Mine auction to ensure cheaper power: Jaitley

Drawing a comparison with the Aam Aadmi Party’s (AAP) promise of subsidised power, Union Finance Minister Arun Jaitley said on Tuesday that the Modi government’s policy of reverse auctioning coal mines was much more in the interest of the country as it ensured cheaper electricity to the common man in a sustained manner.

Addressing global investors at a conference Re-Invest 2015, Mr. Jaitley said, without naming the AAP: “One way by which people want to provide cheaper electricity is by the state subsidising it… A state subsidy really means that you will have to tax people more in order to provide something free to some other people… Is that a sustainable cause?”

The Finance Minister then argued, “Or is the process we are following… in reverse bidding, the cost of power is going to be linked with the rate at which you get the fuel… it is [a] far more sustainable policy and much more in the interest of this country.”

The Aam Aadmi Party government in Delhi on Monday issued directions to its finance and power departments seeking proposals for the implementation of its key pre-poll promise of slashing power tariff in the capital by 50 per cent.

Mr. Jaitley said India was better placed to offer opportunities to investors.

Source:The Hindu

Mine allotment process for PSUs to start on Wednesday

Instead of 36 coal mines, the government has decided that it will 

allot 45 coal blocks to PSUs, says Coal Secretary Anil Swarup

Govt. to invite applications for 43 coal blocks

The government will on Wednesday start afresh the process for allotting coal mines to State and Central public sector undertakings (PSUs) and will now allot 43 blocks, instead of 36 announced earlier.

“Tomorrow, the Coal Ministry will come out with notification inviting applications for 43 coal blocks,” a Coal Ministry official said.

There is a lot of demand from PSUs for allotment of coal blocks.

Coal Secretary Anil Swarup further said that instead of 36 coal mines the government had decided that it would allot 45 coal blocks to the PSUs.

The Ministry has decided to allot 43 mines instead of 45 blocks as two mines have been held back as they are being examined by a technical committee.

The government has put on sale 19 coal blocks in the first lot. Till now nine coal blocks have been bagged by companies like Hindalco, Jaiprakash Associates, Durgapur Projects and B S Ispat.

The government has already started the process of auction of 21 coal blocks to be put on sale in the second lot.

Meanwhile, Jaiprakash Power Ventures bagged the Amelia (North) mine in Madhya Pradesh, quoting Rs.712 a tonne, the highest among 11 firms, including Adani Power, Balco and Essar Power.

Bids are under way on the fourth day of auction for another two coal blocks — Ardhagram in West Bengal and Chotia in Chhattisgarh to be given to firms in the non-power sector.

“Jaiprakash Power the highest bidder at (Rs) 712 (a tonne) for Amelia North,” Coal Secretary Anil Swarup tweeted.

The ten companies in the race for Amelia (North) mine apart from Jaiprakash Power Ventrues Ltd were — Adani Power, Bharat Aluminium Co (BALCO), Essar Power M P, GMR Chhattisgarh Energy, GVK Power Goindwal Sahib, Jindal Power, JSW Energy, KSK Mahanadi Power Company, RattanIndia Power and Reliance Geothermal Power Pvt. Ltd.

The mine has extractable reserves of 70.28 million tonnes (mt). The other two mines — Ardhagram and Chotia for which bidding is on — have extractable reserves of 19.29 mt and 13.57 mt, respectively.

Earlier tweeting on auctions, Mr. Swarup said “coal block auction gets under way on the fourth day adding that poor States will reap benefits of coal block auctions.”

The five companies vying for Ardhagram coal mine are Easternrange Coal Mining Pvt. Ltd., Monnet Ispat and Energy, OCL Iron & Steel, SS Natural Resources Pvt. Ltd. and Visa Steel. The technically qualified bidders for Chotia mines are: Balco, Godawari Power & Ispat, Hindalco Industries, Prakash Industries, Rungta Mines and Ultratech Cement.

Source:The Hindu

Exempt imported coal from customs duty, demand private power firms

As part of its budget expectations, the 

Association of Power Producers' (APP) 

has asked for exemption in BCD and

 CVD on imported coal

NEW DELHI: Private power producers have sought customs duty relief on imported coal for thermal plants, saying the levy is "increasing the cost of electricity generation and burdening the common man". 

At present, coal imports attract 2 per cent Basic Customs Duty (BCD) and Countervailing Duty (CVD) each. 

As part of its budget expectations, the Association of Power Producers' (APP) has asked for exemption in BCD and CVD on imported coal. 

APP represents as many as 20 private power companies. Stating that private firms are forced to import the dry fuel as domestic coal is insufficient to meet their requirement, APP said, "Since there is no duty on electricity on the output side, any duty imposed on procurement of coal would be a cost for power companies." 

"BCD and CVD should be nil rated for coal imported for the usage in thermal power plants." 

APP has said that the present duty structure is "unintentionally" increasing the cost of power generation and impacting the common man. 

The private power producers have also sought exemption of customs duty on fly ash for a power plant set up in SEZ. 

"Fly ash has no value and many times the project developers have to pay for disposal of the fly ash while also complying with terms of MoEF for disposal of fly ash. There is no rationale on charging duty on such an item," APP said. 

Meanwhile, Anil Chaudhry, Country President and Managing Director, Schneider Electric India said, "The growth of the Indian economy, to a great extent, will depend on the nation's openness and adaptability to energy security. To achieve this it will require priority sector lending status under RBI guidelines."

Source:ET

PM promises states more funds, greater utilisation powers

PM offered to transfer some of the 66 centrally 

sponsored schemes, for whichRs 3,38,562 crore 

was provided in 2014-15, to states

Exhorting Chief Ministers to bury differences to help India achieve high growth and create jobs, Prime Minister Narendra Modi today promised more funds to states with greater powers on their utilisattion, even as he asked them to address issues delaying projects.

Keen to revive investment cycle, Modi at the first Governing Council meeting of the newly-constituted NITI Aayog asked Chief Ministers to personally monitor factors impacting project execution and suggested that an officer be identified in each state to monitor and resolve pending issues.

He offered to transfer some of the 66 centrally sponsored schemes, for which Rs 3,38,562 crore was provided in 2014-15, to states. A sub-group of Chief Ministers would be set up under NITI Aayog to look into rationalisation of these 66 schemes and recommend which ones "to continue, which to transfer to states, and which to cut down".

"We will move away from 'one size fits all' schemes and forge a better match between the schemes and the needs of states," Modi said.

Modi also announced setting up of two more such sub-groups -- one for skill development and creation of jobs within states and the other to create an institutional framework to make 'Swachh Bharat (Clean India)' a continuous initiative.

Identifying poverty elimination as the biggest challenge, he said the new body, which replaced the long-standing socialist era plan body Planning Commission, will forge a model of "co-operative and competitive federalism".

"Forgetting all our differences, let us focus on the cycle of investment, growth, job creation and prosperity," he said at the meeting attended by Chief Ministers and representatives of 31 states and Union Territories, addressing them as 'Team India'

Noting that India cannot advance without all its states advancing in tandem, the Prime Minister said the idea was to bring up all states together in the spirit of 'Sabka Saath, Sabka Vikas'.

Later briefing reporters, Finance Minister Arun Jaitley said that Modi told CMs that "the priorities are growth, investment, jobs, poverty alleviation, decentralisation, efficiency and no delay in execution of projects".

The Prime Minister, Jaitley said, also highlighted that the economic activity really is to take place in states and therefore states have an important role to play.

West Bengal Chief Minister Mamata Banerjee skipped the meet, but Bihar Chief Minister Jitan Manjhi, who is facing a political turmoil back home, was present. States like Tamil Nadu and Uttar Pradesh demanded more funds for states, while Kerala sought greater flexibility in central allocations.

Source:BS

Inox Wind bags 166-mw contract from Green Infra

nox Wind has received a 166 mw contract 

from Green Infra to set up projects in 

Gujarat, Madhya Pradesh and Rajasthan 

NEW DELHI: Inox Wind has received a 166 mw contract from Green Infra, a company promoted by IDFC PE Fund, to set up projects in Gujarat, Madhya Pradesh and Rajasthan in the sector where the government has restored tax benefits to promote clean energy. 

Inox Wind, part of the $2 billion (about Rs 12,400 crore) Inox group that has interests in multixplexes, cryogenic technology refrigerants and industrial gases, is a subsidiary of Gujarat Fluorochemicals. 

Under the contract, the company will develop and construct the projects on a turnkey basis, supply 83 units of 2 mw wind turbine generators and undertake long-term operations and maintenance, said Devansh Jain, director, Inox Wind. The projects are likely to be commissioned in phases by December. 

While Jain did not divulge the total value of the order, according to market experts an investment of about Rs 6 crore is required per megawatt of wind power. The government's thrust on renewable sector has boosted investor sentiment and attracted several companies to wind and solar power generation. Companies like Suzlon are counting on revival of the sector while the Adani group recently announced a $4 billion investment in the renewable energy sector along with US firm SunEdison, a leading p .. 

player in photovoltaic equipment. 

According to ratings agency ICRA, capacity addition in wind energy is likely to increase 10% to 2,200-2,300 mw during the current financial year. 

Inox Wind also plans to expand operations and is in the process of setting up an integrated wind turbine manufacturing facility in Madhya Pradesh at an investment of about Rs 250 crore, director of Inox Wind added. 

The company will manufacture 800 mw of nacelles and hubs, 800 mw of blades and 600 mw of towers at the new facility which is likely to be commissioned in phases over the next year. Earlier, it was awarded two wind-farm project contracts of 54 mw and 118 mw in Gujarat and Rajasthan by Tata Power Renewable Energy, a wholly-owned subsidiary of Tata Power. 

Industry executives told ET that Inox Wind is likely to come up with an initial public offer (IPO) in March-April. The company plans to raise up to Rs 700 crore as primary component and an offer for sale of up to two crore shares held by Gujarat FluorochemicalsBSE -0.57 % is on the cards, said an executive, who did not wish to be identified. 

The total issue size will be decided after the valuation, the executive said, adding that the company is in the process of holding road shows for the IPO in Hong Kong, Dubai and London. 

Source:ET

BHEL commissions 270 MW thermal unit in Maharashtra

NEW DELHI: State-run BHELBSE -2.54 % today said it has commissioned a 270-MW unit of a coal-based thermal power plant in Maharashtra. 

The third unit was commissioned at Rattan India Power Limited's (formerly Indiabulls PowerBSE -3.45 %) upcoming thermal power project located at Amravati in Maharashtra, BHEL said in a statement. 

This is the third 270 MW unit commissioned by BHEL in Phase-1 of the project. The project is being executed in two phases, each of 1,350 MW, the statement said. 

Shares of the company were trading at Rs 281.40, down 1.30 per cent on the BSE.

Source:ET