February 2017

Volume 5 | Issue 10 | `100

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The Complete Energy Sector Magazine for Policy and Decision Makers

Infrastructure
push to drive growth

Future auction of Lowering of

coal blocks hinges on custom duty to propel
growth in power demand LNG sector

Dr. Arup Roy Choudhury Alok Perti Sandeep Chaturvedi DV Giri

Former CMD Chairman (CPSI) and Former President Secretary General,
NTPC Ltd Secretary, Ministry of Coal Biodiesel Association of India IWTMA
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InfralinePlus
The Complete Energy Sector Magazine for Policy and Decision Makers
February 2017 | Volume 5 | Issue 10

Editors Letter Editorial

Shashi Garg, Editor
On February 1, Union Finance Minister, Arun Jaitley
presented the first combined budget of independent India
News Team
that included the Railways also. This was done to synergise
Chetan Gupta
investments in railways, roads, waterways and civil aviation.
For the energy sector, it was a mixed bag. While the focus of
the budget was clearly on rural electrification, concessions Expert Opinion
for solar power and gas-based power plants, the wish-list Alok Perti
for thermal power, wind and nuclear was not addressed.
Rather, the discontinuation of tax holiday for projects in the Analyst
power sector came as a big jolt for developers. Ankit Kumar
The finance minister has also done well to bolster confidence of private players in
public private partnership (PPP) projects by proposing to clear the legal hurdle to Content Consultant
ensuring quicker resolution of contractual disputes. Further, the proposal to abolish News Monster
the Foreign Investment Promotion Board, an agency that is tasked with vetting
applications of overseas investors, augurs well for foreign investments in the country.
The focus on rural electrification is a welcome move as it will be critical for the
government achieving 24x7 power by May 1, 2018. This is also expected to create
additional demand for power which is good news for power developers, who currently Business Development
are struggling to sell their surplus power. Similarly, the decision to reduce customs
Manoj Narang, Director
duty on LNG to 2.5% will lead to committed LNG supply to gas-based power plants,
which are running below their capacity due to lack of availability of gas. It may be Tel.: 0120-6799106 / 100
noted that the grid connected gas-based power generation capacity in the country is Email: manoj.narang@infraline.com
around 23,075 MW, of which 14,305 MW had no supply of domestic gas.
The solar sector reaffirmed its image of being the governments blue eyed boy, with
the sector receiving significant duty cuts to sustain the momentum and ensuring that
the low tariffs continue to remain at a sustainable level. In this regard, we bring to you Advertisement
our outlook for the renewable energy sector in 2017. There is an increasing realization Ashwini Solomon
that renewables can be a major contributor in Indias future energy mix. A significant Tel.: 0120-6799157/100
push and preference for renewable energy this year will see a tremendous growth of Mob.: +91 9811708110
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the sector and will confirm Indias role as one of the worlds leading renewable sector Email: advertising@infraline.com
marketplaces alongside the likes of United States and China.
However, thermal power and coal were completely ignored in the budget. There is still
a lot of clarity is needed as far as the energy sector is concerned. While the Centre
has repeatedly promoted the goal of tripling domestic coal production by 2020 to fuel Circulation & Subscription
a dramatic increase in coal power generation, the goal looks increasingly fanciful. In
Sneha Pandey
a more drastic step to reduce coal imports, the government has scrapped plans for
the construction of at least four large thermal power plants categorised as ultra-mega Tel.: 0120 6799125
thermal power plants (UMPPs) with aggregate generating capacity of 16 GW. However, Email: sneha.pandey@infraline.com
recent coal block auction process is expected to fetch coal bearings states a lions share
of the revenue, in addition to providing relief to consumers with reduction in power tariffs.
Outside, we have also seen power diplomacy taking shape in recent times. Trade
in general and electricity trade in particular can play an important role in facilitating Form IV
Periodicity of its Publication: Monthly
peace prosperity and promote harmony in the region. Electricity trade transactions
Printers / Publishers /
between India and its neighbors, Nepal, Bhutan and Bangladesh in recent years have Editors / Owners
Mrs Shashi Garg
highlighted the advantage of cross-border electricity trade. Total volume of electricity Nationality Indian
trade between the South-East Asian nations is likely to exceed 20 BUs by 2020. No 14-D, Atmaram House, 1, Tolstoy Road
doubt, it has significant socio-economic and political advantages in the long run. Address
New Delhi - 110001
Now that the budget has been announced, all eyes will now be on the government to Place of Publication
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 February 2017
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InfralinePlus

Contents
Editors Letter
3

Cover Story 35
Union budget 2017-18:
Infrastructure push to drive
growth
Given the element of history attached
with this years Union Budget and the
macro economic scenario preced-
ing it, the setting was perfect for
the government to make big bang
announcements. Rather, the budget
was weaved in such a manner so to
provide respite to all sections of the

35
economy. What stood out was the
strong focus on infrastructure which is
likely to be the key trigger which would
4 propel growth in the energy sector.

Power
6 22
News Briefs p6
In Conversation: Dr. Arup Roy Choudhury, former
CMD, NTPC Ltd p10
In Depth: Can UDAY be the elixir for power sector in
2017? p12
In Depth: Cross border electricity trade to play a
crucial role in regional harmony in South Asia p16
Statistics p20
Coal
News Briefs p22
Expert Speak: Alok Perti, Chairman Coal Preparation
Society of India (CPSI) and Former Secretary, Ministry
of Coal p25
In Depth: Future auction of coal blocks hinges on
growth in power demand p29
Statistics p33

Topics Covered Topics Covered

Thermal power Coal stocks
Power distribution Coal demand
Power trade Coal auction
 February 2017
www.InfralinePlus.com

Oil and Gas Renewable

44 55
News Briefs p44 News Briefs p55
In Conversation: Sandeep Chaturvedi, President, In Conversation: DV Giri, Secretary General, Indian
Biodiesel Association of India p47 Wind Turbine Manufacturers Association p60
In Depth: Budget 2017: Lowering of custom duty to In Depth: Indias renewable energy sector on the
propel LNG sector p49 cusp of giant leap in 2017 p64
Statistics p53 Statistics p68

Topics Covered Topics Covered

Biofuel market Wind turbines
LNG growth Taxes and duties 5

Marketing of fuel Growth projections

Expert Speak/Interview

Dr. Arup Roy Choudhury, Alok Perti,

Former CMD, Chairman (CPSI) and Former
NTPC Ltd Secretary, Ministry of Coal

Off Beat
Intelligent Transport System: A game changer 70
Reports & Studies
73
People in News
Sandeep Chaturvedi,
President, Biodiesel Association
DV Giri,
Secretary General, Indian Wind
74
of India Turbine Manufacturers Association
 February 2017
www.InfralinePlus.com
NewsBriefs | Power National
Power ministry extends domestic manufacturing rule by 3 years
The Ministry of Power has extended by three
years a clause whereby companies inviting
bids for boilers and turbine generators of
supercritical projects need to incorporate a
condition of setting up of phased indigenous
manufacturing facilities. The period of advisory
Economic survey paints a bleak picture of power sector
The Economic Survey 2016-17 tabled in
Parliament by Finance Minister Arun Jaitley
has painted a bleak picture of the power
generation sector saying private firms are
6 reeling under cost-overrun pressure and
PLFs and tariffs in the short-term market
are not likely to rise in the near term.There
is scant sign on the horizon that PLFs and
tariffs might improve, the survey said.
Private power generation companies are
reeling under cost-overrun pressure and
this, coupled with low electricity prices are
hurting their profitability, according to sur-
vey. It said plant load factors (PLF) in India
are exceptionally low and falling merchant
tariffs and power purchase agreement
Investment by Power Ministry PSUs down 8.3 % at Rs 62,000 crore in 2017-18
Investments by state-run firms under
the Power Ministry have been budgeted
slightly lower by 8.3 per cent at Rs
62,600.37 crore in 2017-18 compared to
the budget estimates of this fiscal. The
government had estimated an expenditure
of Rs 68,256.80 crore by these central
public sector undertakings, including
NTPC, NHPC, PGCIL and NEEPCO, in
this fiscal but it was revised down to Rs
67,532.04 crore in the budget. According
to the expenditure budget, the government
had budgeted Rs 30,000 crore investment
by power giant NTPC for the current
fiscal which has been reduced slightly to
Rs 28,000 crore for next fiscal. Similarly,
had expired on October 2015 and the ministry
has now extended it by three more years with
minor changes in the guidelines, Central Elec-
tricity Authority said in a report. The advisory
said, for a foreign bidder, the company should
have a registered subsidiary or a joint venture
(JV) company for manufacturing of super
critical boilers or turbine in India. It further
said the bidder in this case must maintain an
equity participation of minimum 51 per cent in
the subsidiary or minimum 26 per cent in the
JV company during the lock-in period of seven
years. For an Indian company, it has to have
an experience of 500 Megawatt supercritical
boiler or turbine and it should have a valid
ongoing collaboration and technology transfer
agreement, the document said.
(PPA) rates have led to slower cash flow for
private power generation companies. As
per the survey, PLF tumbled to just 59.6 per
cent during April-December 2016 from 62
per cent during the same period last year.
investment by state-run hydro power
generator NHPC is pegged at Rs 3,089.36
crore for 2017-18, lower than revised
Power ministry working on mega
push for village electrification next
fiscal
The power ministry has worked out a mega
expansion plan for village electrification
in the coming financial year that is likely
to require spending upwards of Rs 16,500
crore through a slew of central schemes
including the flagship Deen Dayal Upadhyay
Gram Jyoti Yojana (DDUGJY).The blueprint
of the plan has been worked out as part of
the efforts to fulfill Prime Minister Narendra
Modis announcement of 100 per cent
village electrification and round-the-clock
power for all by 2019. The idea is to cover
2,984 villages under DDUGJY apart from
extending electricity connections to 4 mil-
lion Below Poverty Line (BPL) households in
the coming year. Apart from Rs 16,500 crore
needed for village electrification schemes,
the ministry has projected separate fund
requirement under other central schemes
Rs 5,700 crore for Integrated Power
Development Scheme (IPDS); Rs 1,548
crore for power system improvement in the
North-East excluding Arunachal Pradesh
and Sikkim; Rs 1,500 crore for transmission
system strengthening in the two states and
Rs 312 crore for setting up a 220 Kilovolt
transmission line from Srinagar to Leh.
budget estimates of Rs 3,103.25 crore.
For Damodar Valley Corp, the investment
has been budgeted at Rs 2,167.15 crore
for next fiscal against revised estimate
of Rs 1,362.54 crore in the budget. Last
budget had pegged the expenditure at Rs
3,302.67 crore. However, the investment
by North Eastern Electric Power Company
(NEEPCO) has been pegged at Rs 1,561.25
crore for next fiscal against revised
estimate of Rs 1,741.79 crore. Similarly,
the investment by Satluj Jal Vidut Nigam
Ltd has also been increased to Rs 1,068
crore for next fiscal from Rs 1000 crore
provided in Budget of last year which was
later revised to Rs 600 crore.

NewsBriefs | Power National
Reliance Powers exit dampens spirits of other players
The decommissioning of the Reliance Powers
2,400-MW Samalkot project has dampened
the spirits of other players who have set up
gas-based power plants with a capacity of
20-MW to 470-MW in East Godavari district
and been waiting for allocation of gas by the
government for several years. Considered to
be Indias largest gas-based power project
after Dabhol, the plant is shifting its base
China power firm seeks to enter power transmission sector
China Southern Power Grid International
(HK Company Limited), in a consortium with
CLP India Private Limited, is set to enter
the power transmission sector in India. In
bids called for projects totalling Rs 3,000
crore, state-owned China Southern Power
has submitted a proposal of interest to
build, own and operate power transmission
networks. Three projects for which the
bids were called are transmission system
for an ultra-mega solar park in Jaisalmer,
Rajasthan (Rs 536 crore), ERSS-XXI (Rs
1,321 crore) and the New WR-NR Inter-
Regional Corridor (Rs 916 crore). Among the
other bidders were Power Grid Corporation
of India Limited (PGCIL), Sterlite Power,
Power Ministry misses target despite rise in output for November-December
Demonetisation may have negligible impact
on power sector as output grew by 8.53
per cent in November and 6.13 per cent in
December year-on-year but Power Ministry
could not achieve the targeted electricity
generation during the respective months.
There was a fear that junking high value
currency notes of Rs 1,000/500 will lead to
slowdown in all segments in the economy
including power sector. According to the
Central Electricity Authority monthly report,
total power generation in the country was
95.123 billion units (BUs) in December
2016, which was 6.13 per cent higher than
89.625 BUs electricity generation in the cor-
responding month previous year. However,
Nepal to increase power import from
to Bangladesh even before the commence-
ment of power generation to its capacity.
The decommissioning work is in full swing
at the project site, where the operations
commenced in March, 2012. Reliance waited
for five years for allocation of adequate gas
prompting the managements of other power
plants to follow the suit. Corporate bigwigs
such as GVK, GMR, Spectrum and others
established power plants but kept them non-
functional in the absence of adequate supply
of gas. After Reliances exit, there will be 10
plants in the field with a capacity of about
2,500 MW. While a majority of them have
stopped operations long back, a few others
function for a couple of months every year,
depending on the sanction of fuel.
Adani Transmission Limited, Tata Power,
GMR Limited and L&T. Chinese powers
companies have been active in the India
power sector space at the engineering,
procurement, construction (EPC) level.
as per the report, the electricity generation
target of 96.999 BUs could not be achieved
in December. Similarly, the CEA report said
power generation grew 8.53 per cent in
February 2017
www.InfralinePlus.com
India to plug demand-supply gap
Hydropower rich, Himalayan country
Nepal is going to increase its power im-
port from India to plug up own winter
time demand-supply gap. In addition to
its existing 350MW import, Nepal will
take additional 25MW from India as per
a power purchase agreement signed
between Nepal Electricity Authority
(NEA) and NTPC Vidyut Vyapar Nigam
Ltd. of India. As NEA Deputy Managing
Director Rajeev Sharma puts it, This
25 MW is quite significant for the small
power system of Nepal. The additional
intake will take place through a cross 7
country transmission line between
Dhalkebar in Nepal and Muzaffarpur in
Indian state Bihar. At existing tariff of
INR 3.6 per unit, the increased import
is likely to continue till arrival of rainfall
in the Himalayan terrain in May. Against
total theoretically gigantic hydropower
potential of over 83,000 MW, Nepals
economically feasible potential is
43,000 MW. But its existing capacity is
less than 1000MW.
November, 2016 to 93.235 BUs compared
to 85.904 BUs in same month year ago.
However, the target of 93.236 could not be
achieved. The generation in the month of
November was almost on track as there is
not much difference in the actual output
and target. But power generation is 1.8 BUs
short of the targeted output in December,
said an expert. According to the CEA data,
the per capita consumption of electricity
was 1,075 units in 2015-16 as per provision-
al estimates. Therefore, output of 1.8 billion
units could have lit thousands of houses in
the country where a large number of people
either live without electricity or face outages
due to shortages in supply.
 February 2017
www.InfralinePlus.com
NewsBriefs | Power States
Jharkhand electricity board continues to lose despite distribution reform scheme UDAY
The Jharkhand Bijli Vitran Nigam Ltd, despite
joining the centres ambitious UDAY scheme
aimed at bringing state-run power discoms out
of losses, is again saddled with huge arrears to
be paid to DVC and Coal India. Jharkhand was
the first state to join the scheme in September
2015. Under the scheme, in January 2016,
Rs 5,553 crore was taken as loan from the
Himachal surpasses J&K in power generation, development
Himachal Pradesh a state having half
geographical area than Jammu and
Kashmir- has surpassed J&K in power
generation with HP generating 6370
MW of electricity in comparison to 3263
8 MW by J&K, while government blames
conflict and uncertainties in the state for
lagging behind in developmental aspects,
an official report reveals. The Economic
Survey Report-2016, this year has first
time included Conflict Economy chapter
to give understanding of the fact that how
the economy of the state gets affected
by uncertainties and conflict area.
The report mentions that Hydel Power
potential of both J&K and HP is estimated
Jindal Steel and Power in talks to sell Chhattisgarh power plant for over $1.5 billion
Jindal Steel & Power Ltd, seeking to
cut debt after eight straight quarters
of losses, is in talks with companies
including billionaire Gautam Adanis
Adani Power Ltd about selling a
2,400-megawatt Indian electricity plant.
The New Delhi-based company has been
in discussions about selling the plant to
Adani Power as lenders led by State Bank
of India pressure the company to make
divestments. Jindal Steel is seeking to
value the asset, located in Tamnar in the
central Indian state of Chhattisgarh, at
more than Rs10,000 crore ($1.5 billion).
The company has also reached out to
other potential buyers for the plant. Jindal
central government, of which Rs 4,770 crore
was paid to the DVC and Rs 783 crore to
Coal India. However, within an year, it again
suffered heavy losses and the company owes
DVC Rs 1,500, while Coal India is owed Rs 83
crore. At the time of joining the scheme, the
Union Power Ministry had categorically asked
the power utilities to improve their perfor-
mance. It was said that the power distribution
company was getting loan at the interest
rate of 12-13 per cent but if the same loan is
taken from the state government, it would be
provided at 8 per cent resulting in immediate
profit of 4-6 per cent. To reduce the losses,
JBVNL was asked to improve its capacities
within a fixed time frame and had to bring T&C
loss to 15 per cent by 2019.
at 20,000 MW each. HP has harnessed
capacity to the extent of 6370 MW which
is 32 percent of the estimated potential
till now while J&K has only exploited 3263
MW which is only 16 percent of potential,
the report states.
UP dithering on 24X7 power supply
document: Piyush Goyal
Union Power Minister Piyush Goyal has
charged the Akhilesh Yadav government
in Uttar Pradesh with dithering on the
central plan to provide 24-hour electricity
to all households. Goyal claimed all the
state governments and Union Territories
had signed the 24X7 power document
mooted by the Centre except for UP.We
had proposed that the Centre and states
could work together as a team to provide
24-hour power supply to all households,
he said and lamented while all the state
governments and Union Territories had
agreed with the proposal and came on
board, the UP government has still not
signed it. He claimed about 15 million
rural and 3 million urban households in
UP or roughly 40 per cent of the states
population was deprived of power
connection. He castigated the successive
Samajwadi Party (SP) and Bahujan
Samaj Party (BSP) governments in UP,
which have been ruling the state for the
last 15 years for the sorry state of affairs,
especially in power sector.
Steel, controlled by Naveen Jindal, has
the second-highest borrowing level among
Indian steelmakers, according to data
compiled by Bloomberg. The company,
which had Rs46,300 crore of net debt as
of December, started a leverage reduction
plan in May after agreeing to sell a
1,000-megawatt power plant in central
India to JSW Energy Ltd. Jindal Steel
needs about Rs2,000 crore to buy coal,
which the companys lenders have agreed
to fund only after it makes progress on
asset sales. Bankers have told Jindal
Steel they may need to introduce new
equity investors if the company isnt able
to reduce its debt, the people said.

NewsBriefs | Power International
Argentina raises electricity prices again, now up to 148%
The government of President Mauricio
Macri in Argentina announced the prices
of electricity will rise, once again, between
61 and 148 percent for residents, as
the country faces another utility hike as
part of a broad austerity plan. Argentine
Energy and Mining Minister Juan Jose
Iran signs power plant deals worth over $10bn
Iran has signed agreements valued at
around 10 billion ($10.7 billion) companies
for the construction of new power plants
with German, Russian, Chinese, South
Korean and Turkish companies. The
preliminary agreement with Turkeys Unit
International is one of the biggest of its kind
after the international sanction were lifted,
Alireza Daemi, Deputy Energy Minister for
Planning and Economic Affairs was quoted
as saying. Unit International signed a
$4.2-billion preliminary deal with Energy
Ministry in June to build gas power plants
in seven regions in Iran. The power stations
would have a combined installed capacity
of 6,020 MW, the report said.The deal
GE secures $1.4bn power plant orders in Iraq
General Electric (GE) has secured more than
$1.4 billion in orders from Iraqs Ministry
of Electricity to set up power plants as
well as provide technology upgrades and
maintenance services. The announcement
further strengthens GEs collaborations
in Iraq to support the countrys power
infrastructure and meet the growing need
for electricity, said a statement from the
company. GE signed agreements that will
add over two gigawatts (GW) of power and
secure the delivery of ~1.75 GW of existing
power to the national grid. GE will set up
the Samawa and Dhi Qar Power Plants,
adding 1,500 megawatts (MW) to the grid.
In the first phase of the project, GE will
Aranguren, former CEO of oil company
Shell, announced the hike at a press
conference.We are pleased to be able to
rebuild the reality of the prices, said the
minister. In this process of normalization
of the electricity market, the increase
in the price of electricity will be split
between February and March to reach
620 Argentine pesos, about US$39, per
megawatt-hour.We are going to split
the increase so that the incidence in
February is lower, because it is a month
of high residential consumption, and will
be completed in March, said Aranguren.
The government of Mauricio Macri is set
to gradually reduce subsidies for large
consumers until 2019.
with Unit International is an agreement in
principle it is expected to be approved as a
full and final contract by March, the deputy
minister said.
and steam turbine technology, as well as
Up Plan a plan with the Iraqi Ministry
of Electricity (MoE) for critical electricity
install four 9E gas turbines in simple cycle
at each site by 2018. The second phase will
entail the combined cycle conversion of
the 9E units. GE is also supplying advanced
February 2017
www.InfralinePlus.com
Siemens, Marubeni to build 1,200MW
combined cycle power plant in
Thailand
Siemens and its Japanese consortium
partner Marubeni have been awarded a
engineering, procurement, construction
and commissioning contract for 1,200MW
combined cycle power plant in Thailand.
The contract has been awarded by
state-owned utility Electricity Generating
Authority of Thailand (EGAT). Planned to
be built in the Mueang District of Samut
Prakan Province, South Bangkok, the
gas-fired power plant will feature two
units in a single-shaft configuration and
two H-class gas turbines. The project
will replace an existing thermal power
plant. Under the contract, Siemens will 9
deliver two SGT5-8000H gas turbines,
two SGen5-3000W generators and two
steam turbines of model SST5-5000.
It will also supply two heat recovery
steam generators engineered by NEM
and the SPPA-T3000 control system.
Marubeni will be responsible for the civil
and erection works, cooling tower, high
voltage gas insulated switchyard and
some balance of plant equipment.
heat recovery steam generators (HRSG)
serving as the engineering, procurement
and construction (EPC) contractor for the
projects. Under Phase II of the Power
generation and maintenance projects
throughout the country - GE will add over
580 megawatts (MW) to the national grid
through upgrade and rehabilitation works at
four power plants. Additionally, under Power
Up Plan Phase II, GE will sustain ~1.75 GW
of existing power generation through the
maintenance of 9E gas turbines across six
different power plants in Iraq.
 February 2017
www.InfralinePlus.com

InConversation
Only through cheap coal can
we deliver affordable power
Dr. Arup Roy Choudhury is currently the Chief Commissioner,
Right to Public Service Commission, in West Bengal. He was
previously the CMD of NTPC Limited, Indias biggest power
generating utility. In this interview, Choudhury shares his views
on coal sector in India, issues being faced and whether moving
away from coal is the right strategy for India in the long run?

Please share your outlook on the
coal sector.
We have one of the biggest coal
reserves in the world. Efforts have to
be made for supplying the required
quantity and quality of coal to our
generating plants. Installing crushers
10 and coal washeries are the only way
for making our coal compatible with
international coal. India is a poor
country and it is only through cheap
coal that we can deliver affordable
power (< Rs. 3/- per unit) to each and
every citizen. Once we raise our level
economically; there will be a substan-
tial segment of the society who will
willingly buy costlier cleaner power
from solar, wind, and hydro sources.
We should create a green grid on
the likes of outlets for organic food
items that has now become so popu-
lar with the affluent.
How has the doubling of clean
energy cess on coal, lignite
and peat year impacted power
developers?
Unfortunately we are still looking
at the power sector in silos. Royalty
for coal, different type of cess and
taxes on coal, cost of railway freight,
constant increase in coal prices etc are
decided and announced by different
authorities without the least concern
about the cost of the end product;
which is the cost at which power can
be provided to the citizens.
According to the draft National
Electricity Plan formulated by
CEA, the country does not need
any fresh coal capacity till 2027.
What are your views on the
same?
Probably we need a nationwide debate
on this and somewhere I feel we are
missing the larger picture up to the 12th
Plan and even projection of 13th Plan,
we have massive plans for developing
our indigenous power capacity with
our own fuel i.e. coal. I see no reason
to change that national plan. We should
rather make efforts to reduce emission
by coal generating stations and fully
exploit every mega watt of our hydro
potentials by installing mega, mini and
micro hydro electric generating units
all over the country.
Worldwide, there has been a
perceptible change in perception
against coal and towards clean
energy sources like solar. In
this context, what should be
the future growth strategies of
companies like NTPC? Should
they look at diversifying into
renewable?
NTPC should add solar, synergizing
the same with the release of its old
Dr. Arup Roy Choudhury, former CMD, NTPC Ltd
plant (which are still efficiently
running because of the strong
operational capabilities of NTPC)
and the 10,000 mega watt solar
it has committed is linked to the
2000 megawatt Singrauli project.
The power from these depreciated
coal plants once bundled with solar
will provide affordable energy and
popularize solar and cleaner power.
Further solar expansion should be
done by NTPC when older units like
Korba etc are released back to NTPC.
With regard to the worldwide
concern, I would ask the reader
to collect the per carbon emission
globally and in our neighborhood
and come to a conclusion. It will take
atleast 25 years for us to become
a developed country and that can
happen only when we develop on our
own resources. If we do not use up
our coal reserves either it will burn
below the soil or become technologi-
cally barred; thus we lose the natural
advantage.

Can a country like India, which
is heavily dependent on coal and
has one of the largest deposits
of coal, move away from coal?
What is the ideal energy mix that
India should look at?
Coal and Hydro should remain the
major source of energy since any
other generating mode will entrain
depending on foreign technology and
products and would be a huge dent on
our foreign currency reserves.
Can India adopt clean coal
technologies and how?
Companies like NTPC are already
working on clean coal technology and
all generating stations of the country
should make contribution for develop-
ing clean coal technology. The entire
amount of coal cess as collected by the
government should be diverted towards
clean coal technology.
There is high stock of coal
at thermal power stations
due to low demand. In this
scenario, dont you feel that the
Government should instruct
power utilities to only consume
domestic coal and not look for
imports, and why?
Our per capita consumption of
power is around 1/3 of China. The
low demand is nothing but high cost
to the consumer and poor distribu-
tion networking. Someone has to
look at power accessibility and
whose domain is that? In our federal
system, we seem to be passing this
essential infrastructure development
between central and state budgets.
There are power cuts enforced, not
because there is inadequate power,
but because the states are unable to
support the losses being incurred on
account of political subsidies without
financial provisions in the budgets of
the states.
Government also must find ways to
make investment from its infrastruc-
ture budgets and not load this cost
February 2017
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to the tariff or expect the discoms to
bear these costs. After all there is no
free lunch and cost is ultimately
passed to the consumer who is at the
end of the chain.
There have been growing
incidences of mining accidents
in India in the recent past. How,
in your opinion, can India ensure
highest safety standards for its
coal mines?
I am unable to comment on this
because whereas internationally the
underground mining is done to avoid
any disturbance to the environment
and habitation, in India we are doing
open cast mining where the chances
of accident have to be remote unless
there is human failure.
(These are the personal views of Dr. Arup Roy
Choudhury as a professional and have no link
to the responsibility and position that he cur-
rently holds.) 11
For suggestions email at feedback@infraline.com
 February 2017
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InDepth
Can UDAY be the elixir for
power sector in 2017?
12
Financial stress does not allow DISCOMs to make fresh purchases
Strong monitoring at all levels is crucial to achievement of operational and financial targets
By Team InfralinePlus
A complete overhaul of the power
distribution sector is on the cards and
financial recovery for debt-laden state
electricity distribution companies (DIS-
COMs) is underway since the advent
of Ujwal Discom Assurance Yojana
(UDAY) scheme. The progress of the
scheme can be gauged from the reports
that the Haryana DISCOM (8th state to
join the UDAY scheme) have reported
profits in the first half of the current
financial year (FY 2016-17).
However, there is a word of caution.
According to ratings agency CRISIL,
States implementing the UDAY
scheme for revival of their electricity
distribution companies will likely miss
the target to bring their losses down to
zero by 2019 but they could achieve a
significant reduction in the under-recov-
eries on every unit of electricity sup-
plied. It also states, The 15 states that
have signed MoUs under UDAY will
reduce the gap between the discoms
cost of supply and revenue realised
per unit to 28 paise in FY 19 from 64
paise in the last fiscal. In that case, the
aggregate losses of these DISCOMs
are seen declining 46% to ~INR 20,000
Crore from INR 37,000 Crore.
Even though the scheme can be seen
as one aiming to achieve efficiency
in the last mile distribution sector, its
success depends upon better coordi-
nation between the centre and state,
more responsibility and independence
at the state level and an unbiased and
transparent approach to remove inef-
ficiencies from the distribution sector
and consequently inefficiency from the
Indian power sector.
DISCOMs have been historically
plagued by transmission and distribution
(T&D) losses (arising mainly from theft
of electricity, subsidized tariff for agri-
cultural consumption, leakages in trans-
mission and distribution systems, etc.)
and aggregate technical and commercial
(AT&C) losses (primarily due to billing
and collection inefficiencies). Electricity
distribution companies (DISCOMs) are

facing financial stress due to accu-
mulated losses to the tune of INR 3.8
Lakh Crores (as on March, 2015) and
increasing @ 12% p.a. as reported by the
ministry of power (MoP). Such financial
stress does not allow DISCOMs to make
fresh purchases and prevents them from
floating tenders for Long Term Power
Purchase Agreements (LTPPA). Over
the past four years, PPAs of only 12 GW
have been signed under the competitive
bidding route (Case 1 bids).
UDAY Scheme, launched by the
government for financial turnaround
and revival of power distribution com-
panies, will have definite impact on
the buying capacity of the distribution
utilities. But thats going to be more
long term and sustainability would
depend on the overall turnaround of the
distribution segment.
Current Scenario
A total of 21 states had decided to par-
ticipate in UDAY, a scheme to facilitate
the financial turnaround and revival of
power distribution companies (dis-
coms). The scheme was launched in
November 2015 and the states have
committed to reduce their AT&C losses
to 15% and eliminate the cost-revenue
gap by the end of FY19.
The UDAY scheme intends to
achieve this through (a) improving
operational efficiencies of discoms, (b)
reducing the cost of power generation
by discoms, (c) financial turnaround of
discoms through state(s) takeover of the
discoms debts, and (d) financing future
losses and working capital of discoms
by state(s). UDAY may seem to be a
more comprehensive scheme than any
other SEB restructuring scheme seen till
date. It talks about cost-side efficiency
such as immediate reduction of interest
service burden, reduction in fuel cost
through coal swapping, time-bound loss
reduction, etc. On the revenue side, it
talks about a strict discipline of quar-
terly fuel cost adjustment, annual tariff
increase, taking regulators on board and
finally including discom losses in the
fiscal responsibility and budget man-
agement (FRBM) limits for the states.
However, improvements in all these
areas reflect on the broader issue of
cost-revenue gap and AT&C losses, as
depicted in the graph.
Recent states to join UDAY
So far, 21 states have signed agreements
under UDAY including of Jharkhand,
Chhattisgarh, Rajasthan, Uttar Pradesh,
Gujarat, Bihar, Punjab, Jammu &
Kashmir, Haryana, Uttarakhand, Goa,
Karnataka, Andhra Pradesh, Manipur,
Madhya Pradesh, Maharashtra, Him-
achal Pradesh and Puducherry. Recently,
A total of 21 states had
decided to participate
in UDAY, a scheme to
facilitate the financial
turnaround and revival
of power distribution
companies (discoms).
The scheme was
launched in November
2015 and the states
have committed to
reduce their AT&C
losses to 15% and
eliminate the cost-
revenue gap by the end
of FY19
Telangana, Assam and Tamil Nadu have
also joined the scheme.
The Government of India, Gov-
ernment of Maharashtra and the
MAHADISCOM have entered into
tripartite MoU in order to improve the
operational and financial efficiency
of the MAHADISCOM to enable
financial turnaround of the DISCOM.
The MAHADISCOM had the revenue
deficit during the FY 2013-14 and FY
2014-15 amounting to INR 280.42
Crore and INR 356.70 Crore. The out-
standing debt level of MAHADISCOM
has reached to INR 22097 Crore at the
end of September, 2015.
February 2017
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The Government of Maharashtra
shall take over the Medium Term
and Short Term debt of INR
4960 Crore (75% of INR. 6614
Crore, Outstanding Medium
Term and Short Term debt of
MAHADISCOM as on 30th Sept.
2015). This shall be take over in the
following manner (Table 1):
For the rest 25% of the Medium and
Short Term Debt, MAHADISCOM
shall issue State Government guar-
anteed bonds or get them converted
by Banks/FIs (Financial Institu-
tions) into loans or bonds with
Interest not more than the Banks
base rate plus 0.10%.
The MAHADISCOM shall also
reduce the AT&C Losses from
18.71% in FY 14-15 to 14.39% by
FY 2018-19.
Telangana, Assam & Tamil
Nadu join UDAY
With Telangana, Assam and Tamil 13
Nadu joining UDAY scheme in
January, over 90 per cent of the debt
of state electricity distribution com-
panies will be covered by the debt
restructuring scheme for discoms.
The total number of states covered
under the Uday scheme has now
reached 21.
The Telangana government will
take over Rs 8,923 crore of the total
Rs 11,897 crore of discom debt.
The Assam government will take
over Rs 928 crore out of total Rs
1,510 crore discom debt, being 75
per cent of their respective discom
debt outstanding as on September
30, 2015, as envisaged in the
scheme, and the balance debt
would be re-priced or issued as
state-guaranteed discom bonds.
States and discoms collectively
have issued bonds worth Rs 1.83
lakh crore so far to pay off their
accumulated debt.
Tamil Nadu would receive a benefit
of about Rs 22,000 crore in the first
three years from the scheme and
about Rs 7,000 crore every year
after that.
 February 2017
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InDepth

Cost-Revenue Gap (INR/unit)

Figure 1: Cost-Revenue
As onofSeptember
DISCOMs 30,
(As2016
of September 30, 2016)
The Government of
0.45
India, Government
Haryana
0.83 of Maharashtra and
the MAHADISCOM
0.83
Rajasthan
0.42 have entered into
tripartite MoU in
Punjab
0.61
1.06
order to improve
the operational and
Bihar
0.88 financial efficiency
1.33
of the MAHADISCOM
Achievement Target
to enable financial
Source: Ministry of Power (MoP)
turnaround of
the DISCOM. The
FigureAggregate Technical
2: Aggregate & Commercial
Technical (AT&C)
& Commercial Losses
(AT&C) Losses MAHADISCOM had the
of DISCOMs (As of(AsSeptember
on September 30, 2016)
30, 2016) revenue deficit during
the FY 2013-14 and FY
29.8
Haryana
25.3 2014-15 amounting to
47.9
INR 280.42 Crore and
Uttar Pradesh
33.6 INR 356.70 Crore
14 Rajasthan 29.4
24.2
Conclusion
Punjab
21.2 Despite rise in generation capacity
20.7 over the years, there is weak
Bihar 43.9 demand for power, especially from
36.3
distribution companies (discoms) due
to deteriorating finances. Poor financial
Achievement Target
health of discoms and inability to abide
Source: Ministry of Power (MoP) tariff agreements by them are some
of the main causes of poor physical
As on FY 14-15, the Distribution 16-17 as compared to FY 15-16 and performance of private power projects
Losses for the State is 14.17% and Tariff shall increase for the subsequent in the country. The robust capacity
Collection Efficiency in the range years. MERC Notified the Tariff Order addition that the government has been
of 94.71%. for MSEDCL dated 03.11.2016 and projecting has actually aggravated the
Note: It is also projected that there the Energy Charge for the Industrial problem as several independent power
shall be Tariff Reduction for the FY Category of Consumer is decreased. producers (IPPs) have been forced to

Table 1: Takeover of DISCOM debt by the state government of Maharashtra as per the MoU
with MoP
Financial 75% of MT and ST Debt Transfer to DISCOM in the form Transfer to DISOCM Outstanding State
Year of Grants (0.20*4960) Crore in the form of LOAN LOAN of DISCOM
2016-17 20% of DISCOM Debt take over 992 3958 3968 (4960-992)
2017-18 20% of DISCOM Debt take over 992 - 2976 (3968-992)
2018-19 20% of DISCOM Debt take over 992 - 1984 (2976-992)
2019-20 20% of DISCOM Debt take over 992 - 992
2020-21 20% of DISCOM Debt take over 992 - -
Source: Ministry of Power (MoP)
 February 2017
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Power Ministrys update

on UDAY
UDAY scheme has already addressed
62% of DISCOMs debt existing at
the end of 2014-15. With the recent
addition of Maharashtra, and more
states likely to join in future, almost
78% of State Sector DISCOM debt
(excluding power departments) would
be covered under UDAY. Bonds to the
tune of INR 1.68 Lakh Crore, con-
stituting almost 76% of the debt, of
UDAY states have been issued and
successfully subscribed. The ensuing
lowering of interest costs have led to
savings of approximately INR 2,236
Crore over Q1 of FY 2016-17 for the
states of Rajasthan, Uttar Pradesh,
Haryana, Chhattisgarh & Bihar and
also ensures operational sustain-
ability of participating DISCOMs.
Challenges:
RBIs directives on regulatory
treatment of 25% balance 15
DISCOM debt poses a challenge
in lowering the cost of debt.
Monitoring of UDAY through an
exhaustive list of parameters
poses a challenge of collection
and processing of information
due to legacy issues.
Source: Ministry of Power (MoP)

scale down output as demand continues

to be muted from states.
Under UDAY, every DISCOM
is expected to eliminate losses by
2019-20 with potential savings of
over INR 180,000 crore every year
from 2019. The scheme was designed
through extensive stakeholder consulta-
tions and has been projected as a game
changer for States. Strong monitoring
at all levels is crucial to achievement
of operational and financial targets
under the scheme. Certainly, the central
government and the power ministry are
relying heavily on UDAY scheme to
bring about a holistic change in Indias
beleaguered distribution sector.

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 February 2017
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InDepth
Cross border electricity trade to play a crucial
role in regional harmony in South Asia

16

Regional interconnection of electrical systems can bring economic & environmental benefits
Ministry of Power recently notified the guidelines for Cross Border Trade of Electricity

By Team InfralinePlus

For the growth of Indias burgeoning
economy and to meet the demands of
its growing population, energy needs
have become the focal point in the
formulation of policies and regulations.
The quest for energy security has no
doubt become an important element
of Indias diplomacy and is shaping its
relations with neighboring countries.
South East Asian nations, namely India,
Nepal, Bhutan, Bangladesh, Pakistan,
Afghanistan and Sri Lanka, have so far
lagged behind their developing counter-
parts in terms of access to reliable and
affordable energy, especially electricity.
The energy resources in South
Asia are limited and dispersed across
the region, with large unexploited
hydro-electric potential in some parts
and growing dependence on fossil
fuels in others. Various studies and
international experiences related to
energy cooperation have established
that regional interconnection of these
South Asian electrical systems with
diverse generation mix and demand
characteristics can bring operational,
economic, as well as environmental
benefits to the respective countries as
well as to the region as a whole.
Trade in general and electricity trade
in particular can play an important
role in facilitating peace prosperity
and promote harmony in the region.
Electricity trade transactions between
India and its neighbors, Nepal, Bhutan
and Bangladesh in recent years have
highlighted the advantage of cross-
border electricity trade. Total volume

of electricity trade between the
South-East Asian nations is likely to
exceed 20 BUs by 2020. The focus
is on improving cross-border power
transmission connectivity, promoting
power trade and cooperating in energy
efficiency and development of clean
energy projects which will provide fillip
to the fight against climate change.
Cross-border interconnections had
a very long history, the first being
witnessed in Europe. Regional elec-
tricity markets have evolved across the
Americas, Europe, Africa and Asia.
These include the Central American
Electrical Interconnection System
(SIEPAC), the European Network of
Transmission System Operators for
Electricity (ENTSO-E), the Greater
Mekong Sub-region (GMS), Associ-
ation of South East Nations (ASEAN)
Grid, the Gulf Cooperation Council
Interconnection Authority (GCCIA),
the Energy Community of South East
Europe (ECSEE), the Southern Africa
Power Pool (SAPP) and the West
African Power Pool (WAPP).
Current Scenario
The first interconnection project
enabling export of up to 500 MW from
India to Bangladesh, which com-
menced in 2013, has already begun
reducing power shortages in Bangla-
desh, providing alternative markets for
Indian power suppliers, and improving
grid stability in the sub-region. Accord-
ing to the South Asia Sub-Regional
Economic Cooperation (SASEC), the
growth in export of Bhutans hydro-
Table 1: Regional Interconnection in the SAARC Region
Countries Connection
Bhutan Punatsangchu (Bhutan) Alipurduar
(India)
Bangladesh Baharampur (India) Bheremara
(Bangladesh)
Nepal Approx. 20 linkages exporting power from
India to small isolated markets in Nepal.
Muzaffarpur (India) Dhalkebar (Nepal)
Sri Lanka Madurai (India) Anuradhapura (Sri
Lanka)
Source: Ministry of Power (MoP), Government of India
power to India contributes to increasing
the share of more environment-friendly
and sustainable power sources in the
total energy mix of the sub-region.
At present, Cross Border Trade of
Electricity has been taking place with
Bangladesh, Bhutan and Nepal under
bilateral Memorandum of Under-
standing/ Power Trade Agreement
(PTA). Bhutan, with a hydroelectric
potential of 30 GW, has derived signif-
icant benefits from export of electricity
by not only earning a substantial portion
of the export income of the country, but
by also being able to provide wide-
spread access to affordable electricity
to most of its population. In contrast,
Nepal, with a hydroelectric potential of
over 80 GW, continues to face power
shortages and has become a net importer
of electricity from India. While an
upcoming 400 kV transmission line
between India and Nepal may initially
Inter-Connection
400 kV DC
400 kV DC and 500 MW HVDC
(upgradable to 1000 MW)
Various lines at 132/33/11 kV
125 km 400 kV, interconnection
130 km (India); 91 km (undersea
cable); 150 km (Sri Lanka) / 500 MW
February 2017
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support import of electricity from India,
but is expected to support electricity
export through development of hydro
resources in the Himalayan country.
As indicated by many stakeholders
in the past, any cross-border
transactions between India and 17
neighboring country shall be allowed
through bilateral agreements between
Indian entity and an entity of that
country under the overall framework
of agreements signed between the
countries. On the view of the above
and to facilitate Cross Border trade
of electricity between India and
neighboring countries, Ministry of
Power (MoP) recently notified the
guidelines for Cross Border Trade of
Electricity.
According to the guidelines,
Ministry of Power, Government of
India shall designate an Authority
(Designated Authority) for facilitating
the process of approval and laying
down the procedure for cross border
transaction and trade in electricity.
The Designated Authority shall
coordinate with the Nodal Agency
of the neighboring country for all
purposes as stated in the Rules and
Regulations. The roles defined for the
Designated Agency are: facilitating the
process of approval and laying down
the procedure for cross border trade;
planning, monitoring and coordinating
 February 2017
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InDepth

the commissioning of cross border

transmission lines for cross border
transactions; the grid security, safety
and operation; and any other function
as assigned by Government of India,
Ministry of Power.
Ministry of Power has described
official from Central Electricity
Authority (CEA) as the Designated
Authority for the aforesaid purpose
in the guidelines. The functions of
the Designated Agency as stated in
the guidelines are: (i) Coordinating
with the respective Nodal Agency
of the neighboring countries on
cross border trade of electricity, (ii)
Planning, monitoring, coordinating
and commissioning of cross border Determination of Tariff or through competitive bidding,
transmission lines for cross border Tariff for import of electricity by subject to payment of the charges as
transaction in consultation with CEA Indian entities (including traders, applicable for transmission/ wheeling
and CTU, (iii) the Grid security, safety distribution licensees) from generating of electricity through the Indian grid.
and operations in consultation with CEA stations (directly or through trader) The transmission charges,
and CTU, (iv) accord of approval of located outside India may be scheduling, accounting, deviation
18 for participating entity for cross border determined, under long term/ medium settlement involving Indian Grid
between India and the neighboring term/ short term agreement, through a and any other related operational
countries, (v) Examining and certifying process of competitive bidding, which mechanism and matters involving inter
surplus capacity of electricity for export shall be adopted by the Appropriate connected grids of electricity shall
by Coal Based Thermal Power Projects Commission. Provided that in case be governed in accordance with the
and (vi) Notifying the quantum of of hydro projects, the tariff may be applicable CERC Regulations.
electricity from time to time that can be determined by the CERC as per its
traded through Indian Power Exchanges Regulations, if approached by the Conclusion
or any other mode as specified by the generator through the Government of Continuous efforts to expand cross
Ministry of Power. the neighboring country and agreed by border electricity cooperation and
According to the guidelines, The the Indian entities, including Public trade in South Asia needs to address
Designated Authority will frame its Utilities/ DISCOMs. Tariff for export several barriers. Some of these may
own rules for Conduct of Business of electricity to entities of neighboring arise due to regional-level political
(CBR) for facilitating the process countries by Indian entities through climate, while a lot will depend on
of approval and laying down the long term/ medium term/ short term how the policies and regulations on
procedure of Cross Border. agreements may be as mutually agreed cross-border electricity trade are
framed in individual countries of the
Table 2: Eligible criteria for Cross Border Trade of Electricity region. The electricity laws, rules
Sr. No. Description and regulations of the South Asian
5.2.1 (a) Import of electricity by Indian entities from Generation projects located outside India countries currently in place may
and owned or funded by Government of India or by Indian Public Sector Units or by be reviewed to take cognizance of
private companies with 51% or more Indian entity (entities) ownership.
5.2.1 (b) Import of electricity by Indian entities from projects having 100% equity by Indian generation w.r.t to cross-border trade,
entity and/ or the Government / Government owned or controlled company(ies) of interconnections and coordination
neighboring country.
5.2.1 (c) Import of electricity by Indian entities from licensed traders of neighboring countries amongst regional grid operators. This
having more than 51% Indian entity(ies) ownership, from the sources as indicated in will go a long way in harmonizing
para 5.2.1 (a) and 5.2.1(b) above.
policies and regulations for facilitation
5.2.1 (d) Export of electricity by distribution licensees / Public Sector Undertakings (PSUs), if
surplus capacity is available and certified by the concerned distribution licensee or the of cross-border trade.
PSU as the case may be.
Source: Ministry of Power (MoP) Guidelines on Cross Border Trade of Electricity For suggestions email at feedback@infraline.com
 February 2017
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19
 February 2017
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StatisticsPower
Details of Upcoming InterstateTransmission Projects (As on Jan2017)
Estimated
SI.
Project Name Cost (in Region Type Remarks
No.
Crores)
1 400kV QMDC line from Munigalveedu to proposed 400kV Sub- Data Southern Interstate Regulated
Station at Jangaon in Warangal Dist. of length 90 Kms. Unavailable
2 Provision of One no. of 220 kV bay at Roorkee under NRSS XXXVI 5 Northern Interstate Regulated
3 Transmission System for Banaskantha (Radhanesda) Ultra Mega 186 Western Interstate Regulated
Solar Power Park in dist. Banaskantha, Gujarat (700 MW)
4 Transmission system for Ultra Mega Solar Parks in Bhadla, Distt. 1429 Northern Interstate Regulated
Rajasthan
5 Transmission System for Tumkur (Pavgada) Ultra Mega Solar Park 1330 Southern Interstate Regulated
Phase-I & II
6 Installation of Bus Reactors at Cuddapah, Nellore, Kurnool, 100 Southern Interstate Regulated
Raichur and Thiruvalam
7 Augmentation of Transformation Capacity in Southern Region 90 Southern Interstate Regulated
8 Conversion of Fixed Line Reactors to Switchable Line Reactors in 25 Southern Interstate Regulated
Southern Region
9 Eastern Region Strengthening Scheme - XX (ERSS-XX) 363.38 Eastern Interstate Regulated
10 400kV line bays at Bhinmal(PG) & Sikar(PG) along with 50 MVAr 50 Northern Interstate Regulated
line reactor at Sikar(PG)
20 11 Provision of 765kV line bays at 765/400 kV Ajmer Substation for 90 Northern Interstate Regulated
765 kV D/C line Korna (RRVPNL) S/S to Ajmer (Pg) 765/400 kV S/S
12 Eastern Region Strengthening Scheme XXI (ERSS-XXI) 1321 Eastern Interstate TBCB
13 Connectivity and Long Term Access (LTA) to HPPCL 450 MW from 318 Northern Interstate TBCB
Shongtong Karcham HEP.
14 Inter State Transmission system strengthening in Chhatarpur area 392 Western Interstate TBCB
in Madhya Pradesh
15 Connectivity System for Lanco Vidarbha Thermal Power Ltd. 351 Western Interstate TBCB
(LVTPL)
16 Additional System for Power Evacuation from Generation Projects 269 Western Interstate TBCB
pooled at Raigarh (Tamnar) Pool
17 Additional 400kV feed to Goa 594 Western Interstate TBCB
18 Transmission system for Ultra Mega Solar Park in Fatehgarh, distt. 536 Northern Interstate TBCB
Jaisalmer Rajasthan
19 New WR- NR 765 kV Inter-regional corridor 916 Northern Interstate TBCB
 February 2017
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Tariff Revised by State ERCs during 2016-17

State Tariff in 2016-17
Andhra There is no general increase in tariff for domestic consumers. Tariff hike by 2-4 per cent for industrial and commercial consumers.
Pradesh Energy charges hike for non-domestic consumers is restricted to 2 per cent. The regulator has also spared railway traction while also
reducing the existing tariffs for sugarcane crushing units, lift irrigation schemes, aquaculture and animal husbandry (pisciculture /
prawn culture, poultry units and dairy farms), poultry hatcheries, religious places and energy intensive units such as ferro alloys units
Arunachal No increase in tariff for domestic & commercial consumers, increase of 10 paise per unit for industrial consumers and 15 paise per
Pradesh unit for temporary consumers
Bihar No hike in tariff for 2016-17 across all consumers categories
Chhattisgarh Power tariff increase for domestic users is average 12 percent and high tension consumers from 12 to 16 percent
Delhi No Tariff Revision for Discoms of Delhi for 2016-17
Gujarat Gujarat Electricity Regulatory Commission (GERC) has reduced power tariff by 10 paise per unit for all residential consumers and
14 paise of HT consumers in Gujarat. For the consumers of private sector power producer, Torrent Power Limited, the latter revised
power tariff downwards by 18 paise per unit for power consumers of all the categories in Ahmedabad, Surat and Gandhinagar cities
J&K The Power Development Department of Jammu & Kashmir has proposed 17% Tariff hike for 2016-17, Order awaited from JKSERC
Karnataka Average 9% increase over the existing prices or an average 48 paise per unit. Across the consumer categories, the raise falls in the
range of 15 paise to 50 paise per unit
Madhya The average electricity rate for low-tension category connections, which include domestic users, small shops and business
Pradesh establishments, is increased by 6-7%. Average 8% tariff hike for industries (overall charges for high-tension electricity consumers
are increased from Rs 5.6 to 6.10 per unit, fixed charges are also increased)
Maharashtra MERC has rejected MahaVitarans proposal for an average 5.5% increase in the electricity tariff for 2016-17 but has allowed a moderate
hike of 1% to 1.3% for residential consumers for the current year and also for 2017-18, 2018-19 and 2019-20. The Below Poverty Line
residential tariff category has been extended to consumers with a sanctioned load upto 0.25 Kw, as against the limit of 0.1 Kw earlier.
For low tension (LT) residential the tariff has been hiked to Rs 6.41 per unit from Rs 6.33 per unit, for LT non-residential to Rs 11.23
from Rs 11.19, for LT power looms to Rs 6.57 from Rs 6.54 and for LT industry general to Rs 8.03 from Rs 7.99.
For industries, MERC has reduced energy charges with a marginal increase in demand charges.The government has made
budgetary allocation of Rs 1,011 crore to provide subsidy to MahaVitaran to compensate its loss. The reduction in tariff will be
done by offering load factor incentive and cut in the fuel adjustment cost. The tariff will be reduced by Rs 1.25 to Rs 1.75 per unit in
Vidarbha while Rs 1.50 in Marathwada and 50 paise to Re 1 in north Maharashtra and backward areas of western Maharashtra. 21
The tariff for Agriculture category has increased slightly but will still meet only a little above the 50% of the Average Cost of Supply
(ACoS). However, around 36% of agricultural consumers are still un-metered.
Tata Power has proposed an average tariff hike of 6% for 2016-17 while Reliance Infrastructure has pleaded for an average 5.26%
tariff hike for 2016-17. Order awaited from MERC
Manipur MSPDCL seeks 10 percent increase in the power tariff for 2016-17, order awaited from Joint Electricity Regulatory Commission for
Manipur and Mizoram
Odisha No hike in tariff for 2016-17 across all consumers categories
Punjab Average Tariff Hike of -0.98% for 2016-17
Uttar Pradesh Average Tariff Hike of 3.18% for 2016-17
Uttarakhand Tariffs hiked by nearly 5% in both domestic and commercial categories. On an average a hike of 26 paise per unit has been
effected for consumers in the domestic category while an increase of 28 paise per unit has been made for consumers in the
commercial category
West Bengal Average power tariff for consumers of West Bengal State Electricity Distribution Company Ltd (WBSEDCL) increased by 23 paise
per unit for consumers consuming more than 300 units.
West Bengal Electricity Regulatory Commission (WBERC) has allowed only four paisa increase in average tariff per unit of power
to CESC for financial year 2016-17 against 38 paisa rise allowed in the multi-year tariff order. WBERC has fixed average tariff of Rs
7.02 paisa per unit in 2016-17 over last years Rs. 6.98 paisa. An analysis predicts a negative revenue impact of Rs 30-40 crore a
year. WBERC had approved an average tariff of Rs 7.36 per unit in the multi-year tariff order issued earlier.
Haryana No increase has been made in power tariff for any category in the State, the tariff for consumers of all categories has been reduced
by 37 paise per unit
Rajasthan An average tariff hike of 9.6% in various consumer categories, to be effective from September 1,2016. The commission (RERC)
cleared the full tariff increase sought by state discoms, which led to 11 to 12% increase in all consumer categories except for
agriculture, where the hike is 5.5%.
The power tariff for domestic consumers has been hiked between 35 paise and 75 paise in different categories. In the non-
domestic category, the commission announced a revised rate of Rs 7.55 per unit from the earlier Rs 6.75 for consumption up to
first 100 units per month, and from Rs 7.15 to Rs 8 per unit for consumption from 101 to 200 units a month. The consumers using
201 to 500 units per month will have to pay Rs 8.35 per unit instead of Rs 7.45 earlier, whereas for those consuming above 500
units, the rate has been hiked from Rs 7.85 to Rs 8.80 per unit.
For those in the same non-domestic category but with a power consumption of 5 KW, charges have been fixed at Rs 7.55 per unit
for up to 100 units, Rs 8 for up to 200 units and Rs 8.80 till 500 units.
For small industries, the hike is up to 70 paise, medium 75 paise and large industries 80 paise per unit.
Telangana Telangana Discoms (TSSPDCL & TSNPDCL) have proposed an average tariff hike of 7.5% for consumers. Domestic consumers
using upto 100 units of energy per month have been spared the hike.There is also no tariff hike for agriculture category consumers
(20 lakh consumers), except for horticulture nurseries.
 February 2017
www.InfralinePlus.com
NewsBriefs | Coal National
Govt to open commercial coal mining in FY18
The government will open up commercial
mining of coal next fiscal and four dry fuel
mines will go under the hammer in the first
phase. Next year (2017-18) in coal sector,
we will allocate 25 mines. Of these, 2 will
be alloted and 23 will be auctioned, some
for the coking coal and some for sectors
other than power, like cement and four for
Coal India production grows 5.5 percent in January
Coal India Ltd (CIL) reported that its produc-
tion grew by 5.5 per cent to 55.99 million
tonnes (mt) in January as compared to 52.86
mt in the corresponding month last fiscal, but
the production during April 2016 to January
22 2017 remained flat. According to provisional
data, the production stood at 433.76 mt, up
by a meagre 1.7 per cent during the first ten
months of the current fiscal (2016-17). It
achieved 91 per cent of the target which was
set at 478.57 mt for the period. CIL, which
produces 84 per cent of the countrys coal
production, was targeting 61.04 mt during the
last month of the current fiscal, achieving 92
per cent of the target. It also reported that
its off-take during this period was up by a
marginal 1.3 per cent at 443.13 mt as against
Most Australians oppose governments $1bn Adani loan for coal railway line
Three-quarters of Australians, including
most Liberal voters, oppose the
government giving a $1bn loan to Adani
to build a rail line between its proposed
Carmichael coalmine and the Abbot Point
shipping terminal. The governments
Northern Australia Infrastructure
Fund (Naif) granted Adani conditional
approval for a $1bn loan in December
last year. The rail line, if built, would
allow Adani to build the countrys biggest
coalmine and open up the Galilee Basin
to further mines by linking them to an
export terminal. Coral scientists have
argued the coal needs to stay in the
commercial mining, coal secretary Susheel
Kumar said.We are preparing that plan of
action but we will initiate that process and
conclude it in the next financial year, he said.
A group of secretaries suggested recently
that government create competition for
state-run Coal India Ltd (CIL) by opening up
commercial coal mining. On non-coal mines
auction, mines secretary Balvinder Kumar said:
We hope that nearly 250 mining areas will
be put to auction in coming year (2017-18) by
the major mineral producing states. Among
these, he said there are iron ore mining areas
in Karnataka which were cancelled by the
Supreme Court in category C mines. Besides
mining areas in Odisha, Chhattisgarh and
Jharkhand would also be auctioned.
a target of 489.71 mt. Its off-take for January
stood at 51.35 mt achieving 92 per cent of the
target. In 2015-16, the state miner produced
538.75 mt of coal against a target of 550 mt
and its off- take was at 534.5 mt. During the
current fiscal, the coal production target has
been pegged at 598.61 mt is expected to be
660.7 mt in 2017-18.
and climate change, and the resources
the mine would be a good thing for the
environment. But a ReachTel poll of
on 12 January, commissioned by GetUp,
CIL unions seek Rs 20 per tonne
levy for companys pension fund
Coal Indias unions are demanding a levy
Rs 20 per tonne on the dry fuel to help the
companys pension fund get enough cash.
The state-run company is likely to send this
proposal soon to the central government.
We would want the Centre to impose a
levy on each tonne of coal sold to save the
pension fund. It would go into inflating
the fund size and help reduce the large
liability gap it is facing today, said DD Ra-
manandan, president of the All India Coal
Workers Federation. Employees also want
to increase their contribution to the fund
to 7% of their salary from 4.91% and the
company to contribute a similar percent-
age. Currently, Coal India doesnt make any
payment. But the government contributes
Rs 324 per person every year which also
the unions want to be enhanced. There are
around 3 lakh Coal India pensioners. The
pension fund may not suffice to pay pen-
sions to all retired employees in the future.
Two studies in 2014 showed the fund had
an about Rs 26,000 crore deficit and that it
was widening.
ground if the Great Barrier Reef is to be
protected from the impacts of climate
change. The government has argued
there is no definite link between the
coal from the Adani mine being burned
minister, Matthew Canavan, has said
2,126 people across Australia conducted
found 74.4% of respondents said no
when asked whether lending $1bn to an
offshore mining company to build a coal
rail line is a good use of public money.

NewsBriefs | Coal National
ICVL to restart operations at Mozambique mine as coking coal prices rise
After suspending operations at its Benga mine
in Mozambique in May last year, Interna-
tional Coal ventures (ICVL), the SAIL-led
consortium of five state-run units, will soon
restart the mine hoping that it will be able to
recover variable costs and make some profits
as coking coal prices are running high. ICVL
India cedes top coal importer spot back to China as growth trend stalls
India has surrendered its status as the
worlds top importer of coal back to China,
with its overseas purchases in 2016
falling to less than 200 million tonnes.
The question now is whether lower Indian
coal imports are the new reality, or if last
year was just a blip. Indias coal imports
last year totalled 194.93 million tonnes,
according to vessel-tracking and port data
compiled by Thomson Reuters Supply
Chain and Commodity Forecasts. This
was 5.4 percent lower than the 206.6
million tonnes recorded for 2015, and
also less than the 255.5 million tonnes
imported by China last year, according to
official customs data. It should be noted
that despite the decline, India is still
Coal India losing interest in underground mining
Higher capital costs, the geological
parameters of new reserves and the
groups inability to stop production from
underground mines falling have compelled
the miner to plan future incremental
production entirely from opencut mines.
Production from CILs underground mines
had been steadily declining from 9% of its
total output in 2012 to below 6% in 2016.
According CIL officials, there has been
natural depletion of reserves at existing
operational underground mines. The
absence of contiguous new deposits is said
to be a major hurdle to developing new
underground mines, as fragmented blocks
acquired 65% stake in the Benga mine and
two green-field coal assets (Tete East and
Zambeze) in 2014 from Rio Tinto. The assets
have an estimated coal resource of 2.6 billion
tonnes and huge CBM potential. SAIL, RINL
and NMDC took part in the acquisition while
NTPC and Coal India opted out. Tata Steel
has the remaining 35% stake in Benga mine.
The Benga asset can produce 5.3 million
tonne coal per annum. However, given the
losses, running up to $7.5 million each month,
owing to high mining & transportation costs
and subdued prices of coking coal; the pro-
moters were producing only 3 lakh tonne per
month before operations were discontinued.
importing nearly four times as much as it
did a decade ago, and almost double the
amount from five years back. Indias rapid
growth in coal imports came amid strong
economic growth and struggles by state
miner Coal India to lift output to meet its
ambitious targets.
42% of the companys 413 operational
to bury underground mining, despite
made the installation of long-wall mining
technology unviable in such deposits.
February 2017
www.InfralinePlus.com
Neyveli Lignite Corp to increase
power generation by 2,640
Megawatt
Neyveli Lignite Corporation (NLC)
India Limited has proposed to enhance
power generation at its Neyveli complex
by 2,640MW, said chairman and man-
aging director Sarat Kumar Acharya.
Acharya said the companys project to
increase lignite-based power genera-
tion by 1,320MW (two units of 660MW)
has reached the advanced stages of
completion. He said the company has also
proposed to add another 1,320MW (two
units of 660MW) in the second phase at
Neyveli. He said the company has awarded
contracts for enhancing coal-based power
generation by another 1,980MW through 23
its joint venture Neyveli Uttar Pradesh
Power Limited (NUPPL) at Kanpur in Uttar
Pradesh and for enhancing lignite-based
power generation by another 500MW
through Barsingsar expansion and Bithnok
green field project in Rajasthan.With the
government allotting 20.5 metric tonne of
coal per annum from Talabira mine blocks
in Odisha, we have taken up a plan of
4,000MW capacity addition in coal-based
power generation in two phases, he said.
Currently, opencast mines comprise 93%
of CILs total production, although only
mines are opencut operations. However,
CIL officials were quick to point out that
there was no official strategic policy
underground mining losing its prominence
in future CIL production plans. In fact,
late last year a business delegation from
Poland held preliminary talks with CIL
wherein it offered to provide the latest
state-of-the art underground mining
technology to India for development of
reserves below 300 m.
 February 2017
www.InfralinePlus.com
NewsBriefs | Coal International
Deutsche Bank pulls out of coal projects to meet Paris climate pledge
Deutsche Bank, the biggest bank in
Germany, has said it will stop financing
coal projects as part of its commitments
under the Paris agreement to tackle
Coal could get clean-energy subsidy under new Turnbull focus
Australias Prime Minister, Malcolm
Turnbull has opened the possibility of
using clean-energy subsidies to build
new-generation, coal-fired power stations
as he branded Labors heavy focus on
24 renewables mindless, and a recipe for
more expensive, less reliable electricity.
Flagging a policy switch sure to provoke
anger from anti-coal environmentalists,
but set to please fossil-fuel enthusiasts
in the Coalition partyroom, Turnbull said
technological advances had made new
coal-fired generators viable as a potential
foundation in the overall energy mix.The
next incarnation of our national energy
policy should be technology agnostic
its security and cost that matter most,
Sembcorp fully commissions 1,320MW coal-fired power plant in China
Sembcorp Industries has commissioned
the second 660MW unit at the 1,320MW
coal-fired power plant in Chongqing,
China, marking the start of full commer-
cial operations at the facility. Located in
Anwen, Qijiang district, the approximately
RMB4.67bn (S$966.5m) power plant is
developed by ChongQing SongZao Semb-
corp Electric Power. ChongQing SongZao
Sembcorp Electric Power is owned by
Sembcorps wholly-owned subsidiary
Sembcorp (China) with 49% stake and
Chongqing Energy Investment Groups
subsidiary Chongqing Songzao Coal and
Power with 51% interest. The power
global warming.Deutsche Bank and its
subsidiaries will not grant new financing
for greenfield thermal coal mining and
new coal-fired power plant construction,
it said. Existing exposure to such projects
will be gradually reduced, it added. The
lender said the decision was in line with
the pledges it made at last years Paris
climate conference, along with 400 other
public and private companies, to help fight
global warming. The bank pulled out of a
deal to finance the controversial expansion
of a coal port in Australia in 2014 because
it said there was no consensus about how
it would impact the Great Barrier Reef.
not how you deliver it, he said. This
called for a policy approach that was
non-ideological, using all of the above
technologies - coal, wind, solar, pumped
hydro, and improved battery storage.
generation facility features supercritical
technology and is said to be one of the
most efficient power plants in Chongqing.
The first 660MW unit of the power plant
was commission in November 2016. In
Japan 2016 thermal coal imports
fall from record, LNG purchases
down for 2nd year
Japans coal imports for power
generation fell in 2016 from four
years of successive record highs and
liquefied natural gas (LNG) purchases
dropped for a second year as an
energy crisis brought on by the 2011
Fukushima disaster eased, official data
showed. Rising supplies of homegrown
renewable energy and the return of
some nuclear power, amid falling
demand as Japans population declines,
mean the worlds third-largest economy
has more diversity in its sources of
energy. Thermal coal imports declined
to just below 110 million tonnes in 2016,
down from a record-high 113.84 million
tonnes in 2015, the Ministry of Finance
said. Import costs fell 20 percent from
a year earlier. Shipments of liquefied
natural gas (LNG) dropped for a second
year last year, down 2 percent to 83.34
million tonnes, while their value fell 40
percent. Japan is the worlds biggest
importer of LNG.
addition to helping in meeting rising power
demand in Chongqing, the power plant
supports the development and growth of
Chongqings economy. Sembcorp group
president and CEO Tang Kin Fei said:
The successful completion of the power
plant marks an important milestone for
Sembcorp in our expansion of our energy
portfolio in China.The project, which
was completed ahead of schedule, bears
testimony to the successful cooperation
between Sembcorp and Chongqing Energy
Investment Group. The power plant will
also help to meet the increasing power
needs in Chongqing.
 February 2017
www.InfralinePlus.com

ExpertSpeak
Excessive coal stocks: Is
it an advantage?
In the wake of low power demand and falling PLFs, Alok Perti,
Chairman Coal Preparation Society of India (CPSI) and Former
Secretary Ministry of Coal, analyses the reasons for the huge
coal stock pile up at thermal power stations and at the mine
heads. He feels that while increase in coal production by CIL and
SCCL is a positive factor, a more judicious approach needs to be
adopted to ensure that the excessive stock piling does not take
place.

Supply of coal to thermal power sta- was not increasing. In this article there
tions for electricity generation has been is an attempt to understand the
a contentious issue for quite some time. reasons for having huge stocks
In the years from 2010 to 2013-14, piled up both at the
the general impression was that power thermal power
stations were starved of coal supply stations and Answer Alok Perti, Chairman Coal Preparation Society of
India (CPSI) and Former Secretary, Ministry of Coal 25
and that the imports of Non-coking at the mine lies in
coal were increasing rapidly. During heads and bringing in from 2012-13 to 2015-16. In the
2009-10, the coal production saw a whether commercial mining year 2013-14, CIL and SCCL
fairly good growth of about 7-8%, but this is a and inducing supplied 385.157 MT of coal
this growth was constrained in the next desirable competition in to various power stations in the
few years, and in 2011-12, the final situation. country. It implies that about 78. 8
the sector
year of the 11th plan, CILs production MT of non-coking coal was supplied
was only 436 million tons (MT) against Trend in to non-power sector presuming that
the projected target of 520 MT (11th last four years all coal produced was transshipped
plan document). The main reason for To begin with, it would be appropriate out of the mines to users. Since there
this slow growth stated at that time was to look at the data for the last four years was a perceived shortage of fuel in the
the delay in environment clearances as which would be adequate to understand power sector, all additional production
the Ministry was intensely engaged in the current dynamics of the sector and was intended to be supplied only to
determining the go and no-go areas to study the trends which may help in the thermal power stations during the
and no clearances were forth coming predicting the future (Table 1). 12th plan period. In the year 2015-16,
for new projects or expansions. But The data shows an increase of about CIL and SCCL supplied 443. 585 MT
from 2012-13, the situation has been 90 MT of non-coking coal production coal to thermal power stations. This
improving. With improved supply from CIL and SCCL inthe four years amounted to an increase of 58.428 MT
of domestic coal, the imports should
naturally reduce and that is what is be- Table 1: Production of Non-coking coal by Coal India and
ing witnessed today. Over the last four SCCL
years, some interesting changes have Production by CIL Production by Total Production
Year
been observed in the supply and usage (million tons) SCCL (million tons) (million tons)
of coal. Way back in 2012-13, several 2012-13 401.52 53.19 454.71
states were requesting CIL to restrict 2013-14 413.495 50.469 463.964
supply of coal as stocks were piling 2014-15 443.670 52.536 496.204
up at the power stations and electricity
2015-16 484.93 60.389 545.312
demand from distribution companies
 February 2017
www.InfralinePlus.com

ExpertSpeak

Table 2: Vendible coal stock at pitheads as on 31st March for has become zero as on March 31,
2013-2016 (million tons) 2016. This is a notable achievement.
However, the number of power stations
Year CIL SCCL Others Total
having stocks far above the norm has
2013 58.17 3.02 1.86 63.05
increased and this may not be desirable
2014 48.68 5.55 1.28 55.51
in several cases. The list of the critical
2015 53.47 5.35 0.52 59.39
and super critical stations is not the
2016 57.67 6.98 0.46 65.12 same over the three years. In fact, it
varies year to year quite significantly.
over the last three years. The closing Stock piling of coal in CIL mines at
stocks at the power stations on March the end of financial year has been going Implications
31, 2014 and 2016 stood at 22.763 MT up and down. In the year 2010-11, To be able to arrive at any meaning-
and 43.235 MT, respectively. In other the stock reached to about 70 MT on ful implication of having large stocks
words, the actual increase in supply March 31. of coal at the thermal power stations
was about 38 MT. The Central Electricity Authority and at the mines one must consider the
various limitations. Firstly, coal kept
Table 3: Coal stocks at Power stations on March 31 in last exposed to air in the open for long
four year period leads to deterioration and often
Stock At Number of in hot summer months quickly catches
No. of TPSs Super fire. Ideally, coal should be used as
Year TPSs (million Critical TPSs with stock
monitored Critical
tons) above norm soon as possible after it is beneficiated
2013 19.00 93 23 13 17 and delivered to the user. However,
2014 20.30 100 20 9 31 since the power stations consume fairly
26 2015 26.103 100 12 6 38 large quantities, the quantity required
2016 39.00 101 0 0 64 to be kept in stock depends upon the
efficiency of the delivering mechanism
(CEA) is monitoring the coal stock can be stocked at the power stations, and the ability of the miner to produce
position in about 100 power stations on though there appears no uniform adequate quantities so that disruptions
a daily basis. If the stock goes below method in this prescription. in the supply do not take place.
4 days requirement, it is categorized The data (Table 3) shows that coal Secondly, most thermal power
as super critical and below 7days as stocks at the power stations have been producers would like to run the plants
critical. The CEA has also prescribed improving. The number of critical at high PLFs so that their sale of power
the norm on amount of coal which and super critical power stations is maximum and debt servicing is not
hampered. Coal companies supply coal
Table 4: Super critical TPS in 2012-13 on the basis of the Annually Con-
tracted Quantities (ACQ) which for old
Norm in Stock as on Stock as on Stock as on Stock as on
Name of power plants is based on the average
terms of 31stMarch 31stMarch 31stMarch 31stMarch
the TPS supply made over previous years, and
days 2013 in days 2014 in days 2015 in days 2016 in days
Mahatma 25 4 21 24 67 for new plants the ACQ is based on
Gandhi the requirement for running the plant
Badarpur 30 2 28 39 18 at 85% PLF. Power plants would be
Dadri 30 0 4 12 25 happy having good amount of stocks
Anpara 25 2 16 21 18 all the time, but if stocks are kept of
Khaparkheda 25 1 3 6 24 long periods and the quality deterio-
Wardha 29 3 2 0 30 rates then the specific consumption
Simadhri 25 3 2 25 31 would increase, resulting in increase
Sipat 9 1 4 18 16 of cost of power. Further, the space
Khalgoan 15 2 25 25 25 available for stacking the coal should
Koderma 20 0 22 39 43 be sufficient for keeping huge stocks.
Talcher 15 1 6 20 12 Normally, the quantity indicated as the
Farraka 15 0 24 17 24 norm for stocks to be maintained at the
Durgapur 20 2 5 24 44 power stations gives an indication as
 February 2017
www.InfralinePlus.com

Table 5: Super critical TPS in 2013-14 mining and industrial production

activities tend to peak and there is a bit
Stock as on Stock as on Stock as on
Name of Norm in terms
31st March 31st March 31st March
of a competition. Often, the railway
the TPS of days authorities have pleaded with the
2014 in days 2015 in days 2016 in days
Raichur 30 3 3 23 coal companies to restructure their
Bellary 30 2 7 20 production schedules, but this is not
Kakatiya 15 3 NA 19 possible. Over the last three or four
Simadhri 25 2 25 31 years, the rake availability and turn-
Rayalseema 25 1 7 34
around time for coal movement has
Dr. N. Tata Rao 20 0 7 31
Parli 25 0 4 78
seen a reasonable improvement. With
Khaparkheda 25 3 6 24 improved performance of the railways,
Kolaghat 25 3 12 24 it is perhaps now time to re-examine
the norms set for stacking at the power
Super critical TPS in 2014-15 stations. Management for maintenance
Norms in terms Stock as on 31st Stock as on 31st of excessive stocks at power stations
Name of the TPS
of days March 2015 March 2016 entails costs and higher risks of theft.
Korba 15 1 9 For new power plants, particularly
Satpura 20 2 42
Independent Power Producers (IIP)
Warora 20 0 30
Raichur 30 3 23
who have built up the project on funds
North Chennai 30 3 17 from financing institutions and have to
Muzaffarpur 20 1 10 service the debt regularly, it would be
very comforting if the supply of coal is
A stock which would be meant for use over 25 days adequate and regular. For them, having
would last for over 40 days. Where ever there is a higher coal stocks would be preferred 27
provided they are able to maintain a
case of low PLF and huge stocks, the situation is
PLF of 85%. Unfortunately, the demand
not a very desirable one. It would lead to wastage, for power is low and the average PLF in
may be some thefts and some of the coal being de- the country has declined from 73-74%
stroyed by fire. There are several cases where the in the years 2009-10 to around 60%
power station authorities have been requesting for at present. In such a situation, a stock
curtailing the supply not only in the current year but which would be meant for use over 25
also during the previous three or four years. days would last for over 40 days. Where
ever there is a case of low PLF and
to the capacity of the power station to at the loading points. Unfortunately, huge stocks, the situation is not a very
stack up. the season for maximum production desirable one. It would lead to wastage,
In the earlier years of the 11th plan, and consequently higher requirement may be some thefts and some of the
there was a serious problem of getting of railway rakes happen to be during coal being destroyed by fire. There are
the required number of railway rakes October to March when all other several cases where the power station
authorities have been requesting for cur-
tailing the supply not only in the current
year but also during the previous three
or four years.
As on March 31, 2016, there
were about 25 power stations having
excessive stocks, in most cases two to
three times the norm set by the CEA.
The position as of January 10, 2017 indi-
cates that there are still about 12 such
power plants having stocks much more
than the norm. These are: Ropar, Panki,
Tanda, Sabarmati, Koradi, Parli, Dahanu,
Bokaro, Chandrapur (DVC), Kodarma,
 February 2017
www.InfralinePlus.com
ExpertSpeak
South REPL and Durgapur. The other
interesting fact is that the number of
super critical power stations as on
January 10, 2017 is 9 and critical 22
(includes 9 super critical). This situation
is very similar to the position on March
31, 2014. It is apparent that the position
of critical and super critical keeps
varying and requires constant monitoring
which the Ministry of Coal does through
28
a committee under one of the Joint
Secretaries. The coal production peaks
during the last quarter and the stock tend
to pile up and the position on March 31
should invariably look satisfactory.
The other important factor is the
stock piling of coal at the pit heads
of mines. Coal production can be
increased in existing mines through
more intensive mining. In other words,
the mine capacity can be enhanced to
the maximum approved by Ministry
of Environment, Forest and Climate
Change while giving the Environment
clearance. The coal companies have
resorted to such action in the past. In the
zeal to show greater achievements, the
coal companies step up the production
activity in the dry months of October
to March. In the year 2015-16, the
international prices of coal dropped and
cheap imports were available resulting
in availability of cheaper power
through the power trading companies.
The Power Distribution Companies
(Discoms) avoided buying power
through the signed PPAs resulting in
low power generation in several plants.
Departments and
Ministries do compete
to show better
performance but it is
necessary to recognize
the external factors
which may influence
the performance of one
branch and this may
require some changes
in strategy to avoid
wasteful expenditure,
be it by any of the
portions of this chain
Added to that was the low demand
for power essentially due to sluggish
growth in industrial production.
All these factors combined to lower
the PLF of powers stations leading to
a fair degree of stock piling of coal at
the power stations and at the pitheads
of coal mines.The coal companies
increased production in 2015-16
showing a growth of about 9% over
2014-15, resulting in excessive stocks
being stacked up at power stations and
at pitheads of coal mines. During the
year 2016-17, from April 1 to January
10, the position of the total stocks at
power stations monitored by the CEA
was 20.9 MT with 9 super critical
power stations. The stock at pitheads
was 39.8 MT on November 15, 2016
and increased to 42.2 MT on December
15, 2016. The production target in
12th plan document for the most
optimistic scenario was 615 MT for
CIL. Even if CIL reaches 580 MT for
the year2016-17, it is likely to result in
a similar situation as it was on March
31, 2016. It is necessary for CIL and
SCCL, the two coal producing com-
panies, to examine all aspects of the
issue and work in a coordinated manner
ensuring that unnecessary exposure of
coal does not take place.
Way forward
The new government in 2014 having
realized that there is a dire need for
proper coordination between the power
ministry and the main supplier of fuel,
the Coal Ministrymade one common
minister. From power distribution and
consumption to supply of coal, the
fuel required, there is a need to fully
appreciate each stage of this chain and
constantly modify the strategies to suit
the need of the hour. The situation as
on March 31, 2016 is an example of
lack of this effort. Departments and
Ministries do compete to show better
performance but it is necessary to
recognize the external factors which
may influence the performance of one
branch and this may require some
changes in strategy to avoid wasteful
expenditure, be it by any of the por-
tions of this chain.
While it is appreciated that increase
in coal production by CIL and SCCL
is a positive factor, a more judicious
approach should be adopted to ensure
that the excessive stock piling does not
take place both at the mine Pitheads
and the power plants, since coal is a
commodity that deteriorates overtime
when exposed to air. Perhaps, the
answer lies in bringing in commercial
mining and inducing competition in the
sector, forcing the coal companies to
value every saving in production and
getting the most competitive price for
their product.
The views in the article of the author are personal
For suggestions email at feedback@infraline.com

InDepth
Future auction of coal blocks hinges
on growth in power demand
Country does not need to build any new power plants for at least next three years: CEA
Dependence on coal imports is likely to remain high in the near to medium term
By Team InfralinePlus
While the Central Government has
repeatedly promoted the goal of
tripling domestic coal production by
2020 to fuel a dramatic increase in
coal power generation, the goal looks
increasingly fanciful. Coal India Ltds
(CIL) expansion plans are part of
Indias overall efforts to ensure energy
security by cutting crude oil imports
by 10 percentage points over the next
six yearsthe country now imports
80% of its crude oil requirement
and boosting domestic production of
natural gas. Significantly, in a more
drastic step to reduce coal imports, the
Indian government has scrapped plans
for the construction of at least four
large thermal power plants categorised
as ultra-mega thermal power plants
(UMPPs) with aggregate generating ca-
pacity of 16 GW. However, recent coal
block auction process is expected to
fetch coal bearings states a lions share
of the revenue, in addition to providing
relief to consumers with reduction in
power tariffs.
February 2017
www.InfralinePlus.com
29
The three rounds of mines auction
were held after the Supreme Court
in 2014 cancelled the allotment of
204 coal blocks. In compliance to the
Honble Supreme Court order dated
24.09.2014, 83 coal mines have been
allocated to private and public sector
under the provisions of the Coal Mines
(Special Provisions) Act 2015. In a
reply to the Parliament, it was stated
that 31 coal mines out of the 83
have been allocated through auction.
These mines will be used for specified
 February 2017
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InDepth
end-uses other than power such as Iron
& Steel, Cement and Captive Power
Plants have been clubbed as Non-
Regulated Sector.
The auction proceeds from 83 coal
mines allocated so far are estimated at
over INR 3.95 lakh crore over the life of
the mines, which will be available to the
coal bearing states. According to Min-
istry of Coal (MoC), revenue of INR
2,779.36 crore (approx.) has already
been generated (up to October 2016).
Adverse market conditions,
depressed commodity prices and
poor response from sectors like steel
contributed to the axing of the fourth
tranche of coal block auction process
by the government. The slowdown has
affected the steel industry so badly that Adverse market conditions, depressed commodity
the auction process had to be called off prices and poor response from sectors like steel
due to lackluster response from bidders, contributed to the axing of the fourth tranche of
especially from non-regulated sectors coal block auction process by the government. The
like captive power plants, cement and
iron and steel.
slowdown has affected the steel industry so badly
30 that the auction process had to be called off due to
No need for coal power lackluster response from bidders
plants in future: CEA
Recent assessments made by the and increasing preference towards government to auction all the cancelled
Central Electricity Authority (CEA) in buying power through the exchange coal blocks while also factoring in the
drafting the national electricity plan re- route, it will become impossible for the record production by CIL.
veals that the country does not need to
build any new power plants for at least Coal requirement in future
the next three years, while also project- With the provisional demand projections and likely Renewable Energy Sources
ing a subdued demand for power with (RES) capacity addition, the coal-based generation has been estimated and
a 20.7 per cent lower peak demand in accordingly provisional coal requirement has been worked out by CEA in the
202627. Given the massive capacity draft national electricity plan. The likely capacity addition of RES has been
addition plans in the renewable sector, considered in three cases viz., Case-I: 1,15,326 MW, Case-II: 90,326 MW and
CEA estimates there is no requirement Case-III: 65,326 MW by the terminal year 2021-22. With this estimate, the total
capacity of RES would be 175 GW in Case-I, 150 GW in Case-II and 125 GW in
for new coal plants from 2022-27.
Case-III respectively.
Based on demand projections, CEA
estimates new coal-based capacity Accordingly, in the year 2021-22, the estimated generation from coal-based
requirement of 44,085 MW in 2022-27. power plants would be around 1018 BU, 1071 BU and 1122 BU respectively.
Since, 50,025 MW of coal power The details of coal requirement for the year 2021-22 have been worked out by
CEA considering 30% reduction in Hydro generation due to failure of monsoon
projects are already in different stages
and being supplemented by coal based generation.
of construction and are likely to yield
benefits in 2017-22, CEA does not During 2026-27, the total capacity of RES has been estimated to 275 GW
foresee any immediate requirement capacity, considering 175 GW of total capacity at the end of the year 2021-22
for fresh capacity addition from coal- and 100 GW capacity addition of RES during 2022-27. With the capacity addition
based source up to 2027. Seeing the of 50,025 MW coal based power plants, the generation from coal based power
plants is estimated as 1246 BU. The details of coal requirement for the year
muted demand from state electricity
2026-27 have been worked out considering 30% reduction in hydro generation
distribution companies (DISCOMs)
due to failure of monsoon and are being supplemented by coal-based generation.
owing to recurring financial troubles
 February 2017
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Table 1: Schedule-II bids for coal blocks earmarked for auction in the regulated sector
Sr. No. Coal block Location Peak-rated capacity (MTPA) Award price (INR/tonne) New allottee

1. Sarisatolli West Bengal 3 460 CESC

2. Talabira-I Odisha 3.5 474 GMR Chhattisgarh

3. Tokisud North Jharkhand 2.32 1,110 Essar Power

4. Trans Damodar West Bengal 1.0 940 Durgapur Projects

5. Amelia (North) Madhya Pradesh 2.8 712 Jayprakash PVL

Source: Ministry of Coal (MoC), MSTC Ltd.

Schedule-III bids for coal blocks earmarked for auction in the regulated sector
Table 2: Schedule-III bids for coal blocks earmarked for auction in the regulated sector

Sr. Coal block Location Peak-rated Award price New allottee

No. capacity (MTPA) (INR/tonne)
1. Jitpur Jharkhand 2.50 302 Adani Power Ltd

2. Mandakini Odisha 7.50 650 Mandakini Exploration and Mining Ltd

3. Ganeshpur Jharkhand 4.0 704 GMR Chhattisgarh Energy Ltd

4. Utkal-C Odisha 3.37 770 Monnet Power Company Ltd

Source: Ministry of Coal (MoC), MSTC Ltd. 31

Schedule-II bids for coal blocks earmarked for auction in the non-regulated sector

Table 3: Schedule II bids for coal blocks earmarked for auction in the non-regulated
sector
Sr. No. Coal block Location Peak-rated Award price New allottee
capacity (MTPA) (INR/tonne)
1. Gare Palma IV/1 Chhattisgarh 6 1,585 BALCO

2. Gare Palma IV/4 Chhattisgarh 1 3,001 Hindalco

3. Gare Palma IV/5 Chhattisgarh 1 3,502 Hindalco

4. Gare Palma IV/7 Chhattisgarh 1.2 2,619 Monnet Ispat

5. Marki Mangli III Maharashtra 0.21 918 BS Ispat

6. Chotia Chhattisgarh 1 3,025 BALCO

7. Kathautia Jharkhand 0.8 2,860 Hindalco

8. Belgaon Maharashtra 0.27 1,785 Sunflag ISCL

9. Sial Ghoghri Madhya Pradesh 0.3 1,402 Reliance Cement

10. Bicharpur Madhya Pradesh 0.75 3,003 UltraTech Cement

11. Mandla North Madhya Pradesh 1.5 2,505 Jaiprakash Associates Ltd

12. Ardhagram West Bengal 0.4 2,302 OCL Iron and Steel Ltd

13. Marki Mangli I Maharashtra 0.3 715 Topworth Urja and Metals Ltd

Source: Ministry of Coal (MoC), MSTC Ltd.

 February 2017
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InDepth

Schedule-III bids for coal blocks earmarked for auction in the non-regulated sector
Table 4: Schedule III bids for coal blocks earmarked for auction in the non-regulated
sector
Sr. No. Coal block Location Peak-rated Award price New allottee
capacity (MTPA) (INR/tonne)
1. Moitra Jharkhand 1 1,512 JSW Steel Ltd
2. Brinda Sasai Jharkhand 0.68 1,804 Usha Martin Ltd
3. Meral Jharkhand 0.44 727 Trimula Industries Limited
4. Nerad Malegaon Maharashtra 0.36 660 Indrajit Power Pvt Ltd
5. Dumri Jharkhand 1.00 2,127 Hindalco Industries Ltd
6. Mandla South Madhya Pradesh 0.30 1,852 Jaypee Cement Corporation Ltd
7. Gare Palma IV/8 Chhattisgarh 1.20 2,291 Ambuja Cements Ltd
8. Lohari Jharkhand 0.20 2,438 Araanya Mines Pvt Ltd
9. Bhaskarpara Chhattisgarh 1.00 755 Crest Steel and Power Pvt Ltd
10. Majra Maharashtra 0.48 1,230 Jaypee Cement Corporation Ltd
Source: Ministry of Coal (MoC), MSTC Ltd.

Amid an improving trend in domestic medium term (till FY19) and moderate schedule II and schedule III mines.
coal production and the measures being gradually after that, due to the overall Improved domestic supply, better quality
taken by CIL to augment domestic coal challenges in coal mine development and swapping of linkage are helping
output, the dependence on coal imports along with risk of delays in ramping reduce variable cost for coal-based
32 is likely to remain high in the near to up of coal output by the allottees of power plants. However, there are other
inflationary pressures that DISCOMs
currently face. Environmental cess on
According to CEAs draft national electricity plan, there coal has increased dramatically over the
would be no shortage in the availability of coal for the past few years (INR 400/tonne).
power plants during 2021-22 and 2026-27. In addition, Coal-powered thermal power plants
account for 70% of total electricity
coal production from the captive coal blocks allotted to generated in the country and represents
power utilities would also supplement the availability of 61% of the installed power capacity.
domestic coal. According to CEAs draft national
electricity plan, there would be no
shortage in the availability of coal for
the power plants during 2021-22 and
2026-27. In addition, coal production
from the captive coal blocks allotted to
power utilities would also supplement
the availability of domestic coal.
While the recent auctions are
targeted to bridge the gap on a
sustainable basis, MoC has proposed
that the 500 MT target from non-CIL
sources is difficult to achieve if only
mining for end use is considered, which
gives way to the need for commercial
mining and also anticipating auction of
coal blocks for commercial mining in
future for different end use sectors.

For suggestions email at feedback@infraline.com

 February 2017
www.InfralinePlus.com

StatisticsCoal
FOB Thermal Coal Prices - Australia & South Africa - FY 2017
Australia (FOB
South Africa (FOB Richards
Month Newcastle 6700 kcal/
Bay 6000 kcal/kg) (USD/Ton)
kg) (USD/Ton)
16-Apr 50.8 52.7
16-May 51.2 53.7
16-Jun 53.4 57.3
16-Jul 62.3 62.5
16-Aug 67.4 66
16-Sep 72.9 67.4
16-Oct 93.2 83.5
16-Nov 100 89.4
16-Dec 86.6 82.1

Indonesian Coal Prices - HBA - FY 2016-17 (till Dec16)

HPB MARKER (kcal/kg GAR) (USD/Ton)
HBA 6322
Month kcal/kg Gunung Pinang Indominco Melawan
Prima Coal Envirocoal Jorong J-1 Ecocoal
(USD/ton) Bayan I Coal IM East Coal
6700 5000 4400 4200
7000 6150 5700 5400
16-Apr 52.32 55.87 57.84 52.29 43.06 43.25 41.6 33.45 30.87
16-May 51.2 54.66 56.7 51.26 42.16 42.44 40.89 32.88 30.35
16-Jun 51.81 55.32 57.32 51.82 42.65 42.88 41.28 33.19 30.63 33
16-Jul 53 62.42 63.97 57.8 47.95 47.6 45.45 36.57 33.64
16-Aug 58.37 56.61 58.53 52.9 43.61 43.74 42.04 33.8 31.18
16-Sep 63.93 68.45 69.61 62.87 52.45 51.6 48.99 39.43 36.18
16-Oct 69.07 74.01 74.82 67.55 56.6 55.3 52.26 42.07 38.53
16-Nov 84.89 91.15 90.85 81.97 69.39 66.68 62.32 50.21 45.77
16-Dec 101.69 109.35 107.88 97.28 82.98 78.77 73.01 58.85 53.46

CILs Monthly Coal Production details in FY16 and FY17

(in million tons)
Month 2016-17 2015-16
April 40.35 41.52
May 42.58 40.97
June 42.72 38.83
July 36.74 34.83
August 32.43 36.21
September 35.24 37.17
October 43.51 44.37
November 50 47.47
December 54.20 52.07
January - 52.86
February - 51.01
March - 59.19
Total (Apr-Dec) 377.77 373.45
Total (Apr-March) 377.77 536.51
 February 2017
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StatisticsCoal
Coking Coal FOB Prices - Australia (in $/ton) during Sep16 to Nov16
Date HCC Peak Down Region Premium Low Vol Semi Soft
1-Sep-16 141 140 83.5
2-Sep-16 142 141 87
5-Sep-16 142.5 141.5 88.5
6-Sep-16 143 142 88.7
7-Sep-16 142 141 88.75
8-Sep-16 175 175 92
9-Sep-16 178 177 93.5
14-Sep-16 185.5 184.5 95
15-Sep-16 187 186 95.5
16-Sep-16 188 187 96
19-Sep-16 190 189 97
20-Sep-16 190 189 97
21-Sep-16 200 199 95
22-Sep-16 205 204 95
23-Sep-16 205 204 95
26-Sep-16 210 209 105
27-Sep-16 213 212 110
28-Sep-16 213 212 110
29-Sep-16 215 214 112
30-Sep-16 215 214 112.5
3-Oct-16 215 214 112.5
4-Oct-16 215 214 112.5
5-Oct-16 215 214 112.5
12-Oct-16 215 214 112.5
13-Oct-16 217 216 113.5
34 14-Oct-16 217 216 113.5
17-Oct-16 217 216 113.5
18-Oct-16 230 219 120
19-Oct-16 233 232 125
20-Oct-16 233 232 125
21-Oct-16 243 242 135
24-Oct-16 243 242 135
25-Oct-16 243 242 135
26-Oct-16 245 244 137
27-Oct-16 250 249 140
28-Oct-16 254 253 142
31-Oct-16 255 254 143
1-Nov-16 260 259 145
2-Nov-16 262 261 146
3-Nov-16 262 261 146
4-Nov-16 262 261 146
7-Nov-16 270 269 153
8-Nov-16 270 269 153
9-Nov-16 270 269 153
10-Nov-16 300 298 178
11-Nov-16 300 298 177
14-Nov-16 300 298 177
15-Nov-16 300 298 177
16-Nov-16 298 297 176
17-Nov-16 298 297 176
18-Nov-16 295 294 176
21-Nov-16 300 299 177
22-Nov-16 304 303 178
23-Nov-16 304 303 178
24-Nov-16 304 303 178
25-Nov-16 309 308 150
28-Nov-16 311 307 145

CoverStory
Union budget 2017-18: Infrastructure
push to drive growth
Rural electrification to drive power growth, no mention of coal
Some relief for solar, wind overlooked
By Infraline Bureau
Given the element of history attached
with this years Union Budget and the
macro economic scenario preceding it,
the setting was perfect for the govern-
ment to make big bang announcements.
The industry was all ears to Finance
Minister, Arun Jaitley, as he began to
read out the budget provisions in the
Parliament on February 1. However,
30 minutes into his speech, it was
clear that the government was, indeed,
steering away from making any major
announcements. Rather, as it stood
out, the budget was weaved in such
a manner so to provide respite to all
sections of the economy. Nonetheless,
what stood out was the strong focus
on infrastructure, which, judging by
the announcements made for other sub
sectors in the energy sector, is likely to
be the key trigger which would propel
growth in the energy sector.
Finance Minister Arun Jaitley has,
in the Union budget 2017-18, kept
focus on NDA governments priority
areas of infrastructure, rural devel-
opment and poverty alleviation while
offering tax relief to the salaried class
February 2017
www.InfralinePlus.com
35
and small enterprises impacted by cash
crunch in the wake of demonetisation.
In a fine balancing act, Jaitley has
hiked total spending to Rs 3.96 lakh
crore while raising fiscal deficit target
to 3.2 per cent from 3.5 per cent in
the current fiscal. However, this is the
second time that Jaitley has deferred
the fiscal consolidation deadline. By
restraining the fiscal deficit to 3.2 per
cent and promising to prune it down
to 3 per cent in the next year, FM has
delivered on Fiscal prudence. All this
has come about amidst 25 percent hike
 February 2017
www.InfralinePlus.com
CoverStory
in government spending and a 19 per
cent reduction in government bor-
rowing. This also increase chances of
a rate cut, said Dhiraj Relli, MD &
CEO, HDFC securities.
Jaitley has presented the budget at
a time when the outlook on the global
economic growth is darkening. Under
the Donald Trump presidency, the US
seems ready to abandon the policy
of multilateralism and withdraw into
isolation, with dire implications for the
global economy. That does not bode
well for Indias exports. There is an
anxiety that the US Federal Reserve
will hike interest rate at a quicker
pace than expected earlier to combat
inflation, which could spark capital
outflows from India and put pressure
on rupee. The situation could further
aggravate if oil prices surge.
Rural electrification to
36 drive power growth, no
mention of coal
The budget has rightly focused on rural
electrification as the governments
chief priority and has committed to
achieve 100% village electrification
by May 1, 2018. Accordingly, the al-
location for Deen Dayal Upadhayaya
Gram Jyoti Yojana (DDUGJY) scheme
has been increased by 44 per cent to
Rs 4,814 crore, while Integrated Power
Development Scheme (IPDS) alloca-
tion has been increased by 29 per cent,
from Rs 4,524 crore to Rs 5,821 crore.
The budget has also hiked allocation
for the power ministry by 33 per cent
to Rs 13,881 crore.
Commenting on the budget pro-
visions for the power sector, Anil
Sardana, MD & CEO, Tata Power,
said, The governments com-
mitment to rural electrification and the
announcement of an additional 20,000
MW of solar target is a welcome step
that gives a much needed boost to the
renewable sector. However, we believe
that for renewable sector to achieve its
potential strengthening the Renewable
Purchase Obligations (RPO) mech-
Jaitley has presented
the budget at a time
when the outlook on
the global economic
growth is darkening.
Under the Donald
Trump presidency,
the US seems ready
to abandon the policy
of multilateralism
and withdraw into
isolation, with dire
implications for the
global economy. That
does not bode well for
Indias exports
anism is essential and should be part
of governments larger vision for
renewable energy. The move towards
improving electricity access to rural
India will be instrumental in contrib-
uting to the social and economic devel-
opment of the country. The increased
budget for the Deen Dayal Gram Jyoti
Yojana will strengthen and uphold the
ongoing work of feeder separation
and sub-transmission & distribution
infrastructure. This is a positive step
towards augmenting the reliability and
quality of supply distribution network
which is affected due to poor financial
health of discoms.
Similarly, Sabyasachi Majumdar,
Group Head and Senior Vice President
Corporate Ratings ICRA Ltd, felt
that the Union Budget has favorable
proposals for the power sector which
include increased allocation towards
rural electrification scheme under the
Deendayal Upadhyaya Gram Jyoti
Yojana (DUGJY) & measures to
augment solar project capacity addition.
Anil Chaudhry, Country President
and Managing Director, Schneider
Electric India, said, While access to
energy is a basic human right, we need
to make it sustainable. The budget gave
a clear indication of the governments
focus to achieve sustainable energy for
all, with two of its critical steps; firstly,
by providing a boost to rural electri-
fication with a 25 percent increase in
the outlay for key power schemes like
Integrated Power Development Scheme
and Deen Dayal Upadhyaya Gram
Jyoti Yojna. This is expected to fast
track the rural electrification drive of
the government, which is now planned
to be completed by May 1, 2018.
Ratul Puri, Chairman, Hindustan
Powerprojects, said, By providing
infrastructure status to the housing
segment, the government has given a
further impetus to address suppressed
power demand which is critical to
providing 24X7 power to all.
Also, Sunil Misra, Director General,
Indian Electrical and Electronics

Manufacturers Association (IEEMA),
feels that the increase in allocation to
the rural sector such as MNERGA,
providing 1 crore housing for poor,
thrust in Pradhan Mantri Gram Sadak
Yojna and governments commitment to
electrify all villages by May 2018, will
result in an increase in domestic demand.
However, what has come as a major
shocker for the industry has been the
decision to discontinue tax holiday
on infrastructure projects, including
power, which is likely to increase
power tariffs, albeit marginally. Com-
menting on the decision, Jasmeet
Khurana, associate director at Bridge
to India, estimated a higher impact
on solar power generation. Earlier,
companies were expecting an extension
of the tax holiday and had made repre-
sentations to the government. We are
expecting solar generation costs to go
up by 20-30 paise per unit, he said.
Further, the fact that power sector
has not been considered as part of the
infrastructure sector has not gone done
well with certain stakeholders, with some
claiming that it may severely dampen the
impressive growth initiated in the elec-
tricity installed capacity of the previous
years. For example, electricity finance
expert D. Shina, observed that while the
budget gave a boost to the infrastructure
sector, it had given a shock to the power
industry. The sidelining of the sector in
the budget could lead to its disorientation
at the very crucial stage of high expec-
tations of growth.This is because the
power industry pivoted around many
sops. In fact, the ambitious steps taken
by the government in the past years suc-
ceeded in eliminating the supply-demand
gap to a considerable extent. But an
abrupt end to these now can divert many
investors from the scene thereby arresting
the growth, Dr. Shina said.
The budget has not made any new
announcement for the coal. However,
coal secretary Susheel Kumar has said
the government could finally allow
private players into commercial coal
mining in 2017-18.
A plan to merge five
big oil PSUs including
IOC, ONGC and BPCL
was first broached
during the previous NDA
government when Ram
Naik was the oil minister.
Later, Mani Shankar
Aiyar revived the plan
during the UPA-I regime.
But in September 2015,
a panel disfavoured
the idea of mergers,
and instead suggested
greater autonomy by
transferring government
shareholding to a
professionally
managed trust
Oil and gas: The big
merger envisaged
One of the biggest take away from the
budget for the oil and gas sector is the
proposal to create an integrated public
sector oil major to match the perfor-
mance of international and domestic
private sector oil and gas companies.
After dithering for more than a decade,
the government has finally decided to
go ahead with the plan to merge oil
PSUs to create a behemoth that would
February 2017
www.InfralinePlus.com
be able to take on global competition.
The proposal has been welcomed by
energy experts. However, its details are
yet to be fleshed out by the government.
A plan to merge five big oil PSUs
including IOC, ONGC and BPCL was
first broached during the previous NDA
government when Ram Naik was the 37
oil minister. Later, Mani Shankar Aiyar
revived the plan during the UPA-I
regime. But in September 2015, a panel
disfavoured the idea of mergers, and
instead suggested greater autonomy by
transferring government shareholding
to a professionally managed trust. The
Advisory Committee on Synergy in
Energy, headed by V Krishnamurthy,
said M&A worldwide occurred during
times of low oil prices and is used as an
instrument for eliminating excess work-
force and remove duplication of facilities.
It is not yet clear what model the
government will follow. Anyway, this
proposal is in sharp contrast to the plan
to hive off Coal India subsidiaries as
separate companies. There is a clear
benefit of a large balance-sheet in
the global oil industry, where wildly
fluctuating oil prices have become
a norm. But care should be taken to
ensure that we end up compromising
on governance and nimbleness in
decision making. It is heartening to
note from petroleum minister Dhar-
mendra Pradhans media interactions
that Government is well advanced in
 February 2017
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CoverStory
preparation for creation of this entity,
considering all these aspects. said
Debasish Mishra, Partner Deloitte
Touche Tohmatsu India.
There are 13 oil PSUs at present.
The top eight listed PSUs have a
combined market cap of $80 billion,
and a merged entity would become the
ninth largest globally. The idea sounds
nice but its practicability has to be
established. Because, well-intentioned
mergers have failed to measure up to
expectations in the past and tripped
over practical hurdles like incompat-
ibility between employees coming
together from different work cultures.
Commenting on the proposal, K
Ravichandran, Senior Vice President,
ICRA, said, Historically such amal-
gamation have been successful for
international companies like Exxon
Mobil, Shell, Chevron etc as it results
in strengthening of balance sheets as
38 margins improve due to economy of
scale. It also gives PSUs an edge due
to sovereign ownership. However such
integration will have challenges when
it comes to manpower strength due to
differing HR policies of PSUs.
According to Deepak Mahurkar,
Partner and Leader, Oil & Gas Industry
Practice, PwC India, The move will
not have an immediate impact on the
sector as the planning and setting up of
such a corporation will take 2-3 years
and the results will be apparent in a
4-5 years time. The other format could
be an overall integration resulting in
one big corporation which will be a
challenging task but will result in far
reaching benefits as synergies will
be strengthened across value chains
leading to sharing of skills, research
and development, infrastructure,
increase in overall capacity and an edge
during bidding for E&P assets.
In a significant move, the Union
budget 2017-18 has also halved 5 per
cent customs duty on LNG, offering
a great relief to refineries and petro-
chemicals who mostly rely on imported
gas due to domestic shortage. The
In a significant move,
the Union budget 2017-
18 has also halved 5
per cent customs duty
on LNG, offering a great
relief to refineries and
petrochemicals who
mostly rely on imported
gas due to domestic
shortage. The move
is also expected to be
beneficial for Petronet
LNGs utilizations and
will also be positive for
gas distributors
move is also expected to be beneficial
for Petronet LNGs utilizations and
will also be positive for gas distributors
such as Indraprastha Gas Ltd and
Mahanagar Gas Ltd who are likely to
see an increase in their profit margins.
Overall, decline in LNG custom duty
is expected to encourage the use of
natural gas, which is considered a rela-
tively cleaner fuel.
Commenting on the reduction of
custom duty on LNG, Lalit Kumar
Gupta MD & CEO, Essar Oil, said,
The reduction in LNG duty is welcome
as it will reduce the cost of energy in
the system. The idea of an integrated
oil major as originally floated by UPA
I, which was not found viable, is now
being reconsidered by the present
government. I would think that creation
of more refining capacity would be
better rather than the new strategic
reserve of crude oil. As the new refining
capacity will not only achieve the same
objective of creating Strategic reserve
but will also lead to socio-economic
development and creation of huge
employment opportunities.
The government has further decided
to set up strategic crude oil reserves at
two more locations. In the first phase,
3 such reserves facilities have been
set up at Visakhapatnam (1.33 million
tonnes), Mangalore (1.5 MT) and
Padur (2.5 MT). For strengthening our
energy sector, Government has decided
to set up Strategic Crude Oil Reserves.
In the first phase, three such Reserves
facilities have been set up. Now in the
second phase, it is proposed to set up
caverns at two more locations, namely,
Chandikhole in Odisha and Bikaner in
Rajasthan. This will take our strategic
reserve capacity to 15.33 million tons,
Jaitley said in his Budget speech.
With this, India will move to the high
energy table of the world, Oil Minister
Dharmendra Pradhan told the media.
We have a lot of learning from the
first phase construction. We plan to do
the second phase in 3-4 years.

Some relief for solar, wind
overlooked
Renewable energy continues to remain
high on governments agenda with
finance minister, Arun Jaitley an-
nouncing substantial relief in Customs
and Excise Duties for the sector. The
budget proposes to slash Customs and
Excise duties on several items related
to the sector. This includes all items
of machinery required for fuel based
power generating system to be set up in
the country for demonstration purposes;
systems operating on biogas/ biometh-
ane/ byproduct Hydrogen; LED lights
or fixtures etc. Further, duties have also
been removed on solar tempered glass
for use in the manufacture of solar cells,
panels and modules. Both these moves
are expected to incentivize domestic
value addition under Make in India
initiative of the government.
In line with achieving the 100 GW
target by 2022, Jaitley also announced
plan to set up solar parks of 20,000 mw
capacity in the second phase. Jaitley also
proposed to feed about 7,000 stations
with solar power in the medium term.
A beginning has already been made in
300 stations. Works will be taken up for
2,000 railway stations as part of 1000
MW solar mission, Jaitley said.
Commenting on the Budget, Ashish
Khanna, ED & CEO, TATA Power
Solar, said, The budget does focus on a
few areas for the solar sector and dem-
onstrates the Governments commitment
to being a frontrunner in renewables.
The proposed solarization of railway
stations is a positive step and will boost
the demand for infrastructure going
green. The announcement of 20 GW
In line with achieving
the 100 GW target
by 2022, Jaitley also
announced plan to set
up solar parks of 20,000
mw capacity in the
second phase. Jaitley
also proposed to feed
about 7,000 stations
with solar power in the
medium term
February 2017
www.InfralinePlus.com
for the second phase of solar mission
and focus on pushing for the solar
projects is very heartening. However,
we need more clarity in the coming
days on its roll out. We also anticipate
some indirect impact for solar with the
Governments ambition of 100% electri-
fication of villages, and we hope this to
have a solar component. A set timeline
for rolling out GST is a welcome move,
however requires further clarity on its
implementation and how much it will
impact the solar sector.
Tulsi Tanti, CMD, Suzlon Group,
said, With a special mention about the
drive towards 100 per cent electrification,
the renewable industry was hopeful
that there would be an announcement
to support the achievement of the
Governments RE target 175 GW, and
long-term policy framework to achieve
our INDCs and commitment made at
COP-21 to reduce carbon emission to
30-35 per cent by 2030.
According to Jaideep N. Malaviya,
39
Secretary General, Solar Thermal
Federation of India, It is heartening
to note the announcement of ambitious
 February 2017
www.InfralinePlus.com
CoverStory
target of 20,000 MW of solar power
during 2017-18. If we look back 7
years before when the National Solar
Mission was announced the target
until year 2022 was kept as 20,000
MW. Finance Minister has played
a T20 cricket match rather than the
old fashioned test cricket. To aid this
development further the incentives for
electronics manufacturing is at a record
Rs750 crore which should stimulate
invertor and battery manufacturing.
Any Smart city as well as Solar city
should find start-ups and entrepreneurs
stimulating for manufacturing.
Andrew Hines, Business Devel-
opment Head, South India, CleanMax
Solar Pvt. Ltd, feels there are no major
surprises in the budget for the solar
industry. Reductions in Accelerated
Depreciation and Section 80-IA benefits
had been announced last year, and
the budget is consistent with those
announcements. While removal of those
40
incentives can be expected to increase
solar tariffs across the board, we are
still expecting very strong growth in the
industry in FY 2017-18, and particularly
in the commercial and industrial rooftop
and open access segments, based on
strong fundamental economics for solar
power, as well as a push from govern-
ments for solarisation of government
rooftops and educational institutions.
According to Gagan Vermani, CEO,
MYSUN, the budget bodes well for
the solar rooftop segment. The target
to build 1 crore new homes should
mandate usage of a 1KW solar system
per home, as each of these homes will
need power. That itself will add 10GW
of rooftop solar. Enhancement of the
carry forward duration of MAT from
10 years to 15 years and the rationali-
sation of corporate tax for companies
with a turnover of less than Rs 50 crore
would lead to increased profits for a lot
of small solar installers, which could
potentially lead to passing on of some
of this benefit to the end users, effec-
tively reducing solar system prices.
However, Sarvesh Kumar,
Chairman, Indian Wind Turbine Manu-
facturers Association (IWTMA), is
not too happy with the budget. There
is nothing concrete on the renewable
energy sector, considering it is one of
the growing sectors in the country. The
Government has completely over-
looked the wind energy division. The
sector is in a developing phase and
needs attention from the government
as we are facing various issues. Service
tax could have been rationalized and
at least some state level reforms and
policies should have been introduced
The government hiked
public spending on
infrastructure to boost
sagging economic
growth and generate
employment. The
budget has hiked
allocation for highways
from Rs 57,976 crore
to Rs 64,900 crore.
The budget has also
proposed to build
2,000 km of coastal
roads, which would
facilitate better
connectivity with ports
and remote villages
that could have helped us in our road
plan for the goal of achieving 60 GW
by 2022, he lamented.
LED lighting industry at
crossroads
The governments decision to levy 5%
basic customs duty on all parts and
inputs used in manufacturing of LED
lights has received a mixed reaction
from LED lighting manufacturers. The
budget should have also targeted incen-
tives and concessional interest rates for
manufactures of LED Lighting products
and projects keeping in mind that LED
lighting can play a big role in enabling
implementation of our governments
vision of 100 per cent rural electrifica-
tion, and energy conservation. Estab-
lishment of special economic zones for
the LED lighting industry continues to
be a critical priority for the industry,,
VP Mahendru, Chairman & Managing
Director, Eon Electric, noted.
Saurabh Kumar, Managing director,
Energy Efficiency Services Limited
(EESL) that implements the govern-
ments LED lamp distribution scheme,
said, Duty cuts in LED manufacturing
will encourage further innovation and
support our ongoing efforts to reduce
the cost of cutting-edge technology.
This is a stepping stone towards India
becoming a global leader in energy
efficiency programmes.
A course correction in CVD
(countervailing duty) and BCD (basic
customs duty) structure on renewable
energy and LED products and compo-
nents will give the necessary impetus
to local manufacturers, aligned to
governments Make in India vision,
Anchor Electricals said in a statement
issued post budget.
Infrastructure receives
funding push
The government hiked public spend-
ing on infrastructure to boost sagging
economic growth and generate employ-
ment. The budget has hiked allocation
for highways from Rs 57,976 crore to
Rs 64,900 crore. The budget has also pro-
posed to build 2,000 km of coastal roads,
which would facilitate better connectivity
with ports and remote villages. The total
length of roads, including those under
PMGSY, built from 2014-15 till the cur-
rent year is about 1,40,000 km which is
significantly higher than previous three
years, Jaitley said in his budget speech.
Metro rail is emerging as
an important mode of urban
transportation. The finance minister has
also proposed to announce a new Metro
Rail Policy with focus on innovative
models of implementation and
financing, as well as standardisation

and indigenisation of hardware and
software, which would create job on
a massive scale. He also announced
that the Airport Authority of India Act
will be amended to enable effective
monetisation of land assets. The
resources, so raised, will be utilised for
airport upgrade, Jaitley said.
Overall good signals for
infrastructure sector and companies
with significantly higher allocation for
all subsectors. It is heartening to see
a significant safety fund in Railways
and good allocation of capex for roads,
railways and other infrastructure,
including irrigation (including for water
efficient micro irrigation), said Amrit
Pandurangi, partner, infrastructure,
Deloitte Touche Tohmatsu India.
Cooperative and joint investments
with the states are a good indication.
Giving Affordable Housing Infra-
structure status is also a good sign for
mainstreaming investments in that
sector, he further said. Indication of
encouraging PPPs in all infra sectors
will give a boost to potential new
investors. O & M PPPs in Tier 2 City
Airports will improve services and
consequently the air traffic to such
cities aided by recent regional air con-
nectivity programme of the ministry,
Pandurangi added.
According to R Shankar Raman,
L&Ts whole-time director and Chief
Financial Officer, the Budget endorses
the criticality of resource allocation
to infra sector for achieving sustained
economic and inclusive growth. Abo-
lition of FIPB, retaining the tax structure
for capital gains and flexible mind set
towards recapitalisation of banks hold
hope for flow of funding for the priority
programmes. But he emphasised the
economy needs to address the require-
ments for competitive manufacturing
and employment generation.
Affordable housing in
spotlight
The real estate sector, which was hit
hard by demonetisation, has a lot to
The real estate sector,
which was hit hard by
demonetisation, has
a lot to cheer in the
budget. Affordable
housing has been
given infrastructure
status, which will ease
financing to the sector
and boost the sector,
spurring job creation in
the construction sector
cheer in the budget. Affordable housing
has been given infrastructure status,
which will ease financing to the sector
and boost the sector, spurring job cre-
ation in the construction sector.
The Union budget 2017-18 has
offered several incentives including
infrastructure status to the real estate
sector, preparing the ground for revival
of the industry which was hit hard
by the cash crunch in the wake of
demonetization. Analysts said the infra
tag would help lower financing cost
for the sector by 4-5 per cent and give
an impetus to the NDA governments
housing for all by 2022 programme.
Flush with funds, banks are likely to
step up funding to the sector. Credit
off-take towards affordable segment of
housing will augment supply especially
for both stake holders the first home
buyer and developer who will now
February 2017
www.InfralinePlus.com
have access to cheaper funding, said
analysts.
The budget has also increased allo-
cation under the PM Awas Yojana to
Rs 23,000 crore from Rs 15,000 crore.
Besides, the National Housing Board
will refinance individual housing loans
of Rs 20,000 crore in 2017-18.
In his last budget, Jaitley had earlier
announced a profit-linked income tax 41
exemption scheme for developers of
affordable housing scheme. To make
this scheme more attractive, this years
budget has introduced some changes.
For example, for extension of benefits
under the affordable housing scheme,
carpet area, not the built up, will be
considered. The 30 sqm limit will
apply only in case of municipal limits
of 4 metropolitan cities while for
the rest of the country including the
peripheral areas of metros, limit of 60
sqm will apply.
Earlier, to be eligible for benefits,
developers had to complete projects
in 3 years from the date of com-
mencement. The budget 2017-18 has
increased the period to 5 years, offering
more flexibility to builders. Currently,
if houses remain unoccupied after
getting completion certificates, they
are subjected to tax on notional rental
income. But the budget 2017-18 has
clarified that the rule will apply after
one year of the end of the year in which
completion certificate is received,
offering breathing space to builders to
clear their inventory.
 February 2017
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CoverStory

Union Budget 2017-18: Key highlights

Power
100% village electrification by May 2018
Allocation for Integrated Power Development Scheme (IPDS) and Deen Dayal Upadhyaya Gram Jyoti Yojna stepped up
by Rs 4,814 crore, from 8,500 crore to Rs 10,635 crore
Renewable Energy
To feed about 7,000 stations with solar power in the medium term. A beginning has already been made in 300 stations.
Works will be taken up for 2,000 railway stations as part of 1000 MW solar mission.
To take up the second phase of Solar Park development for additional 20,000 MW capacity
Basic Custom Duty (BCD) on solar tempered glass for use in the manufacture of solar cells/panels/modules reduced
from 5% to nil
Countervailing Duty (CVD) on parts/raw materials for use in the manufacture of solar tempered glass reduced from
12.5% go 6%
Basic Custom Duty, Countervailing Duty and Special Additional Duty (SAD) slashed on resin and catalyst for use in the
manufacture of cast components for Wind Operated Energy Generators (WOEG)
The Budget Estimate for Ministry of Renewable Energy kept at Rs 5,473 crore as against Rs 5,036 crore in 2016-17
Basic Custom Duty and Countervailing Duty on all items of machinery required for fuel cell based power generating
systems to be set up in the country slashed
Basic Custom Duty and Countervailing Duty on all items of machinery required for balance of systems operating on
biogas/ biomethane/ by-product hydrogen reduced
Oil & Gas
Uncertainty around commodity prices especially that of crude oil, has implications for the fiscal situation of emerging
economies. However, increase, if any, in oil prices would get tempered by quick response from producers of shale gas
and oil which would have a sobering impact on prices of crude and petroleum.
Subsidy provided for the oil sector is about Rs 25,000 crore for 2017-18. This includes Rs 2,500 crore towards liquified
petroleum gas (LPG) connection to poor households.
42 Basic custom duty on liquefied natural gas (LNG) cut to 2.5% from 5%.
Proposed to create an integrated public sector oil major. This will be able to match the performance of international
and domestic private sector oil and gas companies.
Decision to set up two more Strategic Crude Oil Reserves namely, Chandikhole in Odisha and Bikaner in Rajasthan. This
will take the countrys strategic reserve capacity to 15.33 MMT.
In case of foreign company, sale of leftover stock of crude oil in case of strategic petroleum reserve after the expiry of
agreement or the arrangement, subject to fulfilment of certain conditions, shall not be liable to tax in India.
Steps would be taken to promote and possibly mandate petrol pumps to have facilities for digital payments, including
BHIM App.
Basic Custom Duty on petrochemicals like Medium Quality Terephthalic Acid (MTA) & Qualified Terephthalic Acid (QTA)
reduced from 7.5% to 5%
Infrastructure
Outlay for infrastructure sector increased to Rs 396,135 crore as against Rs 348,952 crore in 2016-17, of which that of
Transport increased from Rs 216,268 crore to Rs 241,387 crore.
Budget allocation for highways increased from Rs 57,976 crores in BE 2016-17 to Rs 64,900 crores in 2017-18.
2,000 kms of coastal connectivity roads identified for construction and development
A specific programme for development of multi-modal logistics parks, together with multi modal transport facilities, to be
drawn up and implemented
Allocation for Pradhan Mantri Gram Sadak Yojna (PMGSY) unchanged at Rs 19,000 crore. Together with the contribution
of States, an amount of Rs 27,000 crores will be spent on PMGSY in 2017-18. Committed to complete the current target
under PMGSY by 2019.
Allocation for AMRUT & Smart Cities Mission increased from Rs 7,296 crore to Rs 9,000 crore
Allocation for Sagarmala project increased from Rs 450 crore to Rs 600 crore
Select airports in Tier 2 cities will be taken up for operation and maintenance in the PPP mode. Airport Authority of India
Act will be 19 amended to enable effective monetisation of land assets. The resources, so raised, will be utilised for
airport upgradation
Real Estate & Housing
Changes in profit-linked income tax exemption for promoters of affordable housing scheme. Instead of built up area of
30 and 60 sq.mtr., the carpet area of 30 and 60 sq.mtr. will be counted. Also the 30 sq.mtr. limit will apply only in case of
municipal limits of 4 metropolitan cities while for the rest of the country including in the peripheral areas of metros, limit
of 60 sq.mtr. will apply. The scheme to be completed in five years as against 3 years stated earlier
Outlay for Ministry of Housing and Urban Poverty Alleviation increased from Rs 5,411 crore to Rs 6,406 crore

Meanwhile, the budget has also
reduced the holding period for long-
term capital gains tax to 2 year from
3 year earlier. Also, the base year
for indexation has been shifted from
1.4.1981 to 1.4.2001 for all classes of
assets including immovable property,
which will significantly reduce the
capital gain tax liability while encour-
aging the mobility of assets. Jaitley said
that the government plans to extend
the basket of financial instruments in
which the capital gains can be invested
without payment of tax. This years
budget has also clarified that for joint
agreement signed for development of
property, the liability to pay capital gain
tax will arise in the year the project is
completed.
Commenting on these proposals,
Hiranandani Groups MD, Niranjan
Hiranandani, said, The Government
has provided infrastructure status to
the affordable housing finally. We have
been demanding this for the past 25
years. The move will help investments
in form of long-term funding to the
sector. I personally believe that Gov-
ernment should declare all such housing
units, whether in metros or in any other
part of the country with 60 sq metre as
carpet area across the country.
Other pro-business mea-
sures
To bolster confidence of private play-
ers in public private partnership (PPP)
projects, the finance minister has also
proposed to clear the legal hurdle to en-
suring quicker resolution of contractual
disputes. I had stated in my last Bud-
get speech that a Bill will be introduced
to streamline institutional arrangements
for resolution of disputes in infrastruc-
ture related construction contracts, PPP
and public utility contracts, Jaitley
said in his budget speech. After ex-
tensive stakeholders consultations, we
have decided that the required mecha-
nism would be instituted as part of the
Arbitration and Conciliation Act 1996.
An amendment Bill will be introduced
in this regard, he added.
To bolster confidence of
private players in PPP
projects, the finance
minister has also
proposed to clear the
legal hurdle to ensuring
quicker resolution of
contractual disputes.
I had stated in my last
Budget speech that a
Bill will be introduced to
streamline institutional
arrangements for
resolution of disputes
in infrastructure related
construction contracts,
PPP and public utility
contracts, Jaitley said
February 2017
www.InfralinePlus.com
The budget has also proposed to
implement structural reforms in the
payment eco system, including amend-
ments to Payment and Settlement
System Act 2007 as recommended
by the committee on digital pay-
ments. Government will undertake a
comprehensive review of this Act and
bring about appropriate amendments.
To begin with, it is proposed to create
a Payments Regulatory Board in the
Reserve Bank of India by replacing
the existing Board for Regulation
and Supervision of Payment and
Settlement Systems. Necessary amend-
ments are proposed to this effect in the
Finance Bill 2017, Jaitley said in his
budget speech.
To attract foreign investors, Jaitley
has proposed to abolish the Foreign
Investment Promotion Board, an
agency that is tasked with vetting
applications of overseas investors. Our
government has already undertaken
substantive reforms in FDI policy in
43
the last two years. More than 90 per
cent of the total FDI inflows are now
through the automatic route. The
Foreign Investment Promotion Board
(FIPB) has successfully implemented
e-filing and online processing of FDI
applications, Jaitley said while pre-
senting the budget.
He added, We have now reached a
stage where FIPB can be phased out.
We have therefore decided to abolish
the FIPB in 2017-18. A roadmap for
the same will be announced in the
next few months. In the meantime,
further liberalisation of FDI policy
is under consideration and necessary
announcements will be made in due
course.
All in all, even though the budget
seems to have missed a lot of finer
points which needed to be addressed
in the energy sector, the government is
banking on strong infrastructure growth,
the benefits of which are expected to
trickle down to other sectors.
For suggestions email at feedback@infraline.com
 February 2017
www.InfralinePlus.com
NewsBriefs | Oil & Gas National
ONGC to invest Rs78,000 crore in KG basin, signs deal with Andhra Pradesh
State-owned explorer Oil and Natural
Gas Corp. Ltd (ONGC) said it will invest
Rs78,000 crore in the Krishna Godavari
basin for producing hydrocarbons and
has signed an agreement with the Andhra
Pradesh government for smooth execution
India to become the fastest oil consumer by 2035
Having pipped Japan to become worlds third
largest oil consumer, Indias oil consumption
growth will be the fastest among all major
economies by 2035, BP Statistical Review
44 of World Energy said. India, Asias second-
biggest energy consumer since 2008, had in
2015 overtaken Japan as the worlds third-
largest oil consuming country behind US
and China. We project that Indias energy
consumption grows the fastest among all
major economies by 2035. As a result, the
country remains import dependent despite
increases in production, it said. While energy
consumption will grow by 4.2 per cent per
annum -- faster than all major economies in
the world -- Indias consumption growth of
India to fill half of Mangalore strategic reserve with UAE crude oil
India signed a deal with the United Arab
Emirates that allows the Gulf nation to fill
half of an underground crude oil storage
facility at Mangalore that is part of New
Delhis strategic reserve system. New
Delhi announced a series of pacts with the
UAE ranging from defence, trade, maritime
cooperation to energy after a meeting
between Prime Minister NarendraModi
and Abu Dhabis Crown Prince Sheikh
Mohamed bin Zayed al-Nahyan. UAEs
Abu Dhabi National Oil Co will store about
6 million barrels of oil at Mangalore,
taking up about half of the sites capacity,
said Sunjay Sudhir, joint secretary for
of the projects. ONGC has been pursuing
exploration in the basin and had last March
announced a $5 billion (Rs34,000 crore)
investment over the next three years in two
of its fields there after the central govern-
ment earlier that month announced a
liberal pricing formula for natural gas from
deep sea blocks. The investment figure is
for the entire basin. The agreement with
Andhra Pradesh to take forward all critical
exploration and production activities in the
state was signed on the sidelines of the
Partnership Summit, 2017 jointly organized
by the state government and industry
chamber Confederation of Indian Industry
(CII) in Visakhapatnam.
In 2015 refiners slowed purchases due to
fossil fuels would be the largest in the world.
India, it said, will overtake China as the
largest growth market for energy in volume
terms by 2030. Oil consumption will rise
from 4.1 million barrels per day in 2015 to
9.2 million bpd in 2035.
in underground caverns to hold 36.87
nations growing demand for energy, said
Indian oil minister Dharmendra Pradhan.
quarter of this year.
Indias 2016 Iran oil imports hit
record high
Indias annual oil imports from Iran
surged to a record high in 2016 as some
refiners resumed purchases after the
lifting of sanctions against Tehran, ac-
cording to ship tracking data and a report
compiled by Thomson Reuters Oil Re-
search and Forecasts. The sharp increase
propelled Iran into fourth place among
Indias suppliers in 2016, up from seventh
position in 2015. It used to be Indias
second-biggest supplier before sanctions.
For the year, the worlds third biggest oil
consumer bought about 473,000 barrels
per day (bpd) of oil from Iran to feed
expanding refining capacity, up from
208,300 bpd in 2015, the data showed.
In December, imports from Iran trebled
from a year earlier to about 546,600 bpd.
sanctions which choked payment routes,
insurance and halved Irans exports.
Indian refiners Reliance Industries,
Hindustan Petroleum, Bharat Petroleum
and HPCL-Mittal Energy (HMEL) last year
resumed imports from Tehran, attracted
by the discount offered by Iran.
international cooperation at the Indian oil
ministry. India, hedging against energy
security risks as it imports most of its
oil needs, is building emergency storage
million barrels of crude, or about 10
days of its average daily oil demand in
2016. This will ... help to ensure Indias
energy security and enable us to meet the
UAE is Indias fifth biggest oil supplier.
The crude supplies will begin in the last

NewsBriefs | Oil & Gas National
Economic Survey: Rising energy prices could stoke inflation going ahead
The Economic Survey tabled in Parliament
by Finance Minister Arun Jaitley said the
recent increase in global crude oil and
coal prices could stoke inflationary trends
threatening trade and fiscal balances going
ahead.After remaining fairly stable for
Indias high petroleum taxation helped gain edge on climate front
The Economic Survey 2016-17 tabled in Parlia-
ment said the high petroleum taxation imposed
by the government in the backdrop of the
historic decline in crude oil prices helped India
in gaining in edge over other major economies
in the fight against climate change. The Survey
said the large decline in petroleum (oil) prices
since June 2014 has proved to be a major set-
back to the cause of climate change. However,
India has increased excise duty on branded
petrol from Rs 15.5 per liter in June 2014
when the oil price decline began to Rs 22.7 per
liter in December 2016. Also, the excise duty
on branded diesel has been raised from Rs 5.8
per liter to Rs 19.7 per liter during the period.
The increase in petrol tax has been over 150
IFFCO eyes 10percent stake in Swan Energys LNG terminal
After Tata Group, Indias largest fertiliser
producer IFFCO has envisaged interest in
taking 10% stake in Rs5,900 crore floating
LNG import terminal being set up by Nikhil
Merchant-led Swan Energy in Gujarat.
Earlier, Tata Realty and Infrastructure
(TRIL), a wholly-owned subsidiary of
Tata Sons set up in 2007, had expressed
interest in taking 10% stake in Swan LNG
Pvt. Ltd that is setting up the Floating
and Regasification Unit (FSRU) near
Jafrabad in Gujarat. In a stock exchange
filing, Swan said: Indian Farmers
Fertiliser Cooperative Ltd (IFFCO) are
willing to invest up to 10% of the equity
much of the last two years, international
prices of crude oil have started to trend
up. The price of crude oil (Indian basket)
has increased from $39.9 per barrel in
April 2016 to $52.7 in December 2016.
The Economic Survey said the global
commodity and energy prices have
increased by 18 per cent and 23 per cent
respectively in the first eleven months of
2016 as per International Monetary Fund
(IMF) price indices. The WPI inflation stood
at 3.4 per cent in December 2016 and the
average inflation was 2.9 per cent during
April-December 2016. According to the
Survey, geopolitics could take oil prices up
further than forecast.
percent in India. In contrast, the governments
of most advanced countries have simply
passed on the benefits to consumers, setting
back the cause of curbing climate change. As a
result, India now outperforms all the countries
except those in Europe in terms of tax on
petroleum and diesel, the Survey said.
in the project. Ahead of the move, the
authorised share capital of Swan LNG
Pvt Ltd has been increased from Rs5
lakh to Rs2,000 crore, Swan Energy
said. Gujarat government had previously
February 2017
www.InfralinePlus.com
IOCs Rs 34,555 crore Paradip
refinery faces withdrawal of sops
In a setback to Indian Oil Corp (IOC), the
Odisha government has slapped a notice
seeking withdrawal of fiscal incentives
given to the PSUs Rs 34,555 crore Para-
dip refinery in the state. In the notice,
Odisha government has asked why the
fiscal incentives like 11-year deferment
of sales tax on petroleum products sold
in the state should not be withdrawn
considering that the refinery was delayed
by over six years. The state government
had in February 2004 signed an agree-
ment with IOC to give fiscal incentives
for setting up a 9 million tonnes a year oil
refinery at Paradip by 2009-10.However, 45
the project was delayed and started only
in early 2016.The delay is now being
cited by Odisha to seek withdrawal of
the incentives, and the state government
feels the delay has pushed back the
payback time of deferred taxes by few
years. Also, the state government says
that the refinery was originally planned
for a 9 million tonnes per annum capacity
but the actual size commissioned was 15
million tonnes.
taken 26% equity the LNG project. The
Gujarat government participation in
the project was through Gujarat State
Petronet Ltd and Gujarat Maritime Board
jointly. State-owned Oil and Natural Gas
Corp (ONGC), Indian Oil Corp (IOC) and
Bharat Petroleum Corp Ltd (BPCL) have
already booked 60% of the capacity of 5
million tonnes a year LNG terminal. The
three firms have signed an agreement to
import 1 million tonnes per annum of their
own liquefied natural gas (LNG) at the
Swan terminal. Gujarat State Petroleum
Corp Ltd (GSPC) too is in talks to take 1.5
million tonnes capacity in the FSRU.
 February 2017
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NewsBriefs | Oil & Gas International
BP forecasts slowdown in oil demand growth over next two decades
World oil demand growth will slow gradually
over the next two decades, British energy
giant BP forecast in its annual outlook for
the industry. Total global energy demand
was set to increase by about 30 percent
through 2035, driven by increasing prosper-
ity in developing countries, partially offset
by rapid gains in energy efficiency, BP said
Saudi Arabia may raise U.S. crude oil investments
Saudi Arabia may increase its oil
investments in the United States due to a
more fossil fuel-oriented energy policy by
the U.S. administration of President Donald
46 Trump, the kingdoms energy minister
said. Trump had campaigned on a promise
that Washington should boost U.S. energy
independence from oil cartels such as OPEC,
of which Saudi Arabia is its de facto leader
and by far the groups biggest producer. But
Saudi Arabias Minister of Energy, Industry
and Mineral Resources, Khalid al-Falih, said
that there are huge areas of alignment
in interests between the two traditional
allies.President Trump has policies which
are good for the oil industries and I think
Bangladesh to bid for Chevron gas fields after assessing reserves
Bangladesh is hiring an international firm
to assess reserves at Chevron Corps
natural gas fields in the country before
placing a formal bid to buy the assets,
its energy minister said. Energy-starved
Dhaka meets half of its gas needs through
the three Chevron-operated fields at
Bibiyana, Jalalabad and Moulavi Bazar in
the northeast of Bangladesh, highlighting
their importance for the poor country.
Bangladesh will make Chevron an offer
once the reserves and other details have
been assessed, Nasrul Hamid, state
minister for power, energy and mineral
resources, said. Chevron, the second-
in its Energy Outlook 2017. For oil alone,
demand grows at an average rate of 0.7
percent a year, although this is expected to
slow gradually over the period, the study
added. In comments published alongside
the findings, BP chief executive Bob Dudley
noted that traditional centres of demand
are being overtaken by fast-growing emerg-
ing markets. The energy mix is shifting,
driven by technological improvements and
environmental concerns. More than ever,
our industry needs to adapt to meet those
changing energy needs, he said. According
to BP, all of oils demand growth between
2015 and 2035 will come from emerging
markets and half from China alone.
we have to acknowledge it ... He has steered
away from excessively anti-fossil fuels,
unrealistic policies, Falih said.I think he
wants a mixed energy portfolio that includes
oil, gas, renewables, and make sure that the
American economy is competitive.
largest United States-based oil producer,
said in 2015 it planned to sell about $10
PetroChina aims to meet a third of
Chinas shale gas target by 2020
Chinas biggest energy giant PetroChina
plans to step up shale gas development
in Sichuan province this year, aiming to
meet a third of a 2020 government target
for the unconventional resource. News
agency Xinhua reported that PetroChina
will step up drilling in southern parts
of Sichuan province, Chinas top gas-
producing region and a key area for early
shale gas development. PetroChinas
plan to build 10 billion cubic metres
(bcm) of shale gas output capacity by
2020 in Sichuan province would repre-
sent a third of Beijings production target
for the resource that year. Domestic rival
Sinopec Corp, which has been leading
the sector with Chinas largest com-
mercial shale gas discovery in nearby
Chongqing municipality, aims for 10
bcm of output by the end of the decade
as well.PetroChina is playing catch-up
with Sinopec, as its understanding of
the geology deepens and its technology
improves, said a government official who
oversees shale gas development.
billion of assets by 2017 amid a prolonged
slump in energy prices. Last year, Chevron
said it was in discussions about the
potential sale of the three fields with an
estimated value of $2 billion. Bangladesh
Gas Fields Co Ltd will select the company
that will assess the reserves, Hamid said,
adding that it might need the help of an
international oil firm to further develop
the fields. Chevron sells its entire output
from these fields to state oil company
Petrobangla under a production-sharing
contract. Under the terms of the contract,
the Bangladesh government has the right
of first refusal in any asset sale.

InConversation
GST will be a disaster for
biofuels
Sandeep Chaturvedi, President, Biodiesel Association
of India, talks about the green fuel market in India, how
biodiesel can play an important role in addressing pollution
and health issues and what the Government needs to do to
support this industry. Excerpts:
There has been lot of concerns
over air pollution in India. What
is your outlook on Green fuels in
India?
According to a recent survey from
IIT Mumbai, almost 83000 people die
premature deaths each year in Mumbai
and Delhi alone due to air pollution.
The amount of financial loss to the
public in general is almost 90,000 crore
per year in terms of respiratory ailment,
loss of opportunity, days off etc.
If you have to cross a gorge, you
have to jump 100%. If you take half
hearted measures, you will fall in that
gorge. The problem is that we need
a green fuel policy that addresses
all these issues. The policy that was
made by the UPA government in 2009
doesnt say anything. It is actually
not implementable. It was expected
that the current government will
understand things in a year and will
bring out the policy. But that has not
happened. There is lot of support at
the top from the Prime Minister, who
says that 10% blending needs to be
achieved and lot of financial support
is there. I think that the message is
loud and clear to the nodal ministry
i.e. Ministry of New and Renewable
Energy (MNRE) that they should come
out with a policy which addresses all
these issues for next 10 years.
If this industry has to develop in the
country, investment has to come up
under Make in India. For that investor
has to have a clear horizon that this is
the policy of the Government of India
for next 10 years. If I am going to put
up a project now, it takes me two years
to get off ground. After that it takes five
years to break even. The signal that we
get right now is that yes there is lot of
support right at the top, but then there
is no policy at the ground from the
nodal ministry.
The policy should address key
issues immediately that India needs
green fuels, and steps that need to
be taken to create feedstock, pro-
cessing capacity etc. See there are
three things in biofuels. First is
the market which head up to the
Petroleum Minister who has given a
tremendous push and created market
for green fuels. All the oil marketing
companies (OMCs) today are in the
market to buy green fuels. Second
is the processing capacity in the
country to convert raw material into
green fuel. As far as biodiesel is
concerned, we have 1.2 Million Ton
(MT) of installed capacity. Third is
the raw material and taxes. Problem
is that if the policy doesnt step in,
you will never create enough raw
materials, and if you dont streamline
the taxation, inspite of market and
processing capacity, you will never
achieve your targets.
What according to you should be
the main contours of the Green
February 2017
www.InfralinePlus.com
Sandeep Chaturvedi, President, Biodiesel
Association of India
Fuel Policy that are required 47
today in India?
The country consumes 22 MT of
vegetable oil each year. This oil
generates 3 to 4 MT of used cooking
oil which goes into our food cycle
again which is not a good thing. We
may be spending lakhs and crores of
rupees just on health related ailments
due to adulteration happening in the
country. Because used cooking oil is
polymerized, it is not good for heart,
causes obesity, cancer and all sorts
of problems, and hence should not be
permitted. But unfortunately, there is
no law that governs and controls this
particular item. The Government may
say that we have banned it, but there
has to be a mechanism to check it.
This could a very good raw material
for bio diesel. So you need a policy
on that immediately. By this, you
are doing two things. You are saving
the masses and giving healthy life.
Second, India has a huge tribal wealth
where lots of oilseeds are being gen-
erated. You can provide reasonable
and gainful employment to people in
 February 2017
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InConversation

tribal belts that could be another raw percent of five percent; Excise Duty is How will coming of GST impact
material for bio diesel. So opportuni- zero till April 1, 2017. On diesel the taxes the biodiesel market in India?
ties are available in the country, but are almost close to 30%. The moment It will be a major disaster for biofuels.
someone has to take interest and drive someone blends it and buy it, state gov- Petroleum products are not in GST,
the policy. We have made made a ernments are not ready to budge even an but biodiesel will be under GST. The
submission that 10% diesel needs to inch. They will tax the entire thing. And oil marketing companies (OMCs) who
be substituted by 2022. biodiesel is being taxed at 24% which want to blend will take at an additional
is a great concern. By doing so you are cost and they cannot pass it on. It is
Is 10% diesel substitution by discouraging a green fuel. So a policy very discouraging. We have made a
biodiesel blending doable? needs to come out specifying how much submission to the Finance Ministry,
Yes, it is doable. The domestic con- blending needs to be done. There are no and we keep doing that. But it is the
sumption of diesel is 80 MT and 4 supply side constraints. policy which should have addressed
MT you can do with feedstock I have Demand for biodiesel is huge. The it. For next 10 years, there should be
already specified and another 1-2 MT key trigger is environment, health of a mechanism to address the taxation
can also be done through other sources. people. As per me, handling supply related issues and a policy should have
side issues is a minor thing if the come by now.
In terms of diesel blending, can major issue is sorted out as far as
you increase it from 10%? Are policy is concerned. Nothing goes on Is pricing an issue when it comes
there any demand and supply a start-stop button, every market needs to adoption of biodiesel as a
side issues? to develop. These are learning curves. green fuel?
You can even do 20% and that is not a This is not an issue at all and it can Price is not an issue as most of the
problem. The key issue here is lack of be sorted out at the level of supply purchase is done through public tender-
policy and taxation. Bio diesel tax is zero managers. ing and prices are well discovered and
48 is not a problem. And also in future
Demand for biodiesel is huge. The key trigger is there should not be a problem. If you
environment, health of people. As per me, handling address all these issues, you will have
supply side issues is a minor thing if the major the industry up and running. It can
issue is sorted out as far as policy is concerned. go very well for Make in India and
Nothing goes on a start-stop button, every market Swachh Bharat. All that is required is a
policy which incorporates these things,
needs to develop. These are learning curves. This sets timeline of five to 10 years for
is not an issue at all and it can be sorted out at the making investments, creating jobs. We
level of supply managers. are currently doing blending right from
Haldia, Paradip, Vizag, Vijayawada,
Kakinada etc and the eastern belt. It
is happening since last one year. 5%
diesel is blended with bio diesel. But
issues of taxation, raw material not
being available etc are cropping up. If
there is extra 24% tax, who will buy it?
If you need a product to mitigate pol-
lution, will it come for free? You have
killed your rivers, polluted your envi-
ronment to such an extent, there should
be sense of responsibility to address this
issue. You have to pay to get some-
thing better in life. If government is
not willing to relent on taxes, probably
polluters will have to pay.

For suggestions email at feedback@infraline.com


InDepth
Budget 2017: Lowering of custom
duty to propel LNG sector
LNG imports crucial for sustaining existing power generation capacity
PLF of gas-fired plants averaged only 18.64% in May last year
By Team InfralinePlus
Indias Liquefied Natural Gas (LNG)
sector is set to undergo a major
transformation and play a crucial part
in the countrys energy portfolio once
the central government approves the
reduction in custom duty on LNG
imports. The move to reduce the customs
duty to 2.5% (as present to 5% at
terminals) will lead to committed LNG
supply to gas-based power plants, which
are running below their capacity due
to lack of availability of gas. The grid
connected gas-based power generation
capacity in the country is around 23,075
MW. Of this, a capacity of 14,305 MW
had no supply of domestic gas.
The power sector is the leading
end user of natural gas in India along
with the fertilizer sector and consumes
nearly one third of the total natural gas
produced in the country. With natural
gas accounting for just about 9% of
its overall energy mix, the central
government is expected to come out
February 2017
www.InfralinePlus.com
49
with slew of measures in 2017 to
increase domestic production and
provide respite to Independent Power
Producers (IPPs) who have been under
the cosh since 2013-14.
LNG demand is forecast to witness
robust growth over the next 5-10 years
in India and project developers will
have an abundant supply to run their
plants not just at 25-30% Plant Load
Factor (PLF) but at the required optimal
levels of 80-85%. Moreover, central
 February 2017
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InDepth

government is increasing its focus on

gas-based power projects due to their
high efficiency, low gestation period,
environmental factors, and requirement
of less water and land compared to other
fuel based power plants. Various other
policies such as recent updates in Gas
Allocation Policy have also been imple-
mented to encourage use of gas in dif-
ferent end user segments. Other policies
that are expected to have a positive
impact on the countrys LNG market
include E-bid RLNG for smoothing
the supply of imported spot RLNG to
power plants and fertiliser industries.

Current Scenario
The uncertain future of Indian domestic
gas production has cascading effects on
the overall role of gas in the countrys
energy sector. The impact has already
been felt in the power sector where
the PLF of gas-fired plants during the
50 year averaged only 18.64% in May
last year and more recently at 20.66%
(December 2016) due to unavailability
of gas. During the year 2015-16, gas
based plants were running at a PLF of
around 23%. To run gas plant at a PLF
of 85%, normative gas requirement
would be about 108 MMSCMD. This
is significantly more than the present
availability of 28.26 MMSCMD.
Normative Gas requirement to
operate the existing Power plants of
The uncertain future of Indian domestic gas
production has cascading effects on the overall
role of gas in the countrys energy sector. The
impact has already been felt in the power sector
where the PLF of gas-fired plants during the
year averaged only 18.64% in May last year and
more recently at 20.66% (December 2016) due to
unavailability of gas
capacity of 23,075 MW at 90% PLF 2015-16 was only 28.26 MMSCMD.
is about 113 MMSCMD. However, The gas grid connected capacity
the total domestic gas allocated to had received 18.75 MMSCMD gas
power projects is 87.46 MMSCMD during the year 2015-16 and achieved
and average gas supplied to these gas average PLF of 19.55% only and
based power plants during the year gas based capacity connected with

Table 1: Average Gas Supply and Shortfall from 2007-08 to 2015-16

Sr. No. Financial Gas Based Capacity at Gas Requirement Average Gas Shortfall
Year the end of year (MW) (MMSCMD) Supplied (MMSCMD) (MMSCMD)
(1) (2) (3) (4) (5) (6)=(4)-(5)
1 2007-08 13408.92 65.67 38.14 27.53
2 2008-09 13599.62 66.61 37.45 29.16
3 2009-10 15769.27 78.09 55.45 22.64
4 2010-11 16639.77 81.42 59.31 22.11
5 2011-12 16926.27 81.78 55.98 25.80
6 2012-13 18362.27 90.70 39.95 50.75
7 2013-14 20385.27 97.90 27.13 70.77
8 2014-15 21665.57 104.00 25.20 78.80
9 2015-16 23075.57 113.63 28.26 85.37
Source: CEA Draft National Electricity Plan
 February 2017
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Figure 1: Average PLF of Gas-based power plants from panies will be financially supported to
2007-08 to 2016-17 buy electricity from them.
Auctions for the 1st phase (June
Average PLF of Gas-based Power Plants (in %)
1 to September 30, 2015) of PSDF
(from 2007-08 to 2016-17)
Support to gas-based power plants
were held in the months of May, 2015.
2010-11, 66.94
A combined total of 10,270 MW plants
2008-09, 55.43 were able to secure gas allocation. The
2011-12, 62.06
2009-10, 66.97 entire process was completed in less
2016-17 (up to
than a month and gas supply by GAIL
2007-08, 55.18 started on June 1, 2015. Auctions for
December
2013-14, 24.28
2016), 23.07
2012-13, 37.25
2nd Phase (October 1, 2015 to March
31, 2016) were held in the month of
September 2015 and helped in revival
of gas-based generation plants with
2015-16, 23.40
2014-15, 20.93 installed capacity of 11,717.72 MW.
Source: CEA Draft National Electricity Plan
The countrys gas-fired plants, with
nearly 23 GW of generation capacity,
isolated gas field had received 9.51 LNG auction through PSDF: are running at less than a quarter of
MMSCMD gas and achieved average Current scenario their potential. Transportation costs
PLF of 50.57%. Therefore, the Under the governments revival plan and taxes have countered the 27%
average PLF of gas based generation for stranded gas-based power plants, decline in spot LNG prices in the
capacity in the country during LNG will be imported and cash- past year. Companies such as NTPC,
2015-16 was about 23%. strapped state power distribution com- Essar, GMR, Lanco, GVK, Tata 51
Power, Torrent Power, GSEC, RGPPL
The countrys gas-fired plants, with nearly 23 (Dabhol) and CLP India are expected
GW of generation capacity, are running at less to participate in the future auction for
than a quarter of their potential. Transportation as many 31 stranded projects and 24
domestic gas-based plants.
costs and taxes have countered the 27% decline
in spot LNG prices in the past year. Companies Gas infrastructure
are expected to participate in the future auction Increasing focus on expansion of gas
for as many 31 stranded projects and 24 pipeline infrastructure in the country,
domestic gas-based plants rising demand for natural gas from
power and industrial sectors and
favourable government policies makes
LNG a commercially viable and suit-
able fuel for various end users in India.
As the economy grows, it is inevitable
that our requirements for natural gas
will also grow at a much faster rate
than our domestic production. Howev-
er, our capability to enhance imports is
seriously crippled by the capacities of
LNG terminals (India currently imports
40 mmscmd of gas annually, while the
existing capacity to handle imports
is only 60 mmscmd). Hence, it is
pertinent for the government to support
expansion plans and new greenfield
investments on new LNG terminals.
As per the Draft National Electricity
 February 2017
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InDepth

Plan by Central Electricity Authority moved to the region, as has gas from benefits/ credits and will go a long way
(CEA), the regasification capacity in some of the newest LNG producers, in meeting Indias obligations under
the country is also a matter of concern including coal-bed methane opera- the climate change commitments and
for gas basedpower plants, particularly tions in Australia and one of the first reduce green-house emissions substan-
those who are connected with RGTIL exports from the new US liquefaction tially. Also, dedicated plants operating
East-West pipeline. Due to technical plant at Sabine Pass on the Gulf coast. in open cycle in proximity to load
constraints like directional flows etc., Shell, the worlds top LNG trader after centers can meet peak demand.
imported RLNG from west coast buying BG Group, expects to produce The role of gas based plants during
cannot be transported to power plants around 30 million tonnes of LNG evening to meet the balancing power
located in the East Coast. Therefore, this year and trade nearly 50 million and ramping requirement is vital for
facility of re-gasification capacity may tonnes, accounting for about a sixth of the national grid. Flexible natural gas
be suitably created at East coast also. global trading volume. Global output plants show similar improvements,
Mideast Gulf states are among the capacity is expected to rise by half by with minimum output limits of 15-30%
worlds largest LNG producers and 2020, potentially adding some 150 compared to 40-50% for inflexible
Middle Eastern and Indian buyers million tonnes of LNG to the market. plants. A fast-acting gas turbine
are turning away from term contracts plants on the market today can offer
to the spot market to procure gas for Gas projects vis--vis start-up times of just 40 minutes. As
power generation and fertilizer and Climate change obligations per CEAs draft national electricity
chemical production. The ability of Gas-based power projects are plan, it is proposed to run that gas
buyers in the Middle East and India second only to renewables and hydro based power stations at 85% PLF
to import gas from around the world power in generating clean energy. during the 6 hours in the evening. It
has encouraged growth in the regions So, ensuring fuel supplies for such is estimated that about 20 MMSCMD
spot LNG trade. Cargoes from a projects will help the IPPs to avail additional gas would be required over
52 range of traditional suppliers have CDM (clean development mechanism) and above 28.26 MMSCMD already
being supplied to gas based power
As per the Draft National Electricity Plan by Cen- stations.
tral Electricity Authority (CEA), the regasification Also, it is proposed that, to cater
to intermittence of RES generation, a
capacity in the country is also a matter of concern
capacity of about 2000 MW gas based
for gas basedpower plants, particularly those who may be kept as reserve during off
are connected with RGTIL East-West pipeline. Due peak hours. Gas requirement for this
to technical constraints like directional flows etc., capacity to run at 50% PLF would be
imported RLNG from west coast cannot be trans- about 5.3 MMSCMD. Therefore, for
ported to power plants located in the East Coast effective utilisation of available gas
based plants in India to meet the bal-
ancing and ramping requirement of the
grid, availability of minimum quantum
of gas to the tune of 53.56 MMSCMD
needs to be ensured.
Natural gas power has the potential
to play an important role in meeting
Indias energy demand, but some
reforms have to be in place if the
country has to realise this potential.
Several suggestions have been put
forward like having an attractive gas
pricing to attract investments, devel-
opment of fully-integrated national gas
grid that assures effective third party
access etc.

For suggestions email at feedback@infraline.com

 February 2017
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StatisticsOil & Gas

Production and consumption of petroleum products (December, 2016) (MMT)
April16-March17 December 2015 December 2016 April-December 2015 April-December 2016
Products
Prodtn. Consump. Prodtn. Consump. Prodtn. Consump. Prodtn. Consump. Prodtn. Consump.
LPG 10.6 19.6 0.9 1.8 1.1 1.9 7.6 14.3 8.3 15.9
MS 35.3 21.8 3.1 1.8 3 2 26 16.1 27.1 18
NAPHTHA 17.9 13.3 1.6 1.1 1.7 1.1 13.1 9.9 14.7 10.1
ATF 11.8 6.3 1 0.5 1.2 0.6 8.2 4.6 10.3 5.1
SKO 7.5 6.8 0.6 0.6 0.4 0.4 5.6 5.1 4.6 4.2
HSD 98.6 74.6 8.6 6.5 9.1 6.5 72.8 55.2 76.6 57.2
LDO 0.4 0.4 0.04 0.04 0.07 0.04 0.3 0.3 0.4 0.3
LUBES 1 3.6 0.08 0.3 0.08 0.3 0.8 2.5 0.8 2.5
FO/LSHS 10.7 6.6 0.8 0.5 1.3 0.6 8.3 4.7 9.5 5.5
BITUMEN 5.2 5.9 0.5 0.6 0.4 0.6 3.5 4 3.7 4.1
OTHERS 32.2 25.6 2.7 2.1 2.7 2.5 23.8 17.9 25.6 23.4
ALL INDIA 231.2 184.7 20 15.8 21.1 16.5 169.9 134.6 181.5 146.4
Growth (%) 4.80% 11.60% 2.40% 8.30% 5.60% 4.30% 2.90% 9.80% 6.80% 8.80%

Natural Gas at a Glance (As on December, 2016) (MMSCM)

December April-December 53
Details 2014-15 2015-16 2016 2016 2016 2016
2015 2015
(Target) (Actual) (Target) (Actual)
(a) Gross Production 33,657 32,249 2,737 3,030 2,737 24,697 25,152 23,885
- ONGC 22,023 21,177 1,819 2,041 1,927 16,272 16,724 16,420
- Oil India Limited (OIL) 2,722 2,838 266 247 246 2,120 2,261 2,212
- Private / Joint Ventures (JVs) 8,912 8,235 652 743 564 6,305 6,168 5,254
(b) Net Production (Excluding flare
32,693 31,138 2,648 1,903 15,637 18,755
gas and loss)
(c ) LNG Import 18,536 21,309 1,960 2,643 23,836 23,087
(d) Total Consumption including
internal consumption (Net 51,229 52,448 4,608 4,546 39,472 41,842
production+Import) (b+c)
(e ) Total Consumption (In BCM) 51.23 52.45 4.61 4.55 39.47 41.84
(f) Import Dependency based on
36.18 40.63 42.53 41.86 39.61 44.82
Consumption (C/d*100)

LPG consumption (As on December, 2016) (TMT)

December April-December
LPG category 2014-15 2015-16
2015 2016 Gr (%) 2015 2016 Gr (%)
1. PSU Sales:
LPG-Packed Domestic 16,040.40 17,181.70 1568 1696.4 8.2 12559.2 13900.1 10.7
LPG-Packed Non-Domestic 1,051.00 1,464.40 142.2 159.5 12.1 1058.1 1304.5 23.3
LPG-Bulk 315.7 317.2 24.5 30.4 23.8 240.5 269.7 12.2
Auto LPG 163.8 170.9 14.2 14.4 1.8 127.5 124.5 -2.4
Sub-Total (PSU Sales) 17,570.90 19,134.20 1,748.90 1,900.70 8.7 13,985.20 15,598.80 11.5
2. Direct Private Imports 429.2 489 46.9 37.5 -20.2 333.5 290.6 -12.9
Total (1+2) 18,000.10 19,623.20 1,795.90 1,938.10 7.9 14,318.80 15,889.40 11
 February 2017
www.InfralinePlus.com

StatisticsOil & Gas

Refineries installed capacity and crude oil processing (December, 2016) (MMTPA / MMT)

Crude Oil Processing

Installed
Com- capacity 2014- 2015- December April-December
Refinery
pany (April 15 16
2016) 2015 2016 2016 2015 2016 2016
(Actual) (Target) (Actual) (Actual) (Target) (Actual)

IOCL Barauni (1964) 6 5.9 6.5 0.6 0.5 0.6 4.9 4.7 4.9

Koyali (1965) 13.7 13.3 13.8 1.2 0.9 1.1 10.2 10.2 10.7

Haldia (1975) 7.5 7.7 7.8 0.7 0.7 0.5 5.8 5.9 5.8

Mathura (1982) 8 8.5 8.9 0.8 0.7 0.8 6.5 6.6 6.9

Panipat (1998) 15 14.2 15.3 1.3 1.3 1.3 11.3 11.4 11.7

Guwahati (1962) 1 1 0.9 0.07 0.08 0.07 0.7 0.7 0.7

Digboi (1901) 0.7 0.6 0.6 0.04 0.06 0.05 0.4 0.5 0.4

Bongaigaon(1979) 2.4 2.4 2.4 0.2 0.2 0.2 1.8 1.8 1.9

Paradip (2016) 15 - 1.8 - 1.1 1 - 6.8 5.2

IOCL TOTAL 69.2 53.6 58 4.9 5.6 5.7 41.7 48.5 48.1

HPCL Mumbai (1954) 10.5 10.2 9.1 0.5 0.9 0.7 6.5 7.8 7.8

54 Visakh (1957) 1 0.5 0.5 0.02 0.05 0.04 0.4 0.5 0.4

HMEL Bathinda (2012) 11.5 10.8 9.6 0.5 0.9 0.7 6.8 8.3 8.2

HPCL-TOTAL 12 12.8 13.4 1.1 1.2 1.3 9.9 10.6 10.8

BPCL Mumbai (1955) 9.5 10.4 10.7 0.9 0.7 1 8 8 8.5

Kochi (1966) 6 6.2 6.4 0.5 0.5 0.6 4.7 4.4 4.7

BORL Bina (2011) 3 2.8 2.5 0.2 0.3 0.3 1.8 2 2

BPCL-TOTAL 30.5 32.2 33 2.8 2.7 3.2 24.4 25.1 26

ONGC Tatipaka (2001) 0.1 0.1 0.1 0.007 0.004 0.007 0.05 0.03 0.06

MRPL Mangalore (1996) 15 14.6 15.5 1.5 1.5 1.5 11.1 11.3 11.9

ONGC TOTAL 15.1 14.7 15.6 1.5 1.5 1.5 11.2 11.3 12

HPCL Mumbai (1954) 6.5 7.4 8 0.7 0.7 0.8 5.8 6.1 6.3

Visakh (1957) 8.3 8.8 9.2 0.8 0.8 0.9 6.7 6.7 6.9

HMEL Bathinda (2012) 9 7.3 10.7 0.9 0.8 0.9 8.3 7.1 8

HPCL- TOTAL 23.8 23.5 27.9 2.5 2.3 2.6 20.8 19.8 21.2

RIL* Jamnagar (DTA) 33 30.9 32.4 2.8 2.8 2.8 24.2 24.2 24.8
(1999)

Jamnagar (SEZ) 27 37.2 37.1 3.2 3.2 3.2 27.6 27.6 27.9
(2008)

EOL Vadinar (2006) 20 20.5 19.1 1.8 1.7 1.8 13.9 15.3 15.8

All India 230.1 223.3 232.9 20.2 20.8 21.4 170.6 180 183.9

NewsBriefs | Renewable International
Govt mulls introducing fixed-cost component in renewable energy tariff
The government is exploring a change in
the tariff structure for electricity from clean
energy sources to boost Indias efforts to
promote a green economy. The ministry of
new and renewable energy is contemplat-
ing a fixed-cost component to the tariff for
electricity generated from renewable energy
sources such as solar or wind. The idea is
to prevent distribution companies (discoms)
$1.77 billion FDI equity came into Indian renewable sector between Apr 14 to Sep 16
India witnessed a total of $1.77 billion equity
investment in the form of foreign direct
investment (FDI) in the non-conventional
energy sector between April 2014 and Sep-
tember 2016, the Modi government said in
an Achievement Report of its flagship Make
in India initiative. As per the data available,
a majority of the bigger investments have
come from Mauritius, Malaysia, Philippines,
Singapore, Japan, Germany, Spain, US and
Seychelles. Under automatic route for proj-
ects of renewable power generation and dis-
tribution, 100 per cent FDI is allowed subject
to provisions of the Electricity Act, 2003. The
UN Environment Programs Global Trends in
Renewable Energy Investment 2016 report
Major Ports to go green, to save Rs. 75 crore annually
The Ministry of Shipping, as a part of its
Green Port Initiative has been emphasizing
on use of renewable sources of energy
to power Major Ports across the nation.
The Ministry aims to set up 91.50 MW of
solar energy capacity at the twelve Major
Ports and 45 MW of wind energy capacity
by the two Major Ports of Kandla and V. O.
Chidambaranar. Major Ports have started
the process of setting-up renewable energy
projects by investing Rs.704.52 crores
(Solar Rs. 412.02 Cr and Wind Rs. 292.50
Cr) in these projects. When completed,
these renewable energy projects will help
in the reduction of carbon dioxide emission
shying away from procuring electricity
generated by such projects, as they will
have to pay the fixed tariff component even
if they dont buy the electricity contracted
for. Such a tariff mechanism already exists
for electricity from conventional sources
such as coal and gas which has two partsa
fixed cost, which is the investment incurred
towards power generation equipment, and a
variable cost or the cost of fuel.The govern-
ment is contemplating introducing a fixed
component in the renewable energy tariff
to prevent states from backing down from
buying electricity from renewable energy
sources, an industry expert said. Experts
say this is an important step for promoting
green energy.
ranks India among the top ten countries in
the world investing in renewable energy. The
government plans to achieve 40 per cent
installed capacity of power from non-fossil-
fuel-based energy resources and reduce
emissions by 33-35 per cent by 2030.
by 136,500 MT annually. These projects
will also help to reduce cost of power
purchased by utilization of renewable
energy for power generation, resulting in
estimated saving of Rs 75 crores annually,
when fully commissioned. The wind energy
February 2017
www.InfralinePlus.com
National
NLC draws up big plans for solar
power
Buoyed by the success of its pilot solar
plant, NLC India Ltd. has unveiled plans
for installing power plants with net
capacity of 500 MW at an estimated
cost of Rs. 2,170 crore at various places
in Tamil Nadu. The rollout was part of
NLCs Solar Mission of adding 4,000
MW through installation in various parts
of the country. The NLCs solar power
thrust ties in with Government of Indias
National Solar Mission which planned
to establish solar power plants with an
installed capacity of 1,00,000 MW by
2022. The NLC, had, on an experimental
basis, launched a pilot project of solar 55
power generation with a capacity of
10 MW at the cost of Rs. 75 crore near
the Neyveli Air Strip. The success of
the project has now paved the way
for adding 130 MW (65 MW x 2) Solar
Power Units at Neyveli and the work
had been assigned to BHEL and Jackson
Engineers Ltd., each with 65 MW. About
650 acres in north and west side of the
Neyveli Township were apportioned for
this purpose.
projects will be executed by two Major Ports
namely Kandla Port and V.O. Chidambaranar
Port. The total capacity of the wind
energy projects is 45 MW out of which 6
MW has already been commissioned by
Kandla Port. A total of 15.20 MW of solar
projects has also been commissioned with
Visakhapatnam Port leading the way with
9 MW, while the other ports in which solar
projects have been commissioned are
Kolkata Port (0.06 MW), New Mangalore
Port (4.35 MW), V.O. Chidambaranar Port(0.5
MW), Mumbai Port (0.125 MW), Chennai
Port(0.1 MW), Mormugao (0.24 MW) &
JNPT(0.82 MW).
 February 2017
www.InfralinePlus.com
NewsBriefs | Renewable National
Narayan Karthikeyan company looks to buy Inox Windfarms
A clean energy company promoted by
Indias first Formula One driver, Narain
Karthikeyan, and his family is in talks to
buy the wind power generation business
of Inox Group for enterprise value of Rs
1,200 crore to consolidate, scale up and aid
its own fundraising efforts. Inox Renew-
Green certificate sales shoot up 245percent to 15.68 lakh in Jan
Sales of renewable energy certificates (RECs)
jumped about 245 per cent to 15.68 lakh this
January, from 4.54 lakh in December last
year. Power distribution companies as well
as open access and captive consumers are
56 under obligation to buy RECs from renewable
energy producers under renewable purchase
obligations (RPOs) as mandated by central
and state regulatory commissions. RECs
are aimed at providing an easier avenue for
various entities, including power distribu-
tion companies, to meet their green energy
obligations. Two power exchanges -- Indian
Energy Exchange (IEX) and Power Exchange
India Ltd (PXIL) -- approved by the Central
Electricity Regulatory Commission hold auc-
tion of RECs last Wednesday of every month.
India to launch clean energy equity fund of upto $2 billion
The Indian government and three state-
run firms will jointly set up an equity fund
of up to $2 billion for renewable energy
companies to tap into to help New Delhi
meet its clean energy goals. Private
and public companies will be able to dip
into an initial amount of more than $1
billion starting next fiscal year. Indias
government hopes the Clean Energy Equity
Fund (CEEF) will attract pension and
insurance funds from Canada and Europe.
Around $600 million of the initial pool
will come from the National Investment
and Infrastructure Fund, under the
finance ministry, and the rest from state
ables, an independent power producer, is a
99.98% subsidiary of listed Gujarat Fluo-
rochemicals and has close to 300 MW of
installed wind energy generation capacity
across Rajasthan and Maharashtra. It has
entered into long-term power purchase
agreements (PPAs) with state electricity
boards for the sale of wind energy. Coim-
batore-based Leap Green Energy, founded
in 2006, is pursuing funding options for
the deal, which is at an advanced stage
of negotiations and could be announced
before the close of the current financial
year. JP Morgan owns a majority stake in
Leap Green Energy and has a significant
management role in the company.
As per available data, the sale volume of
RECs at the two exchanges in January was
15,68,192 as against 4,54,038 in December
2016. As many as 12,87,814 RECs were sold
at IEX in monthly auction on January 25.
Similarly 2,80,378 RECs were sold at PXIL.
supply power to all of the countrys 1.3
entities NTPC Ltd, Rural Electrification
Corp and the Indian Renewable Energy
ReNew plans to raise $450 million with
bonds sale
ReNew Power Ventures has launched
a sale of bonds to overseas investors
to raise $450 million in a uniquely
structured deal where dollar
denominated bonds will be issued by
an offshore entity unrelated to the
company that will in turn invest in
masala bonds issued by ReNew Power
of the same value. The bonds are being
issued by a special purpose vehicle
called Neerg Energy that will be held
by a trust and its ownership is not
linked to ReNew group, Fitch Ratings
said which assigned a B+ (Expected)
rating to the proposed issue but did
not provide details on the fund raising
plan. The rating on the proposed notes
reflects the credit profile of a restricted
group of operating entities under
ReNew Power Ventures Private Ltd
(ReNew Power), Fitch added in
its note.
Development Agency. Prime Minister
Narendra Modi has set a target of raising
Indias renewable energy target to 175
gigawatts by 2022, more than five times
current usage, as part of the fight against
climate change by the worlds third-
biggest greenhouse gas emitter and to
billion people. The program will depend on
getting as much as $175 billion in funding
with 70 percent of that likely in bank loans
and the rest as equity. The government
reckons loans are not a problem but
providing equity to investors may be
difficult due to uncertainties over returns.

NewsBriefs | Renewable International States
Tamil Nadu receives most bids for wind energy projects
Tamil Nadu has received bids for setting up
1,794 MW of wind projects or 69 per cent of
total bids, in Indias first ever competitive
bidding for wind projects. The Solar Energy
Corporation of India (SECI) had rolled out
the tender for procuring 1000 MW of wind
Mytrah Energy signs pacts for 2000-MW renewable projects in Andhra Pradesh
Mytrah Energy said it has signed pacts for
2,000 MW of renewable power projects
worth Rs 13,000 crore in Andhra Pradesh.
The MoUs were inked in the presence Chief
Minister N Chandrababu Naidu on January
28. The MoUs are for 1,000 MW of wind
power and 1,000 MW of solar power proj-
ects. These projects will involve a total in-
vestment of Rs 13,000 crore and will create
employment for 4,000 skilled and unskilled
workers. These projects will be spread
across eight districts of Andhra Pradesh,
of which five districts will be evaluated for
wind power opportunities for the very first
time. Mytrah is planning to implement and
execute the projects within three years from
the date of getting all statutory clearances
Gujarat discoms fail to meet purchase target for renewable power
Gujarat Urja Vikas Nigam Ltd (GUVNL) affili-
ated four distribution companies (discoms)
fell short of purchasing required renewable
energy in 2015-16 on account of low supply
of power from wind and other renewable
energy sources. Under the Renewable
Purchase Obligation (RPO), a distribution
company is mandated to buy electric-
ity from renewable energy at a defined
minimum percentage of the total consump-
tion of its consumers. The RPO target for
2015-16 was 9% (7% from wind, 1.5% from
solar and 0.5% from other sources such
as biomass and mini hydro projects). As
against the stipulated target of 9%, GUVNL
power under competitive bidding. The power
generated would be sold to the non-windy
States. The tender has been oversubscribed,
with 13 developers submitting bids equiva-
lent to 2.6 GW against the 1 GW called for,
according to research firm Ambit Capital. As
much as 69 per cent of the bids are for Tam-
il Nadu and 27 per cent were for Gujarat.
According to the report, firms which bid for
setting up 250 MW of projects each in Tamil
Nadu include Inox Wind, Mytrah, Sembcorp
and Leap Green. Firms like Gamesa, Adani
and Hero bid for setting up 150 MW each of
projects in the State. With bids from other
firms, the overall bids received for setting up
projects in Tamil Nadu totalled 1,794 MW.
from the state government. Upon commis-
sioning of all the assigned projects, Mytrah
will become the states largest renewable
power IPP (independent power producer).
Andhra Pradesh government has targeted to
add 18,000 MW capacity renewable power
projects by 2021-22, which is 10 per cent of
the national target.
could procure only 7.66% from renewable
energy sources in 2015-16. This translated
into a shortfall of 980 million units (MUs)
February 2017
www.InfralinePlus.com
West Bengal set to tap solar power
for irrigation needs
The state water resource investigation
and development department is
planning to use solar power to supply
irrigation water to the farmland. At
present, farmers mainly use electric
pumps for irrigation purposes. The use
of solar power will benefit the farmers
by bringing down their electricity bill,
minister Soumen Mahapatra said.
The department has already entered
into an agreement with the West
Bengal State Electricity Distribution
Company Limited (WBSEDCL). The
department will use high-grid engines 57
to produce solar power for irrigating
fields in places where shallow tube
wells have been installed. The project
has already been implemented in 28
enclaves of Cooch Behar. It has also
been launched as a pilot project in
North 24 Parganas, South 24 Parganas,
Nadia, East Midnapore and West
Midnapore districts. Once we examine
the feasibility of this project, we will
introduce this throughout the state.
in 2015-16. The apex electricity company
GUVNL has approached Gujarat Electric-
ity Regulatory Commission (GERC) with a
petition requesting revision of RPO for its
four discoms -- Uttar Gujarat Vij Company
Ltd (UGVCL), Madhya Gujarat Vij Company
Ltd (MGVCL), Dakshin Gujarat Vij Company
Ltd (DGVCL) and Paschim Gujarat Vij Com-
pany Ltd (MGVCL) -- and allow it to adjust
purchase of excess (303 MUs) solar power
against the shortfall in non-solar category.
As directed by the state power regulator,
GUVNL has invited suggestions or objec-
tions from all stakeholders pertaining to the
compliance of RPO by obligated entities.
 February 2017
www.InfralinePlus.com
NewsBriefs | Renewable International
Equis Energy to invest $300 mln in two solar plants in Australia
Equis Energy said it plans to build two
solar power plants for A$400 million ($303
million) in Australia, marking the Singapore-
based renewable energy developers
first investments in the country. The two
100-megawatt solar plants would be in
South Australia and Queensland, moving
the country a step closer toward the
federal governments target for at least
Scotland eyes 50% renewable energy by 2030 in shift away from North Sea oil
The Scottish government has taken the first
steps to heavily cutting the countrys reliance
on North Sea oil and gas after calling for 50%
of Scotlands entire energy needs to come
from renewables. In a subtle but significant
58 shift of emphasis for the Scottish National
party after decades championing North
Sea production, ministers unveiled a new
energy strategy intended to push motorists,
homeowners and businesses into using low
or zero-carbon green energy sources for half
their energy needs by 2030. Currently, 47%
of Scotlands total energy use comes from
petroleum products largely extracted from
Scotlands North Sea oil platforms, and 27%
from domestic and imported natural gas
needed for home heating. With opposition
Saudi Aramco said to weigh up to $5 billion of renewable deals
Saudi Aramco, the worlds largest oil
company, is considering as much as $5
billion of investments in renewable energy
firms as part of plans to diversify from
crude production. Banks including HSBC
Holdings Plc, JPMorgan Chase & Co. and
Credit Suisse Group AG have been invited
to pitch for a role helping Aramco identify
potential acquisition targets and advising
on deals. The energy company is seeking
to bring foreign expertise in renewable
energy into the kingdom and first invest-
ments under the plan could occur this
year. Saudi Arabia is planning to produce
10 gigawatts of power from renewable
20 percent of nationwide power to come
from renewable energy by 2020.The South
Australian plant, Tailem Bend, would be
built next to a diesel-fired power station
owned by Snowy Hydro, which had agreed to
buy all the power from the solar plant, Equis
said. Construction was due to begin in early
2017, it added. By developing the Tailem
Bend Solar Project and Snowy Hydro diesel
projects together, the combined system will
have the capability of providing stable power
any time of the day across the entire year,
Equis Group Chief Executive David Russell
said. The second solar plant would be built
in Collinsville North, where construction
would also begin this year.
parties and environment groups expressing
scepticism about a lack of detail in the new
strategy, Scottish ministers privately admit
cutting oil use is their biggest challenge in
hitting far tougher targets unveiled last week
to reduce Scotlands total greenhouse gas
emissions by 66% by 2032.
energy sources including solar, wind and
nuclear by 2023 and transform Aramco
Renewable energy creating jobs
12 times faster than the rest of the
economy
The solar and wind industries are each
creating jobs at a rate 12 times faster
than that of the rest of the U.S. economy,
according to a new report. The study,
published by the Environmental Defense
Funds (EDF) Climate Corps program,
says that solar and wind jobs have grown
at rates of about 20% annually in recent
years, and sustainability now collectively
represents four to four and a half million
jobs in the U.S., up from 3.4 million in
2011. The renewable energy sector has
seen rapid growth over recent years,
driven largely by significant reductions
in manufacturing and installation costs.
Building developers and owners have
been fueled by state and local building
efficiency policies and incentives, the
report explains. But, these gains are in
contrast to Trumps support for fossil fuel
production, his climate change denial and
his belief that renewable energy is a bad
investment.Trumps current approach is
basically ignoring an entire industry that
has grown up over the last 10 years or so
and is quite robust, Liz Delaney, program
director at EDF Climate Corps, said.
into a diversified energy company. The
kingdom also plans to develop a renew-
able energy research and manufacturing
industry as part of an economic transfor-
mation plan announced by Deputy Crown
Prince Mohammed bin Salman in April.
The kingdom intends to become a global
powerhouse of renewable energy includ-
ing solar, wind and nuclear power, the
countrys Energy Minister and chairman of
Aramco, Khalid Al-Falih, said at the World
Economic Forum in Davos, Switzerland.
By 2030 the kingdom wants to produce
30 percent of its power from renewable
energy sources.
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 February 2017
www.InfralinePlus.com
InConversation
Equating solar with wind is like
comparing chalk and cheese
DV. Giri, Secretary General, Indian Wind Turbine Manufacturers
Association (IWTMA), shares his outlook for the wind sector, why it
is not a good idea to compare wind with solar and the challenges
which need to be addressed immediately. Excerpts:
Wind sector in India is going
through a lot of positive
developments especially in the
context of how the renewable
energy sector has shaped up in
the last few years. We have a
target of 60 GW of wind capacity
by 2022. In the wake of this,
what is your outlook for the wind
sector?
60 Yes you are right that we have a large
target of 60 GW which is to be achieved
by 2022. Couple of observation we
have. One, this year, 2016-17, we
would be crossing over 4500 MW of
wind power, which perhaps is going to
be one of the highest. One can say that
this is going to happen because Genera-
tion Based Incentive (GBI) is going to
be called off by March this year, and
also that Accelerated Depreciation (AD)
has been reduced from 80 percent to
40 percent. So there is a rush to install
wind turbines. Andhra Pradesh alone is
expected to see more than 2000 MW of
installed wind capacity. So one can say
that this is a peculiar year and this may
not happen again.
Now, having said that, let us face
few things. One, wind turbine industry
goes with Make in India program of the
Government, with 75% localization.
Two, 95% of the investment in this
sector is coming from the private sector
and not from the government under-
takings. Now when you want to get
the private investor to invest in wind
turbine, especially when it is not a core
business and investor is looking it as
a business opportunity, the investment
decision will purely depend on the
capital cost, on the interest, the PLF
and the tariff. Let us face it, as far as the
capital costs are concerned, we are the
cheapest in the world. Interest cost in
India is around 12-14%. We can work
out the PLF depending on the site on
which we are going to operate. With all
this, finally the tariff is determined by
the state electricity regulatory com-
mission. If they are going to give a tariff
which is going to give an IRR of less
than 16%, who would be interested?
Let us take the classical example
of Madhya Pradesh which installed
1100 MW of wind capacity last year
(2015-16) when the tariff was at Rs
5.92 per unit because it is a low wind
region. Now, for some odd reason,
this tariff was slashed to 4.78 per unit.
Today, there are no wind projects
coming up in Madhya Pradesh. How do
you handle this kind of a situation?
Then, we have huge problems in
grid connectivity. The grid is con-
gested. Now with green corridors under
implementation, some kind of oppor-
tunity is there. But the problem is that
the grid is absolutely congested. With
the result that during high wind season
when the wind is blowing at the best,
the discoms are getting wind at say Rs
4.16 in Tamil Nadu, while the same is
available from fossil fuel at Rs 2.50
per unit, then what do they do? They
have to balance this load through the
DV. Giri, Secretary General, Indian Wind Turbine
Manufacturers Association (IWTMA)
state load dispatch centres where the
primary concern is the financial health
of discom. So the load dispatch centre
is asked to switch off all wind turbines
to accommodate power produced from
fossil fuels. So the generation is lost
without any mistake of the generator.
But does the discom pay for the units
lost? No.
When it comes to payment, be in
Rajasthan, Madhya Pradesh, Maha-
rashtra or in Tamil Nadu, the delay
can range anywhere between six to 14
months. If a person is not getting paid
for this long and he has to pull out
money from his pocket to service his
loans, the project again doesnt remain
viable. The PPA calls for payment of
interest if payments are delayed beyond
one month. Barring Gujarat, which not
only pays on time but also take a cash
discount by paying in seven days of
raising the bill, rest of the states are in
various stages of delay. Rajasthan is
10 months, Tamil Nadu is 13 months.
Maharashtra is another peculiar case
where PPA is signed and turbines are

generating, but they have not been paid
for the past 14 months. There are situ-
ations when machines are generating,
PPAs have not been signed; machines
are standing where evacuation has been
given but they are not connected with
the grid. If this is the situation we are
going to have in the states, any policy
of the Centre is absolutely of no use.
So what we tell the Centre is you
make the policies, but unless we have
the engagement of the states where
they must give a must run status to
wind turbines, have payment security
and perform their RPO. None of the
states follow their RPO. If all the
states perform their obligation under
the National Tariff Policy, we can do
something like 6,000 MW per annum.
Today, we are purely dependent on
nine wind states of which seven are
operating because Telangana and
Kerala nothing is happening.
This is the situation we have, but
what are we blamed for say high
capital, which I have already said is not
true. Then, it is claimed that while solar
prices have come down, wind sector is
still keeping its costs high. Our prices
and costs will go up because we have
lost all the wind sites, which are all
occupied. So what is the alternative?
We have to increase the hub height,
increase the blade length to have a
meaningful PLF to have a worthwhile
IRR. When you put hardware costs, the
cost goes up. Thats why we tell the
Centre and State governments to not
look at wind from the view of capital
cost. You look at levelised cost of
energy over a 20 year period. Then you
will find if it at grid parity or lower.
We have a manufacturing capacity of
9500 MW as of today, with some more
members joining; it can go up to 12,000
MW. We are chasing a market of about
3,000 MW. How can you have economy
of scale and how can cost come down?
We perform everything for the customer
right from wind resource assessment, to
connectivity, to getting their PPA signed.
If there is no help from the government,
what can we do?
I hope the competitive
bidding goes off well.
Still, there are many
glitches in terms of pay-
ment, connectivity, who
is going to take the long
term access, what is
the role of PTC, what is
the role of discom, what
happens when there is
a grid congestion and
machines are made to
switch off, which have
not been addressed
February 2017
www.InfralinePlus.com
What are your views on the
recent roll out of competitive
bidding in the wind sector?
The Government is today talking about
competitive bidding. The government
has put up a 1 GW interstate competi-
tive bidding from wind to a non-wind
state. I am very happy that the industry
has responded with a 2.6 GW response.
I hope the competitive bidding goes
off well. Still, there are many glitches
in terms of payment, connectivity, who
is going to take the long term access,
what is the role of PTC, what is the
role of discom, what happens when
there is a grid congestion and machines
are made to switch off, which have not
been addressed. I am sure they will be
addressed when the bid opens which is
expected in next two to three months.
Implementation of projects, with all the
improbable and the number of question
marks to be addressed, projects will
come up and perhaps the implementa-
61
tion will happen in December 2018, not
before that. If that happens, what will
happen in 2017-18? You are saying that
Feed in Tariff (FiT) is a bad word. So
what happens in 2017-18?
We have submitted to the ministry
that till competitive bidding stabilizes
itself, allow FiT to continue, get the
RPO implementation, and then if
GBI has been a game changer, allow
it to continue so that the meaningful
IRR is achieved for IPPs. IPPs today
are borrowing money from private
equities abroad and if it doesnt make
sense for them, they will not make the
investment. So we believe that if 60 GW
is to be achieved, perhaps GBI needs
to continue till 2022, or till such time
competitive bidding comes in full play.
Even if you take interstate competitive
bidding, the PGCIL network is only
about 4,000 to 5,000 MW. It will be
completed in another two or three
years, till then you have to depend on
state utilities. State utilities have to
move from the point of generation to
interstate connectivity point where you
 February 2017
www.InfralinePlus.com

InConversation

have the STU charges which are very

high and need to be rationalized. So I
feel that if Government really wants
to do something in a comprehensive
way, there is no point just to go for
competitive bidding and price discovery
mechanism hoping price will come
down and market will stabilize itself.
How can the market stabilize itself
without grid connectivity, payment
security and achieving the national
renewable portfolio obligation?

What are the other areas in the

wind sector which need urgent
attention by the Government?
One area which the Government
should look into is to see how we
can export wind turbines out of the
country. There are two major prob-
lems in exports. One, the exim line of
credit is just not enough. They need
to have a green line of credit sepa-
rately for wind. Also, the logistics cost
62
need to be addressed by Ministry of
Commerce and Ministry of Shipping,
whereby the freight cost from India
as compared to say China, are about
17% higher. Some sort of intervention
is required so that we can work on a
level playing field. If these problems
are removed, exports, looking at the
quality of products we do in India, I
am sure we can in 18-24 months, do
about 2,000 to 3,000 MW per annum
of exports alone which will add to the
countrys overall turbine sales.
Then there are some other issues.
We move our goods by roads. Ours is
an over dimensional cargo. Both at the
state and national highway the cargo
carrying critical equipment is stuck
due to the way the state authorities
operate. I feel we need to be given a
special status in movement of over
dimensional cargo. The other thing is
when we put our transmission lines,
unlike power and telegraphic lines, to
put those on private land, the cost of
the project runs into crores of rupees.
We are forced to pay under the table,
One area which the
Government should
look into is to see
how we can export
wind turbines out of
the country. There are
two major problems in
exports. One, the exim
line of credit is just not
enough. They need to
have a green line of
credit separately for
wind. Also, the logis-
tics cost need to be
addressed
whereas under Section 68 of the Indian
Telegraphic Act there is a prescribed
compensation that needs to be paid
when you put lines on private or
agrarian land. If this is available to us
then our costs can come down.
What is your take on GST?
If GST comes in and we are put in a
higher slab, we will break the chain
and cost could go up from anything be-
tween 14 to 20%. So we have requested
the Government to either give us zero
rating or concessional rating so that the
impact on cost can be minimised.
The Government is coming up
with green corridors to expedite
evacuation and transmission
infrastructure. What are your
views?
The green corridor plans are on. But
the point is that the green corridor
is going to be in position not before
2018 or 2019. So there is a delay
even from their side. If you take the
state corridors, for example in Tamil
Nadu, they have been planning a
4X400 KV substation for past three
years, out of which only one has been
commissioned. Now because of that,
the entire grid is congested and they are
not able to give any further permission
to put up turbines.
The solar sector has seen
tariffs plummeting in last few
years. How do you compare this
situation with the wind sector?
Let us understand one thing. Solar
is against Indias interest if you see
what is happening in the country
today. It is being imported, which
means there is a cash outflow from
India to other countries like China
or Taiwan. I think import cost by
value is beyond 78% of the entire
solar project which is installed in
the country. So in solar 78% of a
projects cost is being imported,

as against wind, which has 75%
localisation under Make in India.
Two, why are we not buying solar
panels from countries like USA? There
are over capacity in countries like
China and Taiwan and I dont think I
should mention the quality of Chinese
equipment. Also, the actual ground
reality is that PLF is not more than
16% in solar, while in case of wind,
the average is around 21-22%, in areas
of good wind, we are having a PLF of
30-35%. You have to look long term.
What is the standardization for solar
in comparison with wind? There are
stringent standards for wind, else wind
turbines cannot be put up. But is there
any standard of any kind for solar?
Not at all.
Another problem of solar is that
you require expensive water to clean
the panels. India is a tropical country
full of dust and heat. So when you
have dust on the panel, the PLF is
going to come down. Infact there are
reports that in next six to seven years,
the panels may have to be written
off. In wind, we are giving assurance
of generation without deration for
next 20 years, whereas solar even
at international standard, there is a
deration of 0.5% year on year. If you
are comparing solar with wind, it is
like comparing chalk and cheese. What
you require in renewable energy is long
term sustainable energy source with
bankable policies which are friendly
when private sector is investing.
However, if solar of good quality can
be achieved and there is a meaningful
price, I think there is a great oppor-
tunity for wind and solar to work
together as wind-solar hybrid.
In this scenario, what is the
viable tariff for wind developers?
If you take a tariff of Rs 5 per unit, that
would be the ideal tariff for people to
bring in large investments. And once
scale of economy goes up, lets say
instead of 3,000 MW we are able to do
10,000 MW per annum, if capital costs
Another problem
of solar is that you
require expensive
water to clean the
panels. India is a
tropical country full of
dust and heat. So when
you have dust on the
panel, the PLF is going
to come down. Infact
there are reports that
in next six to seven
years, the panels may
have to be written off
February 2017
www.InfralinePlus.com
can come down, transmission lines can
be loaded better, then I see every reason
why kilowatt hour cost can come down.
How do you analyse possibilities
for India in wind offshore
segment?
It is too premature as we do not yet
know the potential of the country.
The pilot projects are currently being
undertaken at two locations in Tamil,
Nadu and Gujarat to study wind speed
and potential. However, considering
the number of agencies required for
taking permission, which is more than
25, the cost of offshore would be three
time that of onshore. I really wonder
if it will be viable at this point. We
need to learn from countries like UK
who have been successful in this area.
However, there are a few things which
go against offshore wind in India. One,
our sea bed is very soft. Which means
cost of foundation goes up. Then, is 63
there steady wind like North Sea will
be known only when the study is done.
How has demonetization of
currency impacted projects in
wind sector?
In rural India where we deal with petty
contractors, water suppliers, contrac-
tors, petty labour and unskilled labour,
their wages have to be paid in cash. We
expect this year atleast 800 to 1,000
MW of wind projects missing commis-
sioning by March due to demonetiza-
tion. It will not impact generation, as
it will start only in May or June, but if
GBI is withdrawn from March 2017,
these projects which are in pipeline and
not able to catch the March deadline,
would lose benefit of GBI, which is
Rs 1 crore per MW. So we are talking
of about a loss of Rs 800 to Rs 1000
crore to the developer. So we have
approached the Government asking if
the GBI is to be closed, the window
should be kept open for atleast two
more months.
For suggestions email at feedback@infraline.com
 February 2017
www.InfralinePlus.com

InDepth
Indias renewable energy sector
on the cusp of giant leap in 2017

64

In 2017, solar tariffs are expected to fall below the critical INR 4.00/unit mark
An urgent need to adopt path breaking measures in the Grid operation to achieve target

By Team InfralinePlus

In the last couple of years, domestic/
foreign investors in various fields have
grabbed the opportunity to mainstream
into clean energy business and convert
those opportunities into reality, simulta-
neously. It is expected that by 2020, an-
nual solar power capacity additions and
investments could surpass those in coal
power projects. This is on the back of
strong commissioning (4.5 GW), under
construction projects (more than 5 GW),
and new projects (more than 15 GW).
Private sector interest is decisively
moving towards solar from coal power,
already visible from numerous oppor-
tunities of fund-raising, and Mergers &
Acquisitions (M&A) activity.
Indian government has envisioned a
green economy going forward, with
electricity generated from renewable
energy (RE) sources dominating the
fuel mix in their total energy mix.
Keeping in mind Indias global com-
mitment towards climate change
obligations and increase of renew-
ables in the total energy mix of the
countrys installed capacity, several
projects in solar and wind sectors
have been planned over the course of
next 5-6 years. [In its commitments
to the United Nations Framework on
Climate Change (UNFCCC), with an
aim to generate about 40% cumulative
electric power installed capacity from
non-fossil fuel based energy resources
by 2030 has contributed to the recent
surge in solar capacity]
A bigger shot in the arm for the
government has been the upward

trading in renewable energy certificate
(RECs) sales, which saw a notable rise
in the month of January 245 percent.
According to the Renewable Energy
Certificate Registry of India, the sale
volume at the two power exchanges
(PXs) in January was 15,68,192. While
12,87,814 RECs were sold through
India Energy Exchange (IEX) and
2,80,378 RECs were sold through
Power Exchange India (PXIL).
Solar sector update
India added around 4.9 GW of solar
capacity, an increase of 101 percent
over 2015 and crossed the 10 GW
cumulative installed capacity mark.
Around 14 GW of utility scale projects
are in the pipeline by various central/
state agencies and independent power
producers (IPPs), out of which 7.7 GW
is expected to be commissioned in the
year, a growth of around 90 percent
over 2016. Around 40 GW capacity of
solar capacity (from 100 GW by 2022)
is envisioned through rooftop projects
and this segment also crossed 1 GW
capacity addition mark in September,
2016 which was a 135 percent jump as
compared to 2015.
Just five states Andhra Pradesh,
Gujarat, Rajasthan, Telangana, and
Tamil Nadu host more than 67% of
the total solar power capacity operation
in India. Southern states of Tamil Nadu,
Telangana and Andhra Pradesh have
been leading in terms of fresh capacity
added this financial year (up to January
2017), as per the data available with
Ministry of New and Renewable Energy
(MNRE). The government has placed a
strong focus on pushing hard in 2017,
with the intention of more than doubling
last years numbers. In order to achieve
the target, the major programmes on
implementation of Solar Park, Solar
Defence Scheme, Solar scheme for
Central Public Sector Undertakings,
Solar photovoltaic (SPV) power plants
on canal bank and canal tops, solar
pump, solar rooftop among others have
been launched in recent years.
In 2017, solar tariffs are expected
to fall below the critical INR 4.00/
unit mark making solar power the
cheapest new source of power. The
fall in prices of solar equipment
(modules, cells) is expected to drive
down the tariffs further to the current
level of INR 4.34/unit which will
infuse more competition amongst
industry players. After falling 30%
last year, the price of ordinary
multi-crystalline silicon modules
is expected to fall another 20% in
India added around 4.9
GW of solar capacity,
an increase of 101
percent over 2015 and
crossed the 10 GW
cumulative installed
capacity mark. Around
14 GW of utility scale
projects are in the
pipeline by various
central/ state agencies
and independent
power producers
(IPPs), out of which
7.7 GW is expected to
be commissioned in
the year
2017, as per Bloomberg New Energy
Finance (BNEF). Since 2009, solar
prices are down 62%, with every part
of the supply chain trimming costs.
At the same time, improving financial
health of state electricity distribution
companies (DSICOMs) due to imple-
mentation of the UDAY scheme will
also help in sustaining renewable
energy demand. As per industry
estimates, total installed capacity is
expected to reach 18 GW by the end
of 2017 which will likely keep the
country on track for record capacity
addition by 2022.
February 2017
www.InfralinePlus.com
Wind sector update
While the recent surge in solar capac-
ity addition indicates the effort put by
the Ministry of New and Renewable
Energy (MNRE) in working towards
achieving 100 GW solar target by
2022 (overall 175 RE capacity target
by 2022) and are laudable, however,
in order to achieve the overall targets,
the problems affecting the wind power
independent power producers (IPPs)
need to be highlighted so that effective
solutions are found.
Due to inadequate forecasting, lack of
inter-state transmission, grid availability
and lower solar tariffs due to competitive
bidding, the generation and capacity
addition in wind is being affected nega-
tively. This is being further compounded
due to reduction in the tax incentives in
the form of Accelerated Depreciation
(AD) to 40%, announced in the Union
Budget of 2016 and the proposed phase
out of Generation based Incentives 65
(GBI) post March 2017. India has had a
phenomenal increase in wind capacity
addition over the past decade due to
the support of the government through
favorable policy incentives and this need
to be continued in some form, if India
is to achieve its target of having clean,
reliable and affordable energy for all.
Lately, several steps have been
taken by the government to ensure that
this vigorous move to wind capacity
addition. Some of these include the
enactment of the National Off Shore
Wind Energy Policy paving the way
for offshore wind energy development.
The Ministry of New and Renewable
Energy (MNRE) wants all wind turbines
of less than 1MW capacity and built
before the year 2000 phased out and
replaced by new ones. It has circulated
a wind repowering policy saying that
its financing arm, the Indian Renewable
Energy Development Agency (IREDA)
will provide an additional interest
rebate of 0.25% on loans taken for
such repowering, apart from the rebate
already available for new wind projects.
Hence, it is believed that new policies
 February 2017
www.InfralinePlus.com

InDepth

will be a great boost to the state of Tamil State-wise Solar RPO requirement (as on 2021-22)
Nadu considering its leadership position
State Solar RPO Required Solar RPO Required
in wind installed capacity. The country (2021-22) (2021-22)
has already crossed 26,700 MW of wind (%) (MW)
power installation till January 2017. Andhra Pradesh 8% 5357
Although the wind energy indus- Arunachal Pradesh 8% 42
trys prospects in India are bright, Assam 8% 801
Bihar 8% 2969
there are certain challenges ahead.
Chhattisgarh 8% 2171
Notable among these are the lack of Delhi 8% 1870
enforcement of the renewable purchase Goa 8% 369
obligations (RPOs), the weak financial Gujarat 8% 9403
health of power distribution companies Haryana 8% 4030
Himachal Pradesh 8% 521
(DISCOMs), and inadequate grid infra-
Jammu & Kashmir 8% 1319
structure to accept new wind generation. Jharkhand 8% 500
The RPO mandates discoms to Karnataka 8% 5961
purchase a fixed percentage of total Kerala 8% 1429
electricity supply from renewable Madhya Pradesh 8% 5636
Maharashtra 8% 12611
resources. However, many discoms are
Manipur 8% 118
failing to meet the required RPO, and Mizoram 8% 76
they have not been penalized either. Meghalaya 8% 182
The lack of enforcement is under- Nagaland 8% 60
mining the intent of the RPOs and Odisha 8% 2200
could impact investments in the wind Punjab 8% 3917
Rajasthan 8% 6556
66 power market. The poor compliance is Sikkim 8% 5
reflected in the sharp increase in unsold Tamil Nadu 8% 8903
Renewable Energy Certificates (RECs). Telangana 8% 4457
The REC is a mechanism available for Tripura 8% 123
States with lower renewable energy Uttarakhand 8% 561
Uttar Pradesh 8% 13248
potential to meet their RPOs through West Bengal 8% 4603
purchase of these certificates on the Chandigarh 8% 50
power exchange. Daman & Diu 8% 189
Other causes for concern facing Dadar & Nagar Haveli 8% 502
project development are the lack of Puducherry 8% 229
Total 100,000
sufficient transmission infrastructure to
Source: Ministry of New and Renewable Energy (MNRE)
evacuate power, land availability, and
delays in land acquisition and obtaining
permits. Overcoming these challenges is Many discoms are failing to meet the required
vital to realizing the countrys full wind RPO, and they have not been penalized either.
energy potential in the years ahead. The lack of enforcement is undermining
the intent of the RPOs and could impact
Revised Tariff Policy: investments in the wind power market. The poor
Provisions related to solar
RPO compliance is reflected in the sharp increase in
Under the amended provisions of the unsold Renewable Energy Certificates
National Tariff Policy, it is stated that
Long term growth trajectory of Re- age for purchase of solar energy from Solar RPO targets (state-wise) have
newable Purchase Obligations (RPOs) the date of notification of this policy been calculated so as to reach 17 percent
will be prescribed by the Ministry of which shall be such that it reaches 8% of total energy mix by the year 2022
Power in consultation with MNRE of total consumption of energy, exclud- and also meet 100 GW target fixed by
and within the percentage so made ing Hydro Power, by March 2022 or the Government of India. This has been
applicable, to start with, the SERCs as notified by the Central Government calculated after deducting the hydro
shall also reserve a minimum percent- from time to time. power consumption. The calculation

is based on certain assumptions on
capacity utilization factor (CUF)
including rooftop solar and growth in
the total energy consumption. This may
further change depending on the actual
growth in the total consumption of
energy in the respective States.
Challenges
The availability of solar and wind ener-
gy is largely determined by the weather
conditions, and therefore characterised
by strong variability. As a result, power
generation from these sources cannot
easily be matched to the electricity
demand, like power generated from
conventional plants such as coal-fired
units and gas stations. Integration of
large amount of fluctuating RE in the
grid is a serious technical challenge
for grid managers to ensure smooth
operations of the Indian grid - the fifth
largest in the world.
The level of RE penetration (in
terms of energy generated) in India is
presently around 5 to 6 percent. While
the capability of generators to forecast
generation and to provide timely
schedules are key requirements, it is
equally important that other institutions
involved, whether central level or
state level are adequately prepared.
Apart from wind/solar generators,
the implementing institutions such
as SLDC, RLDC, NLDC and RPC
need to be geared up with adequate
infrastructure and trained manpower.
Implementation of full-fledged
Scheduling mechanism and Settlement
system within the States has been long
pending and it will bring in synergy
and optimization. Government of
India has embarked on an ambitious
mission to integrate 100 GW of solar
power and 60 GW of wind power by
2022. For this to become a reality
there is an urgent need to adopt
path breaking measures in the Grid
operation. Extending real time SCADA
data from the Renewable Generators
would provide Situational awareness to
the System Operators about the ramp
events. Establishment of Renewable
Energy Management Centres (REMC)
would facilitate trading of RE sources
(market participation) across the states.
February 2017
www.InfralinePlus.com
An implementation of all these and
effective policy/regulatory framework
both at the central as well as the state
level in 2017 will enable India to be
touted as a leader in the renewable
energy space.
Conclusion
There is increasing realization that RE
can be a major contributor in Indias
future energy mix. Given the volatility
in international oil prices, and Indias
growing dependence on imports, RE
has an important role in Indias aspira-
tions for energy security. Further,
as RE can be deployed close to load
centers and for decentralized power
generation, it can help achieve the
targets of 100% electricity access and
24x7 electricity supply. A significant
push and preference for renewable
energy in 2017 will see a tremendous
growth of the sector and will confirm
Indias role as one of the worlds lead- 67
ing RE marketplaces alongside the
likes of United States and China.
For suggestions email at feedback@infraline.com
 February 2017
www.InfralinePlus.com

StatisticsRenewableEnergy
1) Cumulative Renewable Energy capacity addition achievement as on 31.12.2016

Program/ Scheme wise Physical Progress in 2016-17 (& during the month of December, 2016)
Cumulative
FY- 2016-17
Achievements
Sector
Achievement
Target (as on 31.12.2016)
(April - December, 2016)
I. GRID-INTERACTIVE POWER (CAPACITIES IN MW)
Wind Power 4000 1922.99 28700.44
Solar Power 12000 2149.81 9012.66
Small Hydro Power 250 59.92 4333.85
BioPower (Biomass & Gasification and 400 101 7856.94
Bagasse Cogeneration)
Waste to Power 10 7.5 114.08
Total 16660 4341.22 50017.97
II. OFF-GRID/ CAPTIVE POWER (CAPACITIES IN MWEQ)
Waste to Energy 15 4.47 163.35
Biomass(non-bagasse) Cogeneration 60 0 651.91
Biomass Gasifiers 2 0 18.34
-Rural
-Industrial 8 4.3 168.54
Aero-Genrators/Hybrid systems 1 0.38 2.97
SPV Systems 100 98.5 405.54
68 Water mills/micro hydel 1 MW + 500 Water Mills 0.10 MW + 100 Water Mills 18.81
Total 187 107.75 1429.46
III. OTHER RENEWABLE ENERGY SYSTEMS
Family Biogas Plants (in Lakhs) 1 0.3 49.4

2. REC report January 2017

Indian Energy Exchange
Cleared Cleared No. Of
Month/Year Type Buy Bids (REC) Sell Bids (REC)
Volume (REC) Price(Rs/REC) Participants
January 2017 Solar 39,572 3,251,453 39,572 3,500 529
Non-Solar 1,248,242 9,199,168 1,248,242 1,500 870

PXIL
MCV (No. of
Buy Bid (No. of Sell Bid (No. of MCP (Rs. /
Month/Year REC Type certificate)
certificates) certificates) Certificate)
Qty (MWH)
January2017 Non-Solar 272051 4803397 1500 272051
Solar 8327 1172706 3500 8327
 February 2017
www.InfralinePlus.com

3. Grid Connected Solar Power Capacity as on 31/12/2016

Sr. Total cumulative capacity Capacity commissioned in Total cumulative capacity

State/UT
No. till 31-03-16 (MW) 2016-17 till 31-12-16(MW) till 31-12-16 (MW)
1 Tamil Nadu 1061.82 529.15 1590.97
2 Rajasthan 1269.93 47.71 1317.64
3 Gujarat 1119.17 39.33 1158.5
4 Andhra Pradesh 572.97 406.68 979.65
5 Telangana 527.84 445.57 973.41
6 Madhya Pradesh 776.37 63.98 840.35
7 Punjab 405.06 140.37 545.43
8 Maharashtra 385.76 44.7 430.46
9 Karnataka 145.46 182.07 327.53
10 Uttar Pradesh 143.5 95.76 239.26
11 Chhattisgarh 93.58 41.61 135.19
12 Bihar 5.1 90.81 95.91
13 Odisha 66.92 10.72 77.64
15 Haryana 15.39 37.88 53.27
16 Uttarakhand 41.15 3.95 45.1
17 Delhi 14.28 24.5 38.78 69
18 West Bengal 7.77 15.3 23.07
19 Jharkhand 16.19 1.32 17.51
20 Chandigarh 6.81 9.39 16.2
21 Kerala 13.05 2.81 15.86
22 Assam 0 11.18 11.18
23 Andaman & Nicobar 5.1 0.3 5.4
24 Tripura 5 0.02 5.02
25 Daman & Diu 4 0 4
26 J&K 1 0 1
27 Lakshadweep 0.75 0 0.75
28 Dadar & Nagar Haveli 0 0.6 0.6
29 Nagaland 0 0.5 0.5
30 Himachal Pradesh 0.2 0.13 0.33
31 Arunachal Pradesh 0.27 0 0.27
32 Mizoram 0.1 0 0.1
33 Goa 0 0.05 0.05
34 Puducherry 0.03 0 0.03
35 Manipur 0 0.01 0.01
36 Meghalaya 0 0.01 0.01
37 Other/MoR/PSU 58.31 3.39 61.7
TOTAL 6762.85 2246.41 9012.68
 February 2017
www.InfralinePlus.com
OffBeat
Intelligent Transport System:
A game changer
ITS market expected to reach $42.67 billion by 2022, growing at a CAGR of 12.21%
To remove congestion from railway we need dedicated freight corridor or high speed trains
70
by Team InfralinePlus
Continuing with its exclusive series of
conferences on the Roads and Trans-
port sector, Whizabstracts organized
its Annual Conference on Intelligent
Transport System in Transportation
Sector on January 18, 2017, in New
Delhi. The underlying objective
of organizing this conference was
to bring numerous stakeholders in
transportation sector landscape together
to brainstorm on many complex issues
adversely impacting the sector and for
jointly evolving workable solutions
for consideration by policy makers.
The conference was well received and
we bring to you the key messages and
recommendations/ action points which
emerged from this one day conference.
Dr. Sudhir Krishna, Former Sec-
retary, Ministry of Urban Development,
delivered the inaugural address. The
distinguished gathering included top
industry experts, ministry officials, top
research institutes, investors and repre-
sentatives of industrial associations who
had serious interactive deliberations on
various aspects relating to the expe-
rience with the implementation of ITS
in transportation sector and road safety
concerns. Intelligent Transportation
System (ITS) market is expected to
reach $42.67 billion by 2022, growing
at a CAGR of 12.21%. It is estimated
that 75 million lives will be lost and 750
million people injured in road crashes
in the first half of the 21st century. ITS
system helps us to improve quality of
life and expectancy rate.
Other prominent speakers included
A.K Srivastava, AGM, Central
Railways , Dr Adnan Rahman, Director
General, International Road Federation,
Serbjeet Kohli ,Director, Steer Davies
Gleave India, Sudershan K Popli ,
Additional General Manager, RITES
Ltd, Madhumita Ghosh, Practice
Leader, Big Data, Advanced Analytics
& Strategy, IBM, Sachin Bhatia, CEO,

Metro Infrasys, Dr. Rajesh Krishnan,
CEO, ITS Planners and Engineers
Pvt. Ltd., Mohit Kochar, Head Global
Marketing, KPIT Technologies Limited,
Amit Bhardwaj, Senior Research Officer
(Transport), NITI Aayog, Govt. of India,
Dr Vijay Kovvali, Regional Manager,
IBI group, Vishal Gupta, CEO, Ajeevi
Technologies, Clay Strange, Director,
Rocky Mountain Institute (USA), James
Newcomb, Managing Director, Rocky
Mountain Institute (USA).
The Conference provided an
overview of the technology implemen-
tation in transportation, safety recom-
mendations, sector status and key chal-
lenges, risks profiles and their mitigation
strategies, technological advancement,
policy and regulatory reforms needed
and the need for devising compre-
hensive framework for future of ITS.
The keynote
Transportation sector is crucial
for the growth of the economy
and without proper and developed
mode the advancement of trans-
portation and urban infrastructure
is not possible. Transportation is
directly related to the development
of nation as it helps in movement of
passengers and goods, employment
generation, GDP Contribution and
ultimately to the economic prosperity
and social wellbeing of the nation.
To strength urban transport and
implement Intelligent Transport
System, India needs large investment
but there is a huge gap between
demand and supply. Presently, the
total investment gap is projected at
Rs 39.2 lack crore.
India is facing regional connectivity
issues as we are only focused on
intra city connectivity. Apart from
connectivity issues safety, popu-
lation, pollution and land acquisition
problems are some major concern.
We can learn from China to develop
sustainable infrastructure. Chinese
economy is estimated to increase by
6 percent by 2050.
Have more focus on non fossil energy
source of transportation as 32.8
million e-bikes were sold in 2016 in
the Asia-Pacific region according to
Navigant Consulting. Also, according
to the report by BNEF, Electric
vehicle would account for 35 percent
of new cars worldwide.
Issues
Cities in India occupy only 5 percent
of total area but generate more than
60 percent GDP
Lack of planned infrastructure to
yield optimum potential of cities
Fuel losses lead to GDP loss so
Major challenges
February 2017
www.InfralinePlus.com
use of more fossil fuel will lead to
decline in GDP growth
Weak financial condition of city
municipalities is also responsible in
ITS implementation. Also devel-
opment control regulations are not
very strong in India.
India is among the top road fatality
countries in the world and the reason
is poor intermodal integration.
Cities are very much dependent on
surrounding areas and the integrated
governance frame work is also weak.
According to data, 17 deaths were
caused every hour in 2015 due to
road accidents. Road accident is the
8th leading cause of death, safety is a
major concern.
10 % of the total car population
falls in four metro cities. Hence,
these cities should be accorded high
priority.
One more obstacle to make our ITS
better is data availability. Most of the 71
data which we get is synthetic and
non reliable.
Role of smart transportation in smart
city is really crucial. People are
ready to adopt changes but contri-
bution from human part is also very
important, such as awareness of
traffic rules.
Bus stop location at downstream
leads to delay along with high fuel
consumption and emission
Every day 8.5 million commuters
travel through Mumbai suburban
which is growing with each
passing day.
Worlds largest traffic jam was
recorded in China in 2010. It was a
61 miles long jam and took 10 days
to unsnarl. So more road cannot
assure smooth traffic, it invites
more vehicles. Hence, new roads
are not the solution and can create
new challenges for traffic man-
agement.
Major challenge for smart cities in
India is competition from municipal
 February 2017
www.InfralinePlus.com
OffBeat
leaders and their partners to
promote economic opportunities,
improve governance and procedure
better results for residents.
Indian railway is the biggest part of
transportation. It has 67,112 km of
track but capacity expansion as per
rising passenger aspiration is a big
challenge.
India needs huge investments to
promote ITS as lack of investment
within interchange zones is a chal-
lenge
Identification of black spots to
reduce road fatalities as most of the
accidents occur on that areas
70 percent of accidents happen in
good condition roads and cause is
behind over speeding
Key recommendations
NITI Aayog (formerly Planning
Commission) has vision plan which
72 includes:
o Universal connectivity under
PMGSY by 2019
o To achieve top 10 ranking in
logistics performance index by
2032 (right now on 36)
o To establish automated integrated
check post
o Increase of electric vehicle travel
by 30% by 2030
We need to focus on more electric
buses to reduce pollution and traffic
congestion as people are willing to
pay for good service and transport
system
As investment requirement is very
high, the returns are also several
times more. Also efficient freight
markets and IT enabled logistics
alone can cut empty driving by 50%,
avoiding 100 megatons of CO2
emissions annually.
China is using non fossil energy
sources (55 percent non emitting)
which is 100 percent technically
feasible, cost-effective and socially
acceptable. India can follow the
concept.
Norway and France are EV (Electric
Vehicles) leaders, with EVs cap-
turing over of new car market
in 2016. In India road ministry is
focusing on electric vehicle concept
and in near future we can expect pol-
lution free convenient transportation
mode.
The experience and limitations faced
by commuters using toll roads also
came up for discussion. It emerged
that adoption of Electronic Toll
Collection techniques and latest
software to forecast and monitor
traffic on the roads would bring
in many operational efficiencies.
Globally, 80 percent of Toll col-
lection takes place electronically and
20 percent manually but in India it is
the other way around.
After demonetisation government is
more focused on cashless transaction
and promoting RFID tag for toll
payments , Highway Saathi is one
example of smart application which
is developed by Metro Infrasys
to monitors toll services, incident
report and useful to recharge tag
while commuting.
It is time to involve an educational
institute in any project under ITS
for smart cities that will definitely
help to understand the ITS in Indian
scenario.
Government should take initiative
for new projects and technologies as
smart city is combination of smart
governance, smart living, smart
mobility and smart environment all
together for smart citizen
3ES (Education, Engineering and
Enforcement) would be helpful.
There is a need to educate people
about traffic rules, make mobility
smoother to reduce accidents and
enforcement of law and policies.
Use of cloud technology to share
data in real-time between different
mode of technologies through
internet
Better and quality engineering cant
fix lack of education or enforcement,
but it can help to achieve Vision
Zero accident along with smooth
mobility and long term sustainability
88 percent of women in India feel
unsafe in public buses. ITS is the
only solution to provide CCTV
cameras in buses and traffic routes.
A well connected transport planning
leads to well managed traffic and
happy citizens. Also smart integrated
ecosystem for smart mobility is the
need of hour.
To remove congestion from railway
we need dedicated freight corridor
or high speed trains to reduce timing
and improve frequency, but has high
cost solution. So only solution left is
use of technology which will help to
increase capacity and to reduce cost.
With the help of technology, charting
could be done automatically in
trains. Also it will help to forecast
rush hours and vacant seats. Another
side use of ICMS (Integrated coach
management system) is to manage
coaches efficiently.
Useful application can provide
critical response to suburban issues.
One of the success story shared by
Steer Davies Gleave was from
Pune bus ITS system. It includes
GPS and real time monitoring of
buses, real time tracking through
mobile app and vehicle health moni-
toring.
Speed traffic enforcement by CCTV,
digital overage speed management
system, use of RFID tags to measure
delay in traffic, real time weather
forecast and route diversion sug-
gestion on congested roads on the
go for commuters are some of the
technologies under ITS which can
improve safety, save time and secure
happy journey.
ITS has multipurpose uses like
whatever is setup for monitoring the
traffic can also be used in monitoring
crime , accident cases and so on
that will give more economic return
besides social return.
For suggestions email at feedback@infraline.com

Reports & Studies
Indias gas targets would need $ 10 billion investments: CRISIL Report
The governments plan to more than double
the share of natural gas in Indias energy mix
to 15 per cent would necessitate investments
of at least Rs 65,000 crore just to augment
gas import and pipeline infrastructure, a
report said. Crisil Research said if the share of
gas in Indias energy mix has to rise to 10 per
cent by 2020, it would mean a doubling of gas
Delays in payments by discoms in key states pose a challenge for wind energy
sector: ICRA
In ICRAs view, continuing delays in the
payments by the state-owned distribution
utilities (discoms) in key states such as
Maharashtra and Rajasthan pose a challenge
for the wind energy sector, although some
improvement has been seen lately. On the
positive side, however, ICRA believes that
the MNRE scheme for procurement of 1 GW
through the auction route would facilitate the
offtake for wind energy players. Sabyasachi
Majumdar, Senior Vice President, ICRA
Ratings said, While there has been some
improvement in the payment pattern by
utilities in Rajasthan with the implementation
of UDAY (Ujwal Discom Assurance Yojana)
Demonetisation is a positive event for power sector: Mercom Capital
Demonetisation has turned out to be a
positive event for the power sector with
distribution companies recovering pending
power bills from their customers, Mercom
Capital Group said. The consulting firm
also said that the power sector could also
benefit from relaxed lending and lower
rates, among other things. Demonetisa-
tion has been chaotic and changing the
way the Indian economy functions...banks
suddenly flush with funds, all of which
could relax lending to the power sector
and potentially bring down interest rates,
it said. The government has mandated
consumption to over 100 billion cubic meter
(BCM) from current levels. But given that
domestic gas production is limited, demand
for imported LNG would surge three-fold to
65 BCM, or over 50 million tonnes. Collater-
ally, to import this LNG, Indias regasification
capacity will have to increase to 60 million
tonnes compared with 25 million tonnes now.
Crisil Research said its analysis shows that
would entail investments of Rs 30,000-
35,000 crore. And for all that gas to be con-
sumed, 9,000 km of pipelines would have to
be laid in east and south India, which would
cost another Rs 25,000- 30,000 crore. The
move to promote gas usage is in line with the
commitment made at the Paris meeting on
climate change to reduce the carbon intensity
of Indias GDP by a third from 0.37 kg per
capita of GDP in 2005, Crisil Research said.
as well as by the utility in Maharashtra in the
last three month period, a build-up in receiv-
able position is seen, which varies from 8 to
12 months as on November 2016 and thus
remains quite significant.
that the old notes of Rs 500 and Rs 1,000
denominations can be used to pay pend-
ing utility bills which will help discoms
due to their huge backlog of unpaid bills.
February 2017
www.InfralinePlus.com
World Bank study pegs Indias energy
efficiency market at Rs. 1.6 lakh crores
Union Minister for State (IC) for Power,
Coal, New & Renewable Energy and
Mines, Piyush Goyal in a written reply in
Lok Sabha said that a World Bank study
has pegged Indias energy efficiency
market at Rs. 1.6 lakh crores. The study
titled, Utility Scale DSM Opportunities
and Business Models in India, notes that
the renewed Demand Side Management
(DSM) market potential is estimated to
be 178 billion kWh of energy savings per
annum. This figure roughly translates
into 18-20 percent of the current levels of 73
all India annual electricity consumption
and 150 million tonnes of annual CO2
emissions reduction potential. Further,
the study has placed 5 states, namely,
Andhra Pradesh, Rajasthan, Karnataka,
Maharashtra, and Kerala, in terms of their
overall energy efficiency implementation
readiness. The Ministry of Power has
fixed energy savings targets for XII
Plan period (2012-17) as 60.5 BU (billion
units) through various energy efficiency
interventions.
Discoms are expecting a substantial influx
of payments prior to the December 31
deadline after which these currency notes
will become invalid. For cash-strapped
discoms this is unexpected good news, it
said. India is largely a cash economy so in
the short-term demonetisation is going to
hurt installations as small developers will
find it tough to pay for land acquisition,
but in the long-term it will be beneficial as
dicoms will get paid, lending rates will fall
and foreign investment will increase in the
face of a falling rupee and rising dollar,
Mercom said.
 February 2017
www.InfralinePlus.com
People in News
Vikram Solar appoints Nimish Jain head of global module sales
Vikram Solar, a solar energy solutions provider,
announced appointment of Nimish Jain as its
new head of global module sales. In the new
role, he would be responsible for driving sales
in both domestic and international markets. He
Punjab govt gives two-year extension to power corporation CMD KD Chaudhari
The Punjab government has given two-year
extension to KD Chaudhari, the chairman-
cum-managing director of Punjab State Power
Corporation (PSPCL). Chaudharis term was
to end on February 8, 2017, the day he turns
74
65, which now has been extended till Febru-
ary 8, 2019. A notification to put a formal
stamp on the decision will be issued soon.
Confirming the decision, Chaudhari said the
government wanted him to continue and he
will abide by the decision. Chaudhari joined the
post on June 3, 2010. Though his stay at the
post depends on which party forms the next
government, if he completes the term, his will
be the second longest tenure as CMD after NS
Vasant, who was head of the erstwhile Punjab
State Electricity Board (PSEB) for over 10
years. Chaudhari is the first CMD of PSPCL.
DV Singh takes over as CMD of THDC India Limited
Dhirendra Veer Singh has assumed charge
as Chairman & Managing Director (CMD) of
THDC India Ltd. (THDCIL), one of Indias
premier hydropower generators with an
installed capacity of 1450 Mega Watts. Prior
to taking over as CMD, Singh was holding the
charge of Director (Technical) in the company;
Singhs tenure as CMD shall be up to 30 April
2021. THDCIL is a Mini Ratna - Category-I,
Schedule A and ISO certified public sector
undertaking, and currently has a portfolio of
18 projects totaling to an installed capacity of
6,374 MW in various stages of development.
Singh takes over the company at a critical
would also supervise the accomplishments of
targets and profit and losses of the year, along
with recruiting and managing the sales team.
Talking about Jains expertise and express-
ing his optimism for the days to come, Ivan
Saha, president and chief technology officer at
Vikram Solar said, As we enter the next phase
of growth, his appointment is anticipated to
bring in a fresh perspective to our sales opera-
tions and our overall growth strategy. He is a
result driven professional with proven success
in P&L, Business Management, sales, market-
ing, strategic planning and International Busi-
ness. We hope this association is a lasting one
and is conducive not only for the growth of the
company, but also helps him grow personally.
Counting the achievements during his tenure,
Chaudhari said, state became power surplus,
transmission and distribution losses came
down to 15%, power meters of 90% consum-
ers were shifted out of the premises and
distribution system was refurbished to match
outflow of power. This is Chaudharis fourth
extension since he joined as the CMDin 2010.
(1983), and has more than three decades of
exhaustive experience in underground works,
juncture as it seeks to consolidate its position
in the hydropower industry as well as strike
out into the wider renewable energy space.
After a professionally fulfilling journey of
Suzlon Energy appoints Sanjay
Baweja as Chief Financial Officer
Suzlon Energy has appointed Sanjay
Baweja as its Chief Financial Officer
with effect from December 19, 2016.
Kirti Vagadia (Group CFO) will
continue in his position and will focus
on strategy, shareholder and board
related matters at the Group level,
the company said. Sanjay Baweja is
not related to any of the Directors of
the Company. Baweja was previously
CFO of Flipkart and prior to that the
CFO of Tata Communications, Emaar
MGF and North Circles for Bharti
Televentures respectively. Suzlon
Chairman Tulsi Tanti said, We are
delighted to be bringing someone with
Sanjays credentials and experience
as the CFO. Sanjays previous role as
CFO with organisations across sectors
like E-Commerce, Infrastructure and
Telecom gives him a rich experience.
more than two decades with THDCIL, it is
an honor to take up this new responsibility,
said D. V. Singh. As CMD my objective would
be to ensure that THDCIL continues to work
as a responsible hydropower developer, and
that we can take the same focus on sustain-
ability to all our new endeavours. Singh is a
civil engineering graduate from NIT Rourkela
powerhouse works, spillways, contracts, ma-
terial management, rehabilitation and heavy
civil construction. Before joining THDCIL, Mr
Singh worked with Larsen & Toubro.
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 Date of Publishing: 10th of the Month
RNI No: DELENG/2012/45441 Post Regd. No.: DL(ND)-11/6184/2016-18
Post Date: 10th & 12th of the Month

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LNG Business
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