An Indian delegation will visit Iran this week to scout for investment opportunities ahead of an anticipated nuclear deal between the OPEC-member and world powers that would soften sanctions against the country, sources privy to the plan said. Officials from India's finance and oil ministries and executives from ONGC Videsh and Mangalore Refinery and Petrochemicals Ltd are part of the delegation that will hold meeting with their Iranian counterparts on Saturday, the sources said. India is Iran's biggest oil client after China although its imports from Tehran have declined under pressure from western sanctions. New Delhi's oil imports from Tehran have eased from 370,000 bpd in 2010/11 to about 220,000 bpd in 2014/15 under pressure from international sanctions. Iran and six world powers reached a framework nuclear agreement on April 2, spurring hopes for a final deal by end-June that would lift economic sanctions imposed by the West against Tehran's disputed nuclear programme. Apart from seeking more oil at better terms and other investment opportunities in the energy sector, India will push for development rights at the Farzad-B gas field in Farsi block, the sources said. Iran will need significant amount of capital and advance technology for a sharp growth in its oil production as many of Tehran's huge and geologically complex fields have not been not maintained "in the best way" due to the sanctions, Fatih Birol, chief economist at International Energy Agency told Reuters in an interview on April 12. A consortium headed by ONGC Videsh, the overseas investment arm of the country's top explorer Oil and Natural Gas Corp, signed a deal in December 2002 to explore the Farsi offshore block in Iran. The Farzad-B gas field is estimated to hold initial in-place reserves of 12.5 trillion cubic feed (tcf) and to have a lifetime of 30 years. Iran's oil and gas sector needs $220 billion for new projects and rehabilitation of existing assets, an Iranian diplomat told Reuters, adding Farzad-B development could cost $7 billion. Former Iranian oil minister Rostam Qasemi in 2013 offered India a deal to sign a production sharing contract for the block, a deviation from the Iranian norms that offer fixed rate of return on investment, a source privy to the talks said. India did not sign the deal under pressure from the western sanctions, this source said. (Reuters)
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Petrol price was on Wednesday (15 April) cut by 80 paise a litre and diesel by Rs 1.30 per litre, the second reduction in rates this month. The reduction will be effective from midnight tonight, Indian Oil Corp (IOC) said. After the cut, petrol will cost Rs 59.20 a litre in Delhi and diesel will be available Rs 47.20/litre. Prices of petrol and diesel were last revised downwards with effect from April 2 by Rs 0.49/litre and Rs 1.21/litre respectively. "Since last price change, the trend of international prices of petrol & diesel and INR-USD exchange rate warrant a further downward revision in prices, the impact of which is being passed on to consumers with this price decrease," IOC said.(PTI)
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India's push to accommodate a booming urban population and attract investment rests in large part with dozens of "smart" cities like the one being built on the dusty banks of the Sabarmati river in Gujarat. So far, it boasts modern underground infrastructure, two office blocks and not much else. The plan, however, is for a meticulously planned metropolis complete with gleaming towers, drinking water on tap, automated waste collection and a dedicated power supply - luxuries to many Indians. With an urban population set to rise by more than 400 million people to 814 million by 2050, India faces the kind of mass urbanisation only seen before in China, and many of its biggest cities are already bursting at the seams. Ahead of his election last May, Prime Minister Narendra Modi promised 100 so-called smart cities by 2022 to help meet the rush. At a cost of about $1 trillion, according to estimates from consultants KPMG, the plan is also crucial to Modi's ambition of attracting investment while providing jobs for the million or more Indians who join the workforce every month. His grand scheme, still a nebulous concept involving quality communications and infrastructure, is beginning to take shape outside Gandhinagar, capital of Gujarat, with the first "smart" city the government hopes will provide a model for India's urban future. "Most (Indian) cities have not been planned in an integrated way," said Jagan Shah, director of the National Institute of Urban Affairs which is helping the government set guidelines for the new developments. Among the challenges to getting new cities built or existing cities transformed is the lack of experts who can make such huge projects work and attracting private finance. "To get the private sector in, there is a lot of risk mitigation that needs to happen because nobody wants a risky proposition," he told Reuters, stressing the need for detailed planning. To build smart cities, India allocated 60 billion rupees ($962 million) in its annual federal budget for the financial year starting April 1, even as it spent just a fraction of last year's allocation of 70.6 billion rupees, said Shah.Old Cities Or New?Gujarat International Finance Tec-City (GIFT), as the smart city is called, will double up as a financial hub, with tax and other breaks to lure banks, brokerages and other businesses. Developed in partnership with IL&FS Engineering and Construction, it aims to compete with India's own financial capital of Mumbai as well as overseas rivals like Dubai and Singapore. Pressure on India's existing urban centres is already intense, with cities like Mumbai gridlocked by traffic and hampered by poor infrastructure and a lack of amenities like parks and effective public transport. Yet some experts believe that building new cities may not be the answer to India's swelling urban population. "To address India's urbanisation challenge we have to start looking at our existing cities," said Shirish Sankhe, director at consultant McKinsey and Company, India. He added that new cities would be only a small part of the solution relative to brownfield projects. India has built planned cities in the past, including Chandigarh, designed by French architect Le Corbusier, and Gandhinagar itself. But the scale of its current push is unprecedented. A bird's eye view from atop one of the two office buildings on the 886-acre GIFT site, a venture which began when Modi was chief minister of Gujarat, shows little sign yet of the 9 billion rupees spent on the first phase. But the sandy plain hides infrastructure including an underground tunnel for utilities, a first in India. What Makes A City 'Smart'?The government has yet to decide what exactly will make a city "smart", but the programme is expected to include building new centres as well as adapting existing ones. A detailed definition with guidelines is due soon, said the National Institute of Urban Affairs' Shah. Existing cities like Dholera and Surat in Gujarat, and Visakhapatnam in the east, have already begun work to transform into smart cities with help from companies such as Microsoft Corp, IBM Corp and Cisco Systems. Beyond GIFT, greenfield projects are likely to face hurdles including land acquisition rights and lengthy approval processes, as well as finding the right location. GIFT has the advantage of being flanked by a river on one side and a national highway on the other, and also sits between Gujarat's political capital of Gandhinagar and its business hub of Ahmedabad, with a large international airport. The key, experts say, is time. "Physical masterplanning takes time. Complexity is built into this. And my sense is it is probably going to take longer than what most people think," said McKinsey's Sankhe. (Reuters)
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Coal imports into India, the world's third largest buyer, jumped 33.5 percent in the last fiscal year to 242.4 million tonnes as lower purchases by China depressed prices and helped consumers elsewhere, preliminary data from online trader mjunction showed. Indian power companies typically depend on imports for about 15 percent of their annual needs but that figure looks set to climb thanks to a continuous fall in prices, which has raised the appetite for foreign coal. Imports in March were estimated to have risen 80 percent to 24.73 million tonnes, according to mjunction data based on information from shipping companies, ports and other sources. Government data on imports generally comes with a lag and varies with those from private firms like mjunction, which collects data from a greater number of ports and includes additional coal grades. "Going by existing trends and a soft trend in international markets, India's coal import of all types in 2015-16 would be more than 260 million tonnes," mjunction Chief Executive and Managing Director Viresh Oberoi said in an email on Tuesday. Coal Secretary Anil Swarup estimated imports of 200 million tonnes for 2014/15 and 160 million tonnes for the 2015/16 fiscal year. According to official data, India imported 168.4 million tonnes in 2013/14, while mjunction put the figure at 181.58 million.(Reuters)
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On 25 September 2013, as many as nine companies bought the request for qualification (RFQ) document for the Bhedabahal ultra mega power project (UMPP) in Orissa. Apart from government-owned NHPC and NTPC, the other interested parties were Tata Power, Adani Power, JSW Energy, Jindal Power, Sterlite Infraventures, CLP and L&T.
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Nepal's investment board on Monday cleared China's Three Gorges International Corp to build a long-delayed $1.6 billion new hydropower project, the single biggest foreign investment in the Himalayan country. The dam, to be built on the West Seti river in northwest Nepal, will generate 750 megawatts of power when complete, board official Ghanashyam Ojha said. A Nepal parliamentary panel first approved the project in 2012 but state-owned Three Gorges had been waiting for the investment board's clearance. Nepal, one of the world's poorest countries, is opening up its vast hydropower potential to help ease chronic power shortages and grow an economy still emerging from a decade-long civil war. That has prompted a rush by China and India to invest billions exploiting their neighbour's rivers and import electricity to their energy-hungry economies. Last year Nepal cleared two major Indian hydropower projects worth a combined $2.4 billion, including what was at the time the largest foreign investment scheme in the country. New Delhi has long seen Nepal as part of its sphere of influence but growing Chinese investment in recent years has altered the relationship. In March, Beijing said it would extend a $145 million grant for the upgrade of a 114-km (71-mile) road that links the capital Kathmandu with the Tibetan border, as well as other infrastructure projects. Three Gorges is China's biggest hydropower developer and operates the world's largest hydropower plant at the Three Gorges on the Yangtze river. China has been scaling up its ties with Nepal much to the chagrin of India to stem the flow of Tibetans travelling through Nepal to meet the Dalai Lama in Dharamshala. Beijing recently increased its annual aid to Nepal to $128 million from the previous $24 million. Tunnel Under Mount EverestChina plans to build a 540-kilometre strategic high-speed rail link between Tibet and Nepal passing through a tunnel under Mount Everest. "A proposed extension of the Qinghai-Tibet Railway to the China-Nepal border through Tibet would boost bilateral trade and tourism as there is currently no rail line linking the two countries," state-run China Daily reported. The rail line is expected to be completed by 2020. The 1,956-km long Qinghai-Tibet railway already links the rest of China with the Tibetan capital Lhasa and beyond. Wang Mengshu, a rail expert at the Chinese Academy of Engineering, said that engineers will face a number of difficulties once the project begins. "If the proposal becomes reality, bilateral trade, especially in agricultural products, will get a strong boost, along with tourism and people-to-people exchanges," he said. Such a plan could see a tunnel being built under Mount Everest, the China Daily said. "The changes in the elevation along the line are remarkable. The line is probably have to go through Qomolangma so that worker may have to dig some very long tunnels," Wang said. Qomolangma Mountain is the Tibetan name for Mt Everest. Restrained by rugged Himalayan mountains with its "remarkable" changes in elevation, trains on the line would probably have a maximum speed of 120 kmph. Wang said that the project is being undertaken at Nepal's request and that China has begun preparatory work. Losang Jamcan, Chairman of the Tibet Autonomous Region, told Nepalese President Ram Baran Yadav during his visit to Tibet's provincial capital Lhasa last month that China plans to extend the Tibet railway to Kermug, the Chinese town nearest to Nepal border where a border trade port has been built. Besides Nepal, China had earlier announced plans to extend its Tibetan rail network to Bhutan and India. During his recent visit to Nepal, Chinese Foreign Minister Wang Yi had asked the officials to conduct a feasibility study to extend the rail network to Kathmandu and beyond, the report said. (Agencies)
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World oil markets will not see a significant rise in Iranian supplies for up to five years even if the Opec member and world powers clinch a final nuclear deal by end-June, Fatih Birol chief economist and future head of International Energy Agency (IEA) said. While the likelihood of an immediate jump in Iranian supplies looks slim, the chance of a steep fall in deliveries from other regions is rising as IEA estimates companies will cut investments by as much as $100 billion in 2015 in oil exploration and production due to lower prices. Iran and six world powers reached a framework nuclear agreement on April 2, spurring hopes for a final deal by end-June that would lift economic sanctions imposed by the West against Tehran's disputed nuclear programme. "In three to five years we may see stronger (oil production) growth coming from Iran assuming Iran and global powers strike a final deal in June," Fatih Birol, who will head the IEA from September, told Reuters in an interview in New Delhi. He said there may not be a big growth in Iranian oil production immediately as Tehran's huge and geological complex fields have not been maintained "in the best way" due to the sanctions. Western sanctions have cut Iran's oil exports by more than half to around 1.1 million bpd from a pre-2012 level of 2.5 million bpd, with the loss of oil income making it difficult to invest in new development and pay for the equipment and services needed to keep its production operating smoothly. Birol sees a limited impact of the lifting of sanctions on Iran on global oil prices, which have been halved since June on supply glut mainly from the United States. Global economic growth mainly in Asia and Europe and investment in boosting oil output will be important factors determining movement in future global oil prices. "We see a very sluggish economic growth prospects in Europe which is very important to determine the demand of oil growth," he said. While lower oil prices have taken $100 billion of investment from the oil sector in 2015, geopolitical tensions in the Middle East have raised questions over the security of investments by global oil companies in the region, he said. "We have never seen such a big cut even at the time of financial crisis," he said, referring to a 20 percent cut in investment by global oil firms in 2015 over 2014. "If the slowing down of production and strong growth of demand come together, this may well put upward pressure on oil (prices) in the future," he said. IEA sees a big chunk of the 20 percent investment drop in the United States, Canada and Brazil. "This means production growth in the United States may well slow down and this is of course an important input for oil markets in next quarters to come ... It is difficult to give a number but there may be a slowdown which may have an effect on oil coming from the U.S. in 2016," he said. Birol wants to build stronger ties with emerging economies such as India, China, Indonesia and Mexico and if possible bring these countries into any joint IEA emergency supply response. IEA's 29 member nations jointly accounted for some 70 percent of global oil demand when it was formed 41 years ago. Now the group accounts for about 50 percent of overall demand as new consumption centres such as India and China have emerged. (Reuters)
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Turkmenistan President Gurbanguly Berdymukhamedov on Wednesday committed to deepen bilateral ties with India and begin the construction of $10 billion TAPI gas pipeline project this year. India's External Affairs Minister Sushma Swaraj held "preparatory" talks in Ashgabat for Prime Minister Narendra Modi's first visit to Turkmenistan in July. During the minister's maiden visit to the Central Asian country, the two countries also agreed to collaborate in the energy sector and discussed key bilateral and regional issues, including defence cooperation. "This is my first visit to Turkmenistan. It has been successful. It has exceeded my expectations. India's development standards are going up and there are so many developmental opportunities," Swaraj said after co-chairing the fifth India-Turkmenistan Inter-Governmental Joint Commission on Trade, Economic, Scientific and Technological Cooperation with her Turkmen counterpart Rashid Meredov. "In that context, our ties with Turkmenistan are not up to potential. I explored all options of cooperation," she said after the meeting that witnessed the signing of an MoU on the upgradation of Turkmen India Industrial Training Centre. Swaraj, here on a three-day visit, held discussions with Meredov on a host of issues, including the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project and bilateral trade ahead of the joint commission meeting. During the meeting, the two sides reaffirmed their strong commitment to the TAPI project and recognised the need for early resolution of the outstanding issue of selection of the consortium leader to expedite implementation of the project. Swaraj said there were increasing opportunities to collaborate with resource-rich Turkmenistan in areas of energy and fertiliser sectors due to rise in requirement. "Due to 'Make in India', our energy needs are rising. Our needs in the agriculture sector and want for fertilisers are also rising. n both these areas, Turkmenistan can be our partner. Having natural gas in abundance... we have talked about setting up a fertiliser plant in which fertilisers will be made here for India. This will be value addition to their gas reserves and we will get fertilisers," Swaraj, who led an inter-ministerial delegation, said. Earlier in the day, Swaraj called on the Turkmenistan president at the presidential palace. Modi is likely to visit Turkmenistan in July for the first time and several projects that the two sides take up would be finalised during his visit, she said. "In July, the Prime Minister is going to come here. If we are able to take certain proposals forward in the coming months, we will be able to announce them during the Prime Minister's visit. "This meeting also served as the preparatory meet for the Prime Minister's visit here," she told reporters. Energy ReservesBerdymukhamedov told Swaraj that he is looking forward to receiving Modi later this year, officials said. He committed to deepen ties with India and to begin construction of the TAPI gas pipeline project this year. During the joint commission meeting, Indian side thanked the Turkmen side for facilitating the visit of a delegation from ONGC (Videsh) Ltd, for exploring opportunities. The Turkmen side welcomed the proposal of ONGC Videsh Ltd to open their representative office in Turkmenistan. Turkmenistan, a former Soviet republic, borders the Caspian Sea and is estimated to be the fourth largest holder of gas in the world. The country also has vast oil reserves and has attracted interest from international energy giants, including those from Russia, China and Europe. Berdymukhamedov came to power after the death of the eccentric dictator Saparmurat Niyazov in 2006. Niyazov erected a golden statue of himself that revolved to face the sun. Turkmenistan is ranked 169 out of 174 in Transparency International's corruption perceptions. Berdymukhamedov has promised to open up the tightly-controlled political system.
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