Dubai-based private equity firm Abraaj Group and India's Aditya Birla Group have agreed to invest jointly in building and operating new solar power plants in India, Abraaj said in a statement on Wednesday (7 October).The firms are the latest companies to plan solar investments in India ahead of an expected boom in clean energy projects after New Delhi hiked its solar energy target to 100 gigawatts by 2022, a 33-fold rise from current levels.Abraaj and Aditya Birla will build a gigawatt scale platform that will bid for new solar projects tendered at national and state auctions, Abraaj said in the statement.Abraaj will invest through one of its funds and Aditya Birla, a large Indian conglomerate, will invest through Aditya Birla Nuvo Limited. The companies did not detail the size of the planned investment.(Reuters)
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By Simar Singh More than half of the highway projects being constructed under the BOT(build, operate, transfer) model are at a high risk of not being completed, says a report released by CRISIL (Credit Rating Information Services of India Limited). The report titled ‘No Smooth Ride’ claims that around 7,500 kilometres of highway projects — 5,100 kilometres under construction and 2,400 kilometres operational, mostly awarded between FY 2010 and FY 2012 were under risk. According to the study, the primary reasons for time and cost overrun in projects and the low overall progress of highway construction in India was right of way or land issues. CRISIL’s analysis of 92 highway projects being constructed under the BOT model indicated that around 50 per cent of them were facing implementation risks as a consequence of delays in land acquisition and other clearances. Another reason for stalled projects, according to the study, are the weak financials of sponsors. Their inability to bring in equity as well as support for cost overruns in a timely is expected to aggravate matters. In the period when these projects were awarded many developers debuted into the BOT space, only to run into financial issues due to their inexperience in estimating risks which resulted in undervaluation. The report goes on to analyse that the resurrection of these projects would require a 37 per cent growth in toll revenue. However, there is no agenda for toll rate hikes at present. There have been some initiatives at reform that have been taken by the government to amend the situation, such as a lull in the rate of awarding projects in FY 2013 and FY 2014. The NHAI has also decided to extend developer loans to projects that are more than 50 per cent complete and around 50 projects qualify for such loans. Under the watch of the Prime Minister’s Office, there have been attempts to address land acquisition problems and to fast-track clearances as around 80% of under-construction projects bogged down by these two issues. In fact, around 25 per cent of the projects were terminated because of nagging land acquisition problems and inability to achieve financial closure. However, the CRISIL report believes that only by 2017 will these reforms see any real results.
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By Simar Singh Chancellor Angela Merkel announced Berlin’s willingness to give the Indian administration 2 billion euros ($2.25 billion)to assist in the development of a clean energy corridor and solar projects. “We have agreed on Indo-German Climate and Renewable Alliance with a long term vision and a comprehensive agenda of cooperation. I place great value on Germany’s assistance of over one billion Euros for India’s Green Energy Corridor and a new assistance package of over a billion euros for solar projects in India,” said Prime Minister Modi. The Indo-German Climate and Renewable Alliance will fall under the Indo-German Energy Forum which was set up in 2006 to promote energy dialogue between the two nations. This announcement comes ahead of the Paris climate change conference in December. In the joint statement, Germany welcomed India’s submission of its intended nationally determined contribution to the Paris Agreement. Furthering the renewable energy cooperation, the two countries signed two loan agreements worth 125 million euros to finance two projects under the Green Energy Projects (GEC) programme. 57 million euros have been allotted to the project in Himachal Pradesh and 68 million euros to Andhra Pradesh. With the Green Energy Corridors, the intra-State network is expected to feed the energy generated through its renewable projects to the respective state grids and high capacity transmission corridors. The interstate network will then connect major renewable energy pockets with the national grid. Renewable Energy was even one of the key areas of cooperation between Germany and India that was previously announced when the prime minister had visited Hannover in April.
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India imported 17.3 percent more crude oil from Iran last month than it did in August as its top refiner made its first buy from Tehran for a new plant, according to ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts. Indian Oil Corp, India's biggest refiner, accounted for most of September's rise from the previous month, taking a very large crude carrier carrying two million barrels of oil for its recently commissioned 300,000 barrel-per-day (bpd) Paradip refinery on the nation's east coast, the data showed. IOC's first purchase of Iranian crude in four months helped lift imports of the oil to 233,200 bpd in September compared with 198,800 bpd in August, the tanker arrival data showed. The September intake was down 3.4 percent from a year ago. IOC is not a regular buyer of the crude as its term contract with the Islamic republic averages only about 25,000 bpd. Still, the world's fourth-biggest oil consumer and Iran's top client after China, bought 19.3 percent less oil in January-September at about 216,200 bpd, the data showed. India's imports from Iran in the first nine months of the year were dragged down by deep cuts in shipments by New Delhi in the first quarter of 2015, under pressure from the United States to keep its imports within the limits of sanctions targetting Tehran's disputed nuclear programme. In the first half of India's fiscal year, running over the six months April-September, its oil imports from Iran jumped 16.7 percent as refiners stepped up purchases following the July deal that may mean the removal of sanctions sometime next year. Three Indian refiners, Mangalore Refinery and Petrochemicals Ltd, Essar Oil and IOC together imported 260,600 bpd in the first six months of this fiscal year compared with 223,400 bpd a year ago, the data showed. India's imports of Iranian crude in September were largely as expected based on revised tanker loading schedules for the month that excluded shipments of condensate, according to a source with knowledge of Iran's shipping plans. Iran's overall crude oil sales look to be headed towards a seven-month low in October, down 14 percent from September, according to preliminary tanker loading data. (Reuters)
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Modernisation of ports and improvement of volume and traffic on ports have been an agenda "on paper" of the successive central governments. Ashish Sinha decodes the ambitious Sagar Mala project along with who said what in the past 12 years on port modernisation and development. India at present has 13 major ports - Mumbai, Jawaharlal Nehru Port Trust, Kolkata (with Haldia), Chennai, Visakhapatanam, Cochin, Paradip, New Mangalore, Marmagao, Ennore, Tuticorin, Kandla and Port Blair under the control of Centre while has about 200 non-major ports operated by states and private parties. Modernisation of ports and improvement of volume and traffic have been an agenda "on paper" of the successive central governments. On paper, various plans and projects have been announced with timelines on investments, returns, modernisation, etc. But has anything happened on ground? Here is a snapshot of the initiatives around port modernisation and development. What is Sagar Mala Project?The Sagar Mala Project was first announced by former Prime Minister Atal Bihari Vajpayee on August 15, 2003. Among the aims were expansion and modernisation of the shipping sector, development of inland navigation, and improvement in draft. The plan envisaged an investment of over Rs 100,000 crore over a period of 10 years - between 2003-2013 - to implement the project. A large chunk of funding was envisaged from the private sector. What happened to the project?In May 2004, the NDA Government at the centre was replaced by the UPA Government. The Sagar Mala Project remained on paper. On August 3, 2009, G.K. Vasan, the then Minister of Shipping, told the Parliament, "The draft outline of 'Sagar Mala' Programme which was prepared pursuant to the announcement of Sagar Mala initiative by the then Prime Minister on 15th August, 2003, could not be processed to its finality. No project has, therefore, been taken up under this Programme." So Sagar Mala project was in cold storage during the decade long rule of UPA. What did UPA do?UPA ruled at the centre for around a decade. In 2011 government unveiled a new policy for the shipping sector entailing an investment of Rs 5 lakh crore by 2020. Under the policy, port capacity was to go up to 3,200 million tonnes (MT) from 617 MT as on March 31, 2010. Policy envisaged bringing major reforms in this space. It was called The Maritime Agenda 2020, a perspective plan that replaced the National Maritime Development Project (NMDP). Then Shipping Minister G.K. Vasan had launched the policy. As per the plan, out of the Rs 5 lakh crore investment proposed in the sector, Rs 3 lakh crore would be in the port sector, the remaining would have been infused in the Shipping sector. At the time, shipping minister Vasan had said the Rs 1.39 lakh crore NMDP plan which was to expire on March 31, 2012 will get replaced with the new agenda and include its remaining projects. What was Maritime Agenda 2020?276 projects were identified under the NMDP through public-private-partnership (PPP) mode. The government planned to award 21 projects worth Rs 13,952 crore in 2013-14. The plan envisaged the capacity augmentation of 13 major ports. Also, to set up more major ports in the country - one each on the East and West coast - in addition to the existing 13 major ports. Four major ports - two on the east coast - Vizag and Chennai and two on the West coast - Jawaharlal Nehru Port Trust and Cochin port were to be converted into major hubs. In mid-2014, the Narendra Modi-led NDA replaced the UPA government at the centre. What entails under Sagar Mala Project of 2015?Centre's Role: Develop port infrastructure along the country's 7,500 km coastlineEstablish Indian Port Rail CorporationModernisation of ports and islandsSetting up of coastal economic zonesNew major ports and fish harbours to be set upGovernment intends to develop 30 projects in the current fiscal at a cost of Rs 14,226 croreSet up eight automobile industrial zones at ports to recycle over 10 years old vehicles New sites identified to be converted into ports: Sagar Island (West Bengal)Vadhavan (Maharashtra)Colachel ( Tamil Nadu)Tadadi (Karnataka)Total investment envisaged: Rs 70,000 crore What will state governments do?State governments will be requested to: Set up State Maritime Boards in AP, Goa, WB, Puducherry & LakshdweepSet up SSC to coordinate and monitor Sagarmala activities (Gujarat, Maharashtra, Goa, Karnataka, TN, Kerala, Puducherry, AP)Provide necessary inputs for NPP and CEZ Master Plan preparation by providing data and nominate suitable officers for working groupsActively participate in SCSC, NSAC and sector-specific working groupsState Industrial Development Agency to factor the land available with major / non major ports in its plans for industrial developmentLand allocation for identified projects; Financial partnership through SPVsProvide statutory clearances such as land use change, environment etcFast track project appraisal & approval and implement projects under the State’s ownership in a timely manner What is planned under Sagar Mala?- Port Connectivity Improvement: Increase coastal shipping volumes of key cargo – E.g. Coal, Steel, Cement, to reduce logistics cost and decongest rail and road network and Eliminate process bottlenecks to reduce container logistics time and cost - Port Modernization: Improve operations efficiency and augment capacity of major ports; develop 4-5 new ports to cater to cargo traffic growth and reduce logistics cost and develop a Transhipment Hub Port near international shipping route - Port Capacity Augmentation (FY 2015-16): Target: 30 projects; Investment of Rs. 14,226 Cr, 162.20 MMTPA additional capacity. 14 projects awarded; Investment of Rs 8,714 Cr, capacity addition of 33.15 MMTPA - Major Ports Operational Efficiency Improvement: 104 initiatives identified for implementation; ~115 MMT incremental volume to be unlocked in existing port capacity; Revenue generation of Rs. 972 Cr - Port-based Smart Cities: Land identified in Kandla and Paradip for development of port-based smart cities. Tenders issued for conducting techno-economic feasibility study - Port-led Industrial Development: Industrial development plan for existing & new port locations under preparation; Marine cluster potential being evaluated (Katupalli and Ennore) - Coordination Committee constituted between DIPP & M/Shipping - Coastal Economic Zones (CEZ): 14 CEZs identified and perspective plans under development; SEZ in JNPT, Free Trade Warehousing Zone at Cochin & Ennore being implemented ashish.sinha@businessworld.in
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Deep in the thickly forested hills in its east, India last month started production at what it hopes will in five years be Asia's biggest coal mine. At the open-cast mine, which involves the clearing of more than 18,000 hectares (44,500 acres) of land, noisy excavators are busy digging for coal that will feed a huge power plant being built nearby to fuel India's energy-hungry economy. India is opening a mine a month as it races to double coal output by 2020, putting the world's third-largest polluter at the forefront of a pan-Asian dash to burn more of the dirty fossil fuel that environmentalists fear will upend international efforts to contain global warming. Close to 200 nations are set to meet at a United Nations summit from Nov. 30-Dec. 11 to hammer out a deal to slow man-made climate change by weaning countries off fossil fuels. China has promised to restrict public funding for coal and Indian Prime Minister Narendra Modi is trumpeting investment in renewable energy, but in Asia's biggest economies the reality is that coal is still regarded as the easiest source of energy. "Environment is non-negotiable but we can't live without coal. You can't wish away coal," said Anil Swarup, the top official in India's coal ministry, who is leading the push to open new mines like Magadh, in poor but resource-rich Jharkhand state. "There is a temporary drop in demand, but no question of reducing coal output. We are well short of coal required in the country." Asia Keeps DiggingChina, India and Indonesia now burn 71 percent of the world's newly mined coal according to the World Coal Association, with new European and North American consumption negligible as their countries turn to cleaner energy. Other Asian nations are increasingly looking to coal to power their economies too, with Pakistan, the Philippines and Vietnam opening new plants, pushing the Asia/Pacific region to 80 percent of new coal plants. "Coal is still the most cost competitive power generation fuel, and in the end that's what matters most for emerging markets," said Frederic Neumann, Co-Head Of Asian Economic Research at HSBC in Hong Kong. Asia's developed nations, too, are finding it hard to kick the coal habit. Japan's use has reached a record after shrinking its nuclear industry and it plans to build another 41 new coal-fired units over the next decade. Australia's exports of thermal coal rose 5 percent to 205 million tonnes in the last financial year and are to increase by a further 1 million tonnes this year, driven by increased demand from Japan, South Korea and Taiwan. The rush to burn more coal comes as the world's major economies, including leading emitters China and the United States, have agreed to start cutting greenhouse gases over the next 15 years ahead of the U.N. climate change summit in Paris. India has rejected any absolute cuts, arguing that its per capita emissions are far below the world average and that it needs to emit more as it grows to beat poverty. In a climate-change policy statement released last week, New Delhi promised to slow the rate at which its greenhouse gas emissions rise by a third by 2030. Coal will remain the dominant source of its energy for decades, India said, but it pledged to invest in cleaner coal technology, modernise old power stations and plant trees to absorb up to 3 billion tonnes of carbon dioxide. The New China?Magadh mine is the biggest of the many New Delhi will open to hit an annual coal target of 1.5 billion tonnes by 2020, raising its production above the United States but less than half the amount China currently burns. Some 20 km from Magadh, along a bumpy track through mud-hut villages, lies a second vast coal pit launched last year. By 2018 another two mines will open nearby - combined, the mines in this one district alone will at peak generate as much coal as Poland, the world's ninth largest producer, delivered last year. The United Nations has agreed a goal of keeping warming below a ceiling of 2 degrees Celsius above pre-industrial levels to avoid the worst impact of climate change including more droughts, extinctions, floods and rising seas. Sticking to that goal would require world emissions to start falling now and India's to peak within a few years, said Glen Peters at the Oslo-based Center for International Climate and Environmental Research, but India's coal drive makes that near-impossible as its extra emissions outweigh any savings from more solar and wind power. Because of its low-quality, twice as much Indian coal is needed to produce the same amount of energy as the best Australian coal. If India burns as much coal by 2020 as planned, its emissions could as much as double to 5.2 billion tonnes per annum - about a sixth of all the carbon dioxide released into the atmosphere last year - Peters said. That would see India follow a similar path to China whose emissions, after growing slowly at the turn of the century, jumped when dozens of new coal power plants came on line. "If these coal targets are met, there could be a turn (in India's emissions), with a steep increase. China is starting to stumble; India could replace that," said Peters. He said India could replace the United States as the world's second largest emitter by 2025. "This is something no one would have expected." (Reuters)
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The Sagarmala Project, aimed at port-led development in coastal areas, is bound to boost the country's economy and the government has lined up about Rs 70,000 crore for its 12 major ports only, Indian Union Minister Nitin Gadkari said on Monday (5 October)."Ports play a pivotal role in boosting the country's economic growth. Logistic cost has to be reduced. Our logistic cost is thrice than China's. We are not able to compete with global markets..."When Prime Minister Narendra Modi had called the meeting of industry leaders, a leading industrialist said Mumbai to London travel is cheaper than Mumbai to Delhi. Sagarmala will address all these issue by port-led development programmes," Road Transport, Highways and Shipping Minister Gadkari said after chairing the first meeting of the National Sagarmala Apex Committee (NSAC) here.Gadkari said the project is aimed at development of coastal states through modernisation, mechanisation and computerisation and would create huge employment besides boosting the country's GDP."Ports will play huge role in double digit GDP target and port, shipping and highways sector will very soon add 2 per cent to the country's GDP," he said.He added that about Rs 70,000 crore would be spent on development of major ports only which have received 104 suggestions from international consultants to increase efficiency.Once implemented, this will result in cargo traffic increasing three-fold while the ports will also go under performance audit, the Minister said.He added that at "Navi Mumbai Special Economic Zone, there are investment proposals for Rs 4,000 crore, which will provide employment to 1.5 lakh youth."He said the government is focusing on waterways as transport through rivers is much cheaper and costs barely 30-40 paise per km in comparison to Rs 1 through railways and Rs 1.5 through roads."Mahanadi Coalfields Ltd in Odisha is expanding its output capacity to 260 million tonnes from the present 60 million tonnes and if the coal is transported through water, this will save Rs 7,000 crore annually," he added.He said two ports -- Kandla and Paradip -- were being developed into Green smart cities and the government is eyeing at Rs 4,500 profit from ports this fiscal.Gadkari said the Prime Minister's emphasis is on "cooperative federalism" and Chief Ministers of states like Andhra Pradesh, Goa, Tamil Nadu, Karnataka, Maharashtra, Gujarat and Odisha, who attended the NSAC meet, came out with many good proposals.Government also aims to promote tourism and fishery under Sagarmala, he said, adding that there are 290 light houses and 1,300 islands in the country which could be developed.Gadkari said tenders for development of 16 such projects have already been floated and the government is looking at promoting export of exotic variety of fishes, roping in local youth in projects through skill development.He said 13 states and union territories were involved in Sagarmala initiative which will be implemented across India's 7,500 kms coastline.The maiden meeting of NSAC was participated by Niti Aayog's Vice Chairman Arvind Panagariya besides several central ministers, including Petroleum Minister Dharmendra Pradhan, Railways Minister Suresh Prabhu, Water Resources Minister Uma Bharti and Environment and Forest Minister Prakash Javadekar.(Agencies)
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By Arshad Khan Exuding confidence, Union Power Minister Piyush Goyal has said that India would achieve its 100 GW set target of solar energy by 2022. Goyal said: "If Germany can achieve success in solar power, then why can't India". In July this year, Prime Minister Narendra Modi extended the prevailing target under the National Solar Mission from 20GW to 100GW. It was decided that out of 100GW, 40GW would be produced from rooftops. Experts say that India may fail to achieve 40GW from rooftops since the current installation capacity form rooftops is only around 400MW and there is an ongoing dispute between the Centre and discoms of many states over the net metering implementation. Upendra Tripathy, secretary, Ministry of New and Renewable Energy (MNRE) said that the government is also working towards implementing net-metering policy across the country. "At present out of 21 states where net metering policy was introduces, only four states have implemented the policy. The ministry is working to take the remaining discoms on board. A single window agency to clear legal hurdle for installing rooftops is what the government is looking for," said Tripathy. To boost productivity, the government is planning to launch solar city programme where in they have selected 60 cities where rooftop installation will be mandatory for residential homes during constructions. The MNRE is already believed to have received funding interest of 1 billion euros from KfW, a German development bank, $500 million from Asian Development Bank and $500 million from the World Bank. If this goes through, this should be enough to provide debt to around 2.5 GW of rooftop solar.
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