Energy & Power

WORLD WATCH

Reliance Power to Invest $28 Bn in 13 projects

Reliance Power Ltd, part of the Reliance Anil Dhirubhai Ambani Group (RADAG), will generate over 28,000 MW of electricity by building 13 projects in the next 6-7 years with an investment of $28 billion.

Lalit Jalan, Director, Reliance Power, told a news conference that the Indian electricity sector offered huge opportunities as the demand for energy was expected to grow by eight percent during the 11th plan period (2007-12) and by nine percent during 12th year plan period (2012-17).

"There are huge shortages in India. Four hundred million Indians don't have access to power. The per capita consumption in India is 600 units per annum, which is less than one-fourth of the world average of 2,500 units," Jalan said.

With India setting a target of nine to 10 percent growth, it needs more electricity. "The supply will fuel demand. Industry after industry will increase consumption," he said.

Plan to Distribute 5 Mn Energy Savers in Pakistan

Pakistan Electric Power Company (Pepco), in its bid to promote energy saving in all segments of society, has devised an ambitious plan to distribute five million energy savers to across country hospitals, charitable organizations, schools and small clients of less than 100 unit per month consumption.

Pepco Energy Management and Conservation Director General Tahir Basharat Cheema told PTV that as many as 100,000 additional energy savers had already been provided to nine electricity distribution companies for onward distribution among schools, charitable institutions and small consumers free of cost.

Those showing electricity bills having used less than 100 units per month would be provided one energy saver free of cost. A number of measures are being taken to enhance awareness about energy conservation.

Industrialists have been asked to replace decades old machinery with energy efficient latest machinery to save energy and contain high bills. He said line losses had also been reduced from 27.3 percent in 1999 to 21.3 percent in 2007. Reducing one per line losses ensures saving of three billion rupees.

Indian Oil to Boost spending on Gas Stations, Distribution

Indian Oil Corp., India's biggest refiner, will increase spending on gas stations and distribution networks by 33 percent to a record next fiscal year to supply fuel in the world's second-fastest-growing auto market.

Indian Oil will spend US$ 509 million on new and existing retail outlets in the 12 months from April 1, said G.C. Daga, Director for Marketing.

General Motors Corp., Ford Motor Co. and Tata Motors Co. announced plans to increase auto production and sell new models in India where rising incomes and economic growth are stoking demand for cars. Indian Oil is expanding its network in anticipation that state-set retail fuel prices will be raised.

Tata Steel, SAIL Form JV for Coal Mining

Tata Steel announced it has signed an equal stakes joint venture agreement with Steel Authority of India (SAIL), for coal mining activities in India.

According to an official release issued by Tata Steel, the JV agreement was signed by S K Roongta, Chairman, SAIL, and B Muthuraman, Managing Director, Tata Steel.

Four suitable medium coking coal blocks in the state of Jharkhand with reserves of around 600 million tonnes are under evaluation for this purpose by a joint working group of SAIL and Tata Steel. On allotment of the blocks, the JVC will develop and carry out mining operations for the captive use by SAIL and Tata Steel. Both the companies are expanding their steel making capacities and require secure sources of key raw material inputs like coking coal.

Tata Steel and SAIL had also hiked steel prices this week due to a 10% rise in raw material costs of iron ore and coke during the past few months.

India to Provide Solar Power Subsidy

India will subsidize the running of solar power plants to help develop a renewable energy infrastructure, where high costs can be prohibitive, said the Minister for Renewable Energy.

"My ministry will provide financial assistance amounting to 12 rupees (30 cents) per kilowatt hour in case of solar photovoltaic and 10 rupees per kilowatt hour in case of solar thermal power fed to the electricity grid," Vilas Muttemwar said in a press conference.

A maximum capacity of 10 megawatt (MW) in each of the country's states and a maximum of five MW per developer will be considered under the scheme.

The private sector is expected to invest about 10 billion rupees ($253.7 million) in solar plants which could apply for aid under the scheme during the five years to 2012, the statement said.

Renewable energy accounts for more than 7.5 per cent of India's installed generation capacity of 127,673 MW, a rate that compares favourably with much of the rest of the world.

Fuel Price Hike Likely in Feb in India

The Indian government is considering an increase of Rs 4 and Rs 2 a liter in petrol and diesel prices respectively to moderate the impact of high international crude oil prices on state-run oil firms.

The group of ministers (GoM) of fuel, headed by External Affairs Minister Pranab Mukherjee, is expected to meet later this month. This will be followed by a meeting of the Cabinet and a hike is likely in first week of February.

Petroleum Secretary M. S Srinivasan said a moderate increase in fuel prices was likely, but refused to speculate on the quantum of increase.