Energy & Power

WORLD WATCH

Indian Govt. Reinvents Disinvestment

The Indian government has re-invented the disinvestment process and has targeted raising Rs 1,500 crore funds for the National Investment Fund through initial public offer (IPO) of three public sector power companies, despite opposition from its Left allies.

"The Government will be piggybacking on the IPOs of Rural Electrification Corporation (REC), Power Grid Corporation of India (PGCIL) and National Hydro-electric Power Corporation to raise Rs1,500 crore for the NIF, which has no funds currently", Finance Minister P Chidambaram said after a cabinet meeting.

Based on the estimated current book value of the three unlisted companies, he said, the government expects to raise a total of Rs 2,400 crore, adding that the government hopes to garner funds for NIF from the IPO sales.

Post IPO, the government's share in REC will come down to 81.22 per cent, while that in PGCIL and NHPC will be reduced to 86.36 per cent each, Chidambaram said.

Chidambaram said External Affairs Minister Pranab Mukherjee had met the CPI-M leaders in January to appraise them of the need for finding resources to be channeled into the National Renewal Fund, which is meant for reviving the ailing public sector undertakings.

Lankan Govt. to Set up Sustainable Energy Authority

The Sri Lankan government has decided to establish a sustainable energy authority for utilization of natural energy resources in Sri Lanka, a top minister said.

“Developing renewable energy resources, declare energy development areas, implementing energy efficiency measures and conservation programs, promoting energy security, making energy delivery reliable and cost effective would be some of the main areas concerned in establishing such authority,” Media Minister Anura Priyadharsana Yapa told reporters.

The Cabinet has granted its approval to the memorandum submitted by Minister of Power and Energy W.D.J. Seneviratne, for the establishment of a sustainable energy authority.

Loadshedding Holiday in Nepal

Faced with drastic fall in electricity generation from run-of-river projects and quick depletion of water level in the reservoir feeding the two Kulekhani projects in Makwanpur district, Nepal Electricity Authority (NEA) is enforcing up to seven hours of power cuts daily in most parts of the country.

After finalizing the new loadshedding schedule, Sher Singh Bhat, chief of NEA's Systems Operations Department, said that parts of the country other than west of Lamahi and east of Lahan will face seven hours of power cuts per day for four days every week and six hours of power cuts per day for two days every week. These parts will enjoy a loadshedding holiday every week.

In areas west of Lamahi, the existing power cut schedule of three hours daily will continue, while in Lahan and areas east of it, there will be 24 hours of power cut per week.

"In other areas, including the Valley, there will be seven hours of power cut for four days and six hours of cut for two days every week. Every household will have one load-shedding holiday per week," Bhat said.

ADB Grant to Expand Hydro in Bhutan

The Asian Development Bank (ADB) is preparing a project to expand hydro power development and extend access to electricity in Bhutan's rural areas through a US$ 1.6M grant from its Japan Special Fund, financed by the Government of Japan.

Bhutan is the only South Asian country with a power surplus. Yet despite its abundant water sources and hydro power capacity, most people in the country do not have access to electricity. The Government aims to achieve 85.6% electrification by 2013 and develop 5000MW hydro power generation for export to India by 2020.

The technical assistance (TA) grant will prepare a project that will extend electricity to more than 8900 rural households, providing missing transmission links between the eastern and western regions.

In addition, the TA will accelerate hydro power development, through which Bhutan can generate surplus power to export to India. Power exports account for Bhutan's largest source of Government revenue, generating financial resources for socioeconomic development such as rural electrification.

Pak PM for Upping Exploration Activities

Pakistan Prime Minister Shaukat Aziz has instructed the Ministry of Petroleum and Natural Resources to take further steps for increasing the exploration and drilling activities besides expediting the implementation process of Iran-Pakistan-India (IPI) gas pipeline.

He said there is surge in the energy demand as a result of the high growth achieved by the country during the last few years and the government is focusing both on increasing indigenous production and import of gas to bridge the gap between demand and supply.

The PM was chairing a meeting to review the government's energy strategy. He said the government was weighing various options to meet the energy needs of the country in an optimum manner.

The PM said that in view of the high growth projections for the future in all sectors of economy, the energy requirements are expected to rise further and the government is making focused and concerted efforts to increase our capacity in the energy sector to maintain the momentum of growth.