Embed Size (px)
Citation preview
VOLUME 9 | ISSUE 07 | SEPTEMBER 2020 THE COMPLETE ENERGY & INFRASTRUCTURE SECTOR MAGAZINE FOR POLICY & DECISION MAKERS
500 6.05 6.73
DEVELOPMENT OF ALTERNATE FORMS OF ENERGY AT THE CENTER OF OUR ENERGY SECURITY AND SUSTAINABILITY GOALS
EXPANDING NATURAL GAS FOOTPRINT IN INDIAN ECONOMY CONCEPT AND CONCERNS
Special Feature:
Perspectives
POLICY CHANGES AMID COVID-19 CRISIS
SPELLS SUPPORT TO THE SOLAR INDUSTRY
700+ clients | Fortune 500 companies | Serving Energy Sector since, Year 2000
INFRALINE
Power Sector
Oil & Gas Sector
Oil & Gas Techno-Global Database
Market Trends and advancement in the Global Oil & Gas arena across 50+ countries
Coal Sector
Roadways Sector
Renewable Energy Sector
energy power plants
Key Highlights of our Database
Follow us:
Follow us:
20 years of service to the energy & infrastructure industry of India. Knowledge base, ROD , Reports, News , events and magazine .
Over 500 clients and over million + users of our service since 2000.Trusted Resource for global consultants like KPMG, E&Y , CRISIL, TERI, IIM(A), SBI, Tata Capital, Central Electricity Regulation Authority, MINISTRIES and more.
Infraline is a premier research & consulting company providing knowledge base solution and market intelligence. Our knowledge base provides comprehensive and qualitative coverage across five sectors of energy & infrastructure, with accurate and relevant information on projects.
We have a team of over 200 data scientist & analyst to provide information solution with heuristic analysis and analytical view to support strategic business decisions. Our researchers and consultants have over 4000 man hours of experience and expertise on demand , market study feasibility and sustainability reports.
Magazine & Events
Suppliers Database of Products, Services & Financing
DPR, AE, Inspection services for Roads, Waterways, powergride
Roads. Waterways. Ports. Railways
Coal. Power. RE. O&G
InfralineNest
Research & Consulting
Report & White-Paper
Conference & Events
For Priority BusinessAvantika : PR Manager Tel : +91-120-6799108 (D) | +91-9871131730 (M) | Fax: +91-120-6799101Email: [email protected] | www.infraline.com
3SEPTEMBER | 2020
Printed by Pee kay Printers. and published by Mrs Shashi Garg and printed at Pee kay Printers. Plot No. C-6 Sauth Ganesh Nagar Delhi-110092, and published at 14-D, Atmaram House, 1, Tolstoy Road, New Delhi - 110001, Editor-Mrs Shashi Garg
Name and address of individuals who own the newspaper and partners or shareholders holding more than one percent of the total capital Owner: M/s Infraline Technologies (India) Private Limited, 14-D, Atmaram House, 1, Tolstoy Road, New Delhi-110001
Shareholders holding more than one percent of total Capital of the owner Company1. Mrs Shashi Garg, 60, Siddhartha Enclave, New Delhi-1100142. Abhav Garg, 60, Siddhartha Enclave, New Delhi-110014
I Shashi Garg hereby declare that the Particulars given above are true to the best of my knowledge and belief.
SdMrs Shashi GargSignature of the Publisher
Dear Readers!!
Here’s presenting to you another power-packed edition of InfralinePlus which is on Oil & Gas.
Natural gas may have emerged as an exciting alternative to fossil fuels in the country, but its
expansion continues to be affected in the absence of a uniform pricing mechanism. Adoption of
a market-linked pricing system has therefore been recognized as necessary for the resolution of
affordability issues and challenges posed by imported (natural) gas. The Biomass-based Bio-Energy
sector, which too has been recognized as a potential substitute to conventional forms of energy,
has struggled to find its foothold in the business arena for most part of its existence. However,
the termination of the mandate to fire biomass with coal and adoption of new technologies have
ushered in a new era of development in the sector, at the crux of which lies improved investor
participation. Speaking of new directions, the Indian Solar industry which had been going through
testing times especially after the outbreak of the Corona pandemic has been pushed onto a renewed
path because of a number of recent policy changes initiated by the government.
The September edition is replete with insights on these very areas – I hope that you would gain a
new perspective while going through the magazine.
Publisher’s Note
Editorial Publisher & Editor-in-chief
Shashi Garg
Associate Editor-in-Chief
Srishti Juyal
dESiGn Rajesh Rawat
rESEarch
Head of Integrated Research Consulting
Additional Charge Training
Krishnandan Kumar Singh
Sector lead Power
Krishnandan Kumar Singh
& Abhinav Sharma
Sector lead oil & Gas
Loiponic
Sector lead coal
Krishnandan Kumar Singh
& Abhinav Sharma
Sector lead roads
Ankit Kumar
Sector lead rE
Krishnandan Kumar Singh
& Abhinav Sharma
BUSinESS
Country Head – Business Solutions
Rajesh Singh Panwar
Mobile: +91-9711786999
email: [email protected]
advErtiSinG National Advertising Manager Avantika
Mobile: +91-120-6799108;
email: [email protected]
circUlation & SUBScriPtion
National Circulation Manager
Supam Panja
Form iv
SHASHI GARGManaging Director and Editor-in-chief Infraline Technologies (India) Pvt. Ltd.
registered office14th Floor, Atmaram House, 1, Tolstoy Road, New Delhi-110001 Email: [email protected]
corporate office noidaA-31, Sector 3, Noida Tel.: +91 120 6799100 Fax: +91 120 6799101
ORDER FORM
Stay updated with the current industry trends and scenario through widely read interviews, articles and points of view by the industry stalwarts, policy and decision makers in the energy and infrastructure sector.
SUBSCRIBE TO THIS UNIQUE COMBO
PROVIDE YOUR DETAILS (IN CAPITAL LETTERS)Mr/Ms............................................................................................. Organization ........................................................................................................ Designation ........................................................................................ Address ............................................................................................................................................................................................................................................................................................................................................... City ................................................................................... State ............................................................................................ Pin Code ...................................................... Email ..................................................................... Mobile ........................................................................... Phone (O�) ........................................................................... Phone (Resi) ............................................................. Date of Birth ...............................................Company PAN No. ......................................................................... Company GSTIN No. ..............................................................................................................................
Terms and Conditions: Please allow us 4-5 days for processing your subscription request. Copies will be sent by ordinary post/courier. (Courier charges as applicable)
Co. Seal & Signature
Disclaimer: Infraline will not be responsible for postal delay, transit losses or mutilation of copies. No cancellation will be entertained after payment has been received & no refund shall be paid. Please mention your name and address on the reverse of your DD/Cheque. All disputes are subject to the exclusive jurisdiction of courts in New Delhi only.
Date:
Place:
PAYMENT OPTIONS
Account Name:Account No.:Bank:Bank Branch:
IFSC Code (for RTGS):MICR Code:Infraline PAN No.:Infraline GSTIN No.:
Making payment through wire transferInfraline Technologies (India) Private Limited53005093281Standard Chartered BankK-3 Brahm Datt Tower, Sector 18,Noida – 201301SCBL0036024110036004AAACI7075E09AAACI7075E1ZJ
By Cheque/DD/POKindly Draw the cheque/DD/PO in favor of:Infraline Technologies (India) Private Limited.
Cheque/DD No .................................................................Dated ...............................................................................Bank ................................................................................Branch .............................................................................
DAILY NATIONAL
& INTERNATIONAL NEWSLETTERS
SUBSCRIBE NOW!PLEASE TICK SCHEME OF YOUR CHOICE
*Digital Edition of Daily National & International Newsletters*Print & Digital Edition of InfralinePlus Magazine
TERMNEWSLETTER & INFRALINEPLUS MAGAZINE
INR USD SPECIAL DISCOUNT1 Year `1,80,000 $ 25722 Years `3,00,000 $ 42863 Years `3,50,000 $ 5000
5%10%15%
SUBSCRIPTION OPTIONS
Newsletter
Infraline Knowledge Tower, A-31, Sector 3, Noida-201301 Tel: +91-120-679 9125, 122; +91- 120-6799100 (B); Fax: +91- 120 679 9101, Email: [email protected]
Supam PanjaInfraline Technologies (India) Private LimitedTel : +91-120-6799136 (D) | +91- 9971576781 (M) | Fax: +91-120-6799101 | Email: [email protected].
5SEPTEMBER | 2020
AssociAte editor-iN-chief’s Note
SriShti Juyalassociate Editor-in-chiefInfralinePlus
‘Sometimes renewal comes in surrender’ Since its discovery in the 1960’s, Natural gas has emerged as a powerful alternative
to fossil fuels besides renewables, but its growth has largely been limited due to a number of market and regulatory factors. In order to encourage the use of natural
gas among people, it is important to make it more affordable, for which the adoption of a market-linked pricing mechanism is necessary. And, as we work towards making Natural gas emerge as an attractive commodity within the larger community, we should also direct some of our focus on the advancement of other sectors such as the Biomass-led Bio-Energy sector which is vital to Rural development and attainment of Sustainable development goals. The sector which was once mired in challenges such as lack of policy initiatives and investor participation has entered a new phase of growth after the termination of the mandate to fire biomass with coal and adoption of new technologies. That said, in order to maintain the momentum of growth, it is necessary that we adopt certain strategies that improve awareness and infrastructure in the sector. Like the Bio-Energy sector, the solar industry too has been grappling with its own uncertainties and pressures for the longest time. A slew of recent policy initiatives by the government, however, have breathed a new life into the sector which was almost on the brink of decadence due to the Covid-19 crisis.
This issue on Oil & Gas is bundled with insights on these very areas – I hope that you would enjoy going through the issue as much we have enjoyed putting it together.
Warmest regards,
~ Rob Bell
Hello Readers!!
Hope you all are doing well.
We are back with another edition of InfralinePlus which is on Oil & Gas.
6 september | 2020
ContentsSeptember 2020
03 05Publisher’s Note Editor’s Note
8Indian Oil Corp., one of the biggest refiners in Asia, is taking the bus to reach what it considers the future of energy: hydrogen
Featured News
Perspectives
12 16The Research team throws light on a number of recent policy changes by the government which have breathed life into India’s Covid-stricken, floundering solar industry
An analysis of the trend of PCI coal imports over the years in the wake of its growing portfolio
10,20 Press Releasearray networks india Pvt. ltd, a subsidiary of Array Networks Inc., a Network Functions Platform Company, today announced their undertaking into the production of hardware and software products reinforcing
7SEPTEMBER | 2020
Cover Story Special Feature
32
Sector Statistics
46, 54, 62, 72,78This helps organizations to better understand the movement of the industry and accordingly plan their decisions towards expansion and sustaining themselves in the present competitive market.
Sectors42 About Coal
58 About Oil & Gas
76 About Roads
50 About Power
68 About RE
22
The Biomass based Bio Energy sector may have succeeded in pulling itself out of a dark spot after the termination of the mandate to power biomass with coal and adoption of modern technologies, it still faces a whole lot of challenges with respect to a number of financial and non-financial factors that restrict investor participation in the sector. The following piece penned by col. rohit dev – chief operating officer, PrESPl, throws light on these areas and also offers suggestions for driving growth in the sector.
Mr. Krishnendu chatterjee - JGM, ESSar oil & Gas Production ltd. and Mr. rishabh Sharma – consultant MS P.E., University of houston, suggest the adoption of a market-linked pricing mechanism, besides other governmental initiatives, as a way out of the challenges of affordability and penetration for natural gas in the country.
82
Recent Tenders
8 september | 2020
featured news
Indian Oil Corp., one of the biggest refiners in Asia, is taking the bus to reach what it considers the future of energy: hydrogen.
The company that sells almost half the oil products in India will deploy 50 buses around the capital powered by a blend of hydrogen and compressed natural gas, Chairman Shrikant Madhav Vaidya said. The fleet will serve the public and could start rolling as soon as this year, potentially creating a new market for a producer trying to rebound from its first annual loss in at least 20 years.
Hydrogen, long touted as the fuel of the future, had a bit of a coming-out party at this week’s S&P Global Platts Asia Pacific Petroleum Conference, as some of the world’s biggest refiners, drillers and traders extolled it as key to fighting climate change. The efforts are emblematic of an oil industry trying to reposition itself after the pandemic wiped out demand and as shareholders call for reduced greenhouse gas emissions.
AsiA’s oil giAnts Are plAnning for
A future with less crude, more hydrogen
EV Charging Infrastructure Framework in India
Administration of India has set up a yearning focus of 100 % electric mobility till 2030. As of now, Electric vehicle sale in India is just restricted to handful of the Indian population. The primary hindrance in way of the country to achieve its set target is “Charging Infrastructure for Electric Vehicles”. EV manufacturers are thinking of new innovations and models in India yet absence of charging framework is impeding market development for EVs. Big players in vehicle manufacturing in domestic market are demonstrating gigantic enthusiasm after the FAME (Faster Adoption and Manufacturing of Electric vehicle) scheme. Players providing technologies and equipment for charging are yet sitting tight for a very much characterized framework for Charging Infrastructure development. Specifications and BIS standards for charging stations and hardware’s have been declared by the Government of India recently. Framework for Charing Infrastructure is the defect in the methodology towards the growth of EV in India.
In this report we talk about the charging infrastructure framework, policies review, development of charging stations in urban communities and Highways, Utility investment models and the entire value chain. The report additionally examines the pricing of charging technologies and impact of rising advancements in batteries on the expense of vehicles.
Key Highlights
� Development of Charging Infrastructure in
Urban communities and Highways
� Analysis of Value Chain
� Best Practices to be Adopted
� Pricing of Components
� Effect of Emerging Technologies on EV
sector
Key Questions Answered
� Suitable Technologies according to Indian
market?
� Viability of Charging Stations?
� What is current support for Charging
Station?
� What are Investment opportunities in
Charging Infrastructure?
A must buy for
� Charging & Storage OEM’s
� Investors
� Automobile Manufacturers
� Charging Equipment Provider
� Policymakers & Academia
For Priority Business
Rajesh Singh Panwar
Mob: +91 9711786999
Ph: +91 120 6799125,160
Research Report
Executive Summary
10 september | 2020
array networks Joins the ‘Make in india’ initiative by Manufacturing their Products locally
BENGALURU, India - August 27, 2020
Array Networks India Pvt. Ltd, a subsidiary of Array Networks Inc., a Network Functions Platform Company, today announced their undertaking into the production of hardware and software products reinforcing its commitment to the ‘Make in India’ initiative. Array had broached about the company’s plan to go beyond application delivery and launch its security product this year and the plan is now a reality, where the Company will be focusing on producing Networking & Security products. “Array’s operation in India is one of the top contributors to the company’s overall global growth. The large percentage of this impressive growth has come from the Government, BFSI,
aviation, entertainment and education verticals. With the Government as our key customer, we believe that the customers’ confidence will increase with our commitment towards the Make in India initiative. As the government is now focused on digitization and cyber security, the network and security products produced in India will receive a major boost,” said Shibu Paul, Vice President - International Sales at Array Networks. The product manufacturing unit has been set up in Bengaluru and is expected to generate employment in India. As the hardware products being produced are for Networking and Security, it will benefit the PSUs, state and central government agencies, and the defense sector. In the coming years, Array Networks will continue to design cutting-edge solutions for Enterprise and Government customers and join the government’s Make in India bandwagon. india is a Key Market for array networksIndia is one of the fastest-growing regions for Array Networks and has good growth momentum. Array has considered India to be one of the key focus markets and growth engines. With the country’s excellent talent pool for software development, R&D and support, the company is providing a huge opportunity for the local workforce through this initiative. Array has the advantage of being the first mover in this product segment that will aid in creating and delivering value to all stakeholders.
Press releasePress Release array networks india Pvt. ltd
11SEPTEMBER | 2020
Solar Power Outlook 2030 Marching Towards Grid-Parity
Amidst the depleting hydrocarbon resources and looming threat of global warming, moving towards renewable energy seems an obvious choice. Considering the growing share of the renewable energy in the world’s total energy basket, it would be a misnomer to call renewable energy an ‘alternate source of energy”. The rapidly expanding economy of India (World’s fastest) is witnessing demand for energy outstripping supply. As India is mostly dependent on imports for its energy needs, the increasing prices of hydrocarbons are impacting industries across the sectors. Endowed with an average solar insolation of 4-7 kwh/m2 and more than 300 sunny days in a year, India has potential to shine in solar power generation. A number of factors like, zero fuel cost and wide-range of utility coupled with no direct impact on environment provide solar power generation technology an edge over others.
Growth Drivers for Solar energy industry in India
Growth Drivers
Demand Supply Gap
Rural Electrification
Enviornment Concerns
Solar Purchase Obligations (RPO's)
JNNSM
State Level Policies
Policy Intervention
“Government may not achieve even half of 2022 solar rooftop energy target of 40 GW”The Indian government has a huge target installing 40 GW of energy through solar rooftop by 2022, but is not expected to achieve even half of it by December 2021. The infographic report, India Solar Rooftop Map, said the country’s rooftop solar ca-pacity had reached crossed 2 GW as and is expected to cross the 4GW-mark at the end of 2019. Indian rooftop solar market is finally beginning to realise its potential. Industrial and commercial customers remain the biggest market segment. These customers can make excellent savings from cheaper solar energy and also reduce their carbon footprint. Public sector segment is also expected to show robust growth in the coming years because of strong government push combined with 25-30% capital subsidies.
Key Highlights� Identification of Solar Energy Potential
in the country along with detailassessment of Policies and Mechanismfor Solar Power
� Analysis of Tariff and CAPEX for settingup Solar Projects in India
� Snapshot of Countries leading SolarEnergy Installations
� Forecast for Grid Connected andOff-Grid Solar Energy with respect toTargets
Key Questions Answered� When will Solar Energy reach Grid
Parity?
� Potential Challenges ahead in Achieving2022 target of 100 GW Solar?
� What are the Trends for Tariff andCAPEX for setting up Solar Project inIndia?
A must buy for� Government Bodies
� Investors
� Policy Makers & Academia
� Solar PV Manufacturers
� Consultants
For Priority BusinessRajesh Singh Panwar
Mob: +91 9711786999
Ph: +91 120 6799125,160
Research Report
Executive Summary
12 september | 2020
Perspective
PoLicY chANGes AMid coVid-19 crisis sPeLLs sUPPort to the soLAr iNdUstrY
13SEPTEMBER | 2020
Pers
pect
ive
A number of recent policy changes by the government have re-energized the solar industry in India which was going through a period of lull owing to the Covid-19 crisis, writes the Research Team.
COVID-19 hasn’t just caused a loss of life and untold suffering in the world, it has also brought economic damage on a scale that is suspected to
surpass damage caused by 2008’s global financial crisis, globally as well as for India. Understanding the situation and its impact on our future, the world is moving towards protecting the promising business sectors and manufacturing industries. Considering the socio-economic opportunities that come with one of the most promising and lucrative industries such as Solar, India has also moved forward with policy initiatives to support solar growth.
14 september | 2020
Perspective
THE CHANGES Considering the global economic uncertainty and sapped equity market, it is easy to assume that the disinvestment targets are unlikely to be met. Therefore, it is important to have policy actions to reduce an economic fallout. Renewable energy sector and especially the solar industry in India is facing a survival challenge due to its heavy dependence on Chinese imports (Chinese suppliers have claimed 90% of Indian industry). This has unraveled the fatal flaw of importing solar rather than enhancing domestic solar manufacturing. We can only hope that the Government of India will bring initiatives to solve this issue. However, it is the present changes in Government policies that we need to be appreciative of as they have given the solar industry in India, a relief from the pressure and have also aided in planning its future.
SuPPoRTING FoRCE MAJEuRE Manufacturing contraction in China disrupted the supply chain, which delayed the completion of solar IPP projects in India. The estimations show that among a cumulative capacity out of the 12 GW of solar projects that are expected to be completed by the end of 2020, around 10 GW supply is dependent on China. Traditionally, all solar IPPs contracts, including the PPAs come with penalty clauses that come into effect in case of delay in completion. The Government of India has, however, given solar project investors and developers a major relief by announcing to treat delays on account of supply chain disruption due to COVID-19 spread in supplier countries as Force Majeure, thereby giving time extension to the developers and saving them from huge financial losses.
REduCING REPo RATEReserve Bank of India has also stepped forward to support the industries and stave off recession in the country by announcing to reduce the repo rate. On 28th March 2020, Reserve Bank of India (RBI) Governor, Shaktikanta Das made an announcement regarding cuts in interest rates by 75 basis points to 4.4%. This initiative also involved permitting all lending institutions to allow a 3-month moratorium on payment of instalments on term loans. This initiative coming after India’s finance minister Nirmala Sitharaman releasing a ₹1.7 lakh crore package to combat the impact of the coronavirus lockdown, will be injecting ₹3.74 lakh crore liquidity into the system. With other industries, this initiative has helped the Indian solar industry by maintaining liquidity to handle necessary operations and plan for the future.
ExTENSIoN oF THE ALMM dEAdLINE The Government of India has also extended the implementation date of Approved Lists of Models & Manufacturers (ALMM) for solar PV modules and solar PV cells from March 31 to September 30, 2020, due to COVID-19 pandemic thus bringing simplicity and omitting delays within the process until the industry is able to stand on its feet.
o&M oF RE PLANTS: ESSENTIAL SERvICESHighlighting that power generation (including renewable power
15SEPTEMBER | 2020
generation) is an essential service for maintaining the flow of electricity across and within states during the COVID-19 crisis, MNRE has requested states to allow movement of material and engineers to ensure continuous renewable power generation. Clarification of O&M for RE plants was a decisive step taken by the Government of India to stand by its efforts to promote and nurture renewable energy growth and transition within the country, even during the crisis.
APPEALS To THE GovERNMENTThe situation clearly speaks of the importance of building a solar manufacturing scale in India and highlights the impact of green energy industry centralization in a foreign country. As a domestic solar manufacturer and an industry leader, we would like to recommend the Government to bring in policy stability to make changes happen.
input costs• 5% Interest Subvention on term loan and working capital• Supply of power with high reliability at Average Power Procurement Cost (APPC) rates, currently it is around INR 3.50/kWh
Financial incentives• Upfront Central Financial Assistance of 25-30%• Increase export incentive from 2% to 8% under RoDTEP
Fair trade regime• Tariff barrier like BCD/SGD/ADD for at least 4-5 years while ensuring that SEZs are treated at par with DTA in terms of levying of duties of customs.
Support to Existing Manufacturing Facilities• Technology Upgradation Fund for existing investments in cell and modules.• Reserve 25% of domestic procurement for high-efficiency/new technologies with 10% higher tariffs.• Allow stage-wise backward and forward integration in Manufacturing Linked Tender• Capital subsidy of 50% for setting up R&D and Quality testing infrastructure within the manufacturing unit
We should all appreciate to the Government for incorporating incredible changes that have supported and have shown a path to the future to the solar industry. However, we need to acknowledge that country wide green energy adoption is the best path for economic recovery which we desperately need. Therefore, more aggressive changes to incorporate green energy transition is expected from India.
On 28th March 2020, Reserve Bank of India (RBI) Governor, Shaktikanta Das made an announcement
regarding cuts in the interest rates by 75 basis points to 4.4% which also involved permitting all
lending institutions to allow a 3-month moratorium on payment of instalments on term loans.
16 september | 2020
Perspective
17SEPTEMBER | 2020
Pers
pect
ivePci coal – shifting Gears with
Growing significance in indian industryIn the following article, the Research Team discusses the trend of PCI coal imports over the years in the wake of its
growing portfolio in the country
The PCI Coal trade has improved significantly in the last couple of years especially due to increasing demand in steel manufacturing industries as it works out to be
an easy and cost-effective replacement for coking coal. The steelmakers seem to be experimenting to guard against the risks of highly volatile seaborne coking coal prices. Even though, the blending process requires some additional upgradation to the furnaces, the increasing PCI Coal imports trend has made it evident that the industry has been relying on seizing the benefits in manufacturing process.
The PCI Coal Imports trend shows a significant inclination of Indian industries for its use. While analyzing the recent trends, it has been noticed that the imports have gone up almost four times to 12.71 MnT (Million Tonne) since CY-2015. Also, this must be noted that CY-2019 saw a substantial import as compared to any of the last five years with a CAGR growth rate of 87% as compared to last year.
As per Infraline’s analysis in the last five years, the consignment of PCI Coal has seen major inflow during CY-2019 & CY-2020.
During CY-2019, the month of Jan & May have seen major import flow where May-19 represents highest imports of 1.38 MnT as compared to the month of January which amounted to 1.33 MnT. Similarly, for CY-2020, only such exception has been noticed with 1.35 MnT during Mar-20. Also, it is notable that during CY-2020 imports have reduced significantly compared to previous year. The quantity of PCI coal imported during Jan-Jul is 6.7 MnT during 2020 as compared to 8 MnT in 2019 for the same duration, signaling a drop of 20% for this duration. However, a lot will depend upon the economic and industrial growth of steel sector in upcoming months that will definitely set a tone for the future imports of PCI Coal.
An average decrease of 15% of PCI Coal Imports has been observed in CY-2020 (upto Jul-20) compared to last year during same duration with an only exception of Mar-20 (highlighted in chart above), where a significant growth of 19% at 1.35 MnT can be noticed as compared to last year. However, an alarming decline in May & June’20 has been a signaling factor for lower imports of coal in current year. The upward shift of month-on-month trend shows that steel plants have
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
PCI Coal Imports Trend in Three Calendar Years(in MnT)
2018
2019
2020
18 september | 2020
Perspective
started to pick up the imports in July with growth rate marginally lesser than that of last year’s figure. The increasing economic activity and relaxation in lockdown conditions by states and central government could be some important milestones for this shift in trends. Whilst, it would be significant to say this that Aug-Dec’2020 will be detrimental in future PCI coal imports by Indian Steel Producers.
-17%-21%
19%
-13%
-42%
-31%
-2%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
Jan Feb Mar Apr May Jun Jul
M-o-M (+/-) Trend during CY-2020 over CY-2019
While predicting the future imports in CY-2020, Infraline Research team has considered three scenarios based on the conservative methods used for analysis based on various economic and developmental parameters. The three scenarios considered are based on average decline in PCI coal imports from Aug-Dec at 15%, 10% and 6%. Assuming on a more conservative side and sighting a little impetus in economic and developmental growth with an average of 15% (i.e. same as present rate) decrease in coming months, the imports are expected to reach 10.7 MnT. While assuming a little relaxed or less conservative approach considering an average of 10% reduction in growth from Aug-Dec may result in 10.9 MnT, sighting an overall shrinkage of 14% as compared to 16% in former assumption. Lastly, assuming a least conservative yet a realistic assumption of 5% drop in growth from Aug-Dec will result in 11.12 MnT, showing a shrinkage of 13%.
With major players including TATA group companies, JSW Steels, SAIL, ESSAR etc. being the highest importers of PCI Coal. This shows a major interest of Indian steel makers for PCI coal in 2019 while Australia and Russia being the two major countries of interest here. Almost 8.8 MnT of PCI Coal was imported from Australia while 3.5 MnT was imported through Russia. Most of the coal was imported through Paradip and Dhamra Port where latter’s participation has been increasingly noticeable since CY-2018.
19SEPTEMBER | 2020
Year-wise highlights of trends of PCI Coal imports are given below for reference:
Here are some key highlights related to PCI Coal imports by various countries:
. During CY-15 to 20, Australia and Russia stand as Major PCI Coal Importing Countries, totaling a share of 97%.
. Australia alone fulfills around 74% (i.e. 27.60 MnT) of PCI Coal requirement of Indian Steel Industry predominantly.
. Since 2018, preference for Australian and Russian coal has increased significantly among Indian Steel Industry Users.
. Russia contributes to 23% (i.e. around 8.5 MnT) of PCI coal requirement.
. Other countries such as Canada, Latvia, South Africa and China have a share of less than 1 MnT.
. Paradip, Dhamra, Kolkata (with Haldia), Marmagoa and Gangavaram are major ports where Australian Coal is transported through.
. Out of 38.5 MnT imports in last 5 years, approximately 30 MnT was imported through six major ports.
20 september | 2020
nhai taKES action on thE collaPSE oF UndEr conStrUction corridor in GUrGaon
On the recent mis-happening of collapse of a span of under construction elevated corridor on 6-laning of NH-248-A from Rajiv chowk to Sohna on 22.08.2020, NHAI has initiated strict action against the companies/ personnel involved in the construction of the project. A four member Committee of technical experts headed by ex-DG (Roads), MoRT&H Shri VL Patankar has been constituted to make detailed investigation in the matter. The Committee would examine lapses in the construction and suggest remedial measures to avoid recurrence of such incidents in future.Prima Facia evidence indicates that there may have been deficiencies/ lapses on part of vendors resulting in this incident threatening the safety of the users and pedestrians. NHAI has accordingly taken action against the following parties:
(a) Immediate demobilization of Shri Devender Reddy, Senior Quality cum Material Expert from the site and debarment from engagement in any NHAI projects for a period of 2 years.(b) Immediate demobilization of Shri R.K. Prajapati, Team Leader cum Senior Bridge Engineer from the site and debarment from engagement in any NHAI projects for a period of 2 years.(c) Show cause to M/s L.N. Malviya Infra Projects Pvt. Ltd. for lapses in discharging the
duties of the Independent Engineer.(d) Show cause notice to M/s Indian Technocrat Ltd. for lapses in preparation and review of design/ drawings of the construction works.(e) Show cause notice to M/s B&S Engineering Consultants Pvt. Ltd. for lapses in the preparation of design/drawings of the construction works (f) Show cause notice to M/s Rajiv Chowk – Sohna Highway Pvt. Ltd. (M/s Oriental Structural Engineers Pvt. Ltd.) for deficiencies in the construction work.
It was also observed during the inspection of the site by NHAI officials that the contractor has not taken adequate traffic safety measures viz. barricading, deployment of marshals etc. Therefore, NHAI has suspended the work on site along with imposition of penalty of Rs. 50,000/- per day w.e.f. 24.08.2020 on the defaulting contractor till the requisite safety measures are put in place as per the standards and provisions of the contract agreement.
Commenting on the matter, Dr. Sukhbir Singh Sandhu, Chairman, NHAI said “NHAI is committed to follow the highest standards in highway construction and any lapses in these will be dealt with zero tolerance. Strict action will be taken against the defaulters and they will be debarred from NHAI projects for a long period with severe penalties.”
Press releasePress Release NHAI
LPG Vs. PNG Penetration in India
Key Highlights
Key Questions Answered
A must buy for
For Priority Business
Rajesh Singh Panwar
Mob: +91 9711786999
Ph: +91 120 6799125,160
Research Report
Executive SummaryIndian energy sector has been experiencing a major wave of transformation from diesel and coal-based economy to moving towards a gas-based economy. Government of India has planned to increase the share of natural gas from 6% to 15% in its energy mix by the end of 2030 for which it has been promoting the consumption of natural gas to both urban and rural sectors of India. Being a cleaner fuel than the crude oil distillates, contribution of natural to the energy mix will also help India’s pledge of achieving 25% lesser emission level by 2020. Government has issued ten rounds of bidding process, of which eight rounds work has been implemented and completed and were able to cover around 10% of the total geographical area that include 19% of total population of India. Ninth round and Tenth round work are yet to be completed. PNGRB has authorized 229 GAs for development of CGD network across country up to 10th CGD Bidding Round covering 406 districts in the country.
Current Scenario of LPG and PNG Market
LPG and PNG Infrastructure
Production and Consumption Trends
Government Initiatives
State-wise price overview
Benefit and Challenges
CGD business entities
Government bodies
Investors
Policymakers & Academic
What is the level of penetration of LPG
and PNG in India?
What are the available and proposed
infrastructure?
State-wise number of active LPG
customers and PNG Connections?
State-wise Forecast on the Market Size
of Future Customers?
Benefit of using PNG over PNG
Apart from natural gas, government is constantly concentrating on LPG, which is also considered as a cleaner form of energy. LPG operation in India came into existence from 1980 and as on date it has covered around 91.20% of total population of India. Earlier people were using various other kind of sources for cooking purpose such as wood, coal and cow dung. Using of such sources impact health and thereby increase respiratory diseases. Both these connections of LPG and PNG will not only help people to get cleaner cooking fuel but will also reduce people’s number from getting impacted from respiratory diseases. In this context, Infraline Energy has come up with a business series report on topic “LPG Vs. PNG Penetration in India”. The core objective of the report is to focus on the penetration level of LPG and PNG in Indian market by taking into consideration the various government initiatives and infrastructural developments.
06 7 7
1420
34
11 7
86
50
35
6 3 6 9 817
1 6
86
50
Pre- PNGRB BiddingRound 1
BiddingRound 2
BiddingRound 3
BiddingRound 4
BiddingRound 5
BiddingRound 6
BiddingRound 7
BiddingRound 8
BiddingRound 9
BiddingRound 10
PNG Allocation (GA)
Gas offered Gas Awarded
56.20%61.90%
72.80%80.90%
91.20%
2015 2016 2017 2018 2019 (Nov -19)
LPG Coverage
06 7 7
1420
34
11 7
86
50
35
6 3 6 9 817
1 6
86
50
Pre- PNGRB BiddingRound 1
BiddingRound 2
BiddingRound 3
BiddingRound 4
BiddingRound 5
BiddingRound 6
BiddingRound 7
BiddingRound 8
BiddingRound 9
BiddingRound 10
PNG Allocation (GA)
Gas offered Gas Awarded
56.20%61.90%
72.80%80.90%
91.20%
2015 2016 2017 2018 2019 (Nov -19)
LPG Coverage
22 september | 2020
In the following piece, Mr. Krishnendu Chatterjee - JGM, ESSAR Oil & Gas Production Ltd. and Mr. Rishabh Sharma - Consultant MS P.E., University of Houston, recognize the adoption of a market-linked pricing mechanism
(besides other initiatives) as a means to resolving the challenges to expansion of natural gas in the country, which, despite emerging as an exciting alternative to fossil fuels over the years has suffered under a number of market and
regulatory limitations
expanding Natural Gas footprint in indian economy
concept and concerns
In the Global context, Natural gas has shown a consistent growth trajectory over the last nearly 50 years. Gas has become the second-fastest growing source of
primary energy demand, behind renewables due to cost
competitiveness and environment friendly nature of the fuel. The growth of Natural Gas is expected to continue at around the same rate with some giant gas fields in the MENA region coming online in the next few years.
Mr. Krishnendu ChatterjeeJGM, ESSAR Oil & Gas Production Ltd.
Mr. Rishabh SharmaConsultant MS P.E., University of Houston
special feature
23SEPTEMBER | 2020
Source - IGU, 2020
Source - IEA, 2020
Natural gas production in India began in the 1960s with the discovery of gas fields in Assam and Gujarat. Since then, the demand for natural gas in India has risen gradually due to greater availability and an expanding gas pipeline infrastructure. Gas supply from the Mumbai offshore, KG basin, Hazi-ra basin & North East basin have played a pivotal role in shaping the role of natural gas utilization. That said, there have only been a handful of discoveries (no supergiant fields) so far with the pattern of consumption being nearly similar due to supply security issues. The emergence of the LNG imports, however, has led to an increase in the industrial consumption of gas in the Western states of Gujarat and Maharashtra
spec
ial f
eatu
re
24 september | 2020
Source - IEA, 2020
Source - IEA, 2020
special feature
25SEPTEMBER | 2020
Meanwhile, despite demand-supply and price control issues, the National Gas transporter namely GAIL and its state counterparts have slowly and steadily continued to expand the pipelines resulting in about 17,000 km long natural gas pipeline grid to ensure easy availability of natural gas across the country. Nevertheless, as indicated above, the natural gas industry has continued to face regulatory and market barriers to its true potential by putting artificial curbs on the pricing of domestically produced gas. The present gas-pricing formula which is determined by the weighted average price of four global benchmarks is deeply affected from the fact that they are mature gas markets and come with quarterly time lags thereby ascribing a strange vintage of prices, which, till last year, had created a big gap between costly imported LNG and domestic gas. This has proven to be a huge obstacle for domestic operators who believe that regulated prices have dried up cost-to-benefit ratios in the Indian E&P space and impacted the domestic gas production tremendously. In fact, India’s 2019 natural gas production totaled 2.6 BCM/yr, nosediving from 2010 levels of 5.1 BCM/yr.
The need of the hour is to implement a market-linked pricing system of domestically produced natural gas that fairly compensates Indian producers. The low prices may have not been detrimental to ONGC’s aged and matured fields (already in profit territory) but they did leave a huge negative impact on the new gas producers, considering the exploration and capital risks. This impact was especially felt by unconventional gas producers, who were infrastructurally stranded to market their full natural gas potential.
At this juncture of transformation, PNGRB is working on a new gas transmission policy for unified tariff across pipelines
in order to make the price of natural gas uniform across the country. For ex-ample, eastern and central India customers will not have to pay an additional $2 - $3 per MMbtu as they are located away from western offshore gas fields. The rationalization of tariffs will make natural gas affordable & increase the penetration of gas to far flung areas. If such a policy is introduced, E&P companies will be able to add to their reserves by exploring sedimentary basins that are considered geologically prospective & thus increase the production of natural gas. Recently, India’s first gas exchange, IGX was launched to facilitate the trading of imported LNG in spot and forward markets across three hubs: Dahej and Hazira in Gujarat, and Kakinada in Andhra Pradesh. It, however, excluded domestically produced natural gas. Indian Oil Minister, Dharmendra Pradhan, has indicated that a new gas policy will be introduced soon that would lay the foundation for market based price discovery of domestic natural gas. The new policy shall also allow the domestic producers to directly get involved with gas marketing and sales instead of a third party.
Gas supply from the Mumbai offshore, KG basin, Hazira basin & North East basin have played a pivotal role in shaping the role of natural gas utilization. However, there have only been a handful of discoveries (no supergiant fields) so far with the pattern of consumption being nearly similar due to supply security issues
26 september | 2020
As of April 1, 2018, India has recoverable conventional natural gas reserves of 1,340 bcm, of which 61% are located offshore. Reserves held under the production-sharing contracts (PSC) regime account for 49% of total, whereas the two incumbent public service undertakings (PSUs), Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL), have shares of 42% and 9%, respectively (MoPNG, 2018). As for unconventional resources, recoverable coal bed methane reserves are estimated at 108 bcm. Different estimates for shale gas resources range from 45 to 2,100 TCF.
The Government of India has already implemented several other initiatives that will enable the re-assessment of natural gas resources in the country. The initiative to build the National Data Repository (NDR) will assist in future planning of exploration activities by generating a better understanding of Indian sedimentary basins. The Government has also set up the Open Acreage Licensing Policy whereby upstream companies can now bid for any oil and gas block without waiting for the announcement of bidding. The Government has also introduced policies that benefit operators that have existing field contracts by allowing them to explore for shale oil and gas as well as CBM (coal bed methane) simultaneously. It will however levy an additional 10% for new CBM discoveries, making it economically less appealing for operators that want to produce more domestic gas from CBM blocks. More recently, industry players have raised their voices to bring natural gas under the ambit of goods and services tax (GST). Currently, effective tax rates on CNG & PNG comprise of excise duty of 14% and value-added taxes of 5-26% depending upon each state. Uniform GST rates will make natural gas more competitive to other fuels such as coal, petcoke and fuel oil which are already under the GST regime. This policy change will not only benefit oil and gas producers but also reduce natural gas landing costs for customers thereby strengthening the natural gas market and compelling customers to make the switch from fossil fuels to cleaner natural gas. Higher utilization will not only reduce the country’s carbon footprint but also improve air quality standards.
special feature
27SEPTEMBER | 2020
The present gas-pricing formula which is determined by the weighted
average price of four global benchmarks has proven to be a huge obstacle for domestic operators who
believe that regulated prices have dried up cost-to-benefit ratios in the
Indian E&P space
28 september | 2020
In the recent years, India’s LNG imports have been driven by low LNG spot prices caused by oversupply from major exporters such as Australia, the United States and Qatar and declining domestic natural gas production. Such has been the rate of growth that India now imports more than 50 percent of the total amount of natural gas it consumes. According to BP’s statistics, India’s 2019 LNG imports averaged 32.9 BCM/yr, denoting a jump of 65% from 2015 levels of 20.0 BCM/yr. The rate of growth has led to India’s LNG imports accounting for more than half of the nation’s total gas consumption. At the start of 2020, India’s six import terminals had total nameplate capacity of 53.8 BCM/yr, implying import capacity utilization of 64%. So, the import capacity is not going to be a constraint in future growth, though the locations of these terminals and midstream pipeline infrastructure could prove to be a hindrance.
As of April 1, 2018, India has recoverable conventional natural gas reserves of 1,340 bcm, of which 61% are located offshore. Reserves held under the production-sharing contracts (PSC) regime account for 49% of total, whereas the two incumbent public service undertakings (PSUs), Oil and Natural Gas Corporation (ONGC)
and Oil India Limited (OIL), have shares of 42% and 9%, respectively (MoPNG, 2018)
special feature
29SEPTEMBER | 2020
Source - IEA, 2020
In Southern India, LNG imports to the existing Kochi terminal & Ennore terminal are being limited due to lack of pipelines connecting to the main consumption centers such as Bangalore and Chennai. However, new pipelines are being constructed to bring LNG to major cities in Southern India in the next three years. In Northeastern India, a large government pipeline project known as Urja Ganga is expected to connect the Dhamra LNG terminal currently under construction near Kolkata to key industrial areas. However, a more positive natural gas story has unfolded in the western parts of the country. Much of India’s LNG capacity is currently in western India, especially in Gujarat where natural gas pipeline infrastructure has been built out & connected to major consumption centers. The effect of imported LNG has changed the energy mix of the state to such an effect that natural gas has the highest share in the primary energy mix in the state. In areas hindered by lack of pipeline connectivity, natural gas industry participants may also opt for LNG transport by trucks in the future, thereby creating a virtual pipeline that will continue to aid in the development of the natural gas markets. In the next few years, four new terminals are expected to come online including three on the west coast and two on the east coast. However, due to the coronavirus epidemic, the completion of these LNG projects might get delayed. Once online, these new LNG import terminals will add 27.7 BCM/yr of regasification capacity, taking the total LNG import capacity
30 september | 2020
of India to 81.5 BCM/yr. Based upon our estimations, India’s LNG imports may reach 51.6 BCM/yr by 2030, meaning that new LNG import terminal capacity will be sufficient for adoption of LNG nationwide.
Along with Power and Fertilizer segment, the largest demand for natural gas is expected to come from City Gas Distribution (CGD) networks. The addition of gas networks in Tier- II cities, higher use of PNG in domestic and industrial sectors and growing influence of CNG (Compressed Natural Gas) as a fuel are the main reasons behind the growth of CGD networks in the coming decade. Post the completion of the latest CGD round (10th round) conducted by PNGRB (Petroleum and Natural Gas Regulatory Board), natural gas will now become available in 228 Geographical Areas, covering 27 states and union territories, which will result in access to gas for 70 per cent of the country’s population. These geographical areas are set to become a reliable demand center further augmenting the need for natural gas in the country.
Currently, natural gas makes up for only 6.2% of all energy consumed in the country. To cut dependence on polluting coal and liquid fuels, the government is targeting its share to rise to 15% by 2030. India will benefit from using natural gas as a “bridge fuel”, helping the economy transition from a carbon-intensive energy system to one much lighter on greenhouse gas emissions. Additionally, the competition in LNG markets is expected to keep the LNG import prices to a minimum. However, the construction of major LNG export terminals is expected to be delayed due to the coronavirus pandemic. In the coming years, it is possible that heavy reliance on LNG imports may not be a fruitful strategy as demand may exceed supply. Therefore, it is imperative for the policy makers to create a robust gas market that encourages domestic producers to undertake extensive exploration and production and secure future gas supplies. The world is now seeing an unprecedented twist in the outlook of energy future due to COVID 19 situation, but this also poses an opportune moment for emerging economies to review the fossil fuel policy framework and redesign the outlook towards a clean and green future for posterity.
special feature
31SEPTEMBER | 2020
The mounting demand for natural gas has paved the path for LNG market in India. LNG refers to a liquefied version of natural gas which is maintained to a temperature of -162 °C to ease transportation. In this liquid state, LNG occupies less space which makes it viable for the bulk movement through the cryogenic cargoes.
The imports of natural gas in the form of LNG have risen from 25.33 BCM in 2016-17 to 27.02 BCM in 2017-18. India is capitalizing strategically by creating LNG imports infrastructure on both of its eastern and western coastline. Currently the country has 4 existing LNG Terminals on its western coastline which are Dahej, Hazira, Dabhol and Kochi with an overall capacity of 26.69 MMT. With the growing demands and increasing share of the natural gas in the energy basket of India, India has been able to somehow improvise in the right direction by uplifting the Pipeline Infrastructure in the country and developing the required city gas distribution network across the country which will augment the Natural gas growth.
“India’s vision to increase share of natural gas in energy mix from 6.2% to 15% by 2030 and transform India to a Gas based economy can be comprehended”
The key drivers of LNG market are the growing energy demands particularly for natural gas. Considering the fact that Natural Gas is a cleaner and much cheaper substitute of any other conventional source of energy, it is crucial for government of India to mechanize an integrated policy that should support the overall development in the LNG Business and infrastructure. Positively this will help India in accomplishing the target of decreasing the crude oil Import dependency.
In this context, Infraline Energy has come up with a business series research report on Topic’ Growing Appetite of LNG in
India: India becoming a Major LNG Importer”. The core objective of the report is to focus on the LNG Infrastructure developments in the country and exploring the limitations and opportunities in context to India. The assessment has been carried out with an exhaustive study of global market scenario, Indian market scenario, Infrastructure status & future requirement, Contracts & pricing and sectoral analysis. Besides appraising the potential countries, Infraline Energy has identified the most attractive sourcing options for India.
The core objective of the report is to focus on the LNG Infrastructure developments in the country and exploring the limitations and opportunities in context to India. The assessment has been carried out with an exhaustive study of LNG basics & LNG value chain, LNG global market scenario, Indian natural gas market scenario, LNG market size, LNG market dynamics, Infrastructure status & future requirement, LNG Contracts & pricing, Business wise sectoral analysis and major companies profiling.
Key Highlights � Overview of the LNG market in India
� Detailed profile of key players in Indian market
� New LNG Re-gas Capacity development
� Demand & Supply dynamics of LNG
� Developments in the LNG market
� Major end user of LNG in India
� Fiscal characteristics and Pricing of LNG in India
� Interpreting the possible effect of LNG on various industrial segments
� Future of LNG markets
Key Questions Answered � Provide an overview of the current and
future trends in the LNG market
� Ability to analyze investment opportunities in the market
� Have an insight about the ongoing projects
A must buy for � LNG Players
� Government Agencies
� Consultants
� Regulatory Bodies
� Investors (Banks & Financial Institutions)
� LNG Traders
For sales & supportRajesh Singh [email protected]: 9711786999 Ph +91 120 6799125/160
Growing Appetite of LNG in India:India becoming a Major LNG Importer
LNG Infrastructure
Completion of National
Gas Grid
R-LNG Affordability
Regulation and Policy Framework
32 september | 2020
The Biomass based Bio Energy sector may have succeeded in pulling itself out of a dark spot after the termination of the mandate to power biomass with coal and adoption of modern technologies, it still faces a whole lot of challenges with respect to a number of financial and non-financial factors that restrict investor participation in the sector. The following piece penned by Col. Rohit Dev – Chief Operating Officer, PRESPL, throws light on these areas and also offers suggestions for driving growth in the sector.
AAtMANirBhAr eNerGY throUGh
stiMULi to iNJect iN the BioMAss-BAsed Bio-eNerGY sector iN iNdiAA fArM to fActorY coNNect:
Col. Rohit Dev Chief Operating Officer
PRESPL
cover story
33SEPTEMBER | 2020
the Biomass-based Bio-Energy sector in India and many other agriculturally-rich countries, is turning out to be a niche sector, which will
directly impact Rural Development while promising to be a key factor for reviving our economy and attaining the Sustainable Development Goals in the long run. The social, economic, environmental, health and sustainability benefits of this Sector are paramount and will be long serving the interests of our Nation. In a Nation where nearly 700 Million Metric Tonnes (MMT) of fossil fuel is utilised as fuel for boilers, there exists tremendous scope to replace this with surplus biomass which is generally burnt in the fields. An opportunity to reduce expenditure on the exchequer and reap benefits of good health and environment while providing additional income to farmers and other rural stakeholders, should be enough to embark on a journey of establishment of a plethora of Biomass-based Bio-Energy projects & other non-energy solutions.
This sector, due to lack of policy initiatives, went through some challenging times in the earlier part of this decade where many entrepreneurs left the field, but it has been stable since the past 5 years and is now on the path of growth. While more modern technologies have come up for the conversion of biomass into bio-fuels etc., and the mandate to co-fire biomass with coal has been given up, the mainstay of these avenues which has been Supply Chain Management, has gradually transformed into a profitable entrepreneurial domain by itself. Private companies like Punjab Renewable Energy Systems Private Limited (PRESPL at www.prespl.com) have evolved through the entire phase of ‘gloom to sunshine’ and are steadily scaling up.
Success stories like PRESPL have been far and few and while PRESPL is funded by Shell Ventures B.V., Neev Fund (SBI Capitals, DFID, UK & SIDBI) and responsAbility (Zurich based Impact Fund), there are several others who have not been lucky enough to gain such patronage and even bigger business houses in India have avoided this part of the Bio-Energy Sector as they remain heavily committed to setting up Plants for biogas and other bio-fuels. Solar energy has been the main area of focus in the Renewable Energy Sector for the purpose of electricity. The Ministry of New and Renewable Energy (MNRE) has initiated a paradigm shift by allowing steam, heating and cooling solutions with biomass-based applications to be termed as renewable. This, with the statutory mandate to co-fire 10% biomass in industrial boilers and focus of responsible private sector companies to invest in carbon neutral technologies, is a beacon which
cove
r st
ory
34 september | 2020
indicates hope for scaling up of Biomass-based Bio-Energy projects in India. The National Policy of 2018 on Biofuels gives importance to the rigorous promotion of superior bio-fuel and Compressed Bio-Gas (CBG) and these do have technologies which rely on sustainable supply of biomass.
Opportunities for Biomass-based Energy Projects and Other Applications
Opportunities in the Biomass-Based Bio-Energy Sector in India are driven by aims that intend to derive the following benefits:-
a. Large-scale involvement of rural community in our economic growth.b. Enhanced incomes for farmers; even in poor harvest season.c. Better environmental conditions and sustainability for the future.d. Good health for people and better air quality.e. A ‘Farm to Factory Connect’ which brings all stakeholders together in it.f. More jobs and entrepreneur opportunities.g. Enthuse R&D and more FDI into economy.
Ample utilisation opportunities for biomass do exist currently, and more are in the offing; given the evolving technologies which could make best use of the surplus biomass in India. Few of the application avenues are as follows -:
a. 2G Ethanolb. CBGc. Steam Generationd. Heating / Cooling including Cold Chain Managemente. Sustainable Aviation Fuel (SAF)f. Bio-dieselg. Bio-furniture and utensilsh. Bio-plastics including packagingi. Bio-fertilizersj. Hybrid projects with Solar, Hydel or Wind
GAPS LEAdING To SLuGGISHNESS IN THE SECToREvolving technologies are attempting to make the entire ecosystem more robust and financially viable too. While the end products are discernable, the entire Value Chain/ Ecosystem has not been financially viable and disruptions in Supply Chain due to financial and non-financial factors have led to limited players operating in this sector. Right from the
An opportunity to reduce expenditure on the exchequer and reap benefits of good health and environment while providing additional income to farmers and other rural stakeholders, should be enough to embark on a journey of establishment of a plethora of Biomass-based Bio-Energy projects & other non-energy solutions
cover story
35SEPTEMBER | 2020
farmers through Supply Chain Management (SCM), there are many risks involved and most of them have not been addressed till now. Some common lacunae observed, for layman understanding, are enumerated as below -:
a. A SCM company has to aggregate biomass for a project in bulk and cater to its storage, insurance, hiring manpower, transportation, upkeep etc. and quite surprisingly no price point on biomass could be discerned till we went through the Tender Process of HPCL & BPCL last year; only to discover that the lowest bid was not low enough. The gaps in conceiving those tenders were obvious as none gave any risk mitigation to the SCM company and thus prices were marked up taking those risks into account.
b. On another front, the SCM is not a bankable proposition for private or nationalized banks and only IREDA Ltd has been able to initiate funding for biomass-based projects and also give Working Capital term Loans for SCM to one company, viz; PRESPL. Lack of funding and aspects like Credibility Rating etc. do not permit entrepreneurial advent and that is sort of stagnating the sector; especially till the time big ticket projects in bio-fuels take off.
36 september | 2020
c. Lack of implementation of policies of Central Agencies by States is another factor for the sluggish growth of this sector and that adds to risks as well.
d. Schemes are rolled out by various ministries without any inter-ministerial coordination or zoning of areas for various long-term, large-scale projects.
e. Ease of Doing Business is keeping many investors from scaling up this Sector.
f. Technological challenges do exist in biofuels sector, which is hampering the utilization of the full potential of biomass.
RECoMMENdATIoNS FoR PRovIdING dESIREd STIMuLI To SECToRThere is an attempt towards prevention of fossil fuel consumption and use of more biomass as that would result in direct benefit to farmers, development of Rural Sector, meeting of all aspirational Sustainable Development Goals (SDGs) of the Paris Agreement as well as mitigation of the GHG emissions as well. The focus is on making the Biomass-based Bio-Energy Sector financially viable, without undue subsidies and get additional income for farmers while stirring rural economy. A People-Public-Private-Partnership Model (PPPP Model) will take this sector to the next level by bringing in more skin-in-the-game for all stakeholders & improving the standard of living of the masses, especially rural communities. That said, some recommendations put forth for consideration of Decision Makers and Industry are appended below -:
a. Inter-Ministerial Coordination Cell: This Cell could be conceived under the aegis of MNRE and Niti Aayog. Inter-Ministerial Coordination with initial estimation of use of Biomass in various sectors (under different Ministries) in next 50 years; based on India’s energy needs and with phasing away of fossil-fuel dependent sectors, will prove beneficial in the long run. Ministry of New and Renewable Energy, Agriculture, Ministry of Petroleum and Natural Gas, Ministry of Finance, DST with Ministry of Science and Technology, Ministry of Civil Aviation, Ministry of Micro, Small and Medium Enterprises, Ministry of Road Transport and Highways, Ministry of Environment, Forest and Climate Change, Ministry of Power, Ministry of Textiles, Ministry of Commerce and Industry, Ministry of Health and Family Welfare, Niti Aayog, etc. need to evolve a Biomass Consumption Matrix and an Energy Transition Plan for the year 2070 and work through it. Mapping of Biomass-based Projects and delineation of geographies should be done jointly and on Priority. A Long-Term Vision, capturing the population needs & Sustainment Development Goals must lead to Short-Term Missions, Concerted Implementation Plans and Periodic Audit & Reviews.
b. Proactive Policy Making: Policy Enunciations with impetus on Sustainable Development Goals under Paris Accord is a must; both at MNRE and State-level bodies and with that, it should be leading to favourable Schemes in financing Supply Chain Management (SCM) including Working Capital and Debt, machinery, transport, warehousing, and valid subsidies for farmers to manage processes and get compensated for it etc. Some recommended policy inclusions are as listed below -:
(i) EXIM Policy for Biomass Energy Solutions: Open partial and calculated import and export of biomass-based fuel must ensue as we are currently a biomass-residue surplus Nation. However, the Biomass Consumption Matrix should take the energy demand till 2070 into account & based on plans to enhance Energy Plantation, we should formulate an EXIM Policy for now.
(ii) Reduce coal imports & maintain only larger boilers in thermal plants etc. No use of coal or any fossil fuel including furnace oil which should be permitted for mid/small-sized boiler operation.
(iii) Incentivise carbon credits and prompt industry towards zero-emissions and clean energy with green fuel systems.
(iv) New Energy Projects in India, including some power, all steam, & most heating & cooling applications to be based on biomass-based bio-energy concepts.
(v) Special Scheme for Energy Plantation to be developed with support from NABARD / CAMPA funds.
(vi) Renewable Energy Certification (REC) for all forms of Bio-Energy including Briquetting, Pelleting, Steam, Heating, Cooling, etc.
cover story
37SEPTEMBER | 2020
This sector, due to lack of policy initiatives, went through some challenging times in the earlier part of this decade where many entrepreneurs left the field, but it has been stable since the past 5 years and is now on the path of growth.
(vii) Renewable Purchase Obligations (RPO) for all forms of Bio-Energy to be allowed.
(viii) Compulsory utilization of biomass for all industrial applications of steam / co-generation replacing fossil fuels.
(ix) Implement the ruling for minimum 10% co-firing of biomass in all industrial boilers.
(x) Single-Window Clearances for Consent to Establish (CTE) / Consent To Operate (CTO) etc. should be made feasible under MNRE and affiliated State Government Agencies.
(xi) Adoption of MNRE-led policies by States and compliance through CERC / SECI etc. in a time-bound manner, once they are promulgated by MNRE. Delays in promulgation of the policy mentioning Steam-generation to be part of RE have led to a slowdown of such projects coming up in many States including some Economically Weaker ones like Madhya Pradesh etc.
38 september | 2020
c. Financial Requisites.
(i) Bio-Energy Sector needs to be deemed as and accorded the due status of being a ‘Priority Sector’; as it is directly linked to farming & agriculture.
(ii) Reduce cost of borrowing through NBFCs, Banks, Govt Financial Institutions etc. Interest Rate between 4 to 6 percent will compete with Coal-based business. It could be made as term loan / debt to be 70 to 75% equivalent to other Renewable Energy Projects.
(iii) ‘Nil’ GST on Biomass-based RE Projects including IPP, Steam-generation, briquette & pellet production etc, through the entire Supply Chain.
(iv) As a start, allocate a tranche of about 1000 Crores this year for biomass-based energy projects with due guarantees from Governments (Central & State) side to established private companies and stakeholders; primarily for the Pilot Project suggested in the Concept Note attached.
(v) Encourage collaboration for technology and machinery with subsidy in imports and creation of a Favourable Investment Atmosphere including FDI relaxations and import incentives.
(vi) Devalue or delink Credit Rating requirements for Biomass-based projects for a 3-year moratorium; especially for recognised private companies in business for more than 10 years. Post COVID-19, this might be a necessity to spur the Sector to optimization.
(vii) Consider reviving select NPAs in IPP with VGF influx and financial support creation of functional Biomass Zones for operating them.
(vii) Central Financial Assistance (CFA) Recognition to newer forms of Bio-Energy by MNRE like Briquetting, Pelleting, Steam and Heat / Cooling Applications akin to being provided to biomass to electricity and CBG. This should be based on quantum of biomass being utilised for bioenergy projects and Investment Criteria of the Project.
cover story
39SEPTEMBER | 2020
(viii) Collateral to be removed as requisite for financial assistance / loans under the PRSF / credit guarantee schemes being run by SIDBI, BEE & EESL.
(ix) Income Tax Holiday for biomass businesses to be worked with Ministry of Finance.
(x) Equity Funding for Bio-Energy Projects by IREDA through NIIF, Private Equity Fund, AIF structure.
(xi) Plough back profits from Offtake Companies (PSUs and Private) to farmers through the Supply Chain System. This will get the double-income to farmers and also better the Rural Economy. Have a Corporate Social Responsibility (CSR) plough back into rural development.
d. Infrastructure Development: Support for Biomass Depots, where farmers can supply Biomass, which in turn will be able to support development of industry in rural India. State-of-the-Art warehousing must be created by Govt units like NABARD, NAFED etc and these can be leased to farmers and Supply Chain Management companies at low costs, for warehousing the aggregated agri-residue. Such warehousing can also be created in PPP model.
e. Awareness Enhancement: There is a need to enhance awareness through all forms of New Media, Special Seminars by MNRE and Power Ministries, organizations like CII Energy, FICCI, CEEW etc; to promote Bio-Energy Sector and investments. Biomass-based Bio-Energy Sector Annual Conclave through Media, Govt and other agencies.
f. Collaborative Technologies & Manufacturing: Collaboration for technologies and manufacturing to be given impetus with focus on Make in India. There are many better technologies available in the global market and our endeavour should be increase their demand and force manufacturing in India and that will get technological transfers and more importantly generate more jobs in both structured and unstructured forms.
g. PMO Monitored Implementation of Pilot Projects: PMO-led monitoring for Pilot Projects which are laid out for implementation in Phase 1 within next 3 years is a must. Projects of various types should be identified and time-bound actions must ensue. Inter-ministerial Core Group to include MNRE, Agriculture, Power, DST, MOHFW, MOEFCC, Niti Aayog, Rural Development etc formed with participation of Key Stakeholders from Private Sector. State Govts to cater to land at zero-cost (Non agricultural & agricultural both) and offer for Projects. Larger impetus should be given to this Sector, with involvement of all Stakeholders for Biomass-based Bio-Energy Projects Pan India in order to achieve fulfillment of all SDGs with focus on rural development and jobs.
40 september | 2020
h. Digital Biomass Platform: Digital Platform for Biomass and Biomass-based Bio-Energy Services will enhance the scope of growth of the Biomass-based Bio-Energy Sector. These could be effectively conceived at State level with Pan-India application.
i. Bio-Energy Commission: As akin to Solar & Wind, an organization similar to Solar Energy Corporation of India (SECI) should come up with tenders for Biomass IPP & this will give the impetus to the almost dead sector of Biomass to Electricity. It is recommended to institute a Bio Energy Corporation / Commission of India (BECI) at the Apex level under MNRE, to bolster the Bio-Energy Sector in India. This Corporation / Commission could have eminent people involved in the Sector to be on Chair and Members of this organization on term-basis.
j. Special Packages: Special package could be evolved for Biomass-based Power for North-East States; as it will support regional growth and employment opportunities. DONER could be co-opted for pushing the agenda with support of NIIF loanee institutions.
k. Curating a Positive Approach: Integrated / Systems Approach from Fields through Factories to Positive Environmental Impacts as a Circular Economy, which is self-sustainable and that should be the way forward with synergized Centre-State roles and responsibilities.
l. Feedback Mechanism: Feedback Mechanisms and Impact Assessments through SECI / BECI should be put in place;
with greater responsibilities on States as well. This process should be certified by the recognised agencies.
m. Research and Development: Promote Research & Development in the Biomass-based Bio-Energy Sector in India and through collaborations with other countries through Indian Companies. T&A Funds of Govt and G2G agencies should be channelized, with support of World Bank, USAID, UNIDO etc. to foster a good R&D base in agricultural, technological, supply chain including the transportation domain; which will eventually enable a better and more sustainable ecosystem.
n. Inter-Governmental collaborations to bring in larger business growth in the Biomass-based Bio-Energy Sector with a view to reduce import of fossil fuels and attain larger sustainability for Clean Energy in India.
LIGHT AT THE ENd oF THE TuNNELA Bio-Energy Conclave, post the Pandemic, will allow greater sharing of thoughts and even a one-day event with due Big-Ticket Public Announcements on large influx of funds & Key Policy Enunciations as per the Vision Document amidst large media presence and participation of Key Stakeholders including farmers would help boost this vital Sustainable Energy Sector. The Bio-Energy Segment could also be an exclusive Conclave during the RE Invest 2020.
There is a necessity to further proliferate the scope of biomass-based RE market and bring in a synergized ‘Farm to Factory’ Model in order to realise the dream of ‘Ann Daata se Oorja Daata’ of our Honourable Prime Minister.
cover story
Coal Consumption in IndiaTrends, Analysis & Forecast 2030
Coal production in India touched 688.4 million tonnes (MT) in FY18, clocking a 2.5% increase over last year’s production. The coal production has increased at the highest rate of 5.99% for coking coal has increased at 5.99%.The two large state-run coal miners, Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) together accounted for 91.6% of the total coal produced in the country during FY18.The table below shows the trends in production of Coal and Lignite in India over the last few years from 2007-08 to 2016-17:
Trends in Production of Coal and Lignite in India (in Million Tonnes)
YearCoal
Lignite Grand TotalCoking Non-coking Total
1 2 3 4=(2)+(3) 5 6=(4)+(5)2007-08 34.46 422.63 457.08 33.98 491.062008-09 33.81 457.95 491.76 32.42 524.182009-10 44.41 487.63 532.04 34.07 566.112010-11 49.55 483.15 532.69 37.73 570.432011-12 51.65 488.29 539.94 42.33 582.272012-13 51.83 505.87 557.71 46.60 604.312013-14 56.82 508.95 565.77 44.27 610.042014-15 57.45 551.73 609.18 48.27 657.452015-16 60.89 578.35 639.23 43.84 683.08
2016-17 (P) 61.66 601.13 662.79 45.23 708.02Growth Rate of 2016-17 over 2015-16 (%)
1.27 3.94 3.69 3.16 3.65
CAGR 2007-08 to 2016-17 (%)
5.99 3.59 3.79 2.90 3.73
*Includes - PWW, Public Lighting, Railways, Inter-State and Others
Imported Coal Volume witnesses sharp growthCoal imports grew by 8.1% in FY18 on the back of sustained demand from steel sector for coking coal and steady demand from the power and cement industry. Total Coal import in FY18 stood at 213 MT, against 195 MT in FY17.Australia, Indonesia and South Africa are the three largest exporters of coal to India and contribute to 75-80% of the country’s total coal import.Coal imports were widely anticipated to fall during FY18. The Government has been pushing steam coal consumers especially power producers to replace imported coal with domestic coal. But inadequate coal transportation infrastructure especially availability of rakes has been hampering supply to power producers. Coal import trend is expected to continue as power, cement and steel industry are expected to witness improvement in demand and capacity utilization.Primarily, this report will focus on coal consumption in India with global coal scenario while assessing the applicability to Indian industries. While covering this, the report will also contain forecast of the domestic and global coal demand and prices.
Key Highlights
� Current Scenario of Coal in India
� Policy Framework in Coal Sector
� Coal Consumption Patterns
� Coal Consumption Forecast
� Coal Pricing in India
� Import & Export of Coal
Key Questions Answered
� Coal Demand & Prices
� Alternative Fuels Impact in Fuel Mix
� Overview on Domestic & E-auction Prices
� Coal Production in India
� Port Wise Coal Information
A must buy for
� Investors
� Government Bodies & Agencies
� Policy Makers & Academia
� Mining Companies
� Consultants
For Priority Business
Rajesh Singh Panwar
Mob: +91 9711786999
Ph: +91 120 6799125, 160
Research Report
Executive Summary
42 september | 2020
thErMal coal, coKinG coal iMPortS at MaJor PortS diP 31% to 37 Mt in aPril-JUly: iPaHit by disruptions caused by the COVID-19 pandemic, both thermal and coking coal imports at India’s 12 major ports dropped 31% to 36.7 million tonnes (MT) in April-July 2020 over the same period a year ago, according to the Indian Ports Association (IPA).
Thermal coal imports dropped 30% to 23.19 MT and coking coal shipments fell 32.26% to 13.51 MT during this period. Coal volumes at these 12 major ports under the control of the Centre declined for the fourth straight month in July 2020. These 12 major ports had handled 705 MT of cargo in the last financial year. These ports had together handled 236.01 MT of cargo during April-July 2018-19, the ports body said.
These ports had handled 33.11 MT of thermal coal and 13.51 MT of coking coal in the April-July period of the previous financial year. The IPA, which maintains cargo data handled by these ports, in its latest report said “percentage variation from the previous year” in thermal coal and coking coal handling was 30% and 32.26%, respectively. Together, thermal and coking coal handling saw a decline of 30.83% at these ports in the April-July period at 36.7 MT.
Thermal coal is the mainstay of India’s energy program as 70% of power generation is dependent on the dry fuel, while coking coal is used mainly for steel making.
State-owned Coal India’s 54 mining projects are running behind schedule mainly on account of delays in obtaining green nod and issues related to rehabilitation and resettlement. The development assumes significance against the backdrop of Coal India (CIL) eyeing production of 1 billion tonnes by 2023-24.
The PSU said that major reasons for delay are delay in obtaining forest clearance (FC) and possession of land and issues related to rehabilitation and resettlement. 18 mining projects with a total rated capacity of 132.04 million tonnes per annum and a total investment of Rs 21,244.55 crores were approved by the board of CIL and its arms during 2019-20. Nine non-mining projects with a sanctioned capital of Rs 855.52 crore were also approved during the fiscal.
The state-owned firm will pump in over Rs 1.22 lakh crore on projects related to coal evacuation, exploration and clean coal technologies by FY-24, to achieve 1 billion tonnes of fuel output target. Out of the proposed spend of over Rs 1.22 lakh crore, Coal India has planned to invest Rs 32,696 crore in coal evacuation, Rs 25,117 crore in mine infrastructure and Rs 29,461 crore in project development by 2023-24.
54 MininG ProJEctS oF coal india FacinG dElayS
coal // news // domestic
43SEPTEMBER | 2020
State-run Coal India is readying a strategy to retrieve produc-tion from underground mines where mining was discontinued due to several challenges. The company has identified 12 such mines with provisional mineable reserves of around 1,060 mil-lion tonnes (MTs). Of these 12 mines, eight belong to Eastern Coalfields Ltd (ECL) and the remaining four fall under Bharat Coking Coal Limited (BCCL), spread over the states of West Bengal and Jharkhand.
“The project is on the drawing board but CIL aims to start the process soon to bring these mines back to active production. This is in effort to increase production through indigenous sources” a senior company executive said.
CIL is keen to fast track the issue once Central Mine Planning and Design Institute (CMPDI), its mine consultancy arm, which has been entrusted to prepare a data dossier submits its re-port on the feasibility.
These mines were discontinued because of difficult geo-min-ing conditions, economic unviability and non-availability of suitable methods to extract deep-seated reserves at the time.
coal india to rEStart cloSEd UndErGroUnd MinES
coal
India must abandon coal and move towards renewable energy sources, UN secretary-general said. Antonio Guterres told a digital audience that India is at a crossroads and should avoid committing to new coal projects after 2020. India’s subsidies for fossil fuels are some seven times bigger than its subsi-dies for clean energy. With the coronavirus pandemic putting sustainable development at risk, Guterres urged India to start using clean energy as it could benefit millions worldwide.
Guterres said eliminating fossil fuel usage would result in a life expectancy increase of 20 months, as well as prevent rough-ly 5.5 million deaths annually around the world. Investing in fossil fuels is “bad economics,” Guterres continued, pointing toward why the world’s largest investors are moving away from coal. “They see the writing on the wall,” he said. “The coal busi-ness is going up in smoke.”
Guterres was quick to add his voice to the chorus of approval, lauding India for raising the proportion of renewable energy in its total consumption to 24%, up from 17%. However, it is the country’s reliance on coal that the UN finds alarming. The Indian government expects to add another 64 gigawatts (GW) of coal plant capacity to its system over the next decade.
cEntrE rEviSES liSt, 38 coal BlocKS to BE aUctionEd For coMMErcial MininG
Un callS on india to aBandon coal
The coal ministry on 3rd Sept said it has revised the list of mines to be auctioned for commercial mining and now 38 blocks would go under the hammer instead of 41 mines an-nounced earlier.
The revision in the list includes addition of three blocks Doles-ara, Jarekela and Jharpalam-Tangarghat (in Chhattisgarh) and withdrawal of five blocks -- Morga South, Fatehpur, Madanpur (North), Morga-II and Sayang (in Chhattisgarh).
The coal ministry had earlier withdrawn Bander mine in Chan-drapur district of Maharashtra from the list of 41 coal blocks put up for auction for commercial mining as the mine lies in the eco sensitive zone of Tadoba Andhari Tiger Reserve.
44 september | 2020
Australian thermal coal producer Terracom said that refinancing risks linked to a large Eurobond repayment due next year had raised uncertainty over its ability to stay in business, as it logged a steep loss in its full year results following the sale of two Mongolian coal mines.
Terracom logged a net loss after tax of A$146.1 million ($108.08 million), down from a loss of $11.3 million the prior year due mostly to its sale of Mongolian assets for which it booked a $101.3 million loss. Terracom has a liability of A$215 million ($159.06 million) due to a Listed Euroclear Bond which is due to reach maturity on 30th June 2021, it said in the notes to its results filed with the Australian exchange.However, as part of its strategy to diversify its asset and geographic base, which led to its purchase of South African coal producer Universal Coal, “the directors made the conscious decision to put the refinance on hold.”
“The refinancing risk gives risk to uncertainty as to the Group’s ability to continue as a going concern,” it added.
Global coal producers have been hit hard this year by a steep drop in thermal coal prices as more power users turn to cheap natural gas and renewables, a trend compounded by coronavirus-triggered lockdowns that hit demand.
Poland to accElEratE coal PhaSE-oUt aS it worKS on indUStry rEStrUctUrinGPoland wants to phase out coal faster than it had initially planned and now expects the share of coal in its power production to fall to 11%-28% in 2040 from almost 80% currently. Poland has been the only European Union state to refuse to pledge climate neutrality by 2050, with the ruling Law and Justice party saying that it needs more time and money to shift its economy from coal to cleaner energy sources.
In its latest version of Poland’s energy strategy by 2040, the climate ministry said that the share of coal will fall to 37%-56% in 2030 and to 11-28% in 2040, depending on the carbon emission costs, the ministry spokesman said.
In the former version of the document published in November 2019, Poland had expected the share of coal at 56%-60% in 2030 and at 28% in 2040. The latest version also does not include a project to develop an open-pit lignite coal mine in Zloczew, central Poland, which has been an investment option by state-run energy group PGE.
GErMany StartS BiddinG ProcESS to PhaSE oUt 4 Gw oF coal-BaSEd ProJEctSGermany’s power regulator, Bundesnetzagentur, has received bids from coal-based electricity generators keen on phasing out their capacities against a compensation.
In a statement, Bundesnetzagentur said that a maximum of 4,000 MW would be eligible for compensation. Bidding will be on the amount it needs to pay for every MW of retired capacity in terms of the volume of carbon dioxide these projects generate.
In July this year, the German government passed a law to end coal-fired power generation by 2038. The law includes ways of retiring coal and lignite-based power projects by compensating generators against losses. The country plans to invite similar bids until 2027, and projects with capacities starting from 150 MW would be eligible for phasing out polluting projects.
Bundesnetzagentur has set a ceiling for the compensation at $196,000/MW. If the tender is oversubscribed, the selection will be based on the volume of carbon generation avoided. The German regulator, in its statement, clarified that the final payment will be subject to state aid approval from the European Commission, which is yet to be granted.
aUStralian coal ProdUcEr tErracoM notES rEFinancinG riSK
coal // news // world
45SEPTEMBER | 2020
indonESia’S SEPt coal PricE at rEcord low, MinErS Say ovErSUPPly worSEnSIndonesia has set the coal benchmark price at the lowest level on record amid subdued demand from big buyers, while the country’s miners group said a global oversupply of coal was worsening. The government set its coal benchmark price (HBA) at $49.42 per tonne, the Energy and Mineral Resources Ministry said, down from $50.34 per tonne last month.
“COVID-19 has resulted in a 20% drop in coal imports by China and demand from India is yet to recover post-lockdown,” energy ministry spokesman Agus Pribadi said in the statement.
September marked a sixth consecutive month of decline in the benchmark price, which is used in spot trading in Indonesia, the world’s top thermal coal exporter.
Indonesia is increasingly looking to diversify markets for its coal and is targeting Vietnam as potential growth market.
Japan imported 4.95million tonnes of coking coal in July, up by 6% from June but down by 30% from a year earlier, according to its finance ministry data. January-July imports fell by 6% from the previous year to 37.5 million tonnes.
Shipments from the largest supplier Australia increased by 22% to 2.29 million tonnes in July from 1.87 million tonnes in June but fell by 41% from a year earlier. Japan’s crude steel output in July recovered from June as domestic steel mills began restoring output levels with recovering manufacturing demand, particularly from the auto sector. Japanese car output extended its recovery in July against April-May, driven by an increase in domestic and foreign car sales.
The spot price assessment for premium low-volatile hard coking coal averaged $112.68/t FOB Australia in July, up by 1% from $111.63/t in June.
Japan’s metallurgical coke imports fell by 28% to 14,857t in July from 20,493t in June and fell by 89% from a year earlier. Almost all of Japan’s met coke imports came from China
JaPan’S coKinG coal iMPortS riSE in JUly
46 september | 2020
coal // stAts
datE
01-MAY-20
04-MAY-20
05-MAY-20
06-MAY-20
07-MAY-20
08-MAY-20
11-MAY-20
12-MAY-20
13-MAY-20
14-MAY-20
15-MAY-20
18-MAY-20
19-MAY-20
20-MAY-20
21-MAY-20
22-MAY-20
26-MAY-20
27-MAY-20
28-MAY-20
29-MAY-20
01-JUN-20
02-JUN-20
03-JUN-20
04-JUN-20
05-JUN-20
08-JUN-20
09-JUN-20
10-JUN-20
11-JUN-20
12-JUN-20
15-JUN-20
16-JUN-20
17-JUN-20
18-JUN-20
19-JUN-20
22-JUN-20
23-JUN-20
24-JUN-20
25-JUN-20
26-JUN-20
29-JUN-20
30-JUN-20
110
110
110
110
110
111
112
114
114
115
115
115
116
116
116
118
118
116
114
114
113
111
108
109
111
111
112
108
108
109
109
109
109
109
110
112
113
113
114
114
114
114
109
109
109
109
109
110
111
113
113
114
114
114
115
115
115
117
117
115
113
113
112
110
107
108
110
110
111
107
107
108
108
108
108
108
109
111
112
112
113
113
113
113
87
87
87
87
87
88
88
89
89
89
89
89
89
89
89
93
100
100
100
100
100
99
99
100
100
100
100
100
100
100
100
100
100
100
100
100
102
102
102
105
105
105
Mid volPrEMiUM low volhcc PEaK down rEGion
coKinG coal FoB aUStralia (For aPril’20-JUnE’20) IN ($/TON)
47SEPTEMBER | 2020
datE Mid volPrEMiUM low volhcc PEaK down rEGion
coKinG coal iMPortS throUGh SElEctEd PortS dUrinG March’20 - May’20
01-JUL-20
02-JUL-20
03-JUL-20
06-JUL-20
07-JUL-20
08-JUL-20
09-JUL-20
10-JUL-20
13-JUL-20
14-JUL-20
15-JUL-20
16-JUL-20
17-JUL-20
20-JUL-20
21-JUL-20
22-JUL-20
23-JUL-20
24-JUL-20
CHENNAIDHAMRAENNOREGANGAVARAMKANDLAKARAIKAL*KOLKATAKRISHNAPATNAM*MAGDALLA*MARMAGOAMUNDRANEW MANGALOREPARADIPPIPAVAVVIZAGMUMBAI & JNPTHAZIRAJAIGADOTHERStotal QUantity iMPortEd
-3,34,09019,500
1,97,551-
1,31,78893,479
2,75,766-
5,12,827--
3,55,906-
1,79,823--
2,02,30838,733
23,41,770
-8,2969,0168,261
-7,3927,0777,679
-7,850
--
8,414-
6,881--
7,9336,894
-48710861553
12680420000
-349143180738
-125457164994
-503188
-238835
--
1991250.1
24,56,944
-820793199227
12242-
95977916
-7328
12041-
8789-
8420--
901118520
483,42,100
-1,14,47410,00053,295
3,96,0641,38,206
-6,88,0481,64,994
-4,50,173
-3,49,221
-48
4,76,021.00-
31,82,691
29,35710,083
-11,6977,800
10,65211,89512,233
-11,11312,041
-10,961
-11,819
-27,75010,979
--
MAy-20 Quantity (Tonnes)
Quantity (Tonnes)
Quantity (Tonnes)
“Weighted Average Price (INR/Tonne)”
“Weighted Average Price (INR/Tonne)”
“Weighted Average Price (INR/Tonne)”
PoRT
APRIL-20 MARCH-20
114
114
115
114
114
114
114
114
114
113
112
112
111
109
109
110
111
111
113
113
114
113
113
113
113
113
113
112
111
111
110
108
108
109
110
110
105
105
106
106
106
106
106
106
106
106
102
101
101
101
100
100
100
99
*ON
LY E
DI F
IGU
RES
IN ($/TON)
48 september | 2020
non coKinG coal iMPortS throUGh SElEctEd PortS dUrinG March’20 - May’20
DAHEJ*
DAHEJ*
COCHIN
DHAMRA
ENNORE
GANGAVARAM
KAKINADA*
KANDLA
KARAIKAL*
KOLKATA
KRISHNAPATNAM*
MAGDALLA*
MARMAGOA
MUMBAI & JNPT
MUNDRA
NEW MANGALORE
PARADIP
PIPAVAV*
TUTICORIN / VOC*
VIZAG
HAZIRA
NAVLAKHI
JAIGAD
OKHA
BHAVNAGAR
PORBANDAR
JAKHAU
OTHERS
BEDI
JAFRABAD
MULDWARKA
SIKKA
total QUantity
iMPortEd
1,61,443
-
-
1,59,138
4,24,893
7,05,351
1,05,000
9,15,110
3,15,397
3,51,036
10,33,878
54,244
2,35,772
1,52,307
12,64,535
70,500
4,98,032
31,285
6,92,388
2,78,080
7,37,196
6,21,953
3,37,395
43,298
58,313
12,873
24,407
4,96,487
18,000
4,328
5,572
3,297
98,11,508
-
-
-
4,184
2,897
3,989
3,990
3,882
3,361
4,065
3,852
3,582
4,486
16,027
4,427
3,318
3,575
-
2,944
2,898
3,261
2,857
4,287
-
3,786
-
-
3,797
3,762
-
-
-
3,00,669
-
-
1,63,846
5,77,500
5,43,403
76,800
9,13,823
1,32,348
3,28,778
7,89,825
1,99,431
2,04,729
51,343
5,27,770
4,86,554
1,30,642
20,000
5,64,368
5,02,636
4,25,582
3,58,385
2,79,000
1,11,923
98,439
19,045
43,603
3,86,105
22,000
4,458
6,739
5,521
82,75,265
3,351
-
-
3,184
2,743
4,640
2,411
4,451
3,566
3,347
3,226
4,354
4,419
4,443
3,972
3,548
3,081
2,644
4,173
3,185
2,783
2,900
4,143
-
3,358
-
-
3,787
3,267
-
-
-
1,23,410
208
-
37,684
-
12,17,670
10,000
13,36,453
5,21,025
1,55,089
15,92,352
2,94,777
1,42,147
1,10,150
17,54,289
2,15,176
2,43,881
84,709
5,59,365
2,69,739
3,23,510
4,36,720
2,47,569
1,20,432
52,005
25,000
60,310
5,33,586
40,111
7,763
12,204
8,739
1,05,36,073
3,217
21,703
-
5,285
-
4,905
2,570
5,745
3,606
4,552
4,641
3,307
5,222
24,440
4,452
5,005
3,578
6,281
3,689
4,040
3,830
-
4,678
-
2,902
4,905
4,414
4,284
-
-
-
-
MAy-20
Quantity (Tonnes)
Quantity (Tonnes)
Quantity (Tonnes)
Weighted Average Price (INR/Tonne)
Weighted Average Price (INR/Tonne)
Weighted Average Price (INR/Tonne)
PoRT
APRIL-20 MARCH-20
coal // stAts
*ONLY EDI FIGURES
49SEPTEMBER | 2020
“Month-wiSE coal ProdUction By cil dUrinG Fy20, Fy19, Fy18 and Fy17 (in Million tonS)”
“Month-wiSE coal ProdUction By Sccl dUrinG 2019-20 and 2020-21 (in Million tonS)”
MoNTH
MoNTH
APRMAYJUNJULAUGSEPTOCTNOVDECJANFEBMAR
total
APRMAYJUNJULAUGSEPTOCTNOVDECJANFEBMARtotal (aPr-Mar)
40.3841.4339.237.3637.17
195.54
india’S coal & coKE iMPort (in Million tonS)
AuG’20* JuL’20* AuG’20* % GRoWTH (+/-) M-o-M BASIS
APR-AuG’20* APR-AuG’19% GRoWTH (+/-)y-o-y BASIS
2.188.870.110.70.1
0.5112.46
2.349.810.23
10.160.94
14.48
4.5812.380.131.230.160.67
19.14
-6.8%-9.6%
-52.2%-30.0%-37.5%-45.7%-14.0%
-52.4%-28.4%-15.4%-43.1%-37.5%-23.9%-34.9%
13.3949.770.694.110.634.49
73.08
22.3173.350.915.7
1.334.69
108.29
3.003.233.272.852.44
14.79
38.4440.7439.6636.6437.6338.7746.1451.2654.6356.6954.4672.28
567.34
40.3542.5842.7236.7432.4335.2443.51
5054.2
55.9954.3
66.07554.13
44.8447.1444.8840.5638.8
40.2449.7752.0954.1357.2058.0579.2
606.9
-45.48%-45%
-44.56---------
-44.4%
45.2946.5945.0838.537.7730.7739.3550.0258.0263.1166.2684.36
605.12
5.55.875.715.154.054.245.075.455.725.725.635.92
64.03
2020-21
2020-21
2019-20
2019-20
2018-19
y-o-y GRoWTH (%)
2017-18 2016-17
# UPDATED FIGURES MAY NOT TALLY DUE TO REVISION
50 september | 2020
Power // news // domestic
Power Minister r K singh launches green term ahead marketUnion Minister R K Singh launched the Green Term Ahead Market (GTAM) for electricity, a move that will lead to an increase in the participants in renewable energy (RE) sector. The initiative is expected to benefit RE sellers by providing access to the market across India.
The GTAM contracts will allow additional avenues to RE generators for sale of renewable energy, enable obligated entities to procure renewable power at competitive prices to meet their RPOs and provide a platform to environmentally conscious open access consumers and utilities to buy green power.
The key features of GTAM include bilateral transaction (of RE) in nature with clear identification of corresponding buyers and sellers. Thus, there will not be any difficulty in accounting for RPO. Besides, the GTAM contracts will be segregated into Solar RPO and Non-Solar RPO as RPO targets are also segregated.
The price discovery will take place on a continuous basis i.e. price time priority basis. Subsequently, looking at the market conditions open auction can be introduced for daily and weekly contracts. The energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.
Commercial and industrial electricity consumers in the national capital have much to cheer with Delhi Electricity Regulatory Commission (DERC) halving fixed charges for unutilized capacity during Covid-19 lockdowns.
Electricity bills raised during April and May 2020 had become a major issue for commercial and industrial consumers as they were hit by exorbitant charges on provisional bills while their businesses were shut.
After DERC order, the fixed charges for Industrial and Non-domestic (commercial) consumers has come down by half to Rs 125 per Kilo-volt-amperes (kVA) per month. The lowered fixed charge will be applicable for unutilized capacity during April 2020 and May 2020. A DERC order said that the excess amount that has been collected now will be adjusted in subsequent two billing cycles.
DERC said that consumers whose monthly Maximum Demand is less than the Contract Demand or Sanctioned Load, the Billing Demand for computation of Fixed Charges for such consumers shall be split into two parts. In first part, fixed charges for Billing Demand up to the Maximum Demand shall be billed as per existing rate of Rs 250 per kVA per month. In second part, Fixed Charges for re-maining Billing Demand (Contract Demand or Sanctioned Load minus Maximum Demand) shall be billed at 50 % of existing rate at Rs 125 per kVA per month.
fixed electricity rates for delhi’s Non-domestic consumers halved
Western Coalfields Ltd. (WCL) has drawn an ambitious roadmap to almost double its coal despatch capacity through rail mode to meet additional demand of consumers of the Power Sector. Company has set ‘Mission 100 Days’ agenda to streamline activities to reach a peak dispatch of 50 rakes per day from January, 2021 with support from Railways. WCL had recently offered additional coal to Power consumers of Central, West & South India at cheaper landed price.
In discussion with State Gencos of Maharashtra, Gujarat, Karnataka, Madhya Pradesh, NTPC & IPPs, WCL expects additional coal demand of around 25 Million Tonnes per annum from these consumers after getting swapped from other Subsidiaries of CIL and SCCL.
WcL to double rail dispatch to meet demand to Power sector
51SEPTEMBER | 2020
pow
erThe Central government’s plan to privatize power distribution sector across the country starting with union territories (UT) has evinced interest from state-owned companies such as NTPC and REC, which through their subsidiaries are expected to bid for privatization projects on offer in the first phase.
Sources privy to the development said that companies would take special purpose vehicle route (SPV) for bids for each distribution area to prevent transfer of one state-run entity being taken over by another government run enterprise. This would defeat the purpose of privatization and hence SPV would be set up as complete private entities having professional management capable of running distribution operations efficiently.
“We have asked public sector enterprises to look at privatization of discoms and place their bids. NTPC and REC have some experience in the sector and could be possible candidates to professionalize discoms of UTs,” as per a source in Union Power Ministry.
It is expected that NTPC may participate through its subsidiary NTPC Electric Supply Company Ltd (NESCL) and power sector financier REC through its entity REC Power Distribution Co Ltd.
NtPc, rec may give privatization push for Uts power distribution
With India’s plans to become “self-reliant” and boost manufacturing, Minister of Power and New and Renewable Energy RK Singh said, “The cost of power across the world and in India is nearing the international average and it has to be much less if we want to attract industrial activity.
We also need to do away with additional surcharges if we want to stay competitive. Even if cross-subsidy is moderated, the power of cost will come down but it is not going to come down all of a sudden, we plan to reduce cross-subsidy to 20% in the next five years.”
RK Singh has been vocal on the issue of reducing imports of power and solar equipment, which are imported from China. With government’s thrust on ‘vocal for local’ manufacturing hubs are being planned for various sectors including power and solar equipment.
“We are setting up manufacturing zones for power in different corners of the country. The states that will offer land and power at lesser prices will secure manufacturing zones. The state governments will have to compete with each other on costs. One of India’s biggest imports is solar cells and panels. After interacting with the industry, we have an indication that 8,500 MW of cells, modules can be set up. We have identified land beside ports in order to set up industrial zones, Himachal Pradesh has identified 1,400 acres for manufacturing zones,” he said.
The power sector is sensitive and is vulnerable to cyber-attacks, hence, the government has identified about 30 items that need to be imported and the rest can be manufactured in India.
cost of power in india needs to be much lower to attract industrial activity: rK singh
52 september | 2020
french nuclear output fell 17.6 % in August on pandemic, outages: edf to shut hinkley U.K. reactor sooner than Planned
More than 30,000 residents are without power from high winds and dangerous weather that fueled the Santiam Fire (formerly the Lionshead and Beachie Creek wildfires) in Oregon.
Portland General Electric said it was working to restore power for about 30,000. Since Sept 9th, there were over 1100 wires down that require intensive repairs and 187,000 customers have had their power restored. PGE crews will continue to work around the clock until power is restored. Pacific Power said over 23,000 customers were without power.
PGE said a public safety power shutoff was implemented to reduce the risk of fires and keep the community safe near Highway 26 corridor near Mount Hood.
Electricite de France SA is planning to close its Hinkley Point B nuclear power station sooner than planned as safety checks near their end. The 1-gigawatt plant could close as soon as the middle of 2022. The French utility will make a decision on its future in November when approval from the nuclear regulator on restarting the plant is expected, according to a person with knowledge of the matter.
Both units at the Hinkley reactor have been halted this year for safety checks. It’s the second time EDF has brought forward a reactor closure after the company announced last month that its Hunterston reactors would shut at the end of next year. The closures bring into focus Britain’s aging nuclear fleet, which is set to see 4 gigawatts of capacity disappear by March 2024.
EDF is building a new nuclear station, Hinkley Point C, which is due to start generating power in 2025 but the utility is still waiting to hear from U.K. government about how it will fund its Sizewell C project. Hinkley Point B was previously expected to shut in March 2023. A similar operational schedule that was agreed for Hunterston is likely to be signed off by regulators.
German power-sector emissions in August reached their highest since before the onset of Covid-19, as lower renewable output and increased cooling demand amid a heat wave boosted the call on thermal plants.German hard coal and lignite-fired power plants produced an average of 12.6 GW. Combined generation for August totaled 9.4 TWh - up from 7.9 TWh in July and its highest since January, but still down from 10.6 TWh in August last year. A lower wind and solar generation elevated German reliance on thermal plants to meet this increased demand. Output from wind farms averaged 9.2 GW in August, down from 9.5 GW in July, while solar farms produced an average of 6.1 GW, down from 7.1 GW.
And when using the average carbon intensities for these forms of power generation in Germany - 1.1t of CO2/ MWh for lignite and 0.8t of CO2/ MWh for coal - emissions from such facilities turned out at about 8.3 mn t of CO2 equivalent (CO2e) and 1.5mn t of CO2e, respectively, compared with around 8.7 mn t of CO2e and 2.2 mn t of CO2e in August last year.
German power sector co2 emissions hit pre-covid level
Nearly 30,000 without power as wildfires, high winds fuel wildfires in oregon
// NeWs // WorLdPower
53SEPTEMBER | 2020
US electricity consumption will decline 2.4% in 2020 as coronavirus lockdowns cause businesses to close, the US Energy Information Administration said in its Short Term Energy Outlook.
EIA projected power demand will drop to 3,802 billion kilowatt hours (kWh) in 2020 from 3,896 billion kWh in 2019 before easing to 3,801 billion kWh in 2021. Those declines follow a 2.7 % drop in usage in 2019 due to mild weather from 2018’s record 4,003 billion kWh, according to data going back to 1949.
EIA projected power sales to commercial and industrial consumers will drop by 6.4 % and 6.0 %, respectively, in 2020 from 2019 as offices close and factories run at reduced capacity for the coronavirus. Electricity sales to residential homes, however, will rise 3.5 % in 2020 from 2019 as lockdowns cause people to stay home.
If power consumption falls as expected, 2020 would be the first time demand declined for two consecutive years since 2012 and 2021 would be the first time it declined for three years in a row ever.
Tesla is planning to be an electricity provider in Germany and could trade electricity. Elon Musk seems to be opening a new wing for electric cars to win supremacy in this sector in the European market. Also, they have recently acquired a license that will enable them to trade electricity across Western Europe, and the company has also been getting feedback from customers pertaining to the usage of Tesla electricity in their cars.
According to experts in the sectors, it could set the stage for Tesla with one or more partners. This will enable the growth in Germany which is Europe’s biggest power market and autos’ heartland. Generation and trading of power could help in reducing the running costs of its cars and help to be the stiff competitor of BMW, Audi, Porsche, and Mercedes which are churning out new electric models.This will also help in utilizing Vattenfall and EnBW that are venturing out and investing in electric mobility services. But there are other companies like RWE and E.ON which have lumbered the cost of bringing down fossil fuel and nuclear power plants.
Norway will have access to just a fraction of the 1.4 gigawatt (GW) export capacity of a subsea power cable connecting it with Germany once it starts operating in early 2021, with limitations to last until 2026, said Norwegian grid operator Statnett.
“There are constraints in power grid on the Germany side which result in a lower capacity for the first years of operation,” Statnett said.
The minimum guaranteed capacity for the Nord Link interconnector, which is costing 1.5 billion and 2 billion euros ($1.8 billion-$2.4 billion) to build, will stand at just 11.7 % for 2021, the first year of commercial operation. In 2022, it will rise to 23.3 % and then to 35 % in 2023, 46.7 % in 2024 and 58.3 % in 2025. From 2026 it will reach an EU-mandated minimum capacity of 70 %, Statnett said.
Germany faces delays in expanding its congested domestic power grid, with new lines to transport wind power produced in the north to consumers in the south running around five years behind schedule. Norway seeks to export its plentiful hydro and wind power production to Germany, with the latter seeking to export surplus wind and solar output north.
New Norway-Germany power cable to face constraints until 2026
tesla is planning to venture into power and electricity trading in Germany
Us power use to drop over 2 % in 2020 due coronavirus: eiA
54 september | 2020
Energy Power Supply Position report (Provisional) “Southern region”
Energy Power Supply Position report (Provisional) “western region”
Energy Power Supply Position report “northern region”
Figures in MU
Figures in MU
Figures in MU
State
State
State
Jun-20
Jun-20
aug-20
Energy requirement
Energy requirement
Energy requirement
Energy Supplied
Energy Supplied
Energy Supplied
Energy not Supplied
Energy not Supplied
Energy not Supplied
Andhra Pradesh
Telangana
Karnataka
Kerala
Tamil Nadu
Puducherry
Lakshadweep
Southern region
Chhattisgarh
Gujarat
Madhya Pradesh
Maharashtra
Daman & Diu
Dadra & Nagar Haveli
Goa
western region
Chandigarh
Delhi
Haryana
Himachal Pradesh
UT of J&K and Ladakh
Punjab
Rajasthan
Uttar Pradesh
Uttarakhand
northern region
5,052
5,711
4,884
1,933
8,530
235
4
26,345
2,678
8,156
5,844
11,117
175
462
260
28,692
186
3,166
5,765
863
1,366
7,558
6,841
12,724
1,204
39,674
5,051
5,709
4,883
1,932
8,528
235
4
26,339
2,678
8,156
5,844
11,117
175
462
260
28,692
186
3,166
5,745
860
1,366
7,558
6,837
12,616
1,204
39,539
1
1
1
1
2
0
0
6
0
0
0
0
0
0
0
0
0
1
20
3
0
0
4
108
0
134
0.0%
0.0%
0.0%
0.1%
0.0%
0.0%
0.0%
0.0
0.0%
0.0%
0.0%
0.0%
0.00%
0.0%
0.0%
0.0
0.0%
0.0%
0.3%
0.3%
0.0%
0.0%
0.1%
0.8%
0.0%
0.3%
// stAtsPower
55SEPTEMBER | 2020
“Mode-wise Gross Electricity Generation in india from Fy’10 to Fy’20 (till-May’20) (in BU)”
Energy Power Supply Position report “north-Eastern region”
Energy Power Supply Position report (Provisional) “Eastern region”
Figures in MU
Figures in MU
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
(till-May’20)”
State
State
640.5
665
708.8
760.7
792.5
878.3
943.8
994.2
1036.7
1072.2
1042.7
308.3
thermal hydro nuclear
Jun-20
Jun-20
Energy requirement
Energy requirement
Energy Supplied
Energy Supplied
Energy not Supplied
Energy not Supplied
103.9
114.3
130.5
113.7
134.8
129.2
121.4
122.3
126.2
135
155.8
59.1
18.6
26.3
32.3
32.9
34.2
36.1
37.4
37.6
38.2
37.7
46.5
14.8
5.4
5.6
5.3
4.8
5.6
5
5.2
5.6
4.9
4.4
5.8
0.4
Arunachal Pradesh
Assam
Manipur
Meghalaya
Mizoram
Nagaland
Tripura
north-Eastern region
Bihar
DVC
Jharkhand
Odisha
West Bengal
Sikkim
Andaman- Nicobar
Eastern region
59
1095
83
163
58
71
150
1,680
3,372
1,908
818
2,627
4,676
42
29
13,443
59
1060
83
163
58
71
150
1,644
3,372
1,908
818
2,627
4,676
42
27
13,443
0
35
0
0
0
0
0
36
0
0
0
0
0
0
2
2
0.0%
3.2%
0.0%
0.0%
0.0%
0.0%
0.0%
2.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
6.9%
0.0
768.4
811.1
876.9
912.1
967.2
1048.7
1107.8
1159.8
1206.9
1249.2
1250.8
386.0
Bhutan import total
In recent years, the use of natural gas in residential, industrial and commercial sectors has
increased rapidly due to favorable regulatory policies, aggressive CGD bidding rounds, declining
costs & environment benefits of using natural gas. During FY 17-18 to FY 24-25, natural gas
consumption in India’s CGD segment is expected to grow at a CAGR of 9.07% and around 44.35
MMSCMD gas would be required for CNG and PNG operations all over the country. Currently,
around 16% natural gas is being consumed only in CGD segment. For rapid expansion of CGD
sector in the country, Ministry of Petroleum & Natural Gas (MoPNG) and Oil and Gas companies
have facilitated below mentioned progressive key steps for the growth of CGD sector:
• Domestic gas has been allocated to meet the entire requirement of PNG and CNG segment
of the CGD sector and has been kept under “No Cut Category”
• Public Utility Status has been granted to CGD from June,2017
Recently, PNGRB has also launched 10th CGD Bidding round covering 50 Geographical area
including 14 states and 124 districts. After successful completion of 10th CGD bidding round,
it has been estimated that around 70% of the country’s population would have access to CGD
network and this would help to achieve gas-based economy goal. The bidding process followed
by PNGRB revolves around two major criteria - Technical and Financial. The entities which
surpass the minimum threshold in the technical bids get qualified for financial bids. The financial
bids eventually decide the winner of the CGD bidding process.
City Gas Distribution
Economics
Gas Demnad and Supply
Regulation and Policy Framewok
Gas Pipeline Infrastructure
Infraline Energy presents a report on: “CGD Business in India” entailing the potential and need
of natural gas distribution in city through the pipeline in India. The report describes demand and
consumption pattern of natural gas in urban areas in form of piped natural gas as domestic fuel
and compressed natural gas as transportation fuel. The core objective of the report is to focus
on the development of CGD market offers, tremendous business opportunities, CGD bidding
framework, gas pricing, and CGD growth strategy.
Key Highlights
� Current and future scenario of CGDbusiness in India
� CGD development including PNGconnections, CNG stations and policyframework in India
� Diversified sourcing and growth strategy� Pricing build up: CNG and PNG� Current Demand and Supply of Natural
gas in various sector� Technical and Financial CGD bidding
criteria� Key business opportunities and benefits� Key business framework such as SWOT
and PESTLE analysis
Key Questions Answered
� Dynamics of CGD business in India� Business Strategy for GCD� Projection and Analysis of CGD Market
in India� Supply and Prices
A must buy for
� CGD equipment suppliers
� Companies involved in CGD business
� Gas producers
� Government Agencies
� Consultants
� Institutions
� Regulatory Bodies
� Investment Banks & Financial Institutions
For Priority Business
Rajesh Singh Panwar
Mob: +91 9711786999
Ph: +91 120 6799125, 160
City Gas Distribution Business in India
Research Report
Executive Summary
In recent years, the use of natural gas in residential, industrial and commercial sectors has
increased rapidly due to favorable regulatory policies, aggressive CGD bidding rounds, declining
costs & environment benefits of using natural gas. During FY 17-18 to FY 24-25, natural gas
consumption in India’s CGD segment is expected to grow at a CAGR of 9.07% and around 44.35
MMSCMD gas would be required for CNG and PNG operations all over the country. Currently,
around 16% natural gas is being consumed only in CGD segment. For rapid expansion of CGD
sector in the country, Ministry of Petroleum & Natural Gas (MoPNG) and Oil and Gas companies
have facilitated below mentioned progressive key steps for the growth of CGD sector:
• Domestic gas has been allocated to meet the entire requirement of PNG and CNG segment
of the CGD sector and has been kept under “No Cut Category”
• Public Utility Status has been granted to CGD from June,2017
Recently, PNGRB has also launched 10th CGD Bidding round covering 50 Geographical area
including 14 states and 124 districts. After successful completion of 10th CGD bidding round,
it has been estimated that around 70% of the country’s population would have access to CGD
network and this would help to achieve gas-based economy goal. The bidding process followed
by PNGRB revolves around two major criteria - Technical and Financial. The entities which
surpass the minimum threshold in the technical bids get qualified for financial bids. The financial
bids eventually decide the winner of the CGD bidding process.
City Gas Distribution
Economics
Gas Demnad and Supply
Regulation and Policy Framewok
Gas Pipeline Infrastructure
Infraline Energy presents a report on: “CGD Business in India” entailing the potential and need
of natural gas distribution in city through the pipeline in India. The report describes demand and
consumption pattern of natural gas in urban areas in form of piped natural gas as domestic fuel
and compressed natural gas as transportation fuel. The core objective of the report is to focus
on the development of CGD market offers, tremendous business opportunities, CGD bidding
framework, gas pricing, and CGD growth strategy.
Key Highlights
� Current and future scenario of CGDbusiness in India
� CGD development including PNGconnections, CNG stations and policyframework in India
� Diversified sourcing and growth strategy� Pricing build up: CNG and PNG� Current Demand and Supply of Natural
gas in various sector� Technical and Financial CGD bidding
criteria� Key business opportunities and benefits� Key business framework such as SWOT
and PESTLE analysis
Key Questions Answered
� Dynamics of CGD business in India� Business Strategy for GCD� Projection and Analysis of CGD Market
in India� Supply and Prices
A must buy for
� CGD equipment suppliers
� Companies involved in CGD business
� Gas producers
� Government Agencies
� Consultants
� Institutions
� Regulatory Bodies
� Investment Banks & Financial Institutions
For Priority Business
Rajesh Singh Panwar
Mob: +91 9711786999
Ph: +91 120 6799125, 160
City Gas Distribution Business in India
Research Report
Executive Summary
Table of Contents1. CGD Sector Overview
i Natural Gas and CGD: At a Glance
ii Natural Gas Production
iii Sector-wise Natural Gas Consumption
iii Demand and Supply of Natural gas
iv CGD Market Size in India
v Domestic PNG Connection in India- Market Size
vi CNG stations in India- Market Size
vii Market Dynamics: Driver and Challenges
viii SWOT Analysis
ix Porter Five Forces Analysis
x Diversified sourcing strategy
xi CGD growth strategy
xii Key players active in the CGD business in India alongwith their CNG stations and PNG connections
2. Policies and Regulation for CGD Business in India
i CGD Regulations
ii PNGRB- Current focus and Regulatory body framework
iii Supply source of customer’s Gas requirement
3. Economic Feasibility
i Introduction
ii Major stake holders and their benefits
iii Economic overview of CGD Business in India
iv Gas Pricing
v Gas Pricing- Selling price of CNG and PNG in different state.
vi Components of PNG and CNG tariffs
vii Region-wise CGD development in India
vii Price buildup of PNG and CNG
4. CGD Bidding
i CGD Bid Criteria
ii Bid process: A complete picture
iii Technical Bid Criteria
iii Financial Bid Criteria
iv CGD Bidding Rounds
v Gas Offered Vs. Gas Awarded
vi Existing CGD Business
vii 9th and 10th CGD Bidding Round
5. LNG Infrastructure
i Natural gas Transmission and Networks & R-LNG inIndia
ii Gas Pipeline Under Construction
iii LNG Terminals in India
iv Proposed LNG terminals in India
6. Conclusion and Recommendations
Appendix
The report is priced at INR `1,25,000|USD $1,811. We are offering a pre-publication discount of 10%. The price after discount is INR `1,12,500|USD $1,630. This offer is valid for orders and payments received on or before September 30, 2020. (GST will be charged as applicable)
58 september | 2020
oil & GAs
The Petroleum and Natural Gas Regulatory Board (PNGRB) may allow additional relief period for City Gas Distribution (CGD) companies facing delays in execution of projects due to national and state-level lockdowns imposed by the government to curb the spread of Covid-19 pandemic. PNGRB issued a fresh set of guidelines to examine the requests of CGD players for time extension on account of Force Majeure (FM) events. The guidelines list events such as war, riots, natural disasters and restrictions by the central or state governments as conditions that qualify under FM and can result in time extension to complete Minimum Work Programme (MWP) obligations. PNGRB may allow additional restoration period after the determination of the event of FM for restoration of the activities, ratings agency ICRA says in a statement. The difficulties for CGD players associated with re-mobilization and availability of equipment, labor and other resources to resume project execution could be covered under this restoration period and would be additional relief to entities executing new projects. Over the last few months, while several city gas firms claimed Force Majeure (FM) after work on sites got stalled due to the lockdowns, such claims couldn’t be immediately accepted by the regulator PNGRB in the absence of guidelines listing the events that can trigger FM. The new guidelines by PNGRB come as a major relief for CGD companies. They clarify in the event of the authorized entity being unable to perform any obligation required to be performed as per the MWP, due to FM, the relative obligation of the entity affected by such FM will be suspended for a period during which such FM lasts. All CGD licensees awarded after 2015 (Bid rounds 5 to 10) would currently be executing their committed MWPs and are likely to have sought extension with the PNGRB as a nationwide lockdown to contain the spread of COVID-19 from March 25, 2020 and state-level lockdowns since June hampered the progress of work on city gas projects, says Ankit Patel, Vice president and Co Head, Corporate Ratings, ICRA. CGD players have MWP obligations for each year in terms of the length of pipelines, number of CNG stations and number of domestic connections to be completed during each of their initial years after receiving exclusive authorization to market gas in each Geographical Area which generally consists of 1-3 districts. If there is delay in execution, CGD regulations permit imposition of penalties on the entities.
Reliance Industries Ltd. released a detailed plan to carve out its oil-to-chemicals business, following through on a proposal announced in April and readying the unit for a potential stake sale. The so-called scheme of arrangement lays out the details of the proposed move to spin off its entire oil-to-chemicals assets into a separate unit, by transferring some of the conglomerate’s key oil and petrochemicals assets including those in refining, fuel retail and aviation fuel. The assets will be held by a unit of Reliance and the ultimate ownership won’t change as a result of the plan, according to a filing. The proposed separation of the assets from the listed company in April was seen as a precursor to a stake sale to Saudi Arabian Oil Co., the kingdom’s main oil producer. Since then, Reliance disclosed delays to the proposed deal, although Saudi Aramco says that it was still working on $15 billion stake purchase plan.
rEliancE indUStriES GivES dEtailEd Plan to carvE oUt o2c aSSEtS (SEPtEMBEr 2020)
PnGrB May allow additional rEStoration PEriod For cGd ProJEctS FacinG covid dElayS (SEPtEMBEr 2020)
crUdE oil carriEr with 2,00,000 MEtric ton carGo on FirE; indian coaSt GUard ShiPS En roUtE Sri lanKan coaSt For FirEFiGhtinG (SEPtEMBEr 2020)Three Indian Coast Guard ships are headed for the Central-eastern Sri lankan coast to help fight a fire on-board MT New Diamond, a Panama-flagged oil tanker. The ablaze oil-tanker is located about 36 nautical miles from the Sri lankan coast. The oil tanker was bound for Paradip, Odisha on India’s eastern coast from Kuwait. Of the 23 crew on-board, 19 are said to have been rescued. At the time of writing, one crew member is said to be injured, another missing, while the captain is on-board with another crew member. India’s coast guard, also known as Sentinels of the Sea, have mobilized vessels- Shaurya, Sarang and Samudra pehredar to assist in fighting the fire. Besides the vessels, a Dornier aircraft has also been deployed for the operation. One Indian vessel is expected to reach the site by evening.
// news // domestic
59SEPTEMBER | 2020
oil &
GAs
State-owned refiner Bharat Petroleum Corporation Ltd (BPCL) on says that it has launched the country’s first certified reference material for testing chemical components of crude oils. Bhartiya Nirdeshak Dravya, the first batch of the certified reference material, is approved by the National Physical Laboratory, New Delhi, which is under the Union science and technology ministry. The reference material has a traceability to the international system of units and is being produced at BPCL’s Sewree Laboratory in Mumbai, the company says in a statement. To ensure accuracy of lab tests, the reference material ensures that laboratory instruments perform properly and to the standards of predefined value. The results from lab tests play a major role in ascertaining the quality of the refined petroleum products. With non-availability of locally-made certified reference material, domestic refiners have been importing the material all these while. With BPCL making available these materials now, petroleum labs need not depend on imported reference material now. The company is also planning to export this reference material to other labs across the globe
The Gopalpur Port Limited (GPL) in Odisha has planned to set up a liquefied natural gas (LNG) terminal and an investment of Rs 2,000 crore for setting up fertilizer and petrochemical industries, an official says on Monday. Recently, GPL Managing Director Amit Saboo briefed Chief Secretary Asit Tripathy about the ongoing activities of the port and future investment on industrialisation in the periphery of Gopalpur Port. Tripathy expressed satisfaction over the investment plan and projects envisioned by GPL authorities in coming years. He chaired a review meeting on various issues related to developmental activities. As the issue of capping on transportation of iron ores to the Gopalpur port came up during the discussion, Tripathy says that artificial capping by deputy director of mines should stop. While there are no restrictions on loading of trucks from mines of the state for Vishakhapatnam and Gangavaram Ports in Andhra Pradesh, there is a restriction on loading for GPL. As a result, the exporters are facing a tough time and stiff competition and there will be a huge loss of foreign exchange earnings to the nation also, says the sources. Tripathy asked the officials to take up the issue with the Department of steel and Mines in this regard. GPL Chief Executive Officer Sandeep Agarwal informed ongoing activities in the Covid-19 pandemic and the expansion proposals. While GPL requires 1,200 acres of land, 393 acres have been allotted to them so far. The port authorities have requested for another 800 acres. The Revenue Department has recently forwarded 119 acres in favour of GPL, officials informed.
hPcl laUnchES cErtiFiEd rEFErEncE MatErial For PEtrolEUM laBS (SEPtEMBEr 2020)
odiSha’S GoPalPUr Port PlanS lnG tErMinal, PEtrochEMi-cal indUStriES (SEPtEMBEr 2020)
India’s top explorer Oil and Natural Gas Corp is unlikely to buy overseas oil and gas assets at current prices of about $45 a barrel, its finance chief says. Its overseas investment arm ONGC Videsh (OVL) has already seen a decline in profit, as some of its acquisitions, such as Imperial Energy in Russia, were made when global oil prices were above $100 a barrel. The prices are stuck at $45 per barrel so any acquisition should be made at significantly lower prices only, Subhash Kumar told an analyst conference. OVL is comfortable with oil prices remaining above $45 a barrel, as $40 a barrel is the lowest price at which the company can make a profit, says the finance chief. OVL has a debt of 420 billion Indian rupees ($5.74 billion), with its long term borrowings backed by ONGC. Its profit in the last fiscal year to March 31 declined by about 73% to 4.54 billion Indian rupees ($62 million). Kumar, however says, ONGC will help OVL in raising funds if the acquisition is seen adding value. Separately, ONGC sees an almost 19% cut in its capex for this fiscal year to 260 billion rupees as pandemic-related lockdowns have affected some of its activities. Oil companies across the globe have cut their spending plans as the pandemic has driven down oil prices, fuel demand and hurt supply chains. Kumar expects ONGC’s annual crude production to decline by 3% to 22.69 million tonnes in this fiscal year while gas will be almost flat at 24.89 billion cubic meters.
oil and natural Gas corporation Unlikely to Buy overseas oil, Gas assets at current Prices (September 2020)
60 september | 2020
oil & GAs // news // world
Equinor revealed that the Maersk Drilling (CPH: DRLCO) Maersk Intrepid jack-up rig recently began drilling operations at the Martin Linge field in the North Sea. The report follows an Equinor review of wells drilled at the field before the firm took over operatorship from Total in 2018. According to Equinor, the analysis found that several of the wells lack necessary barriers and the new wells will ensure safe production. In four gas wells that were drilled at Martin Linge before 2018 well barrier deficiencies that are considered to make them inappropriate for safe production have been established, according to the company. Equinor added that Petoro carried out an independent well barrier assessment that support its conclusion from the analysis. Equinor owns a 70% interest in Martin Linge, with Petoro holding the remainder. The wells are considered safe as they are now, but we will keep them plugged an under continuous monitoring until we have reduced the pressure in the formation by producing from other wells, remarked Geir Tungesvik, Equinor’s acting executive vice president for technology projects and drilling. The estimated costs of drilling up to three new wells totals approximately 2 billion Norwegian krone (US$218.7 million), Equinor stated. The company added the Martin Linge plant is designed for an oil-gas mixture and needs gas wells producing at a certain rate for start-up and production. The company’s first priority is to ensure safe start-up of the field. It will therefore plan to drill up to three new gas wells in addition to the two remaining wells from the plan for development and operation for the field to produce as originally planned according to Tungesvik.
Zion Oil & Gas announced the completion of the Megiddo Jezreel #2 (MJ02) conductor pipe to a depth of 110 feet and provides an operational update. The company is thrilled to continue its pre-spud operations in Israel despite delays due to the worldwide Covid pandemic, according to Zion’s CEO, Rob Dunn. Zion’s Israeli operations have completed setting the MJ02 conductor pipe to a depth of 110 feet. Cellar con-struction and additional engineering work continue on the pad site in preparation of the rig arrival and spud. Zion will use the same pad site as the MJ#1 well, saving valuable time and sig-nificant expense. Once Israeli visas have been issued for Zion’s rig crew, Zion’s rig will be shipped by sea to Israel. Zion’s rig crew in Romania currently is preparing safety certification on IADC-required lifting components in addition to general pack-ing and crating preparations for the move. The wellhead has shipped from the Port of Houston and is expected to arrive in Israel on October 5, 2020. Third-party service providers have been selected for well logging, directional drilling, mud ser-vices, tool rentals, and other related services. This will allow vendors to begin their importation and logistical procedures. Zion purchased an additional 4,900 feet of heavy weight drill pipe for drilling operations to accommodate the rated 20,000-foot capability of the rig.
Exxon hitS MorE oil Pay oFFShorE GUyana (SEPtEMBEr 2020)Exxon Mobil Corp. reported that it has made its 18th discovery offshore Guyana at the Redtail-1 well, located on the Stabroek Block. The Stabroek Block exploration program continues to identify high-quality reservoirs in close proximity to previous discoveries, establishing efficient opportunities for new projects in Guyana, accordinng to Mike Cousins, ExxonMobil’s senior vice president of exploration and new ventures. Developing these projects remains an integral part of ExxonMobil and our co-venturers’ long-term growth plans and a source of significant value for Guyana. According to ExxonMobil, Redtail-1 encountered approximately 232 feet (70 meters) of high-quality oil-bearing sandstone and was drilled in 6,164 feet (1,878 meters) of water. The well is located approximately 1.5 miles (2.5 kilometers) northwest of the Yellowtail discovery, the supermajor noted. ExxonMobil also revealed that drilling at Yellowtail-2 hit 69 feet (21 meters) of net pay in newly identified, high-quality oil-bearing reservoirs among the original Yellowtail-1 discovery intervals. This resource is currently being evaluated for development conjunction with nearby discoveries, according to the company. ExxonMobil affiliate Esso Exploration and Production Guyana Limited operates the 6.6 million-acre (26,800-square-kilometer) Stabroek Block and holds a 45% interest in it. Its co-venturers include Hess Guyana Exploration Ltd. (30%) and CNOOC Petroleum Guyana Limited (25%). The Redtail-1 and Yellowtail-2 discoveries further demonstrate the significant exploration potential of the Stabroek Block and will add to the recoverable resource estimate of more than 8 billion barrels of oil equivalent, according to John Hess, CEO of Hess Corp. Redtail is the ninth discovery in the southeast area of the block which is expected to undergo future development. ExxonMobil pointed out that approximately 80 Guyanese employees, contractors and subcontractors participated in Redtail activities offshore. It added that more than 2,000 Guyanese and 600 local suppliers are supporting its activities in the South American country.
MaErSK riG drillinG nEw Martin linGE wEllS (SEPtEMBEr 2020)
Zion oil & GaS continUES PrE-SPUd oPErationS in iSraEl (SEPtEMBEr 2020)
61SEPTEMBER | 2020
Aberdeen-headquartered Unity, Europe’s largest provider of well integrity technology, services, and engineering solutions, has been awarded a three-year contract extension, by a UK oil and gas operator, to continue its work on three northern North Sea platforms. The contract, worth an annual six figure sum, has two additional one-year extension options. Unity provides well integrity, wellhead maintenance and associated support services for the three assets. This includes surface wellhead and Xmas tree integrity services, plus the supply of personnel, equipment and technology, including Unity’s range of retrofittable QV wellhead parts. Unity will also support the client’s abandonment and decommissioning work on two of the platforms using its knowledge of the wellheads and associated infrastructure. Gary Smart, CEO at Unity says, Unity’s flexible and adaptable approach will continue to support client’s requirements as it moves forward into a phase of decommissioning with its assets. Wellhead decommissioning is a natural extension to our production integrity and maintenance service, and our experience of all types of surface well equipment ensures we have the expertise to add value to the process. The company hold contracts with leading operators to provide services on over one thousand wells and have built a successful track record of decommissioning support work in the UKCS & Europe. Projects have included well inspection, plug setting, isolation verification, onsite machining and the safe removal of Xmas trees and tubing hangers. Unity’s technology solutions, such as our Surface Intervention System, may also be used to enhance efficiency. This contract award comes on the back of similar recent business wins at Unity, spanning both the oil and gas and utility sectors.
Sempra LNG, a subsidiary of Sempra Energy, has begun full commercial operations under tolling agreements of its 5-million tonne/year (tpy) Train 3 at the Cameron LNG liquefaction plant in Hackberry, La. Cameron LNG achieved commercial operations of Train 1 and Train 2 in August 2019 and February 2020, respectively. The plant’s total capacity is now 15-million tpy. Sempra LNG and its partners are also developing the 10-million tpy Cameron LNG Phase 2, previously authorized by the US Federal Energy Regulatory Commission (FERC). Project owners have signed memorandums of understanding for 100% of Phase 2’s offtake capacity with no change in equity ownership. Phase 2 will add two additional production trains and associate storage. Sempra earlier this year asked FERC for a 6-year extension (to May 2026) to complete construction of Phase 2. Commercial operations of Train 3 mark the beginning of full run-rate earnings under Cameron LNG’s tolling agreements. The plant is expected to generate nearly $12 billion of after-debt service cash flows for Sempra Energy during the 20-year contract period. Cameron LNG is jointly owned by affiliates of Sempra LNG, Total SE, Mitsui & Co. Ltd. and Japan LNG Investment LLC, a company jointly owned by Mitsubishi Corp. and Nippon Yusen Kabushiki Kaisha. Sempra Energy indirectly owns 50.2% of Cameron LNG
caMEron lnG train 3 StartS coMMErcial oPErationS (SEPtEMBEr 2020)
Unity awardEd thrEE-yEar, thrEE PlatForM, contract ExtEnSion By UK oil and GaS oPErator (SEPtEMBEr 2020)
Liberty Oilfield Services Inc. and Schlumberger announced an agreement for the contribution of Schlumberger’s onshore hy-draulic fracturing business in the United States and Canada, including its pressure pumping, pumpdown perforating, and Permian frac sand businesses to Liberty, in exchange for a 37% equity interest in the combined company. The combined company will deliver best-in-class completion services for the sustainable development of unconventional resource plays in the United States and Canada land markets. The transaction is expected to close in the fourth quarter of 2020 and is sub-ject to Liberty stockholder approval, regulatory approvals and other customary closing conditions. Following the closing of the transaction, Liberty will offer one of the most innovative suites of completion services and technologies to operators in onshore North America. Liberty will continue to be led by its current management team. Liberty Chairman and Chief Ex-ecutive Officer Chris Wright stated, from day one, the Liberty team has been laser focused on delivering superior returns for our customers and stockholders. The last several months have been extremely challenging for the world, the industry and the Liberty family. These times also bring opportunity. This trans-action will be a transformative step forward in the journey as a company. The expanded technology portfolio and breadth of operations will enable Liberty to further raise our already high bar for safe, innovative, efficient and ESG-conscious frac oper-ations. Schlumberger Chief Executive Officer Olivier Le Peuch says that this partnership provides an ideal home for our On-eStim business and its employees and is in line with our cap-ital stewardship strategy while benefiting from future market upside through our equity stake. Alongside the comprehensive suite of services and products that Schlumberger continues to offer in North America land, this partnership with Liberty will uniquely position us to leverage the technology and scale to significantly improve its customers’ performance.
SchlUMBErGEr SEllS itS Frac oPErationS to liBErty oilFiEld SErvicES For 37% EQUity StaKE (SEPtEMBEr 2020)
62 september | 2020
oil & GAsoil & GAs // stAts
State-wise natural Gas Production in india, 2020
a) onshore:
(i) Assam / Arunachal Pradesh
(ii) Rajasthan
(iii) Gujarat
(iv) Tamil Nadu
(v) Andhra Pradesh
(vi) Tripura
(vii) West Bengal, MP, Jharkhand (CBM)
Onshore Total (A)
B) offshore:
total (a+B), incl. cBM
net Production
242
198
116
97
78
113
56
844
1709
2608
2530
234
161
107
87
72
91
56
752
1532
2341
2257
247
179
108
89
74
95
58
792
1565
2415
2327
230
138
89
68
68
136
50
729
1382
2161
2066
270
149
91
78
69
144
53
800
1447
2300
2215
266
157
93
76
68
130
50
790
1484
2324
2250
250
178
99
76
62
133
53
798
1592
2443
2369
1489
983
604
494
428
709
323
4706
9120
14149
13645
State 20-Jan 20-Mar20-Feb 20-apr 20-May 20-Jun 20-Jul total
Gross Production (MMSCM)
Note 1: Denotes natural gas available for consumption, which is derived by deducting from gross production, the quantity of gas flared/loss by producing companies.
consumption of Petroleum Products in india, 2020
LPG
Naphtha
MS
ATF
SKO
HSD
LDO
Lubricants & Greases
FO & LSHS
Bitumen
Petroleum coke
Others
total
2449
1383
2456
740
164
6942
57
327
486
598
1946
986
18535
2115
1279
2511
690
185
7160
54
326
503
670
1786
946
18223
2306
1386
2156
484
152
5651
49
296
482
525
1680
917
16083
22132
859
973
56
129
3250
28
212
297
196
1135
662
9929
2317
1084
1769
111
181
5495
69
255
479
571
1523
792
14646
2270
1284
2263
233
158
5524
59
374
498
389
1633
992
16287
2270
1284
2263
233
158
5524
59
374
498
389
1633
992
15676
15665
8441
14409
2536
1130
40324
377
2115
3250
3648
11299
6184
109380
Products 20-Jan 20-Feb 20-Mar 20-apr 20-May 20-Jun 20-Jul total
(000’ Metric Tonnes)
63SEPTEMBER | 2020
State-wise Sales tax/ GSt applicable on Petroleum Products (July, 2020)
State/Ut Petrol diesel SKo (PdS)
domestic lPG
Andaman & Nicobar Islands
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Dadra and Nagar Haveli and Daman
and Diu
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Kerala
Ladakh
Madhya Pradesh
Maharashtra – Mumbai, Thane &
Navi Mumbai
Maharashtra (Rest of State)
Manipur
Odisha
Mizoram
Nagaland
Meghalaya
Karnataka
Lakshadweep
6%
31% VAT + Rs.4/litre VAT
20.00%
32.66% or Rs.22.63 per litre whichever is higher as VAT
26% or Rs 16.65/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)
Rs.10/KL cess +22.45% or Rs.12.58/Litre whichever is higher
25% VAT + Rs.2/litre VAT
5.00% 5.00%
30% VAT
25% VAT + 0.5% Green cess
20.1% VAT+ 4% Cess on Town Rate & VAT
25% or Rs.15.20/litre whichever is higher as VAT+5% additional tax on VAT
25% or Rs 15.50/Litre- whichever is higher
24% MST+ Rs.5/Litre employment cess, Reduction of Rs.0.50/Litre
22% on the sale price or Rs. 17.00 per litre , which ever is higher + Cess of Rs 1.00 per Ltr
30.08% sales tax+ Rs.1/litre additional sales tax + 1% cess
24% MST+ Rs.5/Litre employment cess, Reduction of Rs.2.5/Litre
33 % VAT + Rs.4.5/litre VAT+1%Cess
26% VAT+ Rs.10.12/Litre additional tax
25% VAT+ Rs.10.12/Litre additional tax
36.50% VAT
32% VAT
25% VAT
25.00% VAT +5% surcharge + Rs.2.00/Litre as road maintenance cess +Rs.6.00/Litre as Covid cess
14.50% VAT+ 5% surcharge + Rs.2.00/Litre as road maintenance cess+Rs.5.00/Litre as Covid cess
31% or Rs17.60/Litre- whichever is higher (2% surcharge leviable only on advalorem tax)
22.5% or Rs12.50/Litre- whichever is higher (2% surcharge leviable only on advalorem tax)
35% sales tax
Nil
22.25% VAT + Rs.4/litre VAT
12.50%
23.66% or Rs.17.45 per litre whichever is higher as VAT
19% or Rs 12.33/Litre whichever is higher (30% Surcharge on VAT as irrecoverable tax)
Rs.10/KL cess + 14.02% or Rs.7.63/Litre whichever is higher
25% VAT + Rs.1/litre VAT
20% VAT20% VAT
Rs.250/KL air ambience charges + 16.75% VAT
22% VAT + 0.5% Green cess
20.2% VAT + 4 % Cess on Town Rate & VAT
16.40% VAT or Rs.9.20/litre whichever is higher as VAT+5% additional tax on VAT
14% or Rs 9.00/Litre- whichever is higher
16% MST+ Rs.1.50/Litre employment cess
22% on the sale price or Rs. 12.50 per litre , which ever is higher + Cess of Rs 1.00 per Ltr
22.76% sales tax+ Rs.1/litre additional sales tax + 1% cess
16% MST+ Rs.1/Litre employment cess , Reduction of Rs.0.50/Litre
23% VAT+ Rs.3/litre VAT+1% Cess
24% VAT+ Rs.3.00/Litre additional tax
21% VAT+ Rs.3.00/Litre additional tax
22.50% VAT
28% VAT
14.5% VAT
24% sales tax
Nil
6%
Sales tax/vat GStStates
64 september | 2020
oil & GAs // stAts
State-wise Sales tax/ GSt applicable on Petroleum Products (July, 2020)
State/Ut Petrol diesel SKo (PdS)
domestic lPG
Rajasthan
Tamil Nadu
Telangana
Tripura
Uttar Pradesh
Uttar Pradesh
West Bengal
Sikkim
38% VAT+Rs 1500/KL road development cess
15% + Rs.13.02 per litre
35.20% VAT
25% VAT+ 3% Tripura Road Development Cess
26.80% or Rs 18.74/Litre whichever is higher
25% or Rs 19 Per Ltr whichever is greater
25% or Rs.13.12/litre whichever is higher as sales tax+ Rs.1000/KL cess- Rs.17/KL exemption (20%
Additional tax on VAT as irrecoverable tax)
16.50% VAT+ 3% Tripura Road Development Cess
17.48% or Rs 10.41/Litre whichever is higher
17.48% or Rs Rs 10.41 Per Ltr whichever is greater
17% or Rs.7.70/litre whichever is higher as sales tax + Rs 1000/KL cess – Rs 290/KL sales tax rebate (20% Additional tax on VAT as irrecoverable tax)
28% VAT+ Rs.1750/KL road development cess
11% + Rs.9.62 per litre
27% VAT
25.25% VAT+ Rs.3000/KL cess 14.75% VAT + Rs.2500/KL cess
Sales tax/vat GStStates
5.00% 5.00%
Punjab Rs.2050/KL (cess)+ Rs.0.10 per Litre (Urban Transport Fund) +24.79% VAT+10% additional tax
on VAT
Rs.1050/KL (cess) + Rs.0.10 per Litre (Urban Transport Fund) + 15.94% VAT+10% additional tax
on VAT
Puducherry 28% VAT 21.80% VAT
Monthly index of Eight core industries (January 2019 - July 2020)
19-Jan
19-Feb
19-Mar
19-apr
19-May
19-Jun
19-Jul
19-aug
19-Sep
19-oct
19-nov
19-dec
20-Jan
20-Feb
20-Mar
20-apr
20-May
20-Jun
20-Jul
152.5
153.8
201.7
122.6
127.3
123.5
106.4
94.8
87.3
109.6
133.6
152.8
163.1
171.0
209.7
103.7
109.4
104.3
100.3
89.7
80.8
89.9
85.6
88.2
84.7
87.2
86.6
83.4
86.3
82.4
83.5
85.0
75.6
85.0
80.2
82.0
79.6
83.0
71.8
64.4
70.7
66.6
68.7
66.0
68.1
67.4
64.3
66.3
64.4
65.6
65.3
58.3
60.0
53.3
57.2
58.1
61.2
131.9
120.0
135.9
124.3
129.6
121.4
132.9
131.0
117.5
134.2
133.0
130.5
134.4
128.9
135.3
94.2
102.1
110.6
114.5
116.6
104.8
111.5
89.0
105.5
110.0
111.7
112.6
113.9
115.5
116.7
120.5
116.5
107.8
98.3
85.0
113.4
114.6
119.4
153.0
148.6
170.7
156.4
161.8
159.3
151.7
150.0
141.2
149.5
154.9
158.5
150.9
147.9
148.4
25.1
83.4
105.4
126.9
156.1
149.1
173.2
152.5
149.3
147.9
146.5
127.7
131.3
137.0
142.4
159.2
164.1
161.9
130.4
21.3
116.1
137.7
126.8
150.7
137.7
160.1
162.8
176.8
173.6
170.5
165.7
158.7
145.8
139.9
150.2
155.6
152.9
148.5
125.8
149.3
154.5
166.5
134.5
125.9
146.5
130.7
137.0
132.8
132.6
128.5
120.7
127.4
129.2
134.3
136.4
132.9
137.0
80.9
105.0
112.9
119.6
State coal crude oil natural Gas refinery Products Fertilizers Steel cement Electricity overall index
weight 10.3 9.0 6.9 28.0 2.6 17.9 5.4 19.9 100.0
65SEPTEMBER | 2020
installed Petroleum refining capacity in india, Fy 2014-20
refineries
650
1000
13700
6000
7500
8000
15000
2350
-
54200
6500
8300
14800
12000
9500
21500
10500
1000
11500
3000
66
15000
120066
650
1000
13700
6000
7500
8000
15000
2350
-
54200
6500
8300
14800
12000
9500
21500
10500
1000
11500
3000
66
15000
120066
650
1000
13700
6000
7500
8000
15000
2350
15000
69200
6500
8300
14800
12000
9500
21500
10500
1000
11500
3000
66
15000
135066
650
1000
13700
6000
7500
8000
15000
2350
15000
69200
7500
8300
15800
12000
12400
24400
10500
1000
11500
3000
66
15000
138966
650
1000
13700
6000
7500
8000
15000
2350
15000
69200
7500
8300
15800
12000
15500
27500
10500
1000
11500
3000
66
15000
142066
650
1000
13700
6000
7500
8000
15000
2350
15000
69200
7500
8300
15800
12000
15500
27500
10500
1000
11500
3000
66
15000
142066
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
IOC, Digboi
IOC, Guwahati
IOC, Koyali
IOC, Barauni
IOC, Haldia
IOC, Mathura
IOC, Panipat
IOC, Bongaigaon
IOC, Paradip
ioc,total
HPC, Mumbai
HPC, Visakh
HPC,Total
BPC, Mumbai
BPC, Kochi
BPC, Total
CPCL,Manali
CPCL, Cauvery Basin
CPCL,Total
NRL, Numaligarh
ONGC, Tatipaka
MRPL, Mangalore
total PSU
BPC, BORL-Bina
HMEL,GGSR
RIL, Jamnagar
RPL (SEZ), Jamnagar
NEL (Formerly EOL ) Vadinar
Jvc/Pvt total
all india total
6000
9000
33000
27000
20000
95000
215066
6000
9000
33000
27000
20000
95000
215066
6000
9000
33000
27000
20000
95000
230066
6000
9000
33000
27000
20000
95000
233966
6000
11300
33000
35200
20000
105500
247566
7800
11300
33000
35200
20000
107300
249366
Public Sector companies
Jvc/Pvt
66 september | 2020
oil & GAs // stAts
atF Prices for domestic and international airlines at Major cities , 2019-20
Month
delhi Kolkata Mumbai chennai
domestic (rs/Kl)
international (dollars/Kl)
domestic (rs/Kl)
international (dollars/Kl)
domestic (rs/Kl)
international (dollars/Kl)
domestic (rs/Kl)
international (dollars/Kl)
42447.91
42919.66
43932.53
42628.28
41992.81
39069.57
33573.37
22544.75
35490.12
50171.26
56859.01
63449.63
64323.76
62686.51
62672.63
64909.67
62698.86
63295.48
61200.36
65006.80
65067.85
63472.22
62,795.12
58,060.97
58,060.97
47074.40
47504.53
48656.15
47365.78
46604.85
44024.10
38543.48
27804.23
40902.59
55555.98
62160.48
68487.48
70588.61
68812.61
68770.99
70790.35
68667.48
69208.60
67153.85
70421.41
70726.66
69242.21
68,523.48
63,597.86
63,556.18
41853.44
42602.69
43213.19
41992.81
41575.94
38565.06
33070.56
22109.31
35068.56
49726.86
56400.74
62949.74
64529.79
62878.67
62864.79
64862.79
62712.17
63294.92
61999.79
64946.04
65029.29
63447.54
62,748.70
58,017.33
58,017.33
43361.56
43877.05
45022.57
43690.90
43332.53
40239.63
34569.30
23414.80
36923.17
52045.46
58875.63
65491.00
65619.95
63830.07
63758.48
65833.04
63642.23
64214.99
62174.78
66096.55
66298.65
64,713.19
64,000.10
58,988.45
59,021.48
427.97
434.22
441.43
428.25
420.98
395.99
331.22
227.68
363.44
520.82
592.58
670.11
682.50
667.25
669.84
688.33
672.50
687.18
661.16
699.28
700.56
667.98
651.27
594.43
610.83
470.54
476.83
484.05
470.94
463.81
438.75
374.33
270.91
406.10
562.83
634.30
710.54
739.23
723.97
726.58
742.62
726.79
736.31
710.29
748.39
749.68
718.36
701.65
645.12
661.21
429.87
436.11
443.32
432.81
425.50
400.53
335.81
232.23
368.00
525.19
597.02
674.32
694.61
679.32
681.98
697.96
682.22
696.57
670.46
708.53
709.88
677.50
660.38
603.68
620.00
420.17
426.46
433.68
423.99
416.86
391.80
327.31
223.89
359.15
515.94
587.41
664.03
671.34
656.14
658.63
674.82
658.78
672.63
646.83
685.02
686.17
654.60
638.35
581.56
597.77
01-Sep-20
16-Aug-20
01-Aug-20
16-Jul-20
01-Jul-20
16-Jun-20
01-Jun-20
01-May-20
01-Apr-20
21-Mar-20
01-Mar-20
01-Feb-20
01-Jan-20
01-Dec-19
01-Nov-19
01-Oct-19
01-Sep-19
01-Aug-19
01-Jul-19
01-Jun-19
01-May-19
01-Apr-19
01-Mar-19
01-Feb-19
01-Jan-19
Energy Efficiency in India: Achievements and Challenges
India is traversing towards sustainable and economic development that promise a future filled with efficient resources. While making bold commitments on numbers in signing Paris agreement, it has posed a challenge to accomplish overall development of the country, unlike developed countries. In this backdrop, energy efficiency is anticipated to play a crucial role in moving towards a resource efficient business economy. Recognizing the importance, India has committed to curtail emission intensity of its GDP by 33 to 35% from 2005 level which also serves to solve key issues like Energy Access, Energy Security and Economic Development. Looking at the scenario of where we were 10 years back and where we are today, it is quite evident that our government has introduced significant practices/activities related to energy efficiency. This clearly led to improvement in quality and reliability of power supply. The noteworthy policies and schemes for demand-supply side to drive energy efficiency has strengthened the market.
Rs 22,500 crore saved through Star Labelling Program
Achievements
Rs. 9500 Crore saved through PAT in large industries
Energy Conservation & Building Code Launched for energy
efficient buildings
Challenges
Unavailability of sufficient credit facilities
High cost of transaction making projects unattractive to investors
Limited technical capabilities & policy issues
While energy efficiency is integral to climate change responsibility of the nation, its market transformation in India has a long way to go by availing finances and by establishing a platform for knowledge dissemination among stakeholders. The evolving regulatory landscape and unavailability of fuels are pushing the energy efficient market to flourish in years to come. This report will highlight the potential of untapped market in India when it comes to energy efficiency. The evolving regulatory landscape and unavailability of fuels are pushing the energy efficient market to flourish in future. The report will also depict what can be done to enhance the participation of energy efficiency in Indian Power sector along with recommendations.
Key Highlights
� Policy Initiatives for Sustainable Growth
� Market Transformation towards Energy
Efficiency in India
� Interventions & Achievements
� Fuel Efficiency Initiatives
Key Questions Answered
� Energy Use Trends
� Business & Technological Trends
� Energy Efficiency across sectors
� India’s Sustainability Agenda
A must buy for
� Investors
� Policymakers
� Energy Experts
� Power Sector Enthusiast
For Priority Business
Rajesh Singh Panwar
Mob: +91 9711786999
Ph: +91 120 6799125, 160
Research Report
Executive Summary
68 august | 2020
renewaBle news // domestic
Rays Experts, an early mover in the space, and a leading Solar EPC and park developer firm in India – has successfully commissioned Haryana’s first-ever solar park in Siwani, Distt. Bhiwani. With this, a 10 MW Solar PArk to be expanded with a further 30 MW, Haryana joins the states with a functioning solar park in India. According to the firm, this park is supplying power to 15,000 homes in the state. The deployment ispart of an ongoing 40 MW project spread across 150 acres of land which was conceptualized back in 2017. It will have several associated benefits for the region. The Siwani Solar Park will decrease Haryana’s dependence on traditional power sources including fossil-fuel-based thermal power generation. This will further decrease the carbon footprint of the region while also extending exemption from transmission charges to the end-consumers. The power from these plants will be set off in the electricity bill of some companies spread across Haryana. It will bring their electricity charges down from Rs. 7 per unit to Rs. 2.5 per unit on average, claims the firm. The plants have been set up under Captive mode by these companies, while using park infrastructure of Rays Experts.
rays experts commissions haryana’s first ever solar Park for 10 MW
The push by Rajasthan government to wean away farmers from using subsidised conventional power and facilitate a shift to renewable energy found a helping hand from RBI which made small solar plants on barren land eligible for loans in the revised priority sector lending norms. On the basis of the new guidelines issued on last Friday, farmers now can get priority loans for installation of standalone solar agriculture pumps and solarisation of grid connected agriculture pumps. Similarly, farmers can also avail priority loans for installation of solar power plants on barren land or in stilt fashion on agriculture land. Rajasthan has been aggressively driving the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (Kusum) Yojana to encourage more farmers to use their barren land for setting up micro solar plants at substation level. Under the scheme, farmers can set up plants with capacity ranging from 0.5 to 2 megawatt and the power will be bought by discoms at Rs 3.14 per unit which is much higher than the rates discovered through auctions. The farmers who do not have no money to invest, can also lease out the land to private developers and receive an annual income.
rBi’s new move to help farmers set up small solar plants
centre Planning eV charging Points at 69K Petrol Pumps Across indiaThe government is mulling setting up at least one electric vehicle (EV) charging kiosk each at nearly 69,000 petrol pumps across the country to induce people to go for electric mobility. Besides, the government is also thinking of making it compulsory to install EV charging kiosks at all Company-Owned, Company-Operated (COCO) petrol pumps of state refiners. In a review meeting on EV charging infrastructure, Power Minister RK Singh suggested oil ministry top officials that “they may issue an order for their oil marketing companies (OMCs) under their administrative control for setting up charging kiosks at all COCO petrol pumps”, a source told PTI. Other franchisee petrol pump operators may also be advised to have at least one charging kiosk at their fuel stations, the source said adding this will help achieve “EV charging facility at all petrol stations in the country.” Under the new guidelines of the oil ministry, new petrol pumps must have an option of one alternative fuel. “Most of the new petrol pumps are opting for electric vehicle charging facility under alternative fuel option. But it will make huge difference when the existing petrol pumps would also install EV charging kiosks,” the source said. According to the industry estimates, there are around 69,000 petrol pumps in the country. The EV charging facility at all petrol pumps could boost e-mobility in a big way as lack of such infrastructure discourages people from buying EVs
69august | 2020
rene
waB
leWind turbine maker Inox Wind on Friday said its consoli-dated net loss widened to Rs 73.27 crore in June quarter as compared to the year-ago period. The company’s loss in April-June 2019-20 was at Rs 14.16 crore, according to a BSE filing.Total income declined to Rs 101.90 crore in the quarter from Rs 264.53 crore in the same period last year.The company’s board in its meeting held on Friday also ap-proved raising up to Rs 200 crore through issuance of securi-ties by way of a private placement (including but not limited through a qualified institutional placement) in accordance with the provisions of the applicable law.The fund raising is subject to necessary permissions, sanctions and approvals, including shareholders’ approval and such other statutory approvals as may be required, and the provisions of the law.The company is seeking approval of shareholders for the aforesaid resolution at the ensuing Annual General Meet-ing, it added.About the impact of COVID-19, the company said,”Considering that the group is in the business of manu-facturing wind turbine generator in renewable energy which is considered to be an essential service, the management believes that the impact of this outbreak on the business and financial position of the group will not be significant.”
ieX, PXiL Make the case for reopening rec trading
eesL to source 250 electric Vehicles from tata Motors, hyundaiEnergy Efficiency Services Ltd (EESL) today announced it will procure 250 electric vehicles from Tata Motors and Hyundai Motor India which were selected through an international competitive bidding process. The two firms had won the global tender to supply 150 Nex-on electric compact SUVs and 100 Kona electric premium SUVs, respectively, for govern-ment use. EESL will procure Tata Nexon at Rs 14.86 lakh each, Rs 13,000 cheaper than its ex-showroom price of Rs 14.99 lakh, whereas Hyundai Kona, which offers a higher range, will be procured at an 11 per cent lower price band of Rs 21.36 lakh and with a standard three-year warranty. These electric vehicles will replace the existing fleet of petrol and die-sel vehicles of the central and state Governments. EESL has already received an order for 300 Long Range EVs from The Agency for Non-Conventional Energy and Rural Technology (ANERT) in Kerala to be supplied in initial phase. EESL had received financing from Asian Development Bank towards the cost of scaling up and financing high priority areas like Demand Side Energy Efficiency Sector Projects. The EV procurement will utilize $5 million from that grant. “This will greatly enhance the energy security of the country and will also lead to reduction in GHG emissions from the transport sector. Furthermore, we’re also working on rapid establishment of EV charging stations, which will give a fillip to the elec-tric vehicle sales, going forward,” said Saurabh Kumar, MD, EESL. EESL is seeking to create the market for electric vehicles through its business model of aggregation of demand and bulk procurement. It leverages the immense potential of replacement of existing vehicles in the government departments for initial demand aggregation.
inox Wind loss widens to rs 73 cr in June quarter
IEX and PXIL have made a case for reopening the trading of renewable energy certificates (REC), citing the impact on the entire value chain. Energy exchanges IEX and PXIL have made a case for reopening the trading of renewable energy certificates (REC), saying the market closure is impacting the entire value chain in the electricity marketplace. As reported by news service PTI, the Indian Energy Exchange (IEX) and Power Exchange India (PXIL) are of the view that issues related to fixing floor and forbearance prices of REC by the Central Electricity Regulatory Commission (CERC) can be settled in the Appellate Tribunal for Electricity (APTEL). Last month, APTEL had postponed the trading of REC scheduled on July 29, 2020, by four weeks till August 26, 2020, after hearing three separate appeals filed by the Green Energy Association, the Indian Wind Power Association and Techno Electric and Engineering Company Ltd against the CERC order issued on fixing REC floor and forbearance prices. REC trading was not done on August 26, 2020.
70 august | 2020
news // worldrenewaBle
Germany wants to install 45.6 GW of new solar PV capacity to be installed between 2021 and 2029, as per a Ministry of Economy’s (BMWi) draft detailing planned amendments to the country’s Renewable Energy Sources Act (EEG), being referred to as EEG 2021.Local media reports referring to the draft say for solar PV the government wants to have a target of 100 GW PV capacity by 2030, slightly increased from 98 GW decided under the country’s Climate Protection Act 2030 under which it aims to have a 65% renewable energy share in the total electricity mix by 2030.At the end of July 2020, Germany’s officially installed solar PV capacity on cumulative basis reached 51.98 GW.German clean energy news portal Clean Energy Wire (CLEW) reported that the annual additions for solar PV will be spread out as 4.6 GW in 2021, 4.8 GW each between 2022 to 2025, 5.3 GW in 2026, 5.4 GW in 2027, 5.5 GW in 2028 and 5.6 GW in 2029. This along with planned annual gross renewables additions in onshore wind, offshore wind, and biomass will be required for the country to achieve its 65% renewables target by 2030, according to the draft. It introduces new financing measures for solar projects whose EEG support will run out after 20 years. At the same time, CLEW says renewable energy tenders remain in place for new capacity and by 2027 the government wants to propose how and when renewables funding under the EEG could be stopped entirely if there is scope for market driven expansion for clean energy then. According to the draft, solar capacities between 1.9 GW and 2.8 GW per year would be auctioned between 2021 and 2028.
trina solar increased h1/2020 shipments By 37% YoY
Australia’s Victoria Plans 600 MW re AdditionThe Victoria state government in Australia is seeking interest from renewable energy industry and other businesses to add 600 MW of new renewable energy capacity in the state, power generated from which will be supplied to hospitals and schools, Melbourne’s train network and other government infrastructure and services. Calling it a market sounding process under the Victorian Renewable Energy target (VRET), the state government said, it will enable it to test industry interest and capacity for new solar, wind and other renewable energy projects. The process will also help it explore potential for electricity reliant industries and businesses to buy renewable energy along with government. The state government hopes that ‘renewable energy will help drive Victoria’s economic recovery from coronavirus’. The country’s Clean Energy Council (CEC) has welcomed the market sounding process saying plans for a clean recovery should be a significant boost to the morale of all Victorians.
Germany: Plans for >45 GW solar Addition from 2021-29
COVID-19 pandemic did but little harm to Trina Solar’s business in the first half of 2020. The Chinese solar products manufacturer and solutions provider says it was able to maintain continuous production during the period and overcame many difficulties in production and operation to grow against the trend.
In its preliminary forecast shared for the reporting period, in July 2020 Trina Solar said it expects to report 216.37% higher annual net profit ranging between RMB 451 million to RMB 541 million in H1/2020, thanks to its overseas markets.
Trina shipped 5.84 GW of total modules in H1/2020, an increase of 37% over the same period last year with overseas orders making up a large part of it. There was an increase of 238% over last year in its shipments to North America – a total of 1.071 GW. To Europe it shipped 1.72 GW, an increase of 60% YoY, and to Latin America it sent 508 MW which meant an annual growth of 162%.
71august | 2020
Germany-based Rolls-Royce Power Systems, which is owned by Rolls-Royce Holdings with holdings in engine manufacturing brands and facilities, will supply three MTU EnergyPacks for use with a micro-grid in Rarotonga, the largest and most populous of the Cook Islands. The company said all of Rarotonga’s 11,000 residents receive power from the micro-grid operated by utility Te Aponga Uira and the 4.2 MWh energy storage system – in three 40-foot containers with a total power output of 4.8 MVA – will pro-vide a power reserve and grid support for the solar and diesel-powered network. The storage developer claims the MTU Energypack is ideal for deployment in sites where space is at a premium and logistics demanding, for the integration of renewables facilities into power networks and the provision of frequency regulation and other ancillary services to utilities. The containers are available in three formats with nominal capacities of 2,600, 1,000 and 550 kWh. Rolls Royce said the battery system compris-es scalable vertical racks. The Cook Islands government wants renewable energy on all its islands by 2025. The authorities plan to roll out solar plants on five islands, part-funded by the Asian Development Bank (ADB); European Union; Global Environment Fund; the government of Japan via the Pacific Islands Forum Secretariat (Pacific Environment Community Fund, or PEC); and the Green Climate Fund, through the ADB’s Pacific Islands Re-newable Energy Investment Program. The low-lying archipelago, one of the nations on the climate change front line, had just 7 MW of solar generation capacity at the end of 2019, according to the International Renewable Energy Agency.
Engineering firm Sterling and Wilson Solar on Sunday announced that it has bagged orders worth AUD 300 million (Rs 1,600 crore) for two large solar projects in Australia. Sterling and Wilson Solar Ltd has signed (along with its branch and Australian subsidiary) orders worth AUD 300 million in Australia, a company statement said.According to the statement, the company has bagged two large scale solar projects in the country and they will have an installed capacity of over 300 MW.The new projects have been secured from global independent power producer (IPP), the work for which is expected to commence immediately.Sterling and Wilson Solar, one of the leading solar EPC and O&M engineering procurement and construction as well as operations and maintenance players in the world, already has three projects of over 800 MW under construction in the region. Bikesh Ogra, Director and Global CEO, Sterling and Wilson Solar said in the statement, “We are delighted to have won two major solar projects in Australia. Our total order book in Australia now stands at about AUD 1.2 Billion (Rs 6,350 crore) with five projects and a portfolio of more than 1.1 GW, making us the largest home-grown solar EPC player in the region.
Offshore wind power peaks in the evening when power demands are greatest and other renewable energy sources are less available. One of the challenges of moving toward fully renewable energy in California by 2045 is matching production to demand. Consumer demand peaks in the evening when solar energy is no longer available. Offshore wind energy has the potential to help meet this demand. As California aims to provide 60% of its energy from renewable sources by 2030 and 100% by 2045, a study from California Polytechnic State University provides some good news. Off-shore winds along the Central Coast increase at the same time that people start using more energy — in the evening. One of the challenges of moving toward fully renewable energy is matching production to demand. Though the state has high existing solar energy capacity and the potential for even more, the supply of solar power peaks in the middle of the day and ends when the sun goes down. Consumer demand, on the other hand, peaks in the evening when people return from work around or after sunset. Because storage of solar energy on a large scale is not yet practical, other renewable sources are needed to meet the Golden State’s environmental milestone of going fully renewable.
california offshore wind energy show promise as power source
sterling and Wilson solar bags orders worth rs 1,600 cr in Australia
solar-plus-storage for the cook islands
72 august | 2020
State-wise Grid connected Solar rooftop installed capacity State/Ut-wise details of solar energy capacity installed (in Mw)
ANDHRA PRADESH
ARUNACHAL PRADESH
ASSAM
BIHAR
CHHATTISGARH
GOA
GUJARAT
HARYANA
HIMACHAL PRADESH
JAMMU & KASHMIR
JHARKHAND
KARNATAKA
KERALA
MADHYA PRADESH
MAHARASHTRA
MANIPUR
MEGHALAYA
MIZORAM
NAGALAND
ODISHA
PUNJAB
RAJASTHAN
SIKKIM
TAMIL NADU
TELANGANA
TRIPURA
UTTAR PRADESH
UTTARAKHAND
WEST BENGAL
ANDAMAN & NICOBAR
CHANDIGARH
DADRA & NAGAR HAVELI
DAMAN & DIU
DELHI
LAKSHWADEEP
PUDUCHERRY
OTHERS
Andaman & Nicobar
Andhra Pradesh
Arunachal Pradesh
Assam
Bihar
Chandigarh
Chhattisgarh
Dadar & Nagar haveli
Daman & Diu
Delhi
Goa
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Lakshadweep
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Odisha
Puducherry
Punjab
Rajasthan
Sikkim
Tamil Nadu
Telangana
Tripura
Uttar Pradesh
Uttarakhand
West Bengal
Other/ Other rooftop/MoR/PSU
total
88.03
4.34
30.56
14.42
15.52
3.83
735.18
121.82
17.39
10.95
20.01
232.77
46.62
52.99
257.73
6.35
0.12
1.42
1
15.38
118.52
339.82
0.07
232.16
132.89
4.41
225.1
78.05
47.06
4.59
36.6
2.97
16.63
165.97
0
7.47
0
3088.74
29.22
3618.77
5.61
41.23
153.35
42.94
231.35
5.46
26.78
174.93
4.78
3195.23
252.62
40.14
19.44
39.06
7297.93
146.62
0.75
2326.8
1869.97
6.35
0.12
1.52
1
398.94
7.5
947.1
5310.78
0.07
4179.41
3725.18
9.41
1184.1
317.83
127.06
-
35739.35
S. no.installed capacity as on aug 2020
“installed capacity as on 31.08.2020”State/ Uts State/ Ut
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
renewaBle // stAts
total
investment details
company name deal type Sector asset acquirer deal value Stake
Acme Solar Holdings Ltd.
C&S Electric
First Solar
INR 2300 croreSolar
Solar
400 MW
40 MW
100%
100%
100%
ActisAcquisition
Acquisition
Acquisition
Siemens India
Ayana Renewable Power Private Limited
NA
NA
Energy
73august | 2020
Programme/Scheme wise Physical Progress in 2020-21 & cumulative upto aug, 2020
Sector(as on 31.08.2020)achievements
(april-aug 2020)target
Fy- 2020-21 cumulative achievements
i. Grid-intEractivE PowEr (caPacitiES in Mwp)
ii. oFF-Grid/ caPtivE PowEr (caPacitiES in MwEQ)
iii. othEr rEnEwaBlE tEchnoloGiES(capacity in nos.)
Wind PowerSolar Power - Ground MountedSolar Power - Roof TopSmall Hydro PowerBiomass (Bagasse) Cogeneration) Biomass (non-bagasse) Cogeneration)/Captive PowerWaste to Powertotal
255.8538.1
573.4256.8
173.3797.24
211715.73
3000900020001002005030
14380
0.270.6 50.5
3.6110.9814.59
10500510
201.81989.37
1191.18
37999.5532650.593088.724739.979373.87772.05168.64
88793.39
Waste to Energy SPV Systems total
Biogass Plants(in Lakhs)
new tender issued
tender name technology capacity (Mw) other details Bid submission date
NTPC, 1070 MW, Solar (EPC), Rajasthan
EESL, 279 MW, Solar, Maharashtra
GSECL, 110 MW, Solar, Gujarat
BREDA, 15 MW, Solar, Bihar
REMCL, 1000 MW, Solar, Pan India
1070
279
110
15
1000
-
EMD- INR 256 million
EMD- INR 0.4 million
EMD- INR 0.5 million
EMD- INR 1 million
17-Sep-20
25-Sep-20
16-Sep-20
21-Sep-20
27-Oct-20
Solar
Solar
Solar
Rooftop Solar
Solar
trend of Solar competitive bidding tariff during 2020
auction yearSl.no. capacity on offer (Mw) lowest (rs./Kwh)highest Bid (rs./ Kwh)
SECI 1200 MW ISTS-VIII Solar Tender Result
GUVNL 500 MW Solar Tender Result
NHPC 2000 MW Solar Auction
MSEDCL 500 MW Solar Tender Phase V
SECI 2000 MW Trench-IX
NTPC 1.2 GW Solar Tender
GUVNL 700 MW Dholera Solar Tender
Feb’2020
Mar’2020
Apr’2020
May’2020
June’2020
Aug’2020
Aug’2020
1200
500
200
500
2000
1200
700
2.51
2.64
2.56
2.9
2.38
2.44
2.81
2.5
2.61
2.55
2.9
2.36
2.43
2.78
1
2
3
4
5
6
7
Key Highlights� Growth and Investment Opportunity� NHAI Roads Award Mix� PAN India Top Players in the Sector� Financial Trends� Significant Policy Amendments to
Revive Growth
Key Questions Answered� What are the key catalysts for increasing
the demand?� What are the major risks and
challenges?� What is the Experience and
Opportunities under Hybrid AnnuityMode?
� How new Funding Sources andFinancing Strategies are impacting thesector?
A must buy for� Road Projects Developers� Heavy Equipment Manufactures� Financial Institutions� Consultants� Toll Operators� Regulatory Bodies� Government Agencies� New Market Entrants
For Priority BusinessRajesh Singh Panwar
Mob: +91 9711786999
Ph: +91 120 6799125, 160
Research Report
For financial year FY19 total constructed length was 10855 kms (less award due to land acquisition), 2018-19 where delays in acquiring land affected project costs as the average cost of land has escalated from Rs. 0.80 crore per hectare during 2012-13 to Rs. 3.20 crore per hectare .Currently 839 Projects on monitor where Delayed Projects w.r.t original schedule are 219.
NHAI Projects Worth 30,000km (Rs 5tn) Likely To Be Awarded Over FY20E-FY24E under the government’s Bharatmala and NHDP programmes, NHAI to bid out 6,000km (worth Rs 1tn) for development during FY20
Massive PiPeline Of OPPOrtunities Over next five Years (nHai)
Bharatmala nHDP OthersLength (in kms) 18763 4667 6570Investment 3 tn 770 bn 1.1 tnTime Period Award Over 5Yrs Award Over 15-18
MonthsAward Over 5Yrs
Bharatmala62NHDP 16Others 22
62%16%
22%
% Share in kms
Bharatmala
NHDP
Others
The report will provide a sector outlook with untapped investment opportunity under Bharatmala Pariyojna , which will help to understand how NHDP was the biggest road development plan in India before Bharatmala. Further report will explore the window of investment in different states, it will explain the rise of hybrid annuity model over EPC and did it really help to get more private participation in the sector?This report will explain future target and award of road length by different nodal agencies and projects in pipeline.
ExEcutivE Summary
Key Highlights� Growth and Investment Opportunity� NHAI Roads Award Mix� PAN India Top Players in the Sector� Financial Trends� Significant Policy Amendments to
Revive Growth
Key Questions Answered� What are the key catalysts for increasing
the demand?� What are the major risks and
challenges?� What is the Experience and
Opportunities under Hybrid AnnuityMode?
� How new Funding Sources andFinancing Strategies are impacting thesector?
A must buy for� Road Projects Developers� Heavy Equipment Manufactures� Financial Institutions� Consultants� Toll Operators� Regulatory Bodies� Government Agencies� New Market Entrants
For Priority BusinessRajesh Singh Panwar
Mob: +91 9711786999
Ph: +91 120 6799125, 160
Research Report Table of Contents
Executive Summary
1. Roads Connecting Growth to Investment
i Growth and Investment Opportunity in National HighwaySector
ii Project monitoring and progress during FY19
iii Policy and Regulatory Framework
iv Major Issues and Challenges
v Future Prospect (Total Vehicle Growth Trend)
vi Key catalyst and drivers of Investment
vii Investment Projection of National Highways Authority of India
2. Target Vs Achievement
i Target and Achievement Last Five Year by NHAI andMoRTH
ii Current Completed Length and Project Cost for Roads Project 2018-19
iii Future Target FY20
iv Per day constructed length trend analysis
3. NHAI Road Award Mix
i EPC/BOT/HAM Trend Analysis Last Five Years
ii Number of Projects Awarded (2012-18)
iii Total Investment and Balance to invest by NHAI forBOT/EPC and HAM Projects
4. Projects under Implementation
i State wise roads projects under Implementation
ii Top 10 states by National Highways Constructed inFY18
iii Special focus on Maharashtra and Karnataka
iv Target of Roads under EPC/BOT/HAM
5. Road Development under NHDP, NHIDCL andBharatmala Pariyojna
i Road development under north east states
ii Progress report of NHDP Projects 2018
iii Bharatmala projects success so far
iv New Opportunity and scope
6. Toll-Operate-Transfer (TOT) Model
i Overview and recent development
ii Key Features and investment scenario
iii List stretches offered under Bundle-II
7. Finance Mechanism and Budget Allocation
i Fund Allocation and Expenditure under different states
ii PMGSY funding trend for last five years
iii Year wise Budgetary Allocation and Progress
iv Comparative Analysis of Top Players
8. Projects Approval and Clearances
i An Overview of Clearance requirement
ii Land acquisition status, approach and challenges
iii Land Compensation & Projects pending till FY18
iv Environmental and Forest clearance report
9. Conclusion
Annexure
The report is priced at INR `1,25,000|USD $1,811. We are offering a pre-publication discount of 10%. The price after discount is INR `1,12,500|USD $1,630. This offer is valid for orders and payments received on or before September 30, 2020. (GST will be charged as applicable)
76 september | 2020
roads
PNc infratech signs concession agreement for NhAi projectPNC Infratech has signed the concession agreement for the following national highway project with National Highways Authority of India (NHAI) on 31 August 2020:
Four-laning of Meerut - Nazibabad section of NH-119 (New NH-34) from design chainage Km 11+500 (Meerut) to 39.250 (Behsuma) and from km 79.500 (Bijnor) to 105.700 (Jalalabad), in the state of Uttar Pradesh under Bharatmala Pariyojna on Hybrid Annuity Mode (HAM) The bid project cost is Rs 1412 crore.
The National Highways Authority of India (NHAI) has awarded the highest length of projects during FY 2020-21 to date amid challenges due to the COVID-19 out-break as compared to the projects awarded during the same period in last three years. From April to August 2020, NHAI has awarded 26 projects of 744 km length as compared to 676 km in FY 2019-20, 368 km in FY-2018-19, and 504 km in FY 2017-18, according to NHAI.
The capital cost of these 26 projects is over Rs 31,000 crore, which includes the cost of civil construction, land acquisition, and other pre-construction activities. Nota-bly, NHAI has set a target of awarding 4500 km of the highway during the current FY and is likely to exceed the same.
NhAi awards highest length of projects during April-August of fY21 amid coVid-19 challenges
// news // domestic
The National Highways Authority of India (NHAI) is now treating December 2020 as the extended deadline of the Delhi-Meerut Expressway (DME) project after Union road transport minister Nitin Gadkari tweeted that the DME will be completed by December 2020.
The DME comprises four phases of which phase 1 (Akshardham to UP Gate) and phase 3 ( Dasna to Hapur) are operational. Phase 2 (UP Gate to Dasna) and phase 4 (Dasna to Meerut ) are under construction. The NHAI officials said the previous deadline was May 2020 which is now been extended to December 2020.
delhi-Meerut expressway gets new deadline: december 2020
77SEPTEMBER | 2020
road
sMinistry of Road Transport and Highways has surpassed its target for construction of National Highways in the country till the past weekend. During April to August this year, 3181 kilometre NH length was constructed against the target of 2771 kms for this period. This includes 2104 kms by State PWDs, 879 kms by NHAI, and 198 kms by NHIDCL.
Further, 3300 km length of NH works has been awarded in this year till August, which is more than double of the 1367 kms during the same period last year. This includes 2167 kms of NH by PWDs, 793 kms by NHAI, and 341 kms by NHIDCL.
Sanctions were issued for construction of 2983 kilometres of NHs all over the country during this period. This includes 1265 kms by PWDs, 1183 kms by NHAI, and 535 kms by NHIDCL.
Indian road sector is picking up pace despite multiple headwinds and government’s relief measures have helped road contractors, rating agency ICRA said .
“The Ministry of Road Transport and Highways (MORTH) has initiated a slew of relief measures like shift from milestone based billing (typically ranging between 45-75 days) to monthly billing and release of retention money/performance security in proportion to the work already executed among others which has immensely supported the road contractors,” ICRA said in a statement.
indian road sector picking up pace amid coVid-19: report
Morth surpasses target for construction of National highways
Cube Mobility Investments, part of the Cube Highways group, has entered into financing agreements with State Bank of India (SBI) for availing the term loan facility of Rs.3,500 crore towards the TOT-Bundle 3 projects.
Cube Highways had been awarded TOT- Bundle 3 Projects, consist-ing of 9 road stretches with 2,265 lane kilometers across four states in India.
infrastructure company cube Mobility secures rs 3500 crore loan for tot projects
78 september | 2020
roads // stAts
Sr. no.
Sr. no.
Stretch
Project title
Vadodara Mumbai Expressway (Gandeva to Ena) (Phase IB - Pkg VII) [Km 190.00 to Km 217.500]
6L Access Controlled Highway from DND Maharani Bagh - Jn. with Jaitpur Pushta Road of NH-148NA from km. 0.00 to km. 9.00 in NCR
6L Access Controlled Highway from Jn. with Jaitpur - Pushta Road to Jn. with Sector 62/65 dividing road on Faridabad - Ballabhgarh Bypass of
NH- 148NA from km. 9.00 to km. 33.00 including Spur upto Badarpur Border
6L Access Controlled Highway from Jn. with Sector 62/65 dividing road on Faridabad - Ballabhgarh Bypass to Jn. with KMP Expressway with
NH- 148NA from km. 33.00 to km. 59.063
4L of Harda - Betul (Pkg-I) from Km.0 to Km.30.20 [Harda - Temagaon]
Vadodara Mumbai Expressway (Ena - Kim) (Phase IB - Pkg VI) [Km 217.500 to Km 254.430]
Construction and upgradation of NH - 131A from Km 34.600 (design Ch: 6.000) near Narenpur to Km 79.970 (design Ch: 53.000) near Purnea
to 4 lane standard and from Km 79.970 (design Ch: 53.000) to Km 82.000 (design Ch: 55.000) near Purnea to 2 lane with paved Shoulders
standard in the State of Bihar
4 laning from km. 42.000 to km. 80.00 of Dodaballapur Bypass to Hoskote section of NH-648 (Old NH-207) under Bharatmala Pariyojna in the
state of Karnataka (Package-II)
Four Laning of Dhrol - Bhadra Patiya section and Bhadra Patiya - Pipaliya Section of NH-151A in the state of Gujarat on ‘Hybrid Annuity Mode’.
Four laning of NH-363 from Repallewada (Design Km 42.000 /Existing Km 288.510) to Telangana/Maharashtra Border (Design Km 94.602/
Existing Km 342.000) (Design Length = 52.602 Km) in the State of Telangana under NH (O) on Hybrid Annuity mode (HAM).
Four Laning Of Forbesganj - Jogbani
Construction Of Road Approaches To Rail-Cum-Road Bridge Across River Ganga At Munger Ghat Near Munge
Six Lanning Of Aunta-Simaria(Ganga Bridge With Approach Roads) Section Of Nh-31
Wands Of Existing Single Lane To Double Lane Carriageway In Km 0 To 40 Of Nh-104 In Bihar Under Epc
1
2
3
4
5
6
7
8
9
10
1
2
3
4
road Projects awarded by nhai ( July – august 2020 ) on hybrid annuity Mode
details of Projects Showing time overrun in the State of Bihar
Sr. no.
Project title
Rehabilitation And Upgradation Of Balrampur-Tulsipur From Km 323.745 To Km 351.000 Of Nh-730 To 2-L1
details of Projects Showing time overrun in the State of Jharkhand
79SEPTEMBER | 2020
National Highways Authority Of India
National Highways Authority Of India
National Highways Authority Of India
Ministry Of Road Transport And Highways
(State Pwds)
nh
agency name Sector name
Bytotal length (in kms)
loa date (ddMMyy)
concessionaire name State
doc anticipateddoc originalcost original
State Mode of construction
time overrun(in months)
date of approval
NE-4
148NA
148NA
148NA
47
NE-4
131A
648
151
363
NHAI
NHAI
NHAI
NHAI
NHAI
NHAI
NHAI
NHAI
NHAI
NHAI
27
9
25.38
26.06
30
37.43
49
38
50.45
52.6
31-Jul-20
31-Jul-20
30-Jul-20
07-Aug-20
31-Jul-20
30-Jul-20
9th Sep 2020
26th Aug 2020
L1 Bidder
L1 Bidder
IRB Infrastructure Developers Ltd
Dinesh Chandra R Agarwal Infracon Pvt Ltd
Dineshchandra R. Agrawal Infracon Pvt. Ltd.
Dineshchandra R. Agrawal Infracon Pvt. Ltd.
Prakash Asphaltings and Toll Highways (India) Ltd.
G R Infraprojects Limited
Dilip Buildcon
Dilip Buildcon
Dilip Buildcon
Dilip Buildcon
Gujarat
Delhi
Haryana
Haryana
Madhya Pradesh
Gujarat
Bihar
Karnataka
Gujarat
Telangana
Dec-20
May-21
Feb-22
Dec-20
Apr-18
Mar-20
Aug-17
Aug-16
Aug-15
Mar-17
Aug-17
May-14
322.09
235.48
950.64
199.98
Road Transport And Highways
Road Transport And Highways
Road Transport And Highways
Road Transport And Highways
HAM
HAM
HAM
HAM
HAM
HAM
HAM
HAM
HAM
HAM
32
14
54
52
Ministry Of Road Transport And Highways
(State Pwds)
agency name Sector name doc anticipateddoc originalcost original time overrun(in months)
date of approval
Oct-20
Jun-20
Mar-18212.99Road Transport And Highways 4
80 september | 2020
roads // stAts
Sr. no.
Project title
Nalbari T Bijni (As-7)
Four Laning Of Numaligarh To Jorhat Section From Km. 402.500 To Km. 453.000 (Design Km 403.200 To Km)
4 Laning Of Jorhat To Jhanji Section From Km. 453.00 To Km. 491.08 (Design Km 403.200 To Km 454.240)
Four Laning Of Jhanjhi Jn To Demow Section From Km. 491.050 To Km. 535.250(Design Km 490.800 To Km 5)
4 Laning Of Nh-37 Section Between Demow To End Of Moran Bypass (From Km. 534.800 To Km. 561.700)
1
2
3
4
5
details of Projects Showing time overrun in the State of assam
81SEPTEMBER | 2020
National Highways Authority Of India
National Highways And Infrastructure
Development Corporation Ltd.
National Highways And Infrastructure
Development Corporation Ltd.
National Highways And Infrastructure
Development Corporation Ltd.
National Highways And Infrastructure
Development Corporation Ltd.
agency name Sector name doc anticipateddoc originalcost original time overrun(in months)
date of approval
44105
44166
44531
44531
44287
39539
43221
43252
43252
42370
37956
42125
42156
42156
42370
208
454.89
437.39
463.49
294.17
Road Transport And Highways
Road Transport And Highways
Road Transport And Highways
Road Transport And Highways
Road Transport And Highways
150
31
42
42
63
82 september | 2020
roads // tender
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
active Bids For roads Projects by Morth and nhai (EPc Mode of construction)
S. no. Project name ErPoc tender number (cPPP)
Construction of ROB with Approaches in lieu of LC no.165 , of Ahmadabad- Palanpur (IR Ch-650/2-3) between Rly station Karjoda and Palanpur NH-58 in the State of Gujarat on EPC mode under NH(O) through an Engineering, Procurement and Construction (EPC) Contract
Widening and strengthening of existing carriageway to two lane configuration in the stretch from Km. 0.000 to Km.13.000 (excluding rigid pavement portion from Km. 3.100 to 5.100) & Construction of Major Bridge at river Aami on NH-328A in the state of Uttar Pradesh on EPC Basis under NH(O) Scheme
Construction of Flyover at Mandi Gobindgarh at Design km 0.350 (existing km 260.800) including resurfacing of existing Service Road at location of flyover at km 260.800 on Jalandhar Panipat Section of NH 44 (old NH 01) in the State of Punjab on EPC basis
Construction of road from Km 0/0 to 72/0 Km of NH-26 such as 4 Lane from Km 0/0 to 21/0 Km (Bargarh to Barpali) and Widening & Strengthening of double lane with paved shoulder from Km 21/0 to 72/0 Km (Barpali to Bolangir) in the State of Odisha on EPC mode. (Bid Ref No 06 CENH of 2020-21)
Periodical Renewal Between Km. 387/700 to 407/700 of NH-68 Old NH-15 Bet Km.82/00 to 100/00 Bhabhar Radhanpur in the state of Gujarat.
PR 2019-20 to Km 33/500 to 56/620 OF NH-58 (Section Mathasur to Antarsuba ) in the State of Gujarat under ARP 2020-21 on EPC mode.
Permanent measures to Black Spot (Id.No. TN-(02)-060) by Construction of Grade Separator at km 22/800 of NH532 (Cuddalore-Vridhachalam-Salem Road) in the State of Tamil Nadu in EPC mode
Construction of 4 Lane ROB and its approaches in lieu of existing Level Crossing No 43B at Km 2.400 on NH121 New 309 in the State of Uttarakhand
Periodical Renewal (PR) between KM 122/000 to 138/600 on NH- 41 in State of Gujarat under EPC mode
Construction of six lane Flyover at km. 315.200 and Construction of entry/exit ramp from km. 320.300 to km. 321.200 including FOB at km. 320.840 and Construction of Additional Two Lane ROB on Both sides of Existing Four Lane ROB at km. 311.865 along with approaches and Construction of VUP at km. 311.770 alongwith Improvement of Sherpur Chowk on Panipat Jalandhar section of NH 44 (Old NH 1) in the State of Punjab
Construction of VUP, widening of existing Minor Bridge including construction of new Service Road at Loharaka crossing at Km 462.339 on Amritsar Wagha Border Section of NH-03 (old NH-01) in the State of Punjab
Widening and Stage Strengthening (by raising) work in stretch from Km. 95, 100, 101, 103, 108 and km. 112 to 115 of NH-227A in the state of Uttar Pradesh on EPC Basis under NH(O) Scheme.
Construction of Six lane Elevated Structure at Gondal Chowkdi at Ch. Km 175.000 on existing 4 lane Jetpur Gondal Rajkot section from km 117.600 to km 185.000 on NH-27 (old NH-8B) in the State of Gujarat on EPC mode
Widening and Stage Strengthening work in stretch from Km. 579.500 to 598.500 of NH-730 in the state of Uttar Pradesh on EPC Basis under NH(O) Scheme
Construction of flyover at km 417.700 and VUP at km 430.710 including construction of new Service Road at location of flyover at km 417.700 and VUP at km 430.710 on Jalandhar Amritsar Section of NH 03 old NH 01 in the State of Punjab on EPC Mode
2020_MoRTH_581300_1
2020_MoRTH_581905_1
2020_MoRTH_580532_1
2020_NHAI_56523_1
2020_NHAI_56283_1
2020_MoRTH_579330_1
2020_MoRTH_579356_1
2020_MoRTH_578297_1
2020_NHAI_55635_1
2020_Morth_581322_1
EPC/10 PR of 2020-21
2020_MoRTH_581316_1
2020MoRTH5818641
2020_MoRTH_580390_1
NHAI/RO/CHD/11011/PD-JAL/ ASR-WAG/
NH-1/EPC/RFP
NHAI/Guj/Jet-Gondal-Rajkot/DPR/2020
Construction of RCC HL Bridge at Km 111.675 of NH-333 in the State of Bihar
83SEPTEMBER | 2020
123.1
20.46
37.308
22.28
52.36
22.12
53.34
28.77
92.49
290.84
115.6
56.89
18.3
7.29
7.03
6.35
MoRTH
MoRTH
MoRTH
MoRTH
MoRTH
MoRTH
MoRTH
MoRTH
MoRTH
MoRTH
MoRTH
NHAI
NHAI
NHAI
NHAI
NHAI
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
Normal Highway Project
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
EPC (Lump Sum/Item Rate
Contract)
Estimated Project cost (cr) Executing agency Project type Mode of Execution Bid issue date Bid due date
09-03-2020
09-05-2020
31/08/2020
09-01-2020
09-03-2020
29/08/2020
26/08/2020
26/08/2020
24/08/2020
19/08/2020
20/08/2020
09-02-2020
09-02-2020
09-03-2020
09-05-2020
29/08/2020
19/10/2020
19/10/2020
15/10/2020
15/10/2020
10-12-2020
10-12-2020
10-08-2020
10-08-2020
10-08-2020
10-05-2020
10-05-2020
10-03-2020
10-03-2020
10-03-2020
10-03-2020
10-01-2020
“ Development depends on good communication. The communication between the people doing the job and
the ones for whom it is being done ”
InfralinePlus is evolving and developing further and we wish to keep the focus on our readers and their likes and dislikes. We would welcome and appreciate your valuable Feedback/Suggestions/Opinion pertaining to InfralinePlus. We want InfralinePlus to grow to be a magazine that fulfils all your requirements and becomes your inseparable companion.
So please feel free to express your feedback and your opinion on [email protected]
We are sure that the feedback will lead to InfralinePlus becoming an Energy Sector magazine that is coveted by all.
View PoiNt
Country Head – Business Solutions Infraline Technologies (India) Pvt. Ltd.
Rajesh Singh Panwar
Daily Morning Newsletter: With a total circulation of 55,000+
Top professionals in the energy sector, the popularity of Infraline’s newsletter is unprecedented
Industry Connect: Our experienced editors bring forth the viewpoints of sector experts involved in
the policy and decision making on the current issues affecting the sector
Dedicated Analyst Support
Weekly Updates/ Infraline’s Recommendations
Energy Sector Players: Crisp and detailed snapshot of major market players.
Information coverage for projects funded by Multilateral Agencies ADB, JICA, World Bank
Year wise coverage of Parliament discussions
Future Outlook and Opportunity Assessment
Competitor Analysis of all key players
Acts, Policies and Amendments
Energy & InfrastructureKnowledgebase
RNI No : DELENG/2012/45441Total Pages 86 with Cover
Tel : +91 120 6799125, 160 | +91 9711786999 (M) | Fax : +91 120 6799101Email : [email protected] | www.infraline.com
For Priority Business
