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Bhutan to further open up itshydropower sectorDebasis Sarkar, ET BureauNov 16, 2012, 03.08PM ISTTags:SILIGURI:Hydropowerhot spotBhutantakes a plan to reach hydropoweroperatives from global arena for better utilization of its untapped potential ofover 25,000MW."With known high potential in hydropower, Bhutan is a place of interest formany big players from the whole globe. It was clearly visible during all ourrecent business road shows in many countries. It is a good opportunity forBhutan to utilize foreign investment," said Consul General of Bhutan DashoTsering Wangda.

At present, practicallyIndiais the only country to have major footprint inBhutan's hydropower sector. But as a policy matter, "Now we have decidedto open up our hydropower sector at global level. Being situated at strategiclocation encircled with large economies and a liberalizedFDIpolicy inhand, Bhutan is now keen and ready to expand its hydropower horizon toensure best possible global level utilization of its potential," he added."Water is to us what oil is to Arab." This is a popular statement made by theKing of Bhutan while speaking of Bhutan's largest exportable produce-Hydropower. The country of a population of around 7 lakh hosts a

hydropower potential of 30,000 MW against its existing domestic need ofaround 500MW.

However, under an Indo-Bhutan power sector agreement of 2006, Indiawas to receive 5000MW Extra hydropower from Bhutan by the year 2020. Ithad been subsequently increased to 10,000 MW . "This commitment toIndia is still our first priority. Bhutan will explore freshforeigninvestmentpossibilities in hydropower sector only after fulfillment ofthat," clarified Mr. Wangda.Clear enough, Bhutan does not want its hydropower policy to cause any

impact on its relationship with its largest ex-im partner- India. , Bhutan isnow exporting entire amount of its excess hydropower of over 1500 MWout of its total production of around 2000MW to India. The trade makesIndia as the largest importer of Bhutan produce while significantlycontribution to Bhutan's economic growth of over 20% per annum.
http://economictimes.indiatimes.com/topic/Hydropowerhttp://economictimes.indiatimes.com/topic/Hydropowerhttp://economictimes.indiatimes.com/topic/Hydropowerhttp://economictimes.indiatimes.com/topic/Bhutanhttp://economictimes.indiatimes.com/topic/Bhutanhttp://economictimes.indiatimes.com/topic/Bhutanhttp://economictimes.indiatimes.com/topic/Indiahttp://economictimes.indiatimes.com/topic/Indiahttp://economictimes.indiatimes.com/topic/Indiahttp://economictimes.indiatimes.com/topic/FDIhttp://economictimes.indiatimes.com/topic/FDIhttp://economictimes.indiatimes.com/topic/FDIhttp://economictimes.indiatimes.com/topic/investmenthttp://economictimes.indiatimes.com/topic/investmenthttp://economictimes.indiatimes.com/topic/investmenthttp://economictimes.indiatimes.com/topic/investmenthttp://economictimes.indiatimes.com/topic/FDIhttp://economictimes.indiatimes.com/topic/Indiahttp://economictimes.indiatimes.com/topic/Bhutanhttp://economictimes.indiatimes.com/topic/Hydropower


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A sector in troubleThe Union government must get its act together on issues that continue to

plague the power sector

Livemint

First Published: Sun, Nov 11 2012. 08 36 PM IST

Illustration: Shyamal Banerjee/Mint

Power equipment maker Bharat Heavy Electricals Ltds chief B.P. Rao recently pointedout that there was a marked slowdown in private sector interest in electricity generation.Between 2008 and 2010, tenders for projects worth 30-40,000 megawatts (MW) werefloated. Last year, this dropped sharply to 4,000 MW; this year, there have hardly beenany deals, Rao said. This development should be seen in the perspective of the larger

issues that plague the power sector.

The slowdown will hurt a few years from now since coal and gas-based generationplants take three-four years to build and private plants have accounted for a sizeable55% of incremental capacity in the past five years. As a result, one can expect theindustry to establish captive units that, owing to their limited size, are not particularlyefficient. The scars owing to inadequate power supply in the past are not insignificantcurrently, captive units account for as much as 17% of installed capacity in the country.
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Part of the reason for the slowdown appears to be external to the sectorabsence ofreforms in coal mining has led to a crippling inability to meet power sector demands. Forthe 12th Plan period, supply is expected to be short by a substantial amount. Shortagesof natural gas are being felt acutely. In the case of hydropower, while large-capacityprojects are entering the construction phase, it offers little relief in the medium term

since projects take 7-8 years to complete.At the same time, power project developers are constrained from choosing expensiveimported fuels since distribution utilities are financially fragile. The question then is: arepower reforms aggressive and effective enough to improve the financial health in quicktime to avert a slowdown in capacity addition of the kind currently being witnessed?

On its part, the Union government has offered a restructuring package to state utilitiesto reduce their debt. In its recent India Economic Update report (September 2012), theWorld Bank has, in the context of this package, cautioned that bailouts create a moralhazard unless accompanied by strong monitoring mechanism. In the past, the Uniongovernment has failed to establish effective monitoring mechanisms in its reform

prescriptions. Had these gone on track, the supply losses should have pared to 15%.However, if one looks at the situation in the six states that account for 70% of the lossesof the sectorUttar Pradesh, Tamil Nadu, Madhya Pradesh, Punjab, Haryana andRajasthanthe supply losses there are as high as 30-40%.

These larger issues then continue to haunt power equipment manufacturers and otherparts of the power sector. The Union government needs to get its act together, fast.

How long will it take to fix the problems of the power sector?


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Alstom T&D hit by payment delaysFriday, Nov 16, 2012, 9:04 IST | Place: Mumbai | Agency: DNA

Rajiv Ranjan Singh

Alstom T&D India on Thursday reported its first loss in a decade as sales fell

and clients delayed payments, highlighting the challenges faced by

transmission & distribution equipment makers in the slowing power sector.

Alstom T&D India on Thursday reported its first loss in a decade as sales felland clients delayed payments, highlighting the challenges faced by

transmission & distribution equipment makers in the slowing power sector.

The company posted a Rs1.8 crore loss for the September quarter as againstRs40 crore profit a year as it made a onetime provisioning of Rs30 crore

towards doubtful receivables.

The only notable factor in the quarter for Alstom T&D was a Rs2,500 crore

High Voltage Direct Current (HVDC) order it bagged from Power Grid Corp.

Rathindra Nath Basu, managing director, said on an analyst concall that poor

financials of clients and bottlenecks faced by them led to drop in sales.

Customers were not ready to accept our products due to their weak financialposition, he said.

Basu said delay in equipment procurement by clients led to a 34% rise in

order backlog for the September quarter at Rs6,100 crore over the year-agoperiod.

Current order backlog gives a revenue visibility for next 17 months, he said.

Basu said the company would have clocked profit if customers would have

paid on time.

If situation with our customers changes and they take deliveries of

equipment and services they have ordered on us then we would be able to

increase our sales as we do not have any constraint in our factory or in our

engineering capabilities to do so, he said.
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The company also disappointed the street on year-on-year sales and operating

income front where it showed a decline of 8.4% and 10.5% respectively.

Sales stood at Rs740 crore.

With the demand staying weak, Basu sees double-digit growth for T&Dequipment manufacturers a distant reality.

When the country is expected to grow at 5.5%, then how can you expect the

electricity sector to grow in double digits, he asked.

However, everything is not bad for Alstom T&D.

The company is set to get the chunk of orders from the Rs1 lakh crore capex

planned by Power Grid for the current Five Year Plan that runs till 2017.

Majority of the orders would be for high-end products that will help

companies like Alstom T&D that has technological advantage, said an

analyst with a local brokerage.

Winning of HVDC project from Champa to Kurukshetra that would carry

3,000 mw of bulk power again reiterates the companys dominant position in

high-end product chain that has already executed 3 HVDC project, he said.

Around 43% of the project will be done locally and the company is

expanding localisation capacities.

Also, transmission is the only segment in the power sector where investmentis happening as electricity from the new generation capacities needs to be

evacuated and carried across regions.

Alstom T&Ds strategy is to capture the higher end of the market such as

HVDC 765 kv, GIS and add to this basket, the analyst said.


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APPCB and factory inspectors' role in question after Hetero unitblast

Sumit Bhattacharjee, TNNJan 7, 2013, 05.24AM IST

VISAKHAPATNAM: Saturday's blast at a Hetero Drugs unit in Nakkapalli, located about90 km from Vizag, raises the question that has often worried the denizens of the city:

Are they sitting on a ticking time bomb? The blast at the C Block of the unit left twoemployees dead and four others severely injured.

The people's concern is justified given the track record of the industry with respect tosafety issues. The number of accidents that have taken place in the past one year alone isnumbing. The series of industrial accidents began in May, 2012, when the blast furnaceof Visakhapatnam Steel Plant blew up, leaving two employees dead. This wasimmediately followed by a blast in the oxygen plant in June in the same plant that left 19dead and many others injured.

An explosion of a similar nature at the Nagarjuna Agro Chemical, a pesticide unit, inChilakapalem near Srikakulam in June 2012 had left over 20 injured. Here too the

reactor that was processing Myco Butanil could not take the pressure and exploded.Again, on October 9, 2012, there was a massive fire at Auctus Pharma in the RamkyPharma City at Parawada.

All these incidents took place within a period of seven months, bringing into questionthe role of the two major government establishments __ the AP Pollution Control Boardand the inspectors of factory.

"PostHPCLvapour cloud blast in 1997 that left over 22 dead and many injured, wethought that the inspectors of factory would take things seriously, as most the heavyindustries are either aging or are being newly set up," said former Union secretary EASSarma.

According to a senior professor from chemical engineering department of AndhraUniversity who has been consultant for many chemical and pharma companies,"Reactors are built to withstand high pressure and temperature. If an explosion takesplace, it is either due to faulty design, compromise on quality of material used orbecause the men are not skilled enough to handle the operation or processing. It is theduty of the inspector of factory to look into all these aspects. It seems to be collusionbetween the management and the government bodies to make some fast bucks."

When the HPCL blast took place in 1997, the ammonia storage tanks located in theneighbourhood posed a major threat. The naval firemen who rushed to douse the firesaid that their main aim was to see that the fire did not spread to the ammonia storage

tanks to avoid another Bhopal incident. Today, apart from the ammonia tanks, huge ofquality of the highly inflammable ammonium nitrate is being stocked by private partiesin the vicinity.

Apart from all the major PSUs such as HPCL, Andhra Petrochemical, Eastern IndiaPetroleum, Coromandel Fertilisers and VSP located almost in a cluster, to add fuel to theimpending danger there are two nuclear submarines, INS Chakra and the much awaitedindigenous INS Arihant, stationed within this cluster. Moreover, two huge thermalpower plants __NTPCand Hinduja __ are located next to each other here.
http://timesofindia.indiatimes.com/toireporter/author-Sumit-Bhattacharjee.cmshttp://timesofindia.indiatimes.com/toireporter/author-Sumit-Bhattacharjee.cmshttp://economictimes.indiatimes.com/hindustan-petroleum-corporation-ltd/stocks/companyid-12078.cmshttp://economictimes.indiatimes.com/hindustan-petroleum-corporation-ltd/stocks/companyid-12078.cmshttp://economictimes.indiatimes.com/hindustan-petroleum-corporation-ltd/stocks/companyid-12078.cmshttp://economictimes.indiatimes.com/ntpc-ltd/stocks/companyid-12316.cmshttp://economictimes.indiatimes.com/ntpc-ltd/stocks/companyid-12316.cmshttp://economictimes.indiatimes.com/ntpc-ltd/stocks/companyid-12316.cmshttp://economictimes.indiatimes.com/ntpc-ltd/stocks/companyid-12316.cmshttp://economictimes.indiatimes.com/hindustan-petroleum-corporation-ltd/stocks/companyid-12078.cmshttp://timesofindia.indiatimes.com/toireporter/author-Sumit-Bhattacharjee.cms


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Experts also point to another worrying aspect __ Vizag city will be caught between threemajor nuclear facilities once the projects get going. The proposed 6000 MW nuclearpower plant at Kovvada, the BAARC research centre near Atchutapuram and the NAOB(Naval alternate operating base) which is tipped to be the base for the country's nuclearsubmarine fleet.

"The site selection committee report has said that there is a seismic fault line runningthrough the Kovvada project. The committee has even predictedtsunamiup to fourmetres in height in the event of an earthquake. But the observations seem to have fallenin deaf ears, despite the Fukushima incident in Japan, said Sarma.
http://timesofindia.indiatimes.com/topic/Tsunamihttp://timesofindia.indiatimes.com/topic/Tsunamihttp://timesofindia.indiatimes.com/topic/Tsunamihttp://timesofindia.indiatimes.com/topic/Tsunami


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Business chiefs call for emissions targets in power sectorHeads of major UK companies join calls for the government to introduce a target to cut power sector emissions by 2030

The letter to the prime minister criticised the split in the government over the future of energy supplies. Photograph: Oli Scarff/Getty Images

The heads of major UK companies joined calls on Monday for thegovernment to bring in a target to slash emissions from the power sector by2030.

Ina letter to the prime minister,the companies criticised the split in thegovernment over the future ofenergysupplies, including possible questionsover the UK's commitment to its targets to tackleclimate change.The uncertainty over the government's plans was paralysing investment

and undermining growth prospects in the country, they warned.The government's advisers on climate change have called on ministers tointroduce a target to decarbonise the energy sector by 2030, so emissionsare just a fraction of current levels, to drive investment in low-carboninfrastructure.

But while the Liberal Democrat energy secretary, Ed Davey, has indicatedsupport for a low-carbon target, backed by a range of environmental groupsand businesses, the Treasury has been pushing an agenda to promotenew gas supplies.

The heads of Unilever, Doosan Power Systems, Anglian Water, PhilipsElectronics UK, B&Q owner Kingfisher, EDF Energy, Johnson Matthey andHeathrow airport have now joined the calls for a target to be introduced.

The members of the Prince Of Wales's Corporate Leaders Group onClimate Change warned: "Attempts to set a strong economy at odds witheffective policies on climate change are self-defeating.
http://www.cpsl.cam.ac.uk/Business-Platforms/The-Prince-of-Wales-Corporate-Leaders-Group-on-Climate-Change/~/media/Files/Business%20Platforms/CLG/12_Nov_2012_UK_power_sector_letter.ashxhttp://www.cpsl.cam.ac.uk/Business-Platforms/The-Prince-of-Wales-Corporate-Leaders-Group-on-Climate-Change/~/media/Files/Business%20Platforms/CLG/12_Nov_2012_UK_power_sector_letter.ashxhttp://www.cpsl.cam.ac.uk/Business-Platforms/The-Prince-of-Wales-Corporate-Leaders-Group-on-Climate-Change/~/media/Files/Business%20Platforms/CLG/12_Nov_2012_UK_power_sector_letter.ashxhttp://www.theguardian.com/environment/energyhttp://www.theguardian.com/environment/energyhttp://www.theguardian.com/environment/energyhttp://www.theguardian.com/environment/climate-changehttp://www.theguardian.com/environment/climate-changehttp://www.theguardian.com/environment/climate-changehttp://www.theguardian.com/environment/climate-changehttp://www.theguardian.com/environment/energyhttp://www.cpsl.cam.ac.uk/Business-Platforms/The-Prince-of-Wales-Corporate-Leaders-Group-on-Climate-Change/~/media/Files/Business%20Platforms/CLG/12_Nov_2012_UK_power_sector_letter.ashx


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"The only successful long-term plan to grow the UK economy will be onewhich takes account of climate change, both to reduce the risk of achanging climate to business and to support access for British business tothe rapidly growing global market for low carbon goods and services."

A low-carbon signal to investors is needed, they warned, and so anindicative emissions target should be introduced through secondarylegislation to set the level of ambition for reducing greenhouse gases fromthe power sector.

They also said the government needs to be be very clear on how lowcarbon investment will be delivered in a cost-effective manner.

"This includes looking at the right incentives to support development of lessmature low-carbon technologies and ensuring competitiveness impacts willbe addressed, especially by securing comparable EU targets for 2030."

The letter is being sent ahead of an expected meeting to discuss the issueof the prime minister,David Cameron,the deputy prime minister, NickClegg, the chancellor, George Osborne, Davey and the chief secretary tothe Treasury, Danny Alexander.The letter followsa similar one last week calling for a decarbonisationtarget,signed by an usual coalition of the trade bodies representing therenewable energy, nuclear power.
http://www.theguardian.com/politics/davidcameronhttp://www.theguardian.com/politics/davidcameronhttp://www.theguardian.com/politics/davidcameronhttp://www.guardian.co.uk/environment/2012/nov/05/letter-decarbonisation-target-energy-billhttp://www.guardian.co.uk/environment/2012/nov/05/letter-decarbonisation-target-energy-billhttp://www.guardian.co.uk/environment/2012/nov/05/letter-decarbonisation-target-energy-billhttp://www.guardian.co.uk/environment/2012/nov/05/letter-decarbonisation-target-energy-billhttp://www.guardian.co.uk/environment/2012/nov/05/letter-decarbonisation-target-energy-billhttp://www.guardian.co.uk/environment/2012/nov/05/letter-decarbonisation-target-energy-billhttp://www.theguardian.com/politics/davidcameron


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Coal stocks at power plants dwindle to the level

barely minimumTUESDAY, 13 NOVEMBER 2012 07:24

HARIKUMAR BInadequate power supply has led to rising of spot

power prices and is worrying officials at the ministry.Power prices in the India Energy Exchange have justdoubled from 2 per unit a fortnight ago to 4 per unit

now.

Coal stocks at power plants on the eve ofDiwali have dwindled to the level barelyenough to light the nation for five days. Nine

generating stations with a total capacity of14,100 mw have zero stocks, and nearly 40% of them have fuel for noteven four days. The total number of stations with coal stock less than aweek is about 60% although Coal India Ltd (CIL) has supplied 10% extrafuel to the power sector and eastern railways has announced the highest-ever coal loading. The total national coal stock in power plants is 7.3 milliontonnes, against the norm of about 22 million tonnes. Some 35 thermalpower stations have stocks to last for hardly four days while 52 have stocksthat will not last a week.

Inadequate power supply has led to rising of spot power prices and isworrying officials at the ministry. Power prices in the India EnergyExchange have just doubled from 2 per unit a fortnight ago to 4 per unitnow.

This has worried the power ministry. "We are constantly reviewing the coalstock position at power plants and have written a letter to CIL asking themto improve stock positions," Union Power Secretary Uma Sankar told ET.

CIL chairman, S Narsing Rao said: "We are aware that stock positionshave dwindled lately. However, we have supplied almost 98% of the annual

contracted quantity of power plants. The deficit may be either due to higherconsumption or less imports. There is also a possibility that some plantsmay have received more coal, some less but our overall supplies to thepower sector is in line with the targets,"

According to the Central Electricity Authority, plants that have dwindlingcoal stock due to less imports include, Ramagundem Thermal Power plant(2600mw ) in Andhra Pradesh, Bokaro B TPS (630 mw) in Jharkhand,
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Talcher SPTS (3000 mw) in Orissa as well as Mejia TPS (2340 mw) andSagardighi TPS (600 mw) in West Bengal.

As many 26 thermal power stations with a total installed capacity of 40,100mw, about 41% of the total installed capacity in the country has received

less coal from CIL, according to CEA. The entire capacity of Tamil Naduhas received less coal from CIL subsidiary Mahanadi Coalfields, CEA saidin its report.

Some 16,700 mw of capacity have used up more coal due to highergeneration. These includes Suratgarh TPS (1,500 mw), Dardi TPS (1,820mw), Singrauli TPS (2,000 mw), Unchahar TPS (1,050 mw), Rosa TPP(1,200 mw), Korba STPS (2,600 mw), Sanjay Gandhi TPS (1,340 mw),Chandrapur TPS (2,340) and Nasik TPS (630 mw) among others.

Source - TOI


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Dual Management at TCN, Threatens Power Sector Reform

Chineme Okafor

The existence of two parallel Chief Executive Officers (CEO) of the Transmission Company of

Nigeria (TCN) has been described as a threat to the Federal Governments reform exercise in the

countrys power sector.

In an assessment of current situation at TCN, some industry experts condemned the imbroglio

that has stalled final processes of activating the management contract of TCN.

TCN was in July handed over to Canadian firm, Manitoba Hydro International (MHI) in a N3.72

billion three-year management contract, which is expected to reposition TCN in anticipation of

its responsibilities in Nigerias emerging power sector.

According to these analysts in Abuja, progress made by the country in her effort to reposition the

power sector as ensconced in provisions of the Electricity Power Sector Reform (EPSR) Act

2005 might as well be threatened by development in TCN which currently has two CEOs, Mr.

Olusola Akinniranye, a Nigerian and Mr. Don Priestman, the expatriate CEO from Manitoba.

Recently, at the Seventh General Assembly of the West African Power Pool (WAPP) in Abuja,

the management impasse became obvious when Akinniranye and Priestman variously introduced

themselves as CEOs of TCN, thus, raising suspicion amongst industry players that all was not

well at the transmission company which responsibility is pivotal to the success of the power

sector liberalisation exercise.

Manitoba had edged out Power Grid of India to emerge as the preferred management contractor

for TCN in a competitive selection process that was overseen by the Bureau of Public

Enterprises (BPE), the company consequently signed a three-year contract with the Federal

Government which kicked off on September 1, 2012 but is yet to fully commence operations at

TCN owing to governments refusal to issue out a schedule of responsibility to MHI.

Provisions in the management contract stipulate that eight positions in TCN will be reserved for

the expatriate staff who will be assisted by Nigerians as deputies.

In other words, all first line Nigerian executive officers in the eight positions at TCN are


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supposed to become deputies to expatriate Manitoba staff but the situation is otherwise

notwithstanding the September 1 management contract kickoff date.

Accordingly, the ministry of power which ought to sign off the contract has remained reluctant in

this regard, although it stated recently that the contract was been reviewed but sources in the

presidency said that some government officials have expressed discontent with the contract

which is expected to see Manitoba take charge of System Operations (SO), Market Operation

(MO), ICT and National Control Centre (NCC) in Oshogbo amongst other portfolios at TCN.

Meanwhile, the situation may have become compounded with the recent emergence of

Akinniranye as the new Chairman of WAPP Executive Board in an election at the recently-

concluded WAPP General Assembly.

Elected on the strength of his position as the CEO of TCN, Akinniranye succeeds Mr. Joseph

Makoju, former Managing Director of Power Holding Company of Nigeria (PHCN) and former

Special Adviser on Power to Late President Musa YarAdua.

In a press statement from the Assistant General Manager Public Affairs of TCN, Mr. Dave

Ifabiyi, Akinniranye was elected by heads of power utilities and delegates from power utilities

from the 15 member countries of WAPP comprising Benin, Cape Verde, Cote dIvoire, Gambia,

Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger and Senegal as well as Sierra Leone, Togo,

Burkina Faso and Nigeria.

He is expected to pilot the affairs of WAPP alongside its Secretary General, Mr. Amadou Diallo

of Guinea for tenure of three years.

Tags:Business,Nigeria,Featured,Dual Management,TCN,Power Sector

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Fuel supply issues, interest burden posechallenges for GMR Infra

OUR BUREAUSHARE COMMENT PRINT T+

Business LineA. Subba Rao, Chief Financial Officer, GMR Group.

A GMR power facility

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Steam generators- Safe, versatile heat sources for commercial or industrial processes.www.chromalox.com

Plans to sell some assets to reduce debt

BANGALORE, NOV. 15:

GMR Infrastructures operations in the power sector have been facing several challenges, saidGMRs Group Chief Financial Officer A. Subba Rao.

Addressing a post-quarterly results conference, Rao said: The infrastructure sector, andparticularly the power sector, is going through the toughest of times now. I have never seen sucha situation in the sector in the last 13 years.

The company has invested in significant power generation capacities, but unfortunately it is notable to put them to use because of non-availability of gas.

FUEL ISSUES

The power sector has been plagued with issues relating to gas availability, because of which our

plants are under-performing, he said.

In addition to non-availability of gas, the capital market has been posing many challenges interms of the ability to raise capital in the given business environment, Rao said. To fund theequity we had to borrow in lieu of the equity, which has also put an additional burden on our

balance-sheet, he further added.

Right from the fuel (natural gas and coal) availability to discounts, distribution and realisationof receivables for the power supplied, we have been affected. Other sectors, however, are doing

well, explained Rao.

The company is planning a partial dilution of its assets. Rao said this has been planned to bring

down the losses, debt level and interest burden. The GMR Group has a net debt of Rs 35,000crore.

Considering the groups commitment towards value creation,we have adopted this strategywhich will build upon the expertise we have developed over the years to shore up revenues andimprove business, Rao added.

ASSET DILUTION

The company had begun evaluation of its assets. In the next two-three months we will know theresults of our endeavour to pursue this model.

In addition to assets for dilution, we are planning to pick up minority stakes in a few sectorsand back them up with our expertise, Rao said. We have not set a target yet.

[email protected]

(This article was published on November 15, 2012)

Keywords:GMRs Group Chief Financial Officer A. Subba Rao
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GE to invest in Kenya wind

power sectorWritten by MARGARETWAHITO// November 12, 2012// CommentNAIROBI, Kenya, Nov 12General Electric Company (GE) a globalmanufacturer of large-scale industrial products has announced plansto invest over $100 million in generation of two wind power projects inKenya starting next year.Africas GE President Jay Ireland said that the company is in the finalstages of negotiations with Kenya Power on the issue of a PowerPurchase Agreement (PPA).

Ireland said the company plans to generate close to 150 Megawatts in theprojects at Kinangop.

I would say, the project is in the 100 million dollar range. We have startedwith two wind projects and we are now working with KPCL to finalize thenegotiations on PPA. We will probably break ground next year, said

Ireland.

He added that if the company succeeds in the generation of the wind powerin the two projects, it will invest in other power projects in the countries toproduce up to 1,000 Megawatts.

We cant produce huge power within two years, which may take time. Butour dream is to eventually produce over 1,000 Megawatts over severalyears, said firms Africa president.

He added that the company plans to finish the project in a year time ifeverything goes as plans.

The project is in Kinangop area and we have been working on itsdevelopment for the last two years. I am not sure we are going to finish latenext year, if not, will be early 2014, but as soon as we can, the better,because its power that we need, he added.
http://www.capitalfm.co.ke/business/author/wahito/http://www.capitalfm.co.ke/business/author/wahito/http://www.capitalfm.co.ke/business/2012/11/ge-to-invest-in-kenya-wind-power-sector/http://www.capitalfm.co.ke/business/2012/11/ge-to-invest-in-kenya-wind-power-sector/#disqus_threadhttp://www.capitalfm.co.ke/business/2012/11/ge-to-invest-in-kenya-wind-power-sector/#disqus_threadhttp://www.capitalfm.co.ke/business/2012/11/ge-to-invest-in-kenya-wind-power-sector/http://www.capitalfm.co.ke/business/author/wahito/http://www.capitalfm.co.ke/business/author/wahito/


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The multinational firm has also announced plans to invest in the railwaysector in the country during the same period.

We are working with RVR (Rift Valley Railways), Kenya Railways to tryand help them improve their capabilities, our focus will be to provide highclass freight locomotives among other machinery, he said.

Ireland was speaking on Monday after the launch of a new anaesthesiadelivery system called Carestation 30 by the company.

The Carestation 30 integrates the level of oxygen in the blood and otherkey measurements into its anaesthesia delivery system. Caregivers cannow view patient data and alarm indicators on a colour display allowingefficient access to critical information.

The machine which will cost close to Sh2 million.

GE is has its footprints in 35 countries in Africa including, Angola, Congo,Ghana, Kenya, South Africa, Tanzania among others.


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Gujarat's development is mainly roads,

electricity, water'Comment Share Text size: A A ALast updated on: November 19, 2012 16:35 IST

'Gujarat has learned from its mistakes,' economistBibek Debroy tellsRediff.com's Sheela Bhatt in this

eloquent interview.

Bibek Debroyis a distinguished economist whoseopinions expressed through his newspaper and magazine

columns, papers and through Twitter matter. The

outspoken and succinct Debroy is a professor at the Centre

for Policy Research, a New Delhi think-tank.

In 2005, he resigned as director (research) of the Rajiv

Gandhi Institute for Contemporary Research. His colleague

Laveesh Bhandari and he had then published a paper rating Gujarat on the top for

economic freedom.

Gujarat Chief Minister Narendra Modi made good political use of Debroy and Bhandari's

paper. The Congress party found it discomforting that an institution attached to the Rajiv

Gandhi Foundation had published a paper strengthening Modi's claims as an architect

of development.

Debroy travelled all over Gujarat this year to write a book, Gujarat, Governance for

Growth and Development.

In his book, Debroy reviews the issue of resource distribution, bijli, sadakandpani,

infrastructure, health and education in Gujarat. He examines Gujarat's governance

template to become an 'upper middle class' state by 2020.

Interestingly, Debroy avoids mentioning Modi in his book while discussing development

under the chief minister's tenure.

He believes a mention of Modi would have made some readers subjective about
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Gujarat's actual achievements! He makes a strong case for people to see Gujarat's data

objectively and not through the prism of Narendra Modi.

The first of a two-part interview with Sheela Bhatt:

Congratulations on your book. Is Gujarat's template of governance, which you

have discussed in detail, very different from the central government's template or

the template of successful states like Tamil Nadu, Maharashtra, Karnataka and

Delhi?

If one is looking at it as a template for development, then this is a template for

development that every state should be implementing.

The question is how many states have implemented this kind of development template.

I am not just talking about GSDP (Gross State Domestic Product) growth, because you

can get GSDP growth even if you do a few things correctly.

Take Bihar. It has phenomenal growth rates based essentially on services, and based

essentially on construction, but Bihar has still got problems with agriculture, you have

still got problems with electricity.

So if you are talking about a development template, little bits and pieces have been

implemented in other states also. There is a governance issue as well. But to the best of

my knowledge, Gujarat is the only state where the development-oriented template has

very largely been implemented, actually.

How would you define the Gujarat development template? What are its main

ingredients?

I would probably say four or five elements make the Gujarat development template.Number one is private enterprise, the entrepreneur spirit, and linked to that, a degree of

scepticism about the government.

Gujaratis don't look to the government for handouts and this makes it very easy for the

government to do various things that is in the nature of public-private partnerships.


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When I say public-private partnerships, I am not just talking about the corporate sector. I

am talking about the NGOs, even in the social sectors.

One part of the Gujarat story is about entrepreneurship, which makes me wonder if this

model is really completely replicable in every other state.

Second, something that often people outside Gujarat don't appreciate is that Gujarat

has a very long tradition of Panchayati Raj. And many of the social sector things we are

talking about are actually implemented by the panchayats.

The government involves the panchayats. Decentralisation exists here. Now to

decentralise I need the capacity in the panchayats.

In most Indian states, we don't have the capacity in the panchayats, which is why

governance in India is so very bad. But Gujarat has had this since the 1960s.

The third element, which, of course, is replicable in other states, is the improvement in

governance defined as the bureaucracy's delivery capacity. And there are several

elements that have gone into that.

There is decentralisation, there is empowerment, and there is an attempt to insulate it

from political inference...

Now that part is certainly replicable everywhere else.

The fourth one is difficult to replicate elsewhere. I think Gujarat has been a little lucky.

Gujarat is favourably located. Its geography helps. It has got speed with liberalisation

happening, with trade opening up, you have a reliance on ports.

Of course, Gujarat has the foresight to recognise that it must do something about minorports. Then, it got the Delhi-Mumbai trade corridor, the industrial corridor. These are

favourable circumstances.

I would add to it the road network. Roads in Gujarat have always been good. Yes, they

have improved over the last ten years.


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The final one I would say, we all know that there are problems with the rigid templates

of centrally-sponsored schemes. The Centre is very rigid. You cannot do this, can't do

that with the Centre's funds, and yes there are some broader issues of changing those

schemes, making them flexible.

Gujarat has been able to do many things because of the fiscal space it has created for

itself. They are able to plug in their own money to make good use of central funds.

It could supplement central sector schemes with state schemes. Now to be able to do

that you need to be fiscally sound. Unfortunately, the problem is many Indian states are

not fiscally sound.

I found it very interesting that you hardly mention Gujarat Chief Minister NarendraModi in your entire book even though you discuss the last ten years of

development when he has been in power. Why are you shying away from Mr

Modi?

I am not shying away. Actually, he is mentioned by name in two places. Once in the

prologue. There is a book that goes by his name which is mentioned.

There is a reason for that (not mentioning Modi's name). If you look at the discussion on

Gujarat, a lot of the discussion goes on, particularly outside Gujarat, which lacks certain

objectivity. It lacks certain objectivity so people keep saying things without looking at the

data.

If they don't believe the data -- for whatever reason -- there is a great lack of objectivity.

I didn't find a good book on Gujarat. And therefore I wanted to say that 'Hey look, first let

us recognise objectively... this is what is happening in Gujarat. And then we can debate

the cause...'

Unfortunately, with the chief minister (Modi), when you mention him, everything gets

very politicised. In any case, once I have written this book, I expect people will read the

book.

If I had kept him in focus, people would have said it is a great book for the wrong

reasons or they would have said it is a terrible book for the wrong reasons!!


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The reason I didn't want to mention him by name is that I didn't want the book to get

even more politicised, unnecessarily. So that is the reason the book is a little distanced

from him.

Look, it is not a book about the chief minister; it's a book about the economy.

You don't want yourself to be associated with Mr Modi as a writer, thinker or

economist?

No, it is not that. I recognise that many things that have happened in Gujarat, not

everything, but several things that have happened in Gujarat are because of his

intervention.

However, I want people to read the book. I don't want them not to read the book simply

because his name has been mentioned.

Why has Gujarat's poverty level dropped more in the rural areas compared to the

overall average between 2000-2005 and 2009-2010?

Normally, poverty remains higher in the rural areas and the urban areas see

growth of the middle classes.

There are several reasons. One is that rural poverty really depends on what is

happening to agriculture.

In the Gujarat growth stories, there is a very strong agriculture growth story.

Agriculture has been growing at 10 percent. So even if you go to the poorer parts, you

will find agriculture diversification happening, you will find dairy happening, animalhusbandry happening, horticulture happening, in all kinds of places.

Second, since the 11th Five Year Plan, the state government has had a specific focus

on the social sectors with several schemes implemented with force.

Which is the reason I keep making the point that if you are looking at the social sector in


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Gujarat, please look at what has happened after the 11th Five Year Plan. Don't look at

earlier data. That is misleading.

Why misleading?

Because Gujarat's focus on health, education, began in 2007. So what's the point in

looking at 2004-2005 data?

I think another reason for the lower level of poverty in rural areas is something I

mentioned earlier -- this I am sticking my neck out because I haven't exactly said this in

the book.

In Gujarat, the problem areas are small towns, the ones that have the proper municipalcorporations. Rural areas look promising because of the panchayats.

The problem areas in Gujarat, in my view, are the smaller cities. And I think, whichever

government comes in now, the focus on poverty reduction should be in these smaller

cities.

How do you explain that the state government that improves the electricity

sector, but the same template of governance and the force of governance are not

applied in other sectors?

I don't exactly agree with the question. Let me explain why. By the way, I should

mention that the development in Gujarat is largely roads, electricity and water.

Now water is synonymous with the Sardar Sarovar Dam.

What they fail to appreciate is much of the Sardar Sarovar has not reached Gujarat yet.

Gujarat boasts of water storage like check dams and smaller water storages.

They have created the water grid, the state-wide grid, the intention behind that is to take

the water from the surplus areas to deficit areas. Without that grid, Sardar Sarovar

would not have happened.

Similarly, in the electricity sector the real story is the Jyotigram scheme, the bifurcation


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of (power) lines has done good. Domestic, agriculture and industrial supply lines are

separated. Domestic supply is 24 hours.

The improved distribution has made all the difference. The agro sector gets eight hours

of ensured supply.

Gujarat has learned from its mistakes. And you have used the same bureaucratic

machinery to address that. So that was done in the course of the 11th Plan.

During the 11th Five Year Plan, the dropout rates in schools has dropped

phenomenally. I look at institutional deliveries that have improved phenomenally.

So post the 11th Five Year Plan, I think that same government machinery is deliveringin the social sectors too.

Part 2: 'Gujarat will be one of the first places to implement FDI in retail' Sheela BhattRelated News:Bibek Debroy,Narendra Modi,Sardar Sarovar,Gujarat,GSDP
http://www.rediff.com/news/interview/gujarat-will-be-the-first-to-implement-fdi-in-retail/20121119.htmhttp://www.rediff.com/news/interview/gujarat-will-be-the-first-to-implement-fdi-in-retail/20121119.htmhttp://mypage.rediff.com/profile/getprofile/Sheela%20Bhatt/8551169http://mypage.rediff.com/profile/getprofile/Sheela%20Bhatt/8551169http://www.rediff.com/tags/bibek-debroyhttp://www.rediff.com/tags/bibek-debroyhttp://www.rediff.com/tags/bibek-debroyhttp://www.rediff.com/tags/narendra-modihttp://www.rediff.com/tags/narendra-modihttp://www.rediff.com/tags/narendra-modihttp://www.rediff.com/tags/sardar-sarovarhttp://www.rediff.com/tags/sardar-sarovarhttp://www.rediff.com/tags/sardar-sarovarhttp://www.rediff.com/tags/gujarathttp://www.rediff.com/tags/gujarathttp://www.rediff.com/tags/gujarathttp://www.rediff.com/tags/gsdphttp://www.rediff.com/tags/gsdphttp://www.rediff.com/tags/gsdphttp://www.rediff.com/tags/gsdphttp://www.rediff.com/tags/gujarathttp://www.rediff.com/tags/sardar-sarovarhttp://www.rediff.com/tags/narendra-modihttp://www.rediff.com/tags/bibek-debroyhttp://mypage.rediff.com/profile/getprofile/Sheela%20Bhatt/8551169http://www.rediff.com/news/interview/gujarat-will-be-the-first-to-implement-fdi-in-retail/20121119.htm


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Implementation a challenge for power sector reforms

Merchant power rates to go up

The governments two-pronged approach to set the power sector on the right track maynot yield much result withIndia Ratingsmaintaining that the fuel risk in power sector

will continue this year. The agency, however, expects merchant power tariffs to riseduring 2013.The Fitch group company sees implementation of reforms at the state power utility(SPU) level as well as of those initiated to mitigate fuel shortages as key issues in thepower sector growth.

The agency expects that its rated entities will manage the key sector risks in 2013considering a favourable tariff mechanism, their comfortable liquidity and support fromthe central and state governments. Therefore, India Ratings has maintained a StableOutlook on its rated power sector entities for the year. India Ratings-rated powerproducers include NTPC (IND AAA/stable), NHPC (IND AAA/ Stable), Rural

Electrification Corporation (IND AAA/Stable), Reliance Infrastructure Limited (INDAA/Stable).

The stoppage of short-term credit from the banking system and pressure from thecentral government resulted in some reform measures at the SPU level in 2012 liketariff hikes and restructuring package. However, the ability to further increase tariff mayhave reduced, said Salil Garg, director, corporates, India Ratings & Research toldBusiness Standard. A quarterly fuel adjustment translating to about 6 -8 per centincrease in tariff annually should be politically feasible, he said.

Tariffs hikes coupled with operational efficiencies (like lower aggregate technical and

commercial losses and lower operating costs) and successful implementation of therestructuring package is a long-term solution for turnaround of the distributioncompanies (discoms). Without a multi-dimensional approach, the problems would haveonly been successfully deferred and not resolved, India Ratings said in a report releasedtoday.

The tariff hikes might not be sufficient to cover the current revenue gap in some casesand might not result in full recovery of regulatory assets in others and thus cannotsingularly lead to an operational turnaround. Moreover, most states have hiked tariffssteeply for industrial consumers, while sparing domestic consumers. As the ability ofdiscoms to cross-subsidise is limited, consumers might push back. Therefore, continuedtariff increases over a short period of time might not be a feasible option for thediscoms.

A presidential directive was issued to CIL to sign fuel supply agreements (FSAs) withpower developers for 51GW capacity commissioned/likely to be commissioned overFY10-FY15. Power plants set up post-2009 will continue to face fuel problems, saidGarg.
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With the liquidity profile of the SPUs post the tariff hikes improving, their ability to buyfrom merchant power will improve. Cost of merchant power will, however, go up withincrease in fuel prices, high energy and peak deficits, increasing percentage of importedcoal in overall coal supply and low plant load factors for available capacity due to fuel

shortage will also lead to.


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NLC's new power plant in UP gets approval

Tiruchirapalli: Neyveli Lignite Corporation (NLC)'s proposed new power plant at

Ghatampur in Uttar Pradesh has got approval from Public Investment Board. It will be

putting up a 3x660 MW super critical thermal power station here. It had paid an advanceof Rs 140 Crore for the land where the plant will be erected.

According to NLC chairman, B Surender Mohan, the board will order its packages within

six months and thereafter the centre will give sanction order to it. The NLC has already

paid an advance of Rs 140 crore for land, for its proposed power plant at Ghathambur,

he added.

He said that efforts were underway to increase the NLC's power production up to

10,000 MW within ten years as against the present installed capacity of 2740 MW

inclusive of output from Barsingsar project in Rajasthan.

The NLC chairman pointed out that to achieve the goal, the Coprporation is also making

efforts to launch its power projects at Tuticorin, Sirkazhi and the NLC has received

project-based inquiry from the Tamil Nadu government on the proposed power plant at

Sirkazhi.

Now, the NLC will apply for coal linkage for Sirkazhi and Tuticorin projects.

Referring to Tuticorin power plant, he said NLC will commission the first of the 2x500

MW power plants at Tuticorin during December 2013.

The shore-based power plant will be run with 70 per cent coal supplied by Mahanadhi

Coalfields Limited while the remaining 30 per cent of the coal will be imported, he

added.

Though the original cost of the Tuticorin project is Rs 5000 crore and might go up to Rs

6500 crore due to various reasons, including the excalation in the material price, he

added.

Replying to a question, he said NLC was not operating BHEL-supplied 250 MW power

plant. The order was placed for 2x250 MW plants. Output from the first plant that wascommissioned recently came down to 100 MW in first 20 days and subsequently there

was a break down. There was a problem with design causing breakage of pipes.

The BHEL was effecting change in the fluidised bed heat exchange system in

association with its German consultant.


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Probably, by June this year the first plant will be ready for commissioning again. The

second will be commissioned within three months from June, he added.


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No project in the implementation stageto suffer for want of coalDebjoy Sengupta, ET BureauNov 15, 2012, 04.45PM IST

KOLKATA: The government has assured power project developersincluding states that no project in the implementation stage will suffer forwant of coal.

"On the recent issue of fuel shortage in power plants, we can assure powerproject developers, including the states, that none of their projects in theimplementation stage would suffer for want of coal.

The ministry of power has allowed electricity firms facing coal supplycrunch to sign fuel supply deals with state-owned operatorCoal India Ltd,

even if no prior power purchase agreements (PPAs) exist with distributioncompanies," said power secretary P Uma Shankar."Demand for energy in India has multiplied manifold in recent years on theback of rapid urbanization, industrialization and usage of water for irrigationin agriculture.

Energy being the building block of economic development, the focus is nowfirmly entrenched on finding the right energy mix for propelling a hightrajectory, sustainable and inclusive growth path for India", said RajivMundhra, president,Indian Chamber Of Commerce.

P Uma Shankarsaid: "The centre has approved budgetary supportapproximating around Rs 49,730 crore for the power ministry'sflagshiprural electrificationprogramme calledRajiv Gandhi GrameenVidyutikaran Yojanaduring the 12th Plan.We have also harnessed Information Technology for ensuring qualitypower supply to different parts of the country. I hope a multi-prongedstrategy encompassing increased resource exploration & exploitation,
http://economictimes.indiatimes.com/coal-india-ltd/stocks/companyid-11822.cmshttp://economictimes.indiatimes.com/coal-india-ltd/stocks/companyid-11822.cmshttp://economictimes.indiatimes.com/coal-india-ltd/stocks/companyid-11822.cmshttp://economictimes.indiatimes.com/topic/Indian%20Chamber%20Of%20Commercehttp://economictimes.indiatimes.com/topic/Indian%20Chamber%20Of%20Commercehttp://economictimes.indiatimes.com/topic/Indian%20Chamber%20Of%20Commercehttp://economictimes.indiatimes.com/topic/P%20Uma%20Shankarhttp://economictimes.indiatimes.com/topic/P%20Uma%20Shankarhttp://economictimes.indiatimes.com/rural-electrification-corporation-ltd/stocks/companyid-4616.cmshttp://economictimes.indiatimes.com/rural-electrification-corporation-ltd/stocks/companyid-4616.cmshttp://economictimes.indiatimes.com/rural-electrification-corporation-ltd/stocks/companyid-4616.cmshttp://economictimes.indiatimes.com/topic/Rajiv%20Gandhi%20Grameen%20Vidyutikaran%20Yojanahttp://economictimes.indiatimes.com/topic/Rajiv%20Gandhi%20Grameen%20Vidyutikaran%20Yojanahttp://economictimes.indiatimes.com/topic/Rajiv%20Gandhi%20Grameen%20Vidyutikaran%20Yojanahttp://economictimes.indiatimes.com/topic/Rajiv%20Gandhi%20Grameen%20Vidyutikaran%20Yojanahttp://economictimes.indiatimes.com/photo/17228583.cmshttp://economictimes.indiatimes.com/topic/Rajiv%20Gandhi%20Grameen%20Vidyutikaran%20Yojanahttp://economictimes.indiatimes.com/topic/Rajiv%20Gandhi%20Grameen%20Vidyutikaran%20Yojanahttp://economictimes.indiatimes.com/rural-electrification-corporation-ltd/stocks/companyid-4616.cmshttp://economictimes.indiatimes.com/topic/P%20Uma%20Shankarhttp://economictimes.indiatimes.com/topic/Indian%20Chamber%20Of%20Commercehttp://economictimes.indiatimes.com/coal-india-ltd/stocks/companyid-11822.cms


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capacity addition, and energy sector reforms would soon enable us toreach the goal of "Power for all by 2012."

"With a view towards meeting the burgeoning demand forenergy,Government of Indiahas initiated an integrated strategy for

sectoral development with the objective of providing reliable, quality andadequate power at optimum cost towards achieving aGDPgrowth rate of 8per cent, while side by side maintaining the commercial viability of thepower industry. The Government of India in fact plans to add 18,000 Mw togeneration capacity this year.Capacity addition is targeted to reach 80,000 Mw by the end of the 12th 5year Plan. Considering the limited reserve potentiality of petroleum &natural gas in India, the eco-conservation restrictions on hydel projects andthe geo-political perceptions of nuclear power, coal providing for 55 percent of the country's energy needs continues to occupy the centre-stage inIndia's energy scenario", he said.

India's primary energy consumption in 2011 was 4.6 per cent of the globalenergy consumption, vis a vis China, which with an almost equal populationconsumed 21.3 per cent.

A projected 1.6 billion population base for India would entail an annualelectricity generation of 8 trillion kWh, while India's current share is onlyone-tenth of the global annual electricity generation.

In year 2012 installed power capacity in India had reached 200, 000 MW,with an annual capacity addition of 20, 000 MW, equaling a five yearcapability of the past.

"However, in the past four decades, consumption of coal, lignite, crudepetroleum, natural gas, and electricity in India had grown by 6 per centannually vis a vis a 4.5 per cent annual growth in production.

India's increasing dependence on crude and coal imports has opened theeconomy to global price volatility, with severe ramifications for our balanceof payments", said Mundhra.

While policy activism and accelerated farm output growth have raised theprospect of a gradual recovery of India's GDP to 6.1 per cent in FY 2014,theUnion government decision to usher in timely debt restructuring for thepower distribution companies has further cemented the expansionaryvibes.
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ICC welcomed the government move of providing the much neededfinancial relief to the power utilities and hopes for an early rollout of theproposed coal linkages to the power projects.


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Oil, power sectors reform to trigger lending Q4MONDAY, 12 NOVEMBER 2012 00:00 JOHN OMACHONU

Oil, gas and power sectors reform are expected to triggerlending by banks in the fourth quarter of this year,BusinessDay has learnt.

This optimism is coming despite low credit to the economyby banks in quarter three. The banks had an impressiveouting in their Q3 financials.

With milestones recorded in the privatisation of the power sector, banks have in the pastweeks been fighting hard to receive the attention of prospective investors to finance the

acquisition of power assets. Financing of the distribution aspect of the business seemslucrative, and the banks are offering attractive proposals to fund such acquisitions.It was reported that most of the first tier and second tier banks in the country are inpursuit of the designated distribution companies (DISCOs) and generation companies(GENCOS) created from the unbundling of the Power Holding Company of Nigeria(PHCN).The National Council on Privatisation (NCP) had recently unveiled 14 companies as thepreferred bidders for the GENCOs and DISCOs.Banks had made cumulative profits of N362.2 billion in the last nine months of the year,but their loan books grew by 0.3 percent month/month in September and 4.9 percentyear to date (YTD).

The treasury manager of one of the banks said, the economy will witness a lot ofactivity next year, including initial public offerings (IPOs), and this will start from Q4 asbanks will increase their lending to the economy.

Analysts at Renaissance Capital, (Rencap), said in a note to BusinessDay: Atthe startof the year, banks were guiding to loan book growth of up to 20 percent in 2012. Thesehopes have long been dashed, although a modest pick-up is expected in Q4 on thebasis of loans to the power, and oil and gas sectors.

Analysts had predicated their optimism on the purchase of the bad loans from theirbooks by the Asset Management Corporation of Nigeria (AMCON), hence the theprediction of 20 percent loan growth that would resuscitate the small and medium scaleenterprises currently experiencing liquidity crisis.

The selection of preferred bidders for the generation and distribution companies underthe power privatisation programme, will change the rhythm of the game, as banks willbe effectively involved, says Ken Iwelumo, former senior vice president, Investment ,Bank of America/Merrill Lynch.
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Orders for security, power, traffic controlTNNNov 12, 2012, 03.28AM IST

LUCKNOW: Directing officials to ensure law and order remain under control on Diwali,chief ministerAkhilesh Yadavon Sunday directed officials to make adequatearrangements to guard against disruptive elements. Instructing officials to ensure

uninterrupted power supply and smooth flow of traffic, the CM also said thedepartments concerned must ensure the festival passes smoothly.On Sunday, the CM also instructed officials to ensure shops selling fire crackers operatein open spaces, away from crowded places to avoid accidents. An advisory note to stayaway from high decibel firecrackers keeping in mind the environment and noisepollution was also issued. Yadav also asked hospitals to remain on stand-by to attend toburn cases, if reported, apart from directing officials to check adulteration of foodproducts during the festive season.

In spite of the busy day monitoring the administration's preparedness ahead of thefestive season, the chief minister also met Canadian senator Asha Seth at his officialresidence in a bid to promote the state's industry. Seth, who expressed satisfaction with

the efforts made by the state government to boost the state'seconomy,expressed hopethat industry captains from around the world, including Canada, would take note andinvest here.Calling for greater interaction between people and industry heads of UP and Canada,Seth said Canadian businesses were upbeat about makinginvestmentsin food security,agriculture, cold chains, education and power. Saying India and Canada planned todouble bilateral trade by 2015, Seth also said Delhi and UP were two big economies innorth India since they lead the country in information technology and agriculture.Discussing detailed investment plans by the Canadian government, Seth said Canadacould provide stable, permanent and green technology in the energy sector. In addition,tourism and education could be the other sunshine sectors that interest her country.

Seth, part of the Canadian prime minister's delegation that visited India last week, saidover 23,000 students from India were studying in different universities in Canada,returned to UP to visit her home district of Sitapur, Seth is the first Indian senator ofCanada.

Following invitation to visit Canada along with industrialists and investors, Akhileshsaid a delegation from UP would visit Canada between May and September 2013, whichthe senator said she would coordinate and facilitate.
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Pollution, health fears fuel protests at Tata power plantHT Correpsondent,Hindustan Times Mumbai, January 16, 2013First Published: 01:01 IST(16/1/2013) | Last Updated: 01:03 IST(16/1/2013)

The public hearing for Tata Power Companys proposal to replace gas with coal at unit6 of the Trombay Thermal Power Station was halted on Tuesday afternoon by the state

pollution control board following a ruckus created by various political parties thatopposed the plan. They claimed that a conversion to coal will pollute the environmentand affect the health of residents.

As part of the modernisation plan, the company will invest Rs. 1,174 crore and use lowsulphur and low ash imported coal for its 500 megawatt unit 6. At present, units 5 and 7run on coal. The company has stated that it will use appropriate polllution controlequipment such as Electro Static Precipitators (ESPs) and Flue Gas Desulfurisation(FGD) to maintain emissions at the current and controlled levels.

With Chembur known as a gas chamber as it houses Bharat Petroleum CorporationLimited, Hindustan Petroleum Corporation Limited and Rashtriya Chemical Fertilisers,

representatives of various political parties spoke of how fly ash will spread even toGhatkopar and Vikhroli apart from Chembur.

When a project needs approval, a company always says that there will be no impactand everything will be taken care of. But nothing is done once the plant comes up, saidRaja Chowgule, a chemical engineer and a corporator. There are efforts world over todiscard coal because it is polluting. Chembur citizens must come on the streets toprotest against this plant when it comes up.

Questions were also raised over the environment impact assessment report. How canone expect the assessment report to be impartial if Tata Consulting Engineers hasprepared the report? The report doesnt mention where water will be released after

sulphur is washed and how will fly ash be transported to companies to make cementand bricks, said advocate Naina Pardeshi

In order to get environment clearance, the Maharashtra Pollution Control Board willsend the minutes and video recording of the public hearing to the environment ministry.
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Poor power sector facing logjam for new investmentsTuesday, 13 November 2012 11:29

Posted by Imaduddin350

MUSHTAQ GHUMMAN

ISLAMABAD: The countrys poorly managed power sector is reportedlyfacing logjam with respect to new investments as all the three options offunding have fizzled out, well informed sources told Business Recorder.

Background interviews with different officials revealed that the NationalTransmission and Dispatch Company (NTDC) had recourse to three kindsof investment in the power sector: (i) investment through tariff increase withthe blessings of the regulator; (ii) GoPs funding from own resources; and(iii) funding from multilateral development agencies.

We have no funding for power sector projects as Nepra has notdetermined Discos tariff so far. GoP has no funds for power sector

development projects due to financial crunch and funds from multilateraldevelopment agencies are negligible due to slow pace of reform andprogress in projects, said an official on condition of anonymity.
http://www.brecorder.com/top-news/1-front-top-news/90309-poor-power-sector-facing-logjam-for-new-investments-.htmlhttp://www.brecorder.com/top-news/1-front-top-news/90309-poor-power-sector-facing-logjam-for-new-investments-.pdfhttp://www.brecorder.com/top-news/1-front-top-news/90309-poor-power-sector-facing-logjam-for-new-investments-.html?tmpl=component&print=1&layout=default&page=http://www.brecorder.com/component/mailto/?tmpl=component&link=aHR0cDovL3d3dy5icmVjb3JkZXIuY29tL3RvcC1uZXdzLzEtZnJvbnQtdG9wLW5ld3MvOTAzMDktcG9vci1wb3dlci1zZWN0b3ItZmFjaW5nLWxvZ2phbS1mb3ItbmV3LWludmVzdG1lbnRzLS5odG1shttp://www.brecorder.com/top-news/1-front-top-news/90309-poor-power-sector-facing-logjam-for-new-investments-.html


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The official further stated that Asian Development Bank (ADB) had recentlythreatened to review Pakistans portfolio for power sector as all the projectswere delayed. This claim, however, could not been verified from the ADBoffice in Islamabad.

An insider told this scribe that power sector was about to collapse ascircular debt had touched Rs 800 billions. Current circular debt isabout Rs400 billion, besides Rs 300 billion transferred in the books of PowerHolding Company Limited (PHCL) and Rs 69 billion has been stuck up dueto Islamabad High Court (IHC) verdict against fuel price adjustment, headded.

IHC ordered Discos to pay back this amount to the consumers as collectionin the name of fuel price adjustment is illegal.

According to Secretary Water and Power, Nargis Sethi, energy sector wasworking on 55 percent efficiency, and Discos technical line losses werenine percent, generation losses three percent, theft accounted for 19

percent while recovery was 14 percent.

Performance of the power sector has deteriorated during the last four yearsas receivables of distribution companies escalated to Rs402 billion in 2012from Rs183 billion in 2008, registering an increase of 119 percent.

According to official figures, receivables of Lahore Electricity Company(Lesco) increased to Rs34.548 billion in September 2012 from Rs76 billionin March 2008, showing an increase of Rs26.937 billion. The cumulativereceivables of Hyderabad Electricity Supply Company and Sukkur ElectricPower Company (Hesco/Sepco) have showed the highest increase of Rs83.68 billion with the companies total receivables going up from Rs 21billion in 2008 to Rs 105.501 billion in 2012 followed by Rs52 billion


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increase in receivables of Peshawar Electric Supply Company (Pesco) andRs 51 billion of Quetta Electric Supply Company (Qesco).

Pescos receivables went up from Rs 19 billion in 2008 to Rs 52.874 billionin 2012 and outstanding dues of Qesco increased from Rs 9.212 billion toRs 60.952 billion during the period under review.

The data further revealed that receivables of Gujranwala Electric SupplyCompany (Gepco) have jumped from Rs1.92 billion in 2008 to Rs9.2134billion in 2012, showing an increase of Rs7.293 billion, while receivables ofFaisalabad Electric Supply Company (Fesco) rose from Rs2.371 billion in2008 to Rs9.56 billion in 2012, reflecting an increase of 7.189 billion.

The outstanding receivables of Islamabad Electric Supply Company (Iesco)have gone up from Rs3.334 billion in 2008 to Rs18.037 billion in 2008,showing an increase of Rs15.072 billion. Similarly, outstanding MultanElectric Power Company (Mepco) were Rs5.033 billion in 2008 butincreased to Rs 18.923 billion in 2012, registering an increase of Rs13.89

billion.


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Power companies to get coal blocks at adiscountSarita C Singh, ET BureauNov 16, 2012, 05.06AM ISTNEW DELHI: The government has decided to offer discount on coal blocks' prices beingoffered topower companiesin the auction set to begin in a few months, coal secretaryS K Srivastava said.Thecoal ministryis, however, yet to decide the rate at which discount will be offeredand is holding consultations with state governments that will get the entire auctionmoney. Srivastava said the decision has been taken to ensure low electricity tariffs andall stakeholders including state governments have agreed to it.

"It has been decided to give a discount to power sector companies as otherwise theauction will result in higher electricity tariffs," he said. "The question is how muchdiscount should be offered. The state governments have also been involved in theexercise since there should be a balance between state revenues and power tariffs."

Blocks earmarked for power sector will be given to state governments, which will awardthe mines to companies that quote lowest tariff for electricity supply. Power companieswill pay a 'reserve price' for each block on which the coal ministry plans to give discount.

The decision to give discount to power firms follows a recommendation madebyCRISILInfrastructure Advisory, a consulting firm appointed to assist the ministry infixing prices of captive coalmines. It has recommended that price for each block bedetermined by estimating cash flow projections of a project. The estimated cash flowshould be adjusted against the estimated capital cost to mine the block over 30 years toarrive at its value."India's power needs are rapidly rising," CRISIL had said in its draft report on

methodology for calculation of price tags of coal blocks. "In 2011-12, the peak loaddemand-supply deficit stood at 10.6%. As any increase in electricity prices may have acascading inflationary impact on India's economy, one of the key objectives that thegovernment may set is to keep the electricity prices at an affordable level." A top coalministry official said coal block allocation to government companies may begin beforethe end of this fiscal.

The coal ministry has identified 54 coal blocks with over 18,000 MT reserves forallocation to private and government companies. While 45% of the blocks have beenearmarked for the power sector, about 25% each have been earmarked for steel andstate mining corporations.
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Power Sector Privatization Strategy for

PHCN Successor Distribution

Companies Part 2THURSDAY, 15 NOVEMBER 2012 00:00 AYODELE ONI

We had stated in the last edition of this column that the Bureau of PublicEnterprises (the BPE) and the National Council on Privatization (theNCP) chose to use the Aggregate Technical Commercial and Collection(ATC & C) Losses reduction value and the mechanism to achieve suchreduction, provided by bidders, as key bid parameter. This week we

continue our review of this efficiency bid parameter used by the BPE.The Aggregate Technical Commercial and Collection Losses Reduction AsKey Bid ParameterFor the privatization of the Discos, the BPE and indeed the NCP chose togo the way of a combination of highest financial bid and best service/efficiency program. The efficiency bid parameter in this case, is thereduction of the ATC & C Losses; with premium placed on this bidparameter.The decision to place premium on reduction of ATC & C as a bid parameter

was largely because Discos are to a large extent, natural monopolieswhose privatisation does not immediately make the setting up of alternativefirms by the private sector, viable. The privatisation of the Discos, as aresult of their monopoly status in their operating areas, poses a differentchallenge from routine privatization programs, which would be difficult toaddress using the usual highest bidder parameter model, as the key bidparameter. This is particularly the case because it is not sufficient toprovide the highest financial bid as that alone would not reduce the ATC &C. A bit more appeared needed.In designing the model for the selection of the preferred bidder for Nigerias

distribution companies, therefore, the BPE and the NCP took intoconsideration, the fact that the ATC & C losses sustained by the variousDiscos had ranged between 40 and 50 percent of the power wheeled tothem through the transmission system. This level of losses was regardedas unsustainable and if not halted will continue to render the Nigerian
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