Oil ministry revives debate on hydrocarbon incentives

Petroleum and natural gas minister Dharmendra Pradhan has signalled the government’s desire to debate the incentive regime governing hydrocarbon exploration. “When we make policies in India, we go the two extreme points. It can be the both (models). Both models can throw up some agreeable points. We will have to find a way,” Pradhan said while delivering the keynote address at Mint’s Energy Conclave in New Delhi on Friday. Pradhan indicated that the oil ministry was actively considering the issue and was willing to explore the middle ground between two contentious options: the existing cost-recovery model and the alternative revenue-sharing model. The production-sharing contract framework for the oil and gas sector currently allows for cost recovery by oil and gas explorers before they pay the government a share of revenue. There has been a debate on whether to retain the existing production-sharing agreement or shift to a new revenue-sharing one, with support emerging for both proposals. Explorers want the existing contract to continue. 

“Whenever we go for any policy, we can’t take extreme viewpoints. What is good today may become bad tomorrow and may again become good thereafter. We will have to create faith and bring clarity and showcase our long-term vision as a map to the country,” Pradhan said. “We want clean energy, reliable energy and affordable energy.” The oil minister’s latest comment follows a postponement in the new domestic gas-pricing formula till 15 November, after elections to the Maharashtra and Haryana assemblies are over. The cabinet committee on economic affairs (CCEA) had earlier deferred the decision on a price increase due from 1 July by three months until 30 September. The decision to further put on hold the price revision will bring some relief to fertilizer and gas-based power producers. Domestic gas is currently priced at $4.2 per million British thermal unit. “We should decide what kind of economic model should work in this country. It is for the democratically elected representatives to form that policy. It is for the political executive to decide that. We have been deliberating and contemplating about a good model,” Pradhan said. 

A government panel comprising secretaries in the ministries of power, fertilizer and expenditure department along with the additional secretary in the petroleum ministry has submitted its report to the government on gas pricing, which has to be taken up by the CCEA. Hydrocarbon explorers in India have made a total payment of $15.4 billion to the Union government as royalties, cess and profit petroleum, and $1.93 billion to state governments since 1994. Profit petroleum is the total value of hydrocarbons produced in a contract area after deducting costs incurred by the explorer. It is split between the government and the explorer. The minister emphasized the need for protecting the interests of consumers. “The entire world is watching what will be the gas pricing. When I was studying the issue, it came to my mind that the world is concerned about what should be the wellhead price. Shouldn’t we think what is an end-user’s capacity? The marketability of any product can only be assured by the end users’s purchasing capacity. That’s the reason why this government’s priority is also end user,” Pradhan said. 

While increasing domestic gas prices will raise the cost of power and fertilizers, a panel headed by C. Rangarajan, a former Reserve Bank of India governor and former chairman of the prime minister’s economic advisory council, had suggested a pricing formula in which the final base price was arrived at by the simple average of the respective weighted averages of the prices of imported gas across sectors over a 12-month period and that of prices in the three major international gas trading hubs. These are the US Henry Hub, the UK National Balancing Point and Japan’s custom-cleared rate. “India can’t become anyone’s replica. India will create its own model, and in India’s self-created model, the affordability of the country’s common people is an important subject,” Pradhan said. There has been waning investor interest in the Indian hydrocarbon sector, with around 70% of Indian basins remaining largely under-explored. The response to the New Exploration Licensing Policy (Nelp) has been tepid. “We want the world’s super majors in the petroleum and natural gas sector and power sector to come to this country and create affordable and sustainable energy and use the human resources of this country in a right way in their efforts,” Pradhan added. 

India approved Nelp in 1997—it took effect in January 1999—to boost hydrocarbon exploration. Under Nelp, the government allocates rights to explore hydrocarbon blocks through a bidding process and has done so in nine phases so far for 360 blocks, involving an investment of around $21.3 billion. “For smart economic management, we will have to reduce subsidy. While we will have to keep in mind the interests of the poor; it doesn’t mean that we will have to keep on providing the poor with the subsidy. We will have to make the poor self-dependent and to increase their purchasing capacity,” Pradhan said. India has an energy import bill of around $150 billion. That is expected to reach $300 billion by 2030. State-run oil marketing companies bore an under recovery of Rs.1.4 trillion last fiscal year as they sold fuels below cost of production. The 2014-15 budget estimated India’s subsidy bill at Rs.2.6 trillion, or 2.03% of gross domestic product, with oil subsidies amounting to Rs.635 billion. Commenting on the growing subsidy burden, Pradhan said: “We could have used it to build roads, improving health service in villages, providing basic facilities to the poor household.”

(Source: Livemint)

India needs over $250 bn investments in power sector:

New Delhi: India needs investments of over USD 250 billion for development of the power sector in the next three years, says a report.

"Total investment of over USD 250 billion is required for development of the power system during the 12th plan," Integrated Research and Action for Development said in its report.

This will give an ample opportunity for investors, developers, power equipment manufacturers in developing power projects and associated transmission infrastructure, it said.

During the 12th plan period (2012-17), India plans to add 88,537 MW capacity, out of which 69,280 MW will come from coal.

The government has planned additional renewable energy capacity addition of around 30,000 MW (5,000 MW wind, 10,000 MW solar and 2,100 small hydro).

Currently, India's installed generation capacity, from all sources of energy, is close to 2,50,000 MW.
"It is estimated that around 25,000 MW capacity is being sub-optimally utilised because of inadequate availability of domestic coal," the report observed.

It said that the country is likely to suffer a coal shortfall of 200 million tonnes (MT) by the end of the 12th plan period.

"India is facing lot of difficulties in production of domestic coal due to various reasons. The scenario is likely to remain the same till the end of the 12th plan," it added.

Due to higher share of coal-based power generation, which has a high environmental impact owing to greenhouse gas emissions, India is emphasising on clean energy development, which includes the use of hydro, solar, biomass and so on.

India coal miners may continue to extract til March 2015 Report

Business Line reported that a fresh debate seems to have emerged on whether coal miners will continue to extract till March 2015 from the blocks de-allocated following the Supreme Court verdict.

The Supreme Court had allowed the companies to mine coal till the end of fiscal 2015.

The 25-odd miners including Hindalco and Jindal Steel & Power Ltd (JSPL) will end up paying a penalty of about INR 9,340.71 crore by the end of 2015 fiscal based on their output projections. But, industry experts feel that there is a high possibility of miners cutting down their output or stop activity till the Government comes out with a clear cut action plan.

There are also those who believe that given the international prices, it may still be beneficial for the domestic players to continue with the extraction despite the penalty.

One of the industry players said that “It will be entirely the miners’ call depending on the economic viability of the project.”

While domestic coal of 5,900 kcal/kg gross calorific value sells at around INR 2,590 per tonne to INR 2,800 per tonne, the free-on-board price for Indonesian coal of 5,900 GCV is currently around USD 62 per tonne to USD 63 per tonne.

The South African 5,500 GCV coal is priced INR 4,543 per tonne to INR 4,604 per tonne. GCV is the heat produced from the fuel. Naveen Jindal-owned Jindal Steel & Power Ltd and its subsidiary will be the worst hit with this penalty as it works out to around INR 3,314 crore by March 2015. The company has so far invested around INR 50,000 crore on the blocks and the projects based on them. Its consolidated debt is INR 36,500 crore till June 30th 2014.

Regulatory panel turns down A.P Transco’s plea

Transco seeks deletion of naphtha as fuel from its PPA with GVK

The Andhra Pradesh Electricity Regulatory Commission (APERC) has turned down a request made by the APTransco (Transmission Corporation of Andhra Pradesh) seeking deletion of Naphtha as supplementary fuel and other fuels (LSHS, Furnace Oil and others) as alternate fuels from the power purchase agreement it entered into with the GVK Industries Ltd.

The Commission said it could not entertain the request of the petitioner (APTransco) which is not acceptable to the respondent (GVK Industries) as it goes contrary to the terms of conditions of the PPA entered into between the two sides. The APERC, after an elaborate study of the case, concluded that the PPA did not allow for unilateral amendment as being sought by the APTransco.

In its recent orders, the regulator said the petitioner contended that due to the high costs of Naphtha, it would not like the GVK Industries to utilise Naphtha even when there is shortage of gas. The respondent had been declaring the availability of the project to generate power using Naphtha as and when there was insufficiency in the quantities of natural gas and the petitioner had accepted all such declarations.

The APERC observed that the power utility itself had directed GVK to generate power using Naphtha from its Jegurupadu plant. The Commission which studied the generation pattern by the GVK said the sparing use of Naphtha only for nine days in a span of five years showed that they were not inclined to use the fuel due to its high cost. “But due to unavoidable circumstances, it has dispatched the station to generate with Naphtha as and when there is shortage of gas only in public interest,” the Commission’s order said.

The Hindu 

Coming to a standstill

Come September, and Tamil Nadu’s energy crisis boils over.

Anticipating a drop in wind power generation by September-end, when the southwest monsoon withdraws, the government has announced the return of power cuts.

Several parts of the State have faced intermittent load shedding for two months. And the crisis is likely to turn acute.

By September-end, the windmills’ contribution to the grid will be negligible. On an average, the wind power accounts for 2,000-4,000 MW between June and September. The Tamil Nadu Generation and Distribution Corporation (Tangedco) may lose this cushion any time now. On Wednesday evening, the peak contribution was 1,516 MW. On Thursday morning, it was 376 MW. And the figure could be in double-digits in a week.

“The norm is wind energy, an infirm power, can be 10-15 per cent of the total capacity. In Tamil Nadu, the total capacity of firm power is 12,909 MW. The installed capacity of wind energy accounts for 7,262 MW,” says a policymaker.

“Too much reliance on infirm power is a cause for concern. Once the wind season ends, the power managers will have to resort to power cuts and purchase,” he points outs. Though there has been substantial capacity addition last year, the demand is continuously rising, making the supply-demand mismatch a permanent feature.

As October nears, the scenario looks grim; the power managers have quite a task at hand as there has been a delay in the commissioning of plants. After a delay of two years, the NTPC joint venture Vallur III unit was to have been commissioned in August. “It will be ready by the first week of October,” says a Tangedco official.

From August, the State was expecting 1,000 MW from its long-term power purchase agreements. But, this is yet to come off as the Power Grid Corporation of India Limited (PGCIL) is keen on ensuring the north-south grid stability. Then, there is the issue of priority among the four power-starved southern States, sources say.

Some relief can be expected only in January and February when the Neyveli Lignite Corporation (NLC) TPS II Expansion units are expected to be commissioned. The State’s share will be 230 MW.

At the same time, the Kudankulam Nuclear Power Project Unit II will achieve criticality. After the hydro tests that will last till October, fuel-loading will be taken up, sources say. Once mandatory tests are found satisfactory, the unit will be commissioned. Tamil Nadu will get its share of 463 MW at the end of the first quarter of 2015, Tangedco officials say.

By this time, as the government itself has admitted in the Energy Department’s policy note, the demand will be 14,500 MW. The Tangedco will have to sweat it out till next June, when the south-westerly winds will arrive, late as they were in a few summers.

The Hindu

Burden on the Middle Class

The new electricity tariff, proposed by TNERC, is most unwelcome, say consumers and activists alike.

A costlier power bill has come as a shock to consumers, especially the middle-class that has already been burdened with a steep increase in the prices of essential commodities.

The new electricity tariff, proposed by the Tamil Nadu Electricity Regulatory Commission (TNERC), is most unwelcome, say consumers and activists alike.

“There is no rationale behind the proposed hike,” says T. Sadagopan, president, Tamil Nadu Progressive Consumer Centre. The TNERC should ensure uninterrupted and quality power supply to the consumers. “How many consumers have been recommended compensation by the TNERC for continuous power cuts effected by the Tangedco,” he asked.

Complaining about the steep hike proposed for those consuming more than 500 units, V. Rama Rao, convener, People’s Awareness Forum, Nanganallur, said the middle class would be affected most. The government should bring in a new slab between 500 and 1000 units.

Gowri Sakthivel, a homemaker from S.B.I. Officers Colony in Tiruchi, said the tariff was already high. Middle-class families using air conditioner and electrical appliances shell out Rs. 2,000 to Rs. 3,000. “Any further hike will severely affect us,” she said.

For domestic consumers in the water-starved Madurai, a hike has only increased worries about running motors and electric pumps. “Since the water in our borewells have depleted, we keep the motor running for extra time to fill the tanks,” said N. Vadivu, a resident of Tallakulam.

Solar boost

The silver lining is that rooftop solar installation may go up in Chennai, a senior official of the Tangedco said.

“Around 10 lakh households in the State consume above 500 units. Of them, over five lakh consumers are in Chennai,” said the official, emphasising that if the hike went through, solar power would become more attractive.

Under the net metering scheme, solar generation cost is estimated to be around Rs. 6.50 to Rs.7 per unit. With the proposed hike, installing a solar plant will make sense, especially for high-end domestic users and commercial establishments, Tangedco officials say.

According to Tangedco sources, power cuts have surfaced in several parts of the State. “The situation is better than last year. But Chennai will be hit, too. Power cuts may be back in the city by next month,” an official says.

The Hindu

Memorandum of Understanding between India and United States for cooperation in gas hydrates

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi,  gave its approval for signing of a Memorandum of Understanding (MoU) between India and the United States for cooperation in gas hydrates for a period of five years.

Cooperation with the United States Department of Energy (USDOE) in the field of gas hydrates, will facilitate active participation of the National Gas Hydrate Programme (NGHP) and DOE scientists in data collection, analysis and identification of sites for pilot production testing. This would be under the planned NGHP Expedition-02 and 03 in deep water areas of the Eastern, Western and Andaman Sea. Exchange of scientific and technical information will help Indian scientists enhance understanding of Indian gas hydrates and keep them abreast with international developments.

Gas hydrates are considered as vast resources of natural gas and are known to occur in marine sediments on continental shelf margins. Worldwide work on gas hydrates is at a Research and Development stage and no commercial exploitation has so far been reported. Gas hydrate resources in India are estimated at 1894 TCM and these deposits occur in Western, Eastern and Andaman offshore areas.

Cooperation with the USDOE in the field of gas hydrates, will facilitate active participation of the NGHP and DOE scientists in data collection, analysis and identification of sites for pilot production testing, under the planned NGHP Expedition-02 and 03 in deep water areas of the Eastern, Western and Andaman Sea.

Background:

The Ministry of Petroleum and Natural Gas (MoPNG) has formulated the NGHP in 2000. NGHP Expedition-01 launched in 2006, had established presence of gas hydrates in KG and Mahanadi basins and Andaman deep waters. NGHP Expedition-02 and 03 are under advanced stage of planning and are due in the period 2014 - 2017. 20 sand prone sites are planned to be cored and 40 wells are planned to be drilled. Based on this data, sites for pilot production testing will be identified and production planned to be carried out under Expedition - 03.

-- PTI

The apex court has cancelled 214 coal blocks allotted to Indian companies - barring Sasan coal block allotted to Reliance Power

The Supreme Court’s judgment to cancel all the captive coal blocks allocated since 1993 will be a body blow for all the corporates who are impacted by the order, say top India Inc leaders.

“This is worst possible news for the Indian companies. This will take back country by many decades in terms of development,” said a CFO of a large company asking not to be quoted.

The order covers blocks allocated to private  and state government entities. The SC had earlier questioned the process and legality of the allotment and on Wednesday cancelled 214 coal blocks allotted to Indian companies – barring Sasan coal block allotted to Reliance Power.  The order is a big negative for Essar, Aditya Birla group’s Hindalco, Tata Steel, Vedanta group, Jindal Power and Steel, Jaypee and Adani among other top corporates.  Hindalco has lost its Talabira coal mine apart from Mahan coal mine which was in JV with the Essar group. Essar group had already started production from its power project in Mahan but could not mine coal due to an agitation by the locals.

The companies impacted the most will be the ones where a significant portion of  value is derived from these coal assets. Ongoing investments in end use plants linked to these blocks will also suffer, impacting the broader economy, say experts.
“We have no other option but to work on a Plan B,” said a top Hindalco official. “We were gearing up for this bad news for quite some time,” said he.

Apart from cancellation of allotment, the corporates will also have to pay a hefty penalty on the production till date at the rate of Rs 245 per tonne.  The power companies will get coal from Coal India as the SC has made it clear that Coal India will take over these plants after March 31st next year.

-Business Standard

India’s coal import rush leads to port congestion

Indian power and steel companies are importing shiploads of coal due to a severe shortage at home, leading to heavy congestion in one of the country’s busiest ports that now has twice the number of vessels waiting than its available berths.

The over-crowding at Paradip port in eastern Odisha could derail India’s efforts to prevent a shutdown of more than half of its power plants which are running on stocks of less than a week in the worst deficit since a massive blackout in 2012.

While Power and Coal Minister Piyush Goyal has urged power firms to bring more coal into India – already the world’s No. 3 importer of the fuel, the country’s ports are finding it difficult to deal with the swelling traffic.

“We’re 100 per cent houseful,” said G.P Biswal, deputy conservator of Paradip port. “We’re not able to cope with the sudden increase in traffic.”

Half of the 27 stranded ships at Paradip are carrying up to 90,000 tonnes of coal each and it takes up to six days to offload a ship once it is berthed. Biswal said rains in the eastern part of the country over the past few days have hampered operations but there could be an improvement in a week.

Some of the ships are to deliver coal for top power and steel firms like Jindal Steel and Power Ltd, Steel Authority of India Ltd, GMR Energy, Tata group and the Adani group – run by billionaire Gautam Adani.

Congestion was higher-than-usual at some other ports too, said Prakash Duvvuri, research head at research firm OreTeam.

Total coal traffic across all ports, including shipments within the country, rose 12 per cent in August from a year ago. Paradip port, the biggest state-owned port by capacity, handled 16 per cent more coal over the period, according to the Indian Ports Association.

India’s coal imports have gathered steam after the Supreme Court ruled last month that the country’s decades-old method of allocating coal mining concessions was illegal and arbitrary, posing threat to 218 blocks handed out since 1993.

The blocks include about 40 that are producing coal, estimated to have a capacity of about 9 per cent of the 566 million tonnes India produced last year. The court has yet to pass an order on whether to cancel the blocks.

“The court order, which is anxiously awaited, could be one of the prime reasons for the rising imports because the miners may either be feeling that the judgment may further be postponed or the judgment may not favour them,” said OreTeam’s Duvvuri.

India is home to the world’s fifth-largest coal reserve but still needs to resort to imports in a big way as state-owned Coal India, which accounts for about 80 per cent of the country’s output, frequently falls short of its output target.

India’s overseas purchases of thermal coal, used in power generation, are expected to surge 11 per cent to 150 million tonnes this fiscal year, online market operator mjunction said.

Strong demand and the port congestion will help boost charter rates for ships, said Ian Claxton, managing director of Thailand dry cargo ship operator Thoresen & Co (Bangkok).

Source : Businessline

Himachal to waive mandatory clearances for hydro power projects

The Indian Express reported that to fast-track hydro-power generation, Himachal Pradesh government seems to have compromised with major socio-ecological issues by waiving mandatory clearances to do away with the process of public consultations.

The move is a complete U turn by the government on its earlier decision to involve locals users of water and other right holders in sanctioning new hydro-power schemes. 

It’s more seen as a short cut measure instead of expediting the process for granting NOCs to the power producers, of which 70% are private investors. Himachal Pradesh has a power potential of 27,000 MW of which only 10,000 MW has been tapped so far.

The power producers had been alleging delays in grant of sanctions and department NOCs, compelling the government to remove the clause of NOCs.

For any project coming up in Himachal, the investors will not be required to get NOCs of Public Works Department, Irrigation & Public Health department, Revenue, Fisheries and Wildlife. All the clearances which were earlier mandatory as per state government’s power policy, is now a bygone thing.

Source – The Indian Express

Goa govt says it supports hydro power project in state

Goa Chief Minister Manohar Parrikar today supported the idea of setting up of hydro electricity projects across the Western Ghat to meet power requirements of local people who now depend on thermal power. 

“The most important aspect is using water to create energy. We have Western Ghat where we can have low intensity low size projects which don’t require environment clearances,” he said at a conference here on exploring energy frontiers, organised by IIT-Bombay Alumni Association. 

In last two decades, proposals have been floated to establish hydro electricity projects across river Mhadei to generate hydro electricity power. 

Parrikar said the projects can be of smaller volume – generating power up to two mega-watt. 

“Probably, this power will be generated at a place where it is consumed. We don’t need to put thermal power station at places located at high altitude, where water supply is abundant,” he said. 

The Chief Minister said the country can add power up to 30,000 MW to its grid in next three years through such hydro electricity stations. 

Responding to various investment proposals in alternative energy field submitted during the conference, Parrikar offered to finance such projects. 

“State government has provided Rs 3-4 crore for research through science and technology department. We are ready to finance, if anyone comes with the good proposal of experimentation and research in these areas,” he said. 

He said the government can sponsor project in solar or wind power space which can function at a reliable level or low intensity level but it should be certified by institutions like IIT.

Source: Business Standard

Coal ministry says no contingency plan to deal with SC coal block order fallout

The coal ministry has told the Prime Minister's Office that any contingency plan to deal with the fallout of the Supreme Court's order on captive coal blocks will be prepared by it once the apex court delivers its judgment on the matter.

The SC has declared the allocation of all coal blocks since 1993 as illegal but has reserved its judgment on their fate.

Mr SK Srivastava, Coal secretary has written to principal secretary Mr Nripendra Misra on the latter's query as to what contingency plan has the ministry prepared for fuel supply to the concerned power projects.

Mr Srivastava said that “The coal ministry may kindly be permitted to work out a suitable contingency plan within the end of this month when the orders of the supreme court have been received.”

However, the power ministry has also proposed steps for the likely deallocated blocks in a draft Cabinet note on coal pooling.

The ministry has laid out that if the coal blocks are finally deallocated and the end-use power plants are commissioned, the extant tapering linkages should be converted into long-term ones.

Officials in the power ministry said that the advisory group, chaired by former power minister Mr Suresh Prabhu, has been meeting regularly to keep alternative plans ready to deal with any eventuality post the verdict but a final decision on any option has not been taken.

The advisory group comprises experts like ex-Central Vigilance Commissioner Mr Pratyush Sinha, former power secretary Mr RV Shahi and former chairman of CIL Mr Partha Bhattacharya.

Source – Financial Express

Coal to Power Companies to get costlier this year

Business Standard reported that forced to cut the volume of coal sold through electronic auction, government-owned CIL is likely to go for a rise in the notified price for sales under fuel supply agreements with power companies.

The company bought peace with the Union coal ministry by agreeing to almost halve its e-auction sales at 30 million tonnes this year, to make more coal available for the fuel-starved power sector.

The coal ministry in a communication to the Prime Minister's Office however, said that this would come at a cost, with a rationale for a rise in the price of what is sold to companies in the sector.

Mr Piyush Goyal, Union coal and power minister directed CIL to cut its e-auctions by more than 50% to 25 million tonne in 2014-15 from 58 million tonne last year. This had been initially opposed by CIL's board of directors.

The process of reducing these sales is on. The e-auction sales rose 30% over a year before to 14.65 mt in the April-June quarter but sources said that it dropped to 3 million tonne in the next 2 months, July and August.

Officials said that CIL's loss of revenue due to lower e-auction sale would be around INR 2,000 crore this year. Hence, the suggestion on compensation with a price rise was mooted by the coal ministry.

A source said that “The ministry has sent an impact assessment file, which clearly says there would be 'price rationalisation' of the coal sold under notified prices to neutralise the revenue loss.”

CIL itself would not comment.

Amid differences between the coal ministry and CIL over the matter, the PMO had earlier asked the ministry to assess CIL’s concern before taking a decision.

In its response to PMO, the ministry has suggested price rationalisation.

In 2013-14, CIL earned INR 12,767 crore from e-auction sales, with average realisation of INR 2,196 a tonne. This was 14%t higher than the INR 11,148 crore in 2012-13.

Source – Business Standard

Gas pricing: SC seeks stand of NDA government

The Supreme Court Thursday asked the NDA government to make its stand clear on fixation of the price for gas from Krishna-Godavri basin as to whether it sticks to the previous UPA dispensation's policy or making any departure from it.

"Tell us what is the situation. Whether you (government) are going to argue or stick to the old government's policy or is it something else?" a bench headed by Justice T S Thakur asked when the matter came up for hearing.

A fresh hearing on the issue started today as earlier a bench headed by Justice B S Chauhan was not able to adjudicate the dispute as he retired before the hearing concluded.

In the new bench headed by Justice Thakur, other two judges are justices J Chelameshwar and Kurian Joseph who were also in the bench headed by Justice Chauhan.

The PILs filed in 2013 by senior CPI MP Gurudas Dasgupta and the NGO, Common Cause, challenged the government decision to double the price of natural gas from 4.2 US dollar to 8.4 dollar per mmbtu and seeking cancellation of Reliance Industries Ltd's contract for exploration of oil and gas from the KG basin.

The new bench was told by Solicitor General Ranjit Kumar that NDA government has deferred implementing formula for gas pricing recommended by C Rangarajan Committee, till September 30.

Rangarajan was Chairman, Economic Advisory Council to the then Prime Minister.

Kumar informed the bench that the new government has formed a panel to recommend changes in gas pricing policy.

"A committee has already been formed. Till September 30th nothing is happening. The committee can submit its report by September 30th and only after that a decision will be taken," the Solicitor General said while adding that the Centre will come out with its stand on the issue and file an affidavit.

The government also said that RIL has invoked arbitration on the issue of gas pricing.  

Dasgupta and the NGO said government should be asked not to make "any further increase" in the price of gas produced by RIL from KG basin.

"For every one dollar increase in price of the gas there will be an extra cost of over Rs 10,000 crore on subsidy given to fertilizer companies," advocate Prashant Bhushan, appearing for the Common Cause, said.

The bench posted the next hearing on November 14, saying "Two things will have to be seen. One is whether they (NDA government) are going to change the policy or what stand they take. Second is the feasibility of this bench hearing this case for very long?"

The previous bench headed by Justice Chauhan had commenced the final hearing on the matter on March 11 but it remained undecided till July 1 this year when he retired.

RIL has refuted the allegation of extraneous consideration for the increase in the gas price from 4.2 dollar to 8.4 dollar per mmbtu for the gas taken from the existing fields like KG D-6 basin.

RIL had submitted that the gas output from KG basin has fallen to 8 mscmd against expected 80 mscmd due to "technical reason".

M Veerappa Moily, the then Union Minister of Petroleum and Natural Gas, was also named as one of the respondents in the petitions.

The PILs have also sought imposition of penalty on private parties for failure in adhering to commitments.

The petitioners have also sought a direction for a thorough audit by CAG of the working of the production-sharing contract (PSC) governing KG block, gold plating by RIL, underproduction by RIL and all related issues.

The CPI MP had alleged collusion between the government and the company, saying RIL "is holding country's energy security to ransom".

He said natural resources belong to the citizens and the government.

The Common Cause has supported Dasgupta's arguments and referred to controversial intercepted telephonic conversations between former corporate lobbyist Niira Radia with others to support the allegation of collusion.

The NGO has urged that Centre should wait for the outcome of the two petitions pending before the apex court. 

PTI

First Published: Thursday, September 18, 2014, 20:30

Solar panels to be made mandatory for new buildings in Hyderabad

The Telangana government is planning to make installation of roof-top solar panels mandatory for new buildings in Hyderabad, to provide for better and efficient energy needs.

Speaking at a workshop organised by the Administrative Staff College of India and Greater Hyderabad Municipal Corporation on ‘Transforming Indian Cities to Smart Cities’, a prelude to the 11th Metropolis World Congress 2014 scheduled to be held from October six to ten here, Telangana Minister for Information Technology and Panchayat Raj, K T Rama Rao said Hyderabad already has such a mandate and directed the GHMC to enforce it strictly.

The Minister admitted that not many are aware of such a law. "GHMC (The Greater Hyderabad Municipal Corporation) should enforce this law with lot of force," he said. Expressing views on the subject of the workshop, Rao said smart city does not mean just technology but smart citizens and smart citizen services.

The idea of smart city should be to improve quality of life and ensure how technology can be put to good use, it is not about individuals but a combination of all for everyone, he said.

It needs to be understood in Indian perspective as this country is heterogeneous and has several complications such as traffic management, day-to-day regular drinking water and better health services, Rao added.

He underlined that there is a need to instill discipline among people on better traffic management and energy utilisation, among others.

The idea of smart city is to improve the quality of life, what technology and how it can be put to good use is the challenge. Greener environment, better traffic management, sanitation and water distribution are some of the problems that need solutions, he said.

 Deccan Chronicle

DAE Clarification on Media Report Citing Cancer Deaths in Atomic Energy Hubs Say’s Report is a Malicious Distortion of Facts

The Department of Atomic Energy under the aegis of Government of India has termed the Media Report on Cancer Deaths in Atomic Energy Hubs as a Malicious Distortion of Facts. In a clarification issued yesterday evening the DAE has clarified its position as under: 

“A section of media has recently published a report about Cancer behind 70% deaths in India’s atomic energy hubs. This is a gross distortion of facts. The report has cited ‘2600 deaths due to cancer, out of a total of 3887 deaths of employees in 19 centres (during 1995-2014)’, attributing the information to responses to RTI queries made by Shri Chetan Kothari of Mumbai. He received information (vide his RTI query dated June 22, 2010 and March 29, 2014) from the Department of Atomic Energy on the number of deaths of its employees while in service due to various causes, including suicide. The malicious report also quoted a ‘shocking revelation of 255 suicides’ in BARC during the same period 1995 to 2014. However, nothing can be farther from the truth, because this report does not reflect the information given by the Units of the Department of Atomic Energy (DAE) to Shri Kothari. 

DAE has once again scrutinised the information provided by its Units, especially the major Units, directly to Shri Kothari in July-August 2010 (for the period 1995-2010), and in April-June 2014 (for the period from 2010). 

The total number of deaths of DAE employees in service over the period of 1995 to 2014 works out to 2564 and this includes 69 cases of suicides (as against the report claiming 3887 deaths and 255 suicides). The number of deaths reported by DAE Units due to cancer-related causes is 152 out of the above 2564 deaths. All the responses do not necessarily contain information on the cause of deaths (response to information is always based on available information alone); thus the actual number of deaths of employees due to cancer related causes could be higher than the above figure of 152, but this would in no case be anywhere near 2600 cases, as being made out in the media report. The media report seems to have got its numbers wrong, although it refers to the RTI source. 

That the incidence of cancer-related deaths among DAE employees is similar to what is seen in other sectors of society is also borne out of a study conducted by the Tata Memorial Centre (TMC) covering 22,224 DAE workers and their families at three major Indian nuclear installations (Tarapur, Kaiga and Kakrapar) between 1981 and 2012, which found that cancer accounted for 9% of all deaths in this population group. In contrast, the said report quotes the highly exaggerated figure of 70% of cancer deaths (2600 cancer-related deaths out of a total of 3887 deaths of DAE employees). 

The average number of deaths of DAE employees while in service over the period 1995 to 2014 works out to about 130 per year. There is nothing abnormal about this rate, considering that the number of employees in the entire DAE is nearly 60,000 and that the annual death rate in India is reported to be 6 to 8 per 1000. 

The outlandish claim on the rate of cancer deaths and suicides among DAE employees seems to be based on grossly erroneous and distorted interpretation of the information provided by DAE Units in their responses to the RTI query. DAE has reasons to believe that the information on the number of DAE employees undergoing treatment for different types of illness or ailment, provided by a couple of Units of DAE in their responses to the RTI query of Shri C. Kothari in 2014, has been recklessly counted as ‘deaths of employees’, and tabulated for circulation. 

The blatant attempt made by such malicious report to malign the DAE and cause considerable damage to the nuclear energy programme in the country in the long-run needs strong condemnation. It is very unfortunate that a section of the media not only published such a completely misleading report without carrying out necessary and sufficient verification of all facts and figures, but has also ignored the DAE appeals to publish its response. 

DAE had countered in June 2010 similar erroneous media reports on cancer deaths and suicides. DAE, along with TMC, will publish more detailed information and analysis of the health status of its employees in due course of time. DAE would like to reassure one and all that it continues to place very high priority on the welfare of its employees and the public, especially those in the neighbourhood of its Facilities, and that all its projects and operations are carried out with utmost care ensuring the safety and welfare of its personnel and neighbourhood population.” 

---  PTI

24X7 power supply in Andhra Pradesh: An uphill task

 Even as the state government is making all out efforts to ensure power supply 24 hours from October 2 onwards in the state, it is going to be herculean task unless it strengthens the requisite infrastructure to do so. It is a fact that whenever there is a brief spell of rainfall with even low intensity gales, power cut is a common phenomenon in that area and the official reason given for it is to avoid any snapping of overhead transmission lines that may cause electric shock to either people or livestock located nearby. 

A brief spell of heavy downpour with gales disrupted power supply in and around Rajahmundry on Wednesday evening and even after a day, the EPDCL authorities were struggling to restore the power supply in some areas. 

Uprooting of electric poles, snapping of overhead power transmission lines and burning of transformers are very common after rainfall and the people wonder as to how the state government would ens-ure continuous power supply with such a poor infrastructure. 

However, the EPDCL authorities maintain that in the recent past, the number of hours where power cut is being imposed has come down and they were making efforts to ensure uninturrupted power supply. They opine that as the state government was entering into agreements with various  sources to draw power even from the central grid unlike the regular practise of doing so from southern grid, they would get adequate power to supply to the consumers of domestic, commercial and industrial sectors.

Moreover, the EPDCL has taken up 100 days paln of action to strengthen the infrastructure in the last few days by replacing the damaged electric poles, insulators, conductors and others to ensure uninturrupted power supply without facing any technical glitches. 

Consumption pattern of power varies from district to district dep-ending upon several factors including cultivation of crops. For instance, in West Goda-vari, power consumption goes up during winter unlike in other districts as the farmers take up cultivation of crops like maize and others especially in upland areas drawing more water using electric pumpsets. 

Energy requirement peaks up to 750 mw a day in the district at times while average power consumption hovers around 11.5 million units a day. Though the authorities are confident of ensuring continuous power supply, they confess that it is going to be a tough task to supply power to farm sector for nine hours as they have to erect poles, draw power lines, install transformers, strengthen feeder lines. 

Deccan Chronicle 

MMDR Act Amendment Bill Will Be Brought In the Forthcoming Session Of Parliament

“MMDR Act amendment Bill will be brought in the forthcoming session of Parliament. Detailed Guidelines for mineral concessions will also be issued soon in the coming weeks.” This was stated by the Union Minister for Steel, Mines, Labour & Employment, Shri NS Tomar , in his inaugural address at the Mining & Exploration Convention & Trade Show in Bangalore. Geologists, mining engineers, policy-makers, investors, technology providers and industrialists from India and abroad are taking part in this 3-day programme. 

Shri Tomar further said, “Our Government is working to totally transform the image of mining sector in India. We have a three-pronged approach to this, to foster transparency, simplification and development, so that all processes are simpler and faster, and every person can get his work done without any prejudice. As was said by Prime Minister, Shri Modi, we need to move away from the thinking that if I do something, what is in it for me. We need to think as to how will the country benefit and move forward if I do something. This change in mindset is a must. Then only we can progress in the field of mining or any other field. Together all of us will have to make mining sector so development and growth oriented that others should feel proud to be associated with this sector. We should encourage responsible mining, so that courts and commissions do not need to intervene”. 

He said that, In fact, if we see after agriculture, mining is one area where opportunities to create employment are immense. But mining & minerals sector is passing through a challenging phase. Increasing cost of exploration, decrease in grade quality, environmental challenges, expectations from society, lack of skilled manpower, health and safety issues are some of the challenges the sector is facing. In recent past, import of some minerals has become higher than their export, which is not a desirable situation considering our vast mineral resources. Even after 66 years, such a situation is indeed not desirable. But the present government is trying to improve the situation at the earliest. Therefore, all other stakeholders should also come forward and join hands in making the mining sector, a progressive and respectable sector. 

The Minister said that Central government is trying to expedite the pending mining clearances. We have asked the state governments also through face-to-face meetings and written communication, to speed up the clearances. The government is also trying to encourage use of latest technology in the field of mining, specially underground mining, to minimise impact on environment and for faster development of the sector. Proper assessment and exploration of available mineral resources is also our priority, so that public, private, domestic and foreign institutions can contribute to the development and progress of the sector. 

****

Power Ministry Takes Several Measures to Restore Transmission Lines & Distribution System in Flood Hit J&K Power Demand Up To 704 Mv Restored In The Valley

The Ministry of Power has taken a slew of measures to restore the heavily damaged power transmission lines & distribution system in flood hit areas of Jammu & Kashmir . 

In the Jammu region out of damaged seventeen 33/11KV Sub Stations , Fourteen have been restored which are feeding important area like Beli Gulaba, Malhouri, Mandi , MES and Rajouri . Efforts are on to restore the remaining 3 lines soon. 

While in Srinagar area, 132 KV Sub Station at Bemina , which is very vital for power supply to the valley , was restored on the 16th of this month. Out of thirty six 33/11 KV Sub Stations which were damaged due to the floods , many have been restored. These distribution sub stations feed areas like Peerbagh, Silk Factory, Badami Bagh and Karan Nagar. In the valley, power demand up to 704 MV has been restored which is almost 88 percent of the normal load. 

In order to augment the efforts for faster restoration of power , states like Chhattisgarh, Punjab, Haryana, Karnataka,and many private agencies responded to the call by the Secretary (Power) and offered their help in the form power distribution materials . 

Disruption of electricity was severe in most of the areas of J&K, which witnessed disastrous floods in its history of last six decades. There was huge damage of high tension, low tension lines, transformers and Sub Stations which were either submerged or washed away. The Union Minister of State (I/C) for Power, Coal and New & Renewable Energy, Shri Piyush Goyal instructed the senior officers of Power sector CPSUs to rush to J&K immediately and assess the situation. For immediate restoration of power, the Ministry of Power authorized POWERGRID, as its nodal agency to assist J&K Power Department (JKPDD) in restoration of transmission lines and distribution system. Emergency Restoration System (ERS) was immediately deployed by POWERGRID for four 132 kV lines in Jammu region and for one 132 kV line in Srinagar region. For distribution lines and substations, team of POWERGRID along with JKPDD started working simultaneously. Control rooms were opened at Ministry of Power, Delhi and sub-control rooms at POWERGRID offices at Gurgaon, Jammu & Wagoora. Subsequently teams were mobilized to identify the power disrupted areas with priorities for faster restoration of damaged power lines. The Minister also gave directions to dispatch 10,000 solar lamps with chargers immediately for distribution in flood affected areas. 

Coal India Limited was also asked to dispatch heavy duty dewatering pumps to the affected areas. 

RM/ND/rs 
(Release ID :109778)

Global crude oil price of Indian Basket was US$ 96.17 per bbl on 18.09.2014

s US$ 96.17 per barrel (bbl) on 18.09.2014. This was lower than the price of US$ 96.71 per bbl on previous publishing day of 17.09.2014.

In rupee terms, the price of Indian Basket decreased to Rs 5872.14 per bbl on 18.09.2014 as compared to Rs 5894.47 per bbl on 17.09.2014. Rupee closed weaker at Rs 61.06 per US$ on 18.09.2014 as against Rs 60.95 per US$ on 17.09.2014. 

The table below gives details in this regard:

Particulars	Unit	Price on Sep 18, 2014 (Previous trading day i.e. 17.09.2014)	Pricing Fortnight for 16.09.2014 (Aug 27 to Sept 11, 2014)
Crude Oil (Indian Basket)	($/bbl)	96.17                (96.71)	99.36
	(Rs/bbl	5872.14           (5894.47)	6015.25
Exchange Rate	(Rs/$)	61.06              (60.95)	60.54

  YKB/Daily Crude oil price- 19.09.2014      

 -- PTI