Energy & Power

WORLD WATCH

India Transfers Power Firm to TATA

India has transferred state-run Coastal Gujarat Power Ltd., which was set up for the 4,000 megawatt Mundra project, to private major Tata Power Co.

The transfer was facilitated by government-backed Power Finance Corp. The government had planned nine ultra mega power projects to be set up in various parts of the country to augment power generation. The Mundra power project, in western Gujarat state, is the first among them.

PFC transferred the documents to Tata Power Co., which emerged as a successful bidder. Tata can now develop the project, the Power Ministry Sushil Kumar Shinde said.

The documents were presented to Tata at a function attended by Power Minister Sushil Kumar Shinde. The Mundra power project is the largest competitive-bidding-based independent power project to be constructed anywhere in the world. It will have five 800 MW supercritical units.

Japan to Help India Reduce Energy Consumption

Japan held its first ministerial talks with India recently to help the emerging Asian economic power reduce its energy consumption.

Following similar talks with China, Economy, Trade and Industry Minister Akira Amari met with Montek Singh Ahluwalia, deputy chairman of India's Planning Commission, to sign a joint statement, and launch working groups on the issue.

The groups will meet in summer at the earliest when they will be joined by members from the private sector, the ministry said.

Japan, a nation widely seen as a front-runner in energy-saving technology, will now be working with the two fastest-growing economies in Asia, both large emitters of heat-trapping gases.

Sri Lanka's Electricity Tariff to Rise

The Ceylon Electricity Board (CEB) is reportedly considering another increase in the electricity tariff as the Ceylon Petroleum Corporation (CPC) is moving to revoke the fuel concession provided so far to the CEB.
The CEB has yet to pay a debt of Rs. 2.2 billion to the CPC for the fuel it has purchased. Minister of Petroleum and Petroleum Resources Development A.H.M. Fowzie informed the CEB in writing on March 30 that it should pay the debt immediately.

Meanwhile, the CEB, which is running at a huge loss and is not in a position to pay the massive debt, will have to increase electricity tariffs again if the CPC revokes the fuel concession. The CPC supplies diesel at Rs. 55 per liter and crude oil at Rs. 30 per liter to the CEB.

UAE Firm to Produce Low-Cost Solar Plants

Asharq Al-Awsat- leading UAE-based Dhabian group of companies will set up a manufacturing unit to produce high quality but cheaper small solar and wind power plants in Gwadar industrial area. The Norwegian technology will be used to produce small solar and wind power plants which cost around $1000 each.

Each plant will generate electricity, sufficient to cater to the requirements of one village at a low cost, private TV channel reported.

‘India’s Energy Consumption, Growth De-linked’

Detailing the steps taken by India towards sustainable development, its United Nations Ambassador Nirupam Sen recently told the Security Council that it has delivered a GDP growth of 8 per cent with only 3.7 per cent growth in its total primary energy consumption.

There has been effective de-linking of energy sector growth from economic growth, he said in a paper circulated among Council members as it debated the impact of climate change on the security yesterday.

The paper shows that India's current per-capita GHG (Greenhouse Gasses) emissions are only 23 per cent of global average, four per cent of the US, 12 per cent of EU and 15 per cent of Japan.

The paper said India, with 17 per cent of the population of the world, has only four per cent of global GHG emissions.

Indonesia Postpones Coalbed Methane Gas Bids

Indonesia has delayed the issue of tenders for the exploration and production of coalbed methane gas until August due to requests from potential bidders.

Four of the six investors planning to submit tenders had requested extra time to develop pilot projects, which could take up to 3 months each, according to R. Priyono, director of upstream oil and gas development at Indonesia's energy and mineral resources ministry.

Meanwhile, Priyono said the government would offer two areas in South Sumatra and South Kalimantan in May to state-owned PT Pertamina and PT Medco EP Indonesia, both of which already have signed a memorandum of understanding to develop the areas.

Indonesian reports say the two concession areas in South Sumatra and in Barito, South Kalimantan, hold the largest deposits of CBM in the country, with reserves at 183 TCF and 102 TCF, respectively.

Indonesia is reported to have prepared a detailed plan for CBM exploration, setting out a production target of 100 MMCFD by 2014 rising to 1 BSCFD by 2025.

RIL Lines up Rs 8k cr to Bring Gas from KG Basin to Bengal

Reliance Industries (RIL) plans to significantly increase its investment in the proposed gas pipeline project in West Bengal.

The company plans to pump in between Rs 5,000 crore and Rs 8,000 crore to build an 1,100-km pipeline to bring natural gas from the Krishna Godavari basin to West Bengal. The project is slated to be completed by 2009. Reliance had earlier earmarked Rs 2,000 crore for a proposed 400-km pipeline to transport KG basin gas to the state.

“The pipeline will be ‘common carrier’. We are in the process of finalizing the investment plan. The figure will be finalized once we get an idea about the volume of gas to be carried through the pipeline. On a rough estimate, it would require between Rs 5,000 crore and Rs 8,000 crore for a pipeline of 36 inch diameter,” RP Sharma, president (LNG business), Reliance Industries, said.

Indian Coal Ministry Receives 1,400 Applications

The Indian coal ministry has received 1400 applications for 38 coal blocks with an estimated reserve of 4 billion tons offered for captive mining in November 2006. This is the highest number of applications ever received by the coal ministry for allotment of blocks.

HC Gupta, the coal secretary, said last time when the ministry allotted 130 blocks with an estimated reserve of 27 billion tons for captive mining, the number of applications received was around 400. The big increase has been owing to the government’s decision to allow domestic as well as overseas mining companies to directly access captive blocks reserved for power, cement and steel sector players.

Gupta said the applications were received till January and the blocks are likely to be allotted in the next two to three months. With the government opening doors to domestic as well as foreign mining companies to participate in coal mining, major players like BHP Billiton, Essel Mining, Rungta Mining, Sesa Goa etc are expected to take blocks and mine at a cost 20-25% less than that of Coal India.

According to official sources, guidelines for allocation of captive coal blocks have been amended. According to the new entry norm, such companies will have to tie up with one or more companies in the cement, steel and power sectors for supply contracts.

Foreign multinational companies, according to the changes in the guidelines, can bid for captive blocks, if they set up an Indian arm or propose to do so within a specified period.