sun
2020. It is also proposed to double it to 2GW
during the next five years (by 2025). The
policy outlines a combination of regulations,
mandates, incentives and tax breaks for
the growth of rooftop solar power in the
Capital, Delhi power minister Satyendar
Jain said. The policy has been prepared
in consultation with the Delhi Dialogue
Commission after extensive consultations
with local and international experts. The
The Delhi government recently approved Energy Efficiency and Renewable Energy
the Delhi Solar Energy Policy, aimed at Management Centre (EE&REM) under the
generating 1,000 MW solar power in the Delhi power department will act as the state Even as India crosses 5000 MW solar
next five years. The policy recommends nodal agency and will be responsible for the power generation this year, Maharash-
installation of 1GW (1,000 mega watts) effective implementation of this policy. tra, the largest power-producing state
in the country, lagged behind in extract-
MPs Rewa Ultra Mega Solar to sell power to Delhi Metro ing electricity from the sun. As per
the statistics released by the central
The Delhi Metro Rail Corporation (DMRC) government for top 10 states generat-
has signed a power purchase agreement ing solar power, Maharashtra stood at
(PPA) with Madhya Pradeshs Rewa Ultra fifth position with power generation at
Mega Solar Ltd (RUMSL) to get green a meagre 379 MW. Indias cumulative
power from the latter to run its trains in installed capacity has reached to 5,130
58 the national capital. Managing Director of MW, with installed capacity of 1385
DMRC Mangu Singh inked the PPA with MP MW set up during the current fiscal.
New and Renewable Energy Department Rajasthan stands first in the country
Principal Secretary Manu Shrivastava on with 1264MW, followed by Gujarat
behalf of RUMSL in Delhi recently. DMRC (1024MW), Madhya Pradesh (679MW),
will get 150 to 200 MW green power daily Madhya Pradesh Urja Vikas Nigam (MPUVN) Tamil Nadu (419MW), Maharashtra
from RUMSL from next year. RUMSL is have joined hands to facilitate setting up (379MW) and Andhra Pradesh (357MW).
raising the worlds largest solar power of the green power station, christened Currently, the states share of renew-
station of 750 MW in Rewa district and its RUMSL, on 1,500 hectares area at Bandwar able energy in its total generation
three units of 250 MW each are expected region in Gudh tehsil of Rewa district, said is around 9% and it has a target of
to go on stream by June, 2017, he said. Shrivastava, who is also the Managing enhancing it to 15%.
The Solar Energy Corporation of India and Director of MPUVN.
RE capacity addition to reach 72 percent of peak demand in Tamil Nadu
The renewable energy capacity addition is the Assocham-EY paper pointed out that
likely to reach 72 per cent of its peak demand against the peak electricity demand of 29,975
by 2022 in Tamil Nadu, says a report. Tamil MW, the projected installed capacity of the RE
Nadu has done a tremendous development resources would be 21,508 MW. The other
when it comes to adding capacity of renew- progressive states in the area of RE are Gujarat
able energy (RE), which is projected to reach and Rajasthan. But the interest is still limited
even 72 per cent of its peak demand by 2022, to a few states.., Assocham Secretary General
according to a joint Assocham-EY paper. At D S Rawat said. Gauging the conventional
present, the state has an installed capacity of capacity addition growth between 2014 and
over 8,300 MW of non-conventional energy 2022, it is clearly seen that Tamil Nadu is add-
which is about 40 per cent of the total capacity the 40 per cent ratio of the installed capacity, ing capacity beyond its demand. This beckons
installed, including the conventional sources of the RE sources supply just about 14 per cent of for a robust market mechanism to accom-
thermal and hydro. However, the problem re- the states peak demand, thanks to inadequate modate RE power within the state and also
mains about a huge gap between the installed infrastructure to evacuate the power to the explore market mechanism to trade its power
RE capacity and its actual generation. Against grid and the natural limitations. All the same, to the RE deficit states, the paper suggested.
June 2016
NewsBriefs | Renewable International

Jinko claims No 1 global solar module maker position for 2016
Zambia plans to have sub-Saharan
ers for the first time. It expects annual Africas cheapest electricity using
solar power
production capacity of 6GW to 6.5GW in
2016, and a gross margin of 21.3 per cent,
reflecting the strength of the current solar
market. Despite the steep drop in the price
of crude oil and other economic volatili-
ties, global demand for solar is growing
Chinese manufacturer JinkoSolar expects steadily, CEO Chen Kangping said. Chen
to be the top solar module manufacturer said the company would take a cautious
in the world in 2016 after posting record approach to expansion perhaps conscious
shipments in the first quarter of 2016. The of the problems facing US solar giant
10-year-old company announced total ship- SunEdison and the debt issues facing other
ments of 1,600MW in the March quarter, Chinese manufacturers. This expansion
more than double the same quarter a year should only allow us to meet the minimum
ago, allowing it to claim the top position expectation for the market demand in the Disappointed by hydroelectric power
among tier one solar module manufactur- future, he said. reduced by drought, Zambia is turning to
the sun. The landlocked country plans to
Wind and solar drive rise in renewable generation in Australia build two solar projects that will charge
the lowest tariffs in sub-Saharan Africa,
A 20 per cent increase in wind and solar according to the Zambian Industrial
energy generation in 2015 have combined to Development Corporation. Solar power
deliver another annual increase in the amount development comes as Lake Kariba,
of Australias electricity sourced from renew- the main source of Zambias electric-
ables, more than compensating for a drop ity, is at a just 12% of its capacity. The
in hydro production, a new report has found. worlds largest man-made lake lies on 59
The Clean Energy Australia Report 2015, the Zambezi River between the Zambian
describes 2015 as a tough year all round for and Zimbabwean border and produces
the renewables industry, with low rainfall 600MW and 750MW for the two coun-
in Tasmania affecting hydro output, and the energy for the year was 4.9 per cent, just 1 tries, respectively. The two solar projects
effects of extended policy uncertainty still per cent less than hydro, which made up 5.9 will provide electricity priced at 6.02c/
hampering investment in the sector. Never- per cent of total electricity generated. House- kWh and 7.84c/kWh, respectively. Those
theless, electricity generated by renewables hold and commercial solar PV, accounted for prices will remain fixed for 25 years, the
increased in 2015 to 14.6 per cent, the report 2.4 per cent of electricity generated in 2015, corporation said. Zambians using over
said, which was enough to power the equiva- while large-scale solar accounted for just 300kWh in their homes pay about 51c/
lent of 6.7 million average homes. The total 0.12 per cent. Bioenergy contributed 1.3 per kWh on the current energy tariffs with a
percentage of electricity generated by wind cent for the year. standard 31c/kWh for commercial use.
Dubai to build worlds largest concentrated solar power project
Dubai Electricity and Water Authority said he was aiming to receive bids of around
(DEWA) has launched the worlds largest 8 cents. The facility will be completed either
concentrated solar power (CSP) project in late 2020 or early 2021, depending on
which will generate 1000MW of power when the contract. An advantage of CSP is that
completed. Located within the Mohammed thermal heat, which is used to produce elec-
Bin Rashid Al Maktoum Solar Park, the new tricity, can be stored easily. This is makes
project will include five facilities. DEWA has possible to produce electricity after sunset,
launched a tender for international consul- said Al Tayer. The plant will have several
tants to submit a proposal for advisory ser- thousand heliostats located around a tower
vices for the first 200MW plant. The tender which will receive the radiation reflected by
for the consultant is expected to be awarded the heliostats. The heat-transfer fluid is then
in three months, confirmed DEWA managing following three months, he added. We will used to power the steam turbine to generate
director and chief executive officer Saeed decide the winner based on the lowest bid, electricity, he explained. The overall project
Mohammed Al Tayer. The next tender for he said. While current rates for CSP stand at will be developed in a build and operate
the main developer will be floated after the around 15 cents per kilowatt hour, Al Tayer model for a duration of 25 years.
June 2016
InConversation
We are not for competitive
bidding in wind projects
Encouraged by the enthusiastic industry response to tariff-based competi-
tive bidding regime in the solar sector, the Union Power Ministry considers
introducing a similar dispensation for wind power projects too. However,
wind power industry does not seem to be prepared for the proposed
policy change. DV Giri, Secretary General, Indian Wind Turbine Manufac-
tures Association, says solar and wind are two different ball games. What
has worked in solar may not be replicated in wind. Giri shares industry
concerns about tariff bidding regime with InfralinePlus. Excerpts
Is your association open to will help the industry further

participating in tariff bidding for bring down tariff?
supply of electricity from wind Wind Turbine Technology Research
projects? and Development and upgrade are an
Our association and industry are not for ongoing process. Our thrust today is on
DV Giri, Secretary General, Indian Wind Turbine
competitive bidding. While we say this, maximising energy generation in low Manufactures Association
60 it is not about bidding part. The climate and medium wind regime by increasing
required for proper bidding should have the hub height and enlarging rotor with wind resource assessment happens over
all constituents like wind data, land suitable Aero foil design to maximise long period. Wind Energy is also very
availability, Right-of-the-Way (ROW), energy generation. Any increase in mature in technology, standardisation,
grid availability and grid stability. In the hardware will increase the price. International Accreditation, Manufac-
absence of such details and without as- turing in India, Localisation, contribut-
surance of grid availability and without Steel prices are ruling at historic ing to Make in India, whereas Solar
flexibility to back down, wind power lows? Has the wind industry is a more of a service- based economy
competitive bidding will not make sense. been able to take advantage of of imports.
the lower material costs?
The Ministry of New & In wind energy one should not purely What does the Government need
Renewable Energy (MNRE) rely on CAPEX and should look at to do ensure that the target of
has implemented Repowering generation and cost of generation. 60,000 MW capacity by 2022 is
scheme for wind turbines. How Major contributors to tariff is high achieved?
do you look at it? interest and other related EPC costs MNRE is doing all it can do to intro-
MNRE invited suggestions on the Re- which are going up. Steel prices are duce National Renewable Purchase
Powering policy and the industry has historically low but Governments Obligation (RPO) which will be bind-
responded. In principle, it is a good idea imposition of Safeguard Duty and ing in all the states, facilitating Inter-
and done globally because land is a finite Minimum Import Price has pushed State transactions, Wind Solar Hybrid
source, small. First-generation turbines the tower cost by almost Rs 20 lakh Repowering and Storage.
need to be repowered by the state-of-the- per turbine. National RPO and Inter-State
art, Mega Watt-sized ones. The challenge transactions, supported by continuity
is existing PPA with the utility and lack Apart from tariff bidding, what in Policy of AD and GBI, will hold the
of incentive for the land owner to give up are the aspects of the solar key. One should not forget that almost
his land or go for the powering. policy that can be replicated in 90-95 per cent of the investment is
wind generation? driven by private sector.
Do you think future advancement Wind and Solar are very different and
in wind generation technology to highlight, wind is site-specific and For suggestions email at feedback@infraline.com
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June 2016
InDepth
Financing woes may cast
shadow on Indias solar target
62
Financing, land acquisition and power evacuation key concerns

Tariff for solar still remain much higher compared to conventional power
India is banking on its solar power power, problems still continue in other land at an affordable price. According
programme to bring down the carbon in- areas including financing, land acqui- to industry estimate, for developing
tensity of the economy by 33-35 per cent sition and power evacuation. Solar 1,000-1,500 MW solar capacity, 4,000
by 2030 from 2005 level. In that context, power target set by the government is 6,000 acre of land is required. But
the target of adding 1 lakh MW solar aggressive. To make it achievable and today such huge tracts of land are
capacity assumes critical significance. functional, issues like ease of doing available at remote locations only.
But India could well miss the target if it business, grid suitability, encour- Cost of acquiring land has gone four
does not get its act together soon. agement to domestic equipment manu- times after coming into force of the
While the Centre has approved a facturers and remunerative tariffs are new Land Acquisition Act, which is
new debt recast scheme for restruc- needed, said Tantra Narayan Thakur, going to limit land availability for solar
turing and repricing of outstanding a former PTC India chairman and man- projects to remote areas. But setting up
loans of power distribution companies aging director who is now operating as solar projects in such areas could throw
(Discoms) to improve liquidity in the an independent consultant. up new power evacuation challenges.
state power sector, a key bottleneck A key hurdle to implementing mega The NDA government has approved
to encouraging consumption of solar solar projects is the availability of a proposal for setting up 25 solar parks,
June 2016
each with a capacity of 500 MW and sheets, majority of public sector banks liability mismatch risks, the rating
above, and ultra mega solar power have done huge provisioning against agency said.
projects in various parts of the country bad loans in the third quarter and as a Large investors such as pension
where large chunks of land can be result, taken a hit on their bottom-lines. funds, provident funds and insurance
spared for this purpose. These parks The process is not yet over. So, raising companies have significant corpuses but
will be able to accommodate over equity from market may not be easy regulations allow them to invest only
20,000 MW of solar power projects. for these banks as private investors in high-rated debt. The government
However, finding land for such projects are unlikely to take exposure to them. has yet to come up with a proposal
in areas where connectivity is already Rating agencies have warned that they for debt funding beyond the banking
in place may not be easy. If these parks may start downgrading public sector system. The government increased
are developed in remote areas, they banks if convincing recapitalisation solar mission target from 20,000 MW
are likely to get delayed due to lack plans are not brought forth soon. to 1 lakh MW in 2014. As a first step
of basic infrastructure facilities like According to Crisil, a credit rating towards achieving this target, close to 7,
roads, rails, power availability, telecom agency, solar and wind sectors need 000 of state and National Solar Mission
networks, etc, which would make Rs 3 lakh crore over next five years. projects were allocated in 2015. Of this
transportation of equipment, machinery Of this, about 70 per cent, or Rs 2 lakh 7,000 MW, 1,200 MW was allocated
and other materials to project sites dif- crore will have to be funded through under the NSM, while 5,900 MW was
ficult. That would in turn raise project debt. But banks are not in a position to allocated by states such as Telangana
cost, making power expensive. lend so much money given their low and Tamil Nadu.
appetite for renewable power projects. The solar market in India almost
Financing issues The ability of banks to fund longer- doubled to 2,000 MW in 2015 as
Public sector banks, which together tenure debt with attractive interest rates compared to 800 MW in 2014. In
account for 70 per cent of lending, have is also constrained because of asset- 2015, the southern states of Tamil
burnt their fingers by financing power Nadu, Telangana and Andhra Pradesh 63
and other infrastructure projects and are emerged as the fastest-growing
The government has
now reeling under bad loans. The plans markets, overtaking Gujarat and Raja-
unveiled by the government for recapi-
promised to infuse Rs sthan. Tariff for solar projects is falling
talisation of banks do not offer much
70,000 crore in public as a trend. Tariff of less than Rs 5 a
hope of improvement in these banks sector banks in five unit is the new normal. In the first two
health. The government has promised to years. However, Fitch rounds of NSM second phase bids in
infuse Rs 70,000 crore in public sector Rating agency has in November and Dec 2015, lowest offer
banks in five years. However, Fitch Rat- a recent update said was Rs 4.63 a unit.
ing agency has in a recent update said that these banks need However, tariff for solar power
that these banks need more than 140 bil- more than 140 billion projects still remain much higher
lion dollar if they are to be recapitalised dollar if they are to compared to conventional generating
in a meaningful manner. be recapitalised in a stations. For example, the delivered cost
Following directive from the meaningful manner of power generated from the mega solar
Reserve Bank to clean up balance projects which will be commissioned in
AP and Rajasthan is in the range of Rs
8.4 a unit based on the power purchase
agreement (PPA) signed in 2015, which
is expensive compared to the power
available from grid.
Although there is hope that this
cost will decline to Rs 7.3 a unit in
coming days due to fall in equipment
cost as supply chains become more
effective and competition picks
up, that would still be much higher
compared to conventional plants. So,
the goal of grid parity for solar power
may remain elusive.
June 2016
InDepth
Transmission bottlenecks
The milestone of 5,000 MW has
already been reached in solar power
and capacity is expected to cross 9,000
MW by the end of 2015-16. Capacity is
projected to further rise to 20,000 MW
by the end of 2016-17, far ahead of the
2022 deadline envisaged initially under
the NSM. However, existing transmis-
sion infrastructure is ill-equipped to ab-
sorb such bulk solar capacities. Further,
80 per cent of this new capacity will
be added by southern states of Tamil
Nadu, Andhra Pradesh, Telangana and
Karnataka where grid curtailment can like the rest of the world, India will need
be as high as 15 per cent. Out of a total 1,485MW to leave the comfort of almost com-
In contrast, Germany, which of capacity allotted by pletely relying on steady power sources
meets almost 7.5 per cent of its power states during October such as coal and nuclear and develop
requirement from solar energy, has a 2011-September 2014, a smart energy infrastructure, says
robust grid infrastructure and its gas- nearly 50 per cent proj- Bridge to India, a consultancy firm
fired plants help it in balancing the grid. focused on solar sector. Indias peak
ects with 680 MW ca-
So, it is clear that a lot more needs to be power requirement will also slowly
done on the transmission infrastructure
pacity missed their com- move to the day time as we grow and
fund if the target of adding 1 lakh MW
missioning schedule of develop and cooling will play an ever
64 December 2015. Out of
solar capacity is to be achieved. more important role. In the meantime,
this 680MW, nearly 10 measures such as dynamic pricing and
Project delays add to per cent projects remain time of the day tariffs can help, it adds.
concern stalled, according to So, despite initial success and over-
Another important concern is the rising industry sources whelming investors response, it is not
number of project delays in the solar going to be easy for India to achieve the
sector. Out of a total 1,485MW of ca- Skepticism about suitability target of adding 1 lakh MW, let alone run
pacity allotted by states during October of solar power in India these plants at optimum capacity. But the
2011-September 2014, nearly 50 per Meanwhile, in a reflection of growing situation is tricky for India as the success
cent projects with 680 MW capacity scepticism about solar power, questions of its emission reduction plan hinges on
missed their commissioning sched- are also being raised about suitability solar capacity addition programme.
ule of December 2015. Out of this of this electricity for meeting Indias Although Indian solar market has
680MW, nearly 10 per cent projects power requirement given that genera- seen aggressive bidding in recent years,
remain stalled, according to industry tion from solar plants falls drastically in with tariffs coming down to as low as
sources. The high percentage of proj- the evening when power demand shoots Rs 4.63 a unit, industry experts feel
ects getting delayed does not inspire up. But proponents of solar do not that this trend is not sustainable. They
confidence that 1 lakh MW capacity find much merit in this argument and argue that investors need attractive
will be added by 2022. underline the significance of solar plants returns on equity which may become
India currently lacks long term in meeting season peak power demand. difficult to generate if tariff keeps falling
policy clarity which remains a key They say that hydel plants, which are at this rate. Anyway, most of the solar
challenge for such mega projects. currently used to provide relief from projects are being funded by foreign
While central and state governments peak hour power shortage, achieve financial institutions like Germanys
have offered incentives to attract peak generation during monsoon while Kfw and Japans SoftBank. They may
investment into solar power, there Indias seasonal peak comes during exit the Indian market if solar projects
is no clarity if such policies will be summer when solar plants generate most here become unviable due to aggressive
continued beyond the specified period. As intermittent sources of power bidding, experts warn.
That would act as a limiting factor for become cheaper and diversification for
the growth of large-scale solar projects. energy security becomes a necessity, For suggestions email at feedback@infraline.com
June 2016
FinancialResults
Suzlon Q4 loss narrows to Rs 270.55 crore on lower expenses Jain Irrigation Q4 net profit drops 22
percent
of Rs.9157.69 crore a year ago. Full-
year income from operations fell 52% to
Rs.9508.45 crore. The previous year num-
bers include performance of Senvion SE,
which the company sold last year. Annual
Wind turbine maker Suzlon Energy Ltd sales volume at Suzlon Wind rose 149%
said that its consolidated loss in the quar- to 1,131 MW and market share during the
ter ended 31 March narrowed to Rs.270.55 fiscal rose to 26% from 19% a year earlier.
crore as against a loss of Rs.1212.06 crore Globally, the demand for renewables is Leading micro-irrigation company Jain
in the year-ago period, helped by lower growing with a record 64 GW installation Irrigation reported 22 per cent fall in its
expenses and faster execution of projects. and an investment of $329 billion during standalone net profit at Rs 64.4 crore in
Revenue, however, fell about 34% to calendar year 2015. The demand for clean, the fourth quarter of the 2015-16 fiscal on
Rs.3,244.93 crore from Rs.4,908.83 crore sustainable and affordable power will poor sales. The company had posted net
a year earlier. Total expenses fell 43.7% to continue especially in emerging markets, profit of Rs 82.6 crore in the same quarter
Rs.2972.50 crore as the company lowered chairman and managing director Tulsi of the previous fiscal. Domestic business
its fixed costs. The company had in April Tanti said. The companys full-year order de-grew by 7.4 per cent. Exports revenue
merged its subsidiaries SE Blades Ltd, SE book stood at 1,243 MW and is valued at continued to show negative growth and
Electricals Ltd and Suzlon Wind Interna- Rs.7,989 crore. Consolidated net debt, de-grew by 10.7 per cent, Jain Irrigation
tional Ltd with itself to optimize working excluding foreign currency convertible said. The companys total revenue declined
capital and reduce costs. For the full-year, bonds (FCCB), had come down to Rs.8,452 to Rs 1,480 crore in the January-March
Suzlon reported a consolidated net profit crore in 2015-16 from Rs.14,570 crore in quarter of the 2015-16 fiscal, as against
of Rs.482.59 crore compared with a loss 2014-15. Rs 1,610 crore in the year-ago period. The
revenue from its micro irrigation, pipes
Indosolar posts net loss of Rs 29.77 crore for Q4 and food segments remained lower during
the fourth quarter of last fiscal ended 65
Solar cell maker Indosolar Ltd reported March 31. Domestic sales were also down
a loss of Rs 29.77 crore for the March due to severe drought. However, its solar
quarter. The company had posted a net business grew more than 48 per cent in
profit of Rs 80.91 lakh in the quarter the said period. For the full 2015-16 fiscal,
ended on March 31, 2015. The solar the company reported a consolidated net
industry has witnessed turmoil owing to profit of Rs 88.27 crore as against Rs 55.4
significant downturn in global market due companys total income operations in the crore in the previous year. Total income
to structural over supply situation, the March quarter was Rs 99.5 crore com- increased marginally to Rs 6,455.9 crore
company said. However, the company said pared to Rs 147.63 crore in same period from Rs 6,314.6 crore. The company has
the domestic market has been showing last year. Its total income in fiscal 2015- manufacturing plants at 28 locations
an upturn lately due to the government 16 was Rs 257.68 crore compared to Rs across the globe. It manufactures micro-
initiatives to enhance solar power genera- 295.97 crore in the previous financial year. irrigation systems, PVC pipes, HDPE pipes,
tion capacity in the country. The company The company reported a loss of Rs 141.27 plastic sheets, agro-processed products,
expects to operate at the significant level crore for the fiscal 2015-16. renewable energy solutions, among others.
of capacity at least till July, 2016. The
IREDA half-yearly profit declines 6% to Rs 151 crore
State-run Indian Renewable Energy projects and schemes for generating

Development Agency (IREDA) reported electricity and/or energy through new and
a 5.56 per cent decline in net profit renewable sources and conserving energy
at Rs 151.49 crore for the six months through energy efficiency among others.
period ended March 31. The company
had reported a net profit of Rs 160.42
crore in the same period a year ago. The
total income of the company declined
to Rs 568.01 crore from Rs 583.35 crore ratna under the administrative control of
in the year-ago period. Tt has paid an Ministry of New and Renewable Energy
interim dividend of Rs 150 crore to the (MNRE). The main objectives of IREDA
government on March 31. IREDA is a mini are to give financial support to specific
June 2016
StatisticsRenewableEnergy
1) Programme/ Scheme wise Physical Progress in 2016-17 3. Commissioning Status of
(& during the month of April, 2016) Grid Connected Solar Power
Programme/ Scheme wise Physical Progress in 2016-17 Projects (as on 30-04-16)
(& during the month of April, 2016)
Total commis-
Cumulative Sr. sioned capac-
Sector FY- 2016-17 Achievements (as State/UT
No. ity till 30-04-16
on 30.04.2016) (MW)
Target Achievement
I. GRID-INTERACTIVE POWER (CAPACITIES IN MW) 1 Andhra Pradesh 792.966
Wind Power 4000.00 .45 26867.11 2 Arunachal Pradesh 0.265
Solar Power 12000.00 235.00 6997.85
3 Bihar 5.1
Small Hydro Power 250.00 1.50 4275.45
BioPower (Biomass & Gasification 4 Chhattisgarh 93.58
400.00 0.00 4831.33
and Bagasse Cogeneration) 5 Gujarat 1119.173
Waste to Power 10.00 0.00 115.08
6 Haryana 15.387
Total 16660.00 236.95.05 43086.82
II. OFF-GRID/ CAPTIVE POWER (CAPACITIES IN MWEQ) 7 Jharkhand 16.186
Waste to Energy 15.00 0.00 160.16 8 Karnataka 145.462
Biomass(non-bagasse) 9 Kerala 13.045
60.00 0.00 651.91
Cogeneration
Biomass Gasifiers 2.00 0.00 18.15 10 Madhya Pradesh 776.37
- Rural 11 Maharashtra 385.756
- Industrial 8.00 0.00 164.24
Aero-Genrators/Hybrid systems 0.30 0.00 2.69 12 Odisha 66.92
SPV Systems 100.00 0.00 313.88 13 Punjab 405.063
66
Water mills/micro hydel 1.00 0.00 18.71
14 Rajasthan 1285.932
Total 186.30 0.00 1329.74
III. OTHER RENEWABLE ENERGY SYSTEMS 15 Tamil Nadu 1061.82
Family Biogas Plants (in Lakhs) 1.10 0.00 48.55 16 Telangana 527.843
Source: MNRE 17 Tripura 5
18 Uttar Pradesh 143.495
2) REC Trading Volume and Price for February 2016 19 Uttarakhand 41.145
Through IEX 20 West Bengal 7.772
Buy Cleared Cleared No. Of 21 Andaman & 5.1
Sell Bids Month of
REC Type Bids Volume Price Partici- Nicobar
Auction
(REC) (REC) (REC) (INR/REC) pants
22 Delhi 14.28
Solar 17,113 2,801,352 17,113 3,500 482 23 Lakshadweep 0.75

May 2016
Non-Solar 88,923 7,688,639 88,923 1,500 830 24 Puducherry 0.025
25 Chandigarh 6.806
Source: IEX
26 Daman & Diu 4
27 J&K 1
Through PXIL
28 Himachal Pradesh 0.201
Buy Bid Sell Bid MCP MCV
Month of 29 Mizoram 0.1
REC Type (No. of (No. of (INR / (No. of certificate)
Auction
certificates) certificates) Certificate) Qty. (MWH) 27 Others (PSU/ 58.311
channel partner)
Non Solar 7293 5253591 1500 72935 under Rooftop
May 2016
Solar 2970 707321 3500 2970
TOTAL 6998.853
Source: PXIL Source: MNRE
June 2016
4. Status of Solar Pumps sanctioned during 2014-15 (As on 30.04.2016)

Sanctioned (S) Achievement (A)
Achieve-
S. No. State/UT Drinking Drinking Category Status
Irrigation Irrigation ment in %
water Water
1 Andhra 6725 1000 5315 500 75 A To be Completed in
Pradesh June 16
2 Gujarat 2500 500 2134 0 71 A under Implementation
3 Tamil Nadu 5150 500 2669 0 47 B under Implementation
4 Madhya 3000 750 1719 0 46 B under Implementation
Pradesh
5 Uttar 7100 1500 3700 0 43 B Closed with 3700
Pradesh Pumps
6 Karnataka 5225 500 2386 0 42 B under Implementation
7 Rajasthan 9902 2000 4000 0 34 B under Implementation
8 Chhattisgarh 2740 2000 864 456 28 B under Implementation
9 Odisha 2560 2000 0 1100 24 B under Implementation
10 Bihar 3516 1500 216 0 4 B under Implementation
11 Haryana 873 0 0 0 0 C Tendered
12 Jharkhand 1400 2000 0 0 0 C Tendered
13 Kerala 1380 0 0 0 0 C Tendered
67
14 Maharashtra 7540 0 0 0 0 C Order Placed
15 Telangana 4225 869 0 0 0 C Tendered
16 Meghalaya 0 100 0 0 0 D Cancelled
17 Arunachal 0 100 0 0 0 D To be Cancelled
Pradesh
18 Mizoram 0 11 0 0 0 D Cancelled
19 Punjab 1600 0 0 0 0 D No progress
Category:
Total 65436 15330 23003 2056
A- Work completed more than 50%
B- Work started but less than 50%
D - No
Grand Total 80766 25059 Progress / C- Tendered
cancelled
D - No Progress /cancelled
Source: MNRE
June 2016
OffBeat
Surging crude prices spell
trouble for airlines
Indias domestic air traffic market posted the fastest growth in the world for
the 13th consecutive month in April
The Union Budget 2015-16 a mixed blessing for the aviation sector
68
Aviation companies have been on a roll So far, airlines have been able to 2014 and passenger demand growth re-
because of the drastic fall in interna- pass on the fuel cost increase to pas- mains robust, India aviation companies
tional crude oil prices since June 2014. sengers because of the strong growth should start bracing for tough times
However, after hitting their lowest in air traffic. But there is a limit to it. ahead given the cyclical nature of the
level this January, oil prices are surging If airlines keep on increasing ticket industry, say analysts.
again, threatening to spoil airlines prices, they could end up hurting pas- I do not see rising oil prices
party. Oil marketing companies have senger demand, say analysts. impacting profitability of airlines in
hiked the price of aviation turbine fuel the current financial year as domestic
(ATF) by a steep 9.2 per cent effective Coping strategy in a high fuel passenger demand is strong. But it
June 1. Since fuel accounts for up to price scenario is time for airlines to think of inno-
40-45 per cent of Indian airlines oper- Though oil prices are still far below the vative ways to manage the impact of
ating costs, there is pressure on airlines levels of above 100 dollar per barrel rising fuel price and not to sit on their
to pass on the increase to passengers. they reached before crashing in June haunches, says Rajiv Chib, director,
June 2016
aerospace and defence consulting,

PWC. Domestic air traffic grew by an
impressive 21 per cent in April.
Chib warned that if the industry
does not pull up its sock now, it could
face a serious viability problem by next
year and might be forced to seek gov-
ernments help if oil prices rise too fast.
Taking cues from the international
market, oil companies increased jet fuel
price in the fourth straight month in
June from Rs 3,945.47 to Rs 46,729.48
per kilolitre. Flying has also become
costlier due to the introduction of a
0.5 per cent Krishi Kalyan cess by
Finance Minister in this years budget,
which is also effective from June 1.
Significantly, Indias domestic air
traffic market posted the fastest growth
in the world for the thirteenth consec-
utive month in April. It grew by close countries, the move to raise excise
to 22 per cent during the month. Taking cues from the duty did not go down well with the
international market, oil industry. If ATF prices surge too fast,
Low ATF fuel price has fueled companies increased the increased excise duty could start 69
growth in air traffic biting airlines, potentially forcing the
The high growth was because of lower
jet fuel price in the government to reduce excise duty and
fuel prices and substantial increase in the fourth straight month in soften the impact of high fuel prices on
number of flights operated by the domes- June from Rs 3,945.47 the industry, said analysts.
tic carriers. The lower air fuel prices to Rs 46,729.48 per At the same time, to give a boost
have acted as a stimulus for air traffic kilolitre. Flying has also to Make in India programme, Jaitley
growth over the past few months, en- become costlier due accepted a long-pending demand of
couraging people to take flights for their the industry to rationalise taxation on
summer holiday travel, experts said.
to the introduction of maintenance, repairs and overhaul
In April, ticket prices were down by a 0.5 per cent Krishi (MRO). The Finance Minister
nearly 35 per cent on domestic and 16 Kalyan cess by Finance announced sops include zero service
per cent on international routes com- Minister in this years tax on MRO, services, simplification
pared to the same period the previous budget, which is also of import processes for aircraft spares,
year, fueling a strong growth in pas- effective from June 1 exemption on customs duty for mainte-
senger traffic. nance tools and tool kit and removal of
ship with state governments. Plans to the one year window restriction period
Union budget 2015-16 build no-frills, low cost airports have for using duty free parts.
The Union Budget 2015-16 proved also been envisaged in the Draft Civil Civil Aviation Minister Ashok Gaja-
to be a mixed blessing for the avia- Aviation Policy. pathy had earlier said that the finance
tion sector as the governments push As the sector cheered the ministry has been sympathetic to the
to improve regional connectivity by announcement, it soon turned out that demand for tax relief to the MRO
reviving 160 airports was nullified by a the budget was not all roses. The excise industry. The earlier tax regime meant
hike in excise duty on aviation turbine duty on air turbine fuel was hiked from that Indian MROs were 20-30 per cent
fuel. In a bid to give a boost to regional 8 to 14 per cent, which partly eroded costlier compared to other companies,
connectivity, Finance Minister Arun the cushion that airlines were enjoying leading even airlines here to repair their
Jaitley allocated a sum of Rs 50-100 due to the steep fall in crude oil price. aircraft in foreign countries, including
crore to revive 160 non-functional At a time when ATF in the domestic Sri Lanka and Singapore. The size of
airports across the country in partner- market already cost more than in other the domestic MRO industry is esti-
June 2016
OffBeat
mated at 750 million dollar. rise to some improvement in revenue policies focused on ease of doing
Meanwhile, the government has per available seat kilometre (RASK)- business and enhanced push for
reduced budgetary allocation to the cost per available seat kilometer regional and global connectivity are
civil aviation ministry by 17 per cent (CASK) spread, it adds. extremely positive.
to Rs 4,417 crore. Out of this, state run With rising competition, the credit On the other hand, Brent crude has
airlines will be given Rs 2,065 crore rating agency further says, a strategy risen to nearly 50 dollar per barrel from
as grant, less than half of Rs 4,300 revisit by the airlines is necessary to the lowest level of 27.88 dollar per
crore that they had demanded from the maintain market position, possibly by barrel on January 20, registering 85 per
government. Before the crash of June offering differentiated services, better cent increase. World Bank data show
2014, high oil prices had haemorrhaged connectivity and competitive pricing. that the price of Brent crude averaged
finances of airlines, many of them got However, it adds that the prospects of at 47.1 dollar per barrel in May, sharply
back into the black in 2015-16. the Indian aviation industry in the near up from 42.3 dollar per barrel in April.
An analyst said that the actual to medium term are largely dependent Data show that global ATF price on
impact of excise duty hike will be on the movement in the crude oil prices June 3 was 59.1 dollar per barrel, 12.7
much higher, since sales tax is cal- and foreign exchange besides reform per cent higher compared to a month
culated over and above excise duty. measures. However, underpinned by ago, though still 23.8 per cent lower
State-level sales tax rates could be the improving operating performance, from a year ago.
anywhere between 4 per cent and 30 Indian Oil Corporation has raised
per cent. Airlines have been pleading It is clear that the ATF price by 20 per cent since March
for rationalisation of sales tax rates. Ad aviation industry is not 10 to align it with the international
valorem sales tax rates could have cas- factoring in a sharp rise market. The applicable ATF price, which
cading impact on the price of jet fuel. was 38,785.46 per kilolitre on March
However, excise duty on ATF for
in ATF price in 2016-17, 10, has been hiked to Rs 46,729.48 per
supply to scheduled commuter airlines a scenario that now kilolitre with effect from June 1. It is
70
from regional connectivity scheme looks too optimistic clear that the aviation industry is not
airports will remain unchanged. Riding given the surge in factoring in a sharp rise in ATF price in
high on strong air traffic growth, oil prices in recent 2016-17, a scenario that now looks too
airlines so far have been able to pass on months. The way crude optimistic given the surge in oil prices
increase in the fuel cost to passengers. in recent months. The way crude prices
However, passenger demand could get
prices have surged have surged in recent months, projec-
impacted if ticket prices rise too much. in recent months, tions on average ATF price in 2016 may
Shares of all three listed airlines projections on average prove quite off the mark.
Jet Airways (India) Ltd, InterGlobe ATF price in 2016 may Therefore, the industry needs to
Aviation Ltd (IndiGo) and SpiceJet prove quite off the mark pull up its socks and start preparing
Ltdfell after the Finance Min- for a high ATF price scenario. In
ister announced excise duty hike on the balance sheets of Indian carriers are other words, they must come out with
ATF. According to International Air expected to improve in FY2017. ideas as to how they can minimise the
Transport Association (IATA), airlines A recent FICCI-KPMG report says impact of surging fuel price on their
fuel bill will fall to 127 billion in 2016, that steps taken to revive and opera- bottomlines. Otherwise, the industry
which will represent less than 20 per tionalise around 160 airports in India, could find itself in a situation similar
cent of their total operating costs, for if chosen carefully, will improve air to what prevailed in 2013. ATF price
the first time since 2004. connectivity to regional and remote had reached the high of Rs 75,031
IATA has projected average price of areas. Public-Private Partnerships per kilolitre in September 2013 on
55.4 dollar per barrel this year, and 45 (PPP) in the sector will get substantial the back of rising crude oil prices
dollar per for the Brent crude oil price. support from the state in terms of and depreciating rupee. If CAD goes
Meanwhile, credit rating agency ICRA financing, concessional land allotment, out of control because of a spike in
says the airlines are providing deep dis- tax holidays and other incentives. crude oil price, rupee may come under
counts by utilising the buffer provided The report further states that the pressure, potentially forcing oil com-
by lower fuel prices, and maintaining National Civil Aviation Policy (NCAP panies to go for a sharp hike in jet fuel
healthy passenger load factor (PLF). 2016) is likely to provide a significant price, say analysts.
The current scenario of comparatively fillip to the industry. The various
steady yields and lower costs has given fiscal and monetary incentives, liberal For suggestions email at feedback@infraline.com
June 2016
Reports & Studies

India ranks 3rd in Renewable Energy Country Attractiveness Index
Indias renewable energy sector has been growing number of jurisdictions contract-
ranked third in the Renewable Energy ing utility-scale renewable energy through
Country Attractiveness Index (RECAI) competitive auction processes, renewable
with China at second and the US on energy is increasingly proving its mettle
top. The so-called emerging markets against conventional energy genera-
now represent half the countries in the tion. The index ranks 40 markets on the
40-strong index, including four African attractiveness of their renewable energy
markets featuring in the top 30. Just a investment and deployment opportuni-
decade ago, only China and India were ties, based on a number of macro, energy
attractive enough to compete with more market and technology-specific indicators.
developed markets for investment, EY said The methodology has been refreshed in
in the report. While the top three countries the May edition to reflect greater focus
maintained their ranking, Chile, Brazil latest ranking. Indias position is thanks on energy imperative, policy stability and
and Mexico climbed higher in the index to the strong focus of the government on routes to market.
to be ranked in the top 10 at the fourth, renewable energy as well as timely imple-
sixth and seventh, respectively. Germany mentation of renewable energy projects.
at fifth and France at eighth fell in the The report also suggests that with the
Timely pass-through of hike in power costs on account of coal price rise remains critical for discoms: ICRA
procurement, the ability of the distribution the balance 40%. This translates into about
companies to pass on such variation to the 6 paise per unit increase in power procure-
consumers through timely tariff adjustment ment cost for utilities on an all India basis,
under fuel and power purchase cost adjust- said Sabyasachi Majumdar, senior vice
ment framework remains important from president at ICRA Ratings. Assuming an 71
their cash flow perspective, feels ICRA. average aggregate technical and commer-
ICRA estimates that the recent domestic cial loss of around 25%, we estimate the
coal price hike would result in an increase impact on cost of power supply and retail
in cost of thermal generation by 9-10 paise tariffs at around 8 paisa per unit or a 1.4%
per unit. Coal based generators have an tariff hike, Majumdar. Coal India issued a
automatic pass through of fuel costs and it notification on May 29, 2016 revising prices
accounts for about 60% of the total power of pit head run of mine prices of all grades
Coal price hike announced by Coal India is procured by utilities. The rest would be a of non-coking coal effective from midnight
likely to result in 6 paise per unit rise in cost partial pass-through by independent power of May 30, 2016. The price of thermal grade
of power procurement by distribution com- producers with competitively bid power supplied to power sector has been increased
panies. Following increase in cost of power purchase agreements which account for by about 15-18%.
India global 5th in green energy jobs, China on top
India ranks fifth in the world in renewable activity, as the governments ambitious
energy (RE) job creation, with 416,000 RE targets are translated into concrete
employed in the sector during 2015. In the policy frameworks, Irena said. Central
world, 8.1 million persons are employed in and state auctions for solar photovoltaics
the clean energy space. China tops the list (PV), for instance, have resulted in
with 3.5 million, followed by Brazil with installation of 1.9 gigawatt (Gw) in 2015
918,000. According to the International and an impressive pipeline of 23 Gw.
Renewable Energy Agencys (Irena) Solar PV employs an estimated 103,000
Annual Review 2016, there was a five per this trend to continue as the business people in grid-connected (31,000 jobs)
cent increase over a year before in the case for renewables strengthens and as and off-grid applications (72,000 jobs)
sector, with new jobs being created even countries move to achieve their climate With increasing domestic demand, local
as employment in the broader energy targets agreed in (the) Paris (agreement), companies are utilising their production
sector falls. This increase is being driven said Adnan Z Amin, director-general of capabilities and several foreign companies
by declining RE technology costs and Irena. In this country, solar and wind are interested in investments, it said.
enabling policy frameworks. We expect energy markets have seen substantial
June 2016
People in News
S K Sharma takes charge as NPCIL CMD Cairn India MD and CEO Mayank
Ashar resigns
of nuclear power reactors. Sharma has
been appointed to the post for a period
of five years. Sharma completed his BE
(Electronics) degree from the Maulana Azad
National Institute of Technology (MANIT),
Bhopal in 1980 and graduated from the 24th
batch of Bhabha Atomic Research Centre
Training School in 1981. He started his
career at Rajasthan Atomic Power Station.
He has held several key positions in Indian
nuclear power stations, including that of Cairn India, the petroleum exploration
site director at Rawatbhata Rajasthan site, arm of London-listed Vedanta Resources
before assuming the position of Director announced its managing director (MD) and
Eminent scientist S K Sharma has (Operations) in 2015. He has also worked chief executive officer (CEO) Mayank Ashar
taken charge as the Chairman and in a key position for improving the safety had resigned for personal reasons with
Managing Director (CMD) of Nuclear and reliability of nuclear power stations effect from June 5, 2016. The company
Power Corporation of India Limited across the world in association with an has named chief financial officer (CFO)
(NPCIL). NPCIL is responsible for design, international team of nuclear experts in Sudhir Mathur as the interim CEO the
construction, commissioning and operation World Association of Nuclear Operators. fourth change of guard since Vedanta
completed Cairns acquisition in December
Indraprastha Gas Ltd appoints E S Ranganathan as Managing Director 2011. Mathur will continue to work closely
with the leadership team managing the
Ltd, the sole retailer of CNG to automobiles business under the guidance of the board,
and piped cooking gas to households in the the company said. Ashars two-year term
72 national capital. Ranganathan replaced was to expire later this year. His resigna-
Narendra Kumar, who has returned back to tion comes a few days after Cairn India
the companys parent firm, GAIL India Ltd. extended the repayment period for its
Ranganathan, an instrumentation and con- $1.25-billion loan to a group company by
trol engineer possessing and an MBA with two years but at a higher interest rate.
specialisation in Marketing, has taken over Cairn India had last month reported a
the new assignment, the company said in a historic loss of Rs 10,948 crore for the
statement. Before joining the current assign- fourth quarter ended March as fall in crude
ment, he was posted as Executive Director in oil prices pulled down performance. It
GAIL. IGL is a joint venture of GAIL (India) also undertook an impairment of Rs 11,674
Ltd and Bharat Petroleum Corp Ltd (BPCL) crore for the financial year ended March.
E S Ranganathan has been appointed as the with government of Delhi holding a 5 per Ashar took over as MD and CEO in Novem-
new Managing Director of Indraprastha Gas cent equity stake. ber 2014 from the then acting CEO, Mathur.
Before that, P Elango had served as interim
B K Panda appointed Coal Mines Provident Fund Commissioner CEO from August 2012 to May 2014. The
company said Ashar will provide transition
Senior bureaucrat B K Panda has been support to Mathur through June 30. The
appointed as Commissioner of Coal Mines board expresses its appreciation for Ashars
Provident Fund Organisation based in contribution during his association with the
Dhanbad. Panda is a 1988 batch officer company. Under Ashars leadership, Cairn
of Indian Ordnance Factory Service. The India has delivered a resilient performance
Appointments Committee of Cabinet has in a challenging business environment,
approved appointment of Panda to the the company said. Cairn India chairman
post for five years, an order issued by Navin Agarwal said Ashar had a positive
Department of Personnel and Training said. stint at Cairn. He leaves Cairn India in the
The Coal Mines Provident Fund Organisation hands of a strong leadership team. Cairn
provides social and financial security to India shares the countrys vision for energy
thousands of employees working in coal security and I am sure Mathur and the
industry. team will continue to strongly pursue the
organisations goal, he said.
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June 2016

Volume 5 | Issue 2 | `100

Hike in domestic coal Financing woes

Umesh Agrawal Rajiv Ratna Panda Debasish Mishra DV Giri

Power sector Need to institutionalize Low PLF We are not for

tory 2016 tory 2016 ory 2016

Yearbook & Direct

Power Oil & Gas Energy

Editors Letter Editorial

Regional cooperation Power tariffs

Power trading Coal production

Power forcast Coal imports

Oil and Gas Renewable

Topics Covered Topics Covered

Debasish Mishra Mohd Arif

Reports & Studies

NewsBriefs | Power National

NewsBriefs | Power National

NewsBriefs | Power States

Gujarat govt decides to overhaul power generation technology

NewsBriefs | Power International

The Electricity Act, 2003 and the anticipation of consistent development

Capacity Addition Rate large margin. This capacity addition is

was discovered during the international

The views in the article of the author are personal

All the South Asian countries are

Figure 2- Electricity export by India to Neighbouring

Figure 4: Brief Summary of Regional Regulatory Guidelines

Figure 5: International best practices on Regional Regulatory Institutional Mechanism

open access to transmission network,

Development Community looks after

PowerGrid Q4 net profit up 13.20% at Rs 1,599 crore

State-run Power Grid Corp posted a Rs 6,026.72 crore in 2015-16 compared to

To know more, please contact:

Generation Capacity Addition from 2007-08 to 2015-16 (MW)

Transmission (Substation) Capacity Addition from 2007-08 to 2015-16 (in MVA)

NewsBriefs | Coal National

rivers. The coal ministry has objected to

Coal ministry releases Rs 210 crore to states towards auction fees

NewsBriefs | Coal International

churned out 58.2 million tons of raw coal

For suggestions email at feedback@infraline.com

agreement (FSA) route have increased

some companies which sell more than

For suggestions email at feedback@infraline.com

7000 6700 6150 5700 5400 5000 4400 4200

Apr-15 64.48 69.04 70.16 63.37 52.89 52 49.34 39.71 36.43

Jul-15 59.16 63.28 64.77 58.52 48.59 48.17 45.95 36.97 34

Monthly Coal Production during FY12 to FY16 (Million Tonnes)

April 48.87 45.38 43.52 41.46 39.84

May 49.23 45.58 43.23 44.09 40.76

June 46.49 43.75 40.42 41.36 38.5

July 42.27 42.34 39.94 39.27 38.71

August 43.63 43.46 38.38 35.84 32.37

September 44.95 43.97 41 35.76 29.53

October 53.33 49.73 42.73 44.26 39.66

November 56.59 54.62 47.71 46.17 47.56

December 61.95 58.37 54.23 53.69 52.78

January 62.89 58.08 57.13 56.47 54.29