Energy & Power

WORLD WATCH

EU Ready to Work with India

The European Union (EU) will support India's efforts to meet its huge energy requirements, EU Commissioner for External Relations Benita Ferrero-Waldner said. “We acknowledge India's energy needs and are committed to support its energy components, of which civil nuclear energy is an important part,” she told reporters.

However, after talks with Prime Minister Manmohan Singh, she made it clear New Delhi would have to move towards the non-proliferation regime. “A few steps are still needed before such a cooperation is made possible. We hope India will take these steps towards the international non-proliferation mechanism and mainstream, and then swiftly conclude a safeguards agreement with the IAEA,” she said.

India is negotiating with the International Atomic Energy Agency (IAEA) to sign a safeguards agreement.

ADB to Invest $3B in Pakistan

The Asian Development Bank (ADB) will invest $3 billion in Pakistan for improvement of power transmission and distribution system in the next three years, said ADB Country Director in Pakistan, Dr Peter Fedon.

He assured Pakistan of the ADB’s technical and financial support for major water and power sector projects, he told Pak Water and Power Minister Liaquat Ali Jatoi.

The minister informed the ADB delegation that Pakistan is also focusing on alternative energy projects such as wind power, solar energy, coal-based generation and hydel power and that the Bank’s support in this sector will be of great help.

India Cuts Oil Prices

India stepped up efforts to control inflation, running at its highest in more than two years, by cutting government-controlled retail fuel prices for the second time in three months.

The move, which reduced retail prices of petrol by 4.5 percent and diesel by 3.2 percent, came as data showed wholesale prices, India’s most widely watched measure of inflation, rising at an annual rate of 6.73 percent.

Shares in state-run refiners ended more than one percent down while government bond prices rose after the announcement. Oil Minister Murli Deora said the price cut was driven partly by the recent dip in global oil prices and the ruling Congress Party’s desire to protect people from inflation.

Koda Signs Pacts to Generate 13,000 MW

Adhunik Thermal Energy Ltd (ATEL) has laid the foundation stone of a 270 mw thermal power generation station in the Seraikela-Kharswan district of Jharkhand state in India.

Laying the foundation stone, Jharkhand Chief Minister Madhu Koda said the state had signed up memoranda of understanding (MoU) with different investors in the power sector for building power generating capacity up to 13,000 MW, most of which were big projects, viable only at coal pit-heads.

Koda wanted the Centre to clear the state’s pending pit-head power plant proposals.

Nepal to Add 630 MW

Apart from initiating a campaign to reduce power consumption to mitigate a chronic power crisis, Nepal Electricity Authority (NEA) is starting construction of projects totaling 481 megawatt (MW) in output and is also entering into Power Purchase Agreements (PPAs) with private sector producers for projects totaling 150 MW in the next six months.

NEA chief Arjun Karki also informed that apart from the 28 MW that PTC India Ltd., a leading Indian power trader, is supplying to Nepal from next week, NEA is working to import 50 MW more from India through the Duhabi-Purnia transmission link.

40% Subsidy on Utility Bills of Textile Industry

The Pakistan government is considering a proposal to subsidize up to 40 percent of the payable amount of utility bills to the textile industry to make its exports competitive in the international markets.

If accepted by the government, this would be a major incentive along with other measures for this ailing sector, which is now struggling for its survival in the post quota era due to increased competition from China, India and Bangladesh.

Although the government had approved a Rs 25 billion incentive package for the depressed textile sector, this huge package has not helped fully the textile sector and it is still in search of further government incentives to be competitive in the international markets and to defend its earlier presence in the international markets.