Telangana aims to become power surplus in two years

Telangana's efforts to meet its power demands received a boost when the Rural Electrification Corporation (REC) agreed to fund three major power projects by giving a loan of Rs 24,000 crores. The funds will be utilized by the Telangana State Power Generation Company to set up the projects having an installed capacity of 6280 MW—the 800 MW at Kothagudem Thermal Power Station, 1080 MW at Bhadradri in Khammam, and 4400 MW at Damaracherla in Nalgonda district.

Once these three projects, and a few others that are being planned separately, start operating, Telangana hopes to become a power surplus state. A Memorandum of Understanding has been signed between REC represented by its Chairman and Managing Director Rajeev Sharma and TSGENCO represented by its Chairman and Managing Director D Prabhakar Rao. On a request from Chief Minister K Chandrasekhara Rao, REC reduced the rate of interest by 0.5 per cent as a special case which will reduce the burden on Telangana by Rs 600 crores.

REC is a Navaratna Enterprise and provides financial assistance for rural electrification as well as all types of power generation, transmission and distribution projects. Apart from this Rs 24,000 crores funding from REC, the Power Finance Corporation (PFC) had earlier agreed to fund Rs 15,000 crores for these three projects and TSGENCO will fund Rs 3,000 crores totaling Rs 42, 000 cores that are required to complete the projects. CM Rao said that power generation will go up as NTPC is also starting work on its 4000 MW (5X800MW) project at Ramagundem while the 1200 MW Singareni Power Project will come up at a cost Rs 4,000 crores.

The CM said that another Rs 21,500 crores will be invested in solar projects and establishing the evacuation and transmission lines. The total investment for 10, 280 MW of power plants in the next four years will amount to Rs 91,500 crores, officials said. Telangana Government has two-pronged approach to increase power generation. On one hand it is working on resource mobilization for establishing basic infrastructure, ensuring water supply to the projects, township development, and laying rail tracks to maintain coal supplies while on the other, it is working on acquiring huge tracts of land to build these projects.

Now that a major portion of the funds are being given in the form of loans by REC and PFC, only the land and environmental clearance issues remain. For the Bhadradri power plant of 1080 MW at Manugur in Khammam District, 1134 acres of land has been already acquired and Telangana Government has applied for environment clearances. This plant's requirement of 1.2 TMC of water will be met from Godavari River, official said, adding that BHEL has already started work there. For the 800 MW of plant at KTPS in the existing land, work has commenced. For the 4400 MW plant 10,000 acres is being acquired at Damaracherla in Nalgonda District and environment clearances are being obtained. 4.6 TMC of water required for this plant will be drawn from the nearby Krishna River.

Source:KSEB

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