Infrastructure and Energy Sector

nandu

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Govt to link major ports with rail, four-lane road

New Delhi, May 9 (PTI) The government plans to have at each major port a minimum four-lane road connectivity and a double line rail connectivity by March 2012, says an official data.

In all, 276 projects costing about Rs 55,804 crore have been identified, of which 48 projects have been completed, 70 are under implementation and 89 projects are under planning, according to data from the Shipping Ministry.

The projects are part of the government's National Maritime Development Programme, a Rs 61,000-crore project to boost infrastructure at ports.

India has 12 major ports - Kandla, Mumbai, Jawaharlal Nehru, Marmagao, New Mangalore, Cochin, Kolkata, Haldia, Paradip, Visakhapatnam, Chennai and Tuticorin.

These ports in the country handle close to 72 per cent of the total sea-borne traffic.

The traffic at major ports in 2011-12 is projected at 615.
 

RAM

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High-tech parking lot to come up in old Delhi

New Delhi, May 9 (PTI) As part of efforts to cope up with the space crunch in the capital, the MCD will construct a modern stack parking site in old Delhi, the fourth such high-tech complex to come up in the city.

The Municipal Corporation of Delhi has invited bids for setting up a three-level stack parking site, where cars can be kept on horizontal decks using hydraulic lifts, in New Lajpat Rai Market area on Kotla Road in Darya Ganj, officials said.

The parking site, which is expected to come up in six months, will be the fourth stack parking lot in the city. Last year, MCD had invited tenders for constructing stack or puzzle parkings in congested Karol Bagh and Paharganj areas while bids for a similar project in Shalimar Bagh was invited last month.


http://www.ptinews.com/news/645288_High-tech-parking-lot-to-come-up-in-old-Delhi
 

nandu

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OVL, IOC and OIL sign agreement for Venezuelan oilfield

New Delhi: Indian flagship overseas explorer ONGC Videsh Ltd and its partners have signed an agreement to develop a $20 billion oil project in Venezuela that will give energy-deficient India 3.6 million tonnes a year of crude.

On May 12, OVL and its partners inked an agreement with Venezuelan national oil firm Petroleos de Venezuela SA (PdV) for the development and production of hydrocarbons from the Carabobo project in the Orinoco region of Venezuela.

The joint venture agreement was signed in Caracas at a ceremony attended by the President of Venezuela, Hugo Chavez Frias, a statement by IOC, a member of the consortium, said.

Spain's Repsol-YPF SA, Petroliam Nasional Bhd (Petronas) of Malaysia and OVL, the overseas investment arm of state-run Oil and Natural Gas Corp, each hold an 11 percent stake in the consortium that will produce 400,000 barrels of oil per day.

Indian Oil Corp (IOC) and Oil India (OIL) will each have 3.5 percent interest in the joint venture firm to develop the Carabobo 1 Norte and Carabobo 1 Centro blocks (collectively called Carabobo-1), located in the Orino Heavy Oil Belt.

The Corporacion Venezolana del Petroleo (CVP), a unit of PdV, Venezuela's state oil company, will hold the remaining 60 percent equity. About half of the production from the joint venture, called PetroCarabobo SA, will be upgraded into light crude oil for export.

"The project costs are estimated at $15-20 billion and is one of India's major investments in Latin America," the statement said. The joint venture company has a licence term of 25 years, with the potential for a further 15-year extension, to extract oil.

After the signing ceremony, Oil Minister Murli Deora met Chavez to explore the possibility of sourcing Venezuelan crude for new refinery capacities coming up in India.
"Discussions were also held on the possibility of award of the Junin Norte block, where new oil reserves are being certified by OVL (to Indian firms)," the statement said.

The Indian firms will invest $2.181 billion in the 400,000 bpd project between 2010 and 2015. Of this, OVL will invest $1.333 billion, while IOC and OIL will invest $454 million each.

Early output of at least 50,000 bpd is slated to start in 2012-13, before rising to its peak in 2016.

The project cost includes $12.8 billion for constructing a heavy crude upgrader that can turn Orinoco's tar-like oil into valuable synthetic crude. The 200,000-bpd upgrader may be built at Soledad, in Anzoategui state, to make synthetic crude of 32 degree API or higher by 2015-16.

Venezuela had offered seven blocks in the Carabobo area, with combined oil-in-place estimated at around 128 billion barrels. The blocks were grouped into three projects, with each project expected to produce a plateau of 400,000 barrels of 8 degree API oil per day for 40 years.



Of the three projects put up for auction, bids were received for only two - one by the consortium led by the Indians and the other by Chevron Corp of US.

The companies were required to pay a minimum signing bonus of $500 million to access the reserves and provide a

$1 billion loan to PdV to begin operations.



In February, the Indian trio won the right to develop the Carabobo-1 project along with Repsol-YPF and Petronas after committing themselves to pay a signing amount of $1.05 billion and making an equivalent amount available to Venezuela's state-run PdV as a loan.



The Carabobo projects, along with similar ventures with Italy's Eni SpA, China National Petroleum Corp and a group of Russian companies in the neighbouring Junin field, are central to Venezuela's plans to boost waning oil output by 2.9 million barrels a day by 2017.

Financing for the blocks will be covered 30 per cent through international loans, 40 percent from the minority partners and the remaining 30 percent from initial output.

The Carabobo area, located in the eastern section of the Faja, has a massive resource potential and is part of an extensive reserve certification process led by PDVSA. The US Geological Survey, in a recent report, has estimated the mean volume of recoverable heavy oil in Faja to be as high as 513 billion barrels, which is one of the few global opportunities open to private investment.

http://biz.zeenews.com/news/news_content.aspx?newscatid=3&newsid=6202
 

ajtr

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Power capacity addition may trip on Chinese gear issues




Our Bureau

New Delhi, May 13

A high-level Government panel has warned of the possibility of an "energy security crisis" in the event of diplomatic differences with China arising in the future.

With well over 33,000 MW of new power capacity coming up using Chinese equipment, even as vendor support for spares and service is almost non-existent in India, the panel has concluded that a "Pokhran-like situation" could arise if bilateral relations turned sour in the coming years.

The failure to develop a local vendor base could lead to continued dependence on the Chinese for the entire life of the power station, the panel headed by Planning Commission member, Mr Arun Maira, has warned.

Spares and service costs are also exposed to higher uncertainty, the panel has concluded.

Besides, due to the intellectual property rights violations by Chinese suppliers, support from technological leaders from Europe and the US for upcoming supercritical sets will not be available in case of any technical problem, the report has said.

Of the 49 orders for supercritical sets awarded in the country so far, over half (26) have been secured by Chinese vendors.

Only 12 have been bagged by domestic manufacturers, with the remaining 11 going to international manufacturers from Russia, Korea and Japan. Steps to be taken

The Cabinet Secretary is slated to chair a meeting on May 25 to consider implementing recommendations of the panel. The report has also taken note of specific instances of malfunctioning of Chinese equipment deployed at various plants.

Besides, availability of manuals only in Chinese has also been cited as a major impediment.

Orders should be awarded after factoring in the life-cycle costs of Chinese equipment and not just upfront costs, the panel has said for future contracts.
 

ajtr

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Vasant Kunj drops off Metro map




NEW DELHI: Delhi Metro's Phase III is now going to span across 69.57 km as against the earlier proposed length of 85 km. The number of corridors has also been reduced from seven to six and the routes have been partially altered.

According to the new plan, Vasant Kunj, Ghazipur, Shiv Vihar and Yamuna Vihar will not be on the Metro map for now. The alterations were made after Delhi Metro Rail Corporation (DMRC) prepared detailed project reports (DPRs) for the new sections. The DPRs have been submitted to the Delhi government for its final approval.

According to sources, the corridors for which DPRs have been submitted to the government include a 25.66-km line from Anand Vihar to Dhaula Kuan of which 12.52 km will run underground and the rest would be elevated, a 12.40-km line from Mukundpur to Rajouri Garden of which 6.58 km will be underground, a 9.64-km-long line from Ashok Park to Delhi Gate of which 5.28 km will be underground, a fully underground section from Central Secretariat to Red Fort (6.8 km) and an elevated extension of the existing Line 2 from Jehangirpuri to Badli (3.43 km).

A sixth section (11.64 km) is proposed from the existing Metro station at Noida Sector 18 to Malviya Nagar via Kalindi Kunj.

Phase III will have 50 more Metro stations (29 underground, 20 elevated and one at grade) and a projected 18,85,796 commuters are expected to use it by 2016 as per the DPRs. All the new stretches except for the Line 2 extension from Jehangirpuri To Badli will come up on standard gauge technology in keeping with international standards.

The sections are not different from what had initially been proposed by the Delhi Metro Rail Corporation in the original Metro masterplan prepared for the capital with a 2021 deadline.

At that stage, the corporation had specified that the proposed alignments were "only indicative" and the final alignment would be decided once the DPRs are prepared for the new sections after carrying out field surveys to determine actual conditions on site.

Only one section proposed earlier — Shiv Vihar-Yamuna Vihar-Seelampur-Yamuna Bank (11 kms) — has reportedly been put on hold for now.

There are minor changes in the rest of the sections. In the initial plan, the Noida corridor was proposed to be 23 km long and was to extend to NH-8 via Vasant Kunj. The corridor will now reportedly stop at Malviya Nagar.

Also, the Mukundpur-Rajouri Garden section was earlier supposed to stop at Shivaji Park. But the length has been increased by 1.4 km.

The earlier proposed Ashok Park-New Delhi Railway Station section has also extended by 2.6 kms to reach Delhi Gate.

The changes were made after the ground situations were analysed in detail. "We had carried out some surveys which indicated that there were more areas where Metro would be viable. This had been stated in the economic survey released by the government and conveyed to DMRC. Some of the modifications are in tune with that. The exact alignments given in the DPRs are being examined and more changes could be made if the need arises. We are also looking at funding issues," said a senior government official.

The government is reportedly approaching Delhi Development Authority (DDA) to pay in part for the Metro since it is being felt that several DDA colonies in the city have benefited from the Metro. After the routes are approved by the government, they will be forwarded to GoM for a final nod and funding will be worked out. Construction is expected to start only after that. Phase III has a 2015 deadline.

The Masterplan is constantly under revision and since it was first prepared, about 150 kms have been added to the Metro network which was originally conceptualised.
 

ajtr

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In India, Hitching Hopes on a Subway



The Delhi Metro is scrupulously clean, impeccably maintained and almost unfailingly punctual. More Photos

NEW DELHI — The trains arrive with a whisper. The doors slide open and a puff of refrigerated air confronts the city's summertime miasma. A bell dings, the doors close and the train whisks its passengers to the next stop. This sequence of events might seem utterly ordinary on train platforms in Berlin or Bangkok, Stockholm or Singapore. But here in the sweaty heart of India's northernmost megacity, the runaway success of the city's almost complete subway system, known as the Metro, is a feat bordering on miraculous, and it offers new hope that India's perpetually decrepit urban infrastructure can be dragged into the 21st century.

The Delhi Metro manages to defy just about every stereotype of urban India. It is scrupulously clean, impeccably maintained and almost unfailingly punctual. Its cars are the latest models, complete with air-conditioning and even power outlets to let commuters charge their mobile phones and laptops. Its signaling and other safety technology is first rate, and the system is among the best in the world, urban transport experts say. Despite cheap fares, less than 20 cents for the shortest ride and about 67 cents for the longest, the system manages to turn an operating profit.

In a country where government projects are chronically delayed and budgets are busted, the Metro is on track to finish its 118-mile network by fall, right on schedule and within its $6.55 billion budget.

"Metro's performance has been outstanding," said Pronab Sen, India's chief statistician, whose government department keeps track of delays and cost overruns.

The Delhi Metro is perhaps the most ambitious urban infrastructure project since India won its independence, and its progress has been closely watched in a country facing a looming urban disaster. Unlike China and other rapidly growing developing countries, India remains predominantly rural.

But that is changing as millions of impoverished villagers try to grab a slice of India's rapid but unequally shared economic growth. India has done almost nothing to cope with the influx of villagers into the cities, much less plan for many more, analysts say.

A study published last month by the McKinsey Global Institute estimated that by 2030, 590 million Indians would live in cities and 70 percent of India's new jobs would be in cities. India needs $1.2 trillion in infrastructure to accommodate these new arrivals, the report concluded, including 4,600 miles of railways and subways, and real estate equivalent to the entire city of Chicago every year.

India's romance with the village, which Mahatma Gandhi believed was the most suitable environment for human development, is partly to blame for the decrepitude of Indian cities.

Uniformly, India's cities are a mess. Bangalore, India's high-tech hub, is strangled daily by traffic that has already eroded its image. Mumbai, the commercial capital, is riddled with overcrowded slums.

New Delhi, as the capital, is alone among India's largest cities in having control over its own money and destiny. The Metro is the most visible example of that advantage.

Much of the credit for its success is usually laid at the feet of one man, Elattuvalapil Sreedharan, a 77-year-old technocrat who serves as the Delhi Metro Rail Corporation's managing director. Mr. Sreedharan has a reputation for fearlessness and incorruptibility. At the Metro he has tried to create the culture of a private start-up business in the most unlikely of petri dishes: the epicenter of India's sprawling bureaucracy.

Instead of dry procedural manuals, senior managers are given a copy of the Bhagavad-Gita, one of Hinduism's most important texts. But its significance is not religious, said Anuj Dayal, a spokesman for the Metro.

"It is a management text," he said of the book, which is taken from the Mahabharata, an epic poem at the heart of Hindu philosophy. "It is the story of how to motivate an unmotivated person."

The Bhagavad-Gita retells a battlefield dialogue between the god Krishna, disguised as a chariot driver, and Arjuna, a brave but demoralized king. Krishna convinces him that he must do his duty against all odds, and fight even what seems to be an unwinnable war.

It is a message that resonates with workers, many of whom came from India's railway system, where bureaucratic procedures hampered even the smallest innovations. But in the Metro even the lowliest employees' ideas are taken seriously, said P. K. Pathak, who runs Metro's training institute. When trainees at the institute, which is packed to the gills to try to churn out enough employees to staff its new lines, suggested staggering lunch times in the cafeteria to ease crowding, Mr. Pathak made the change that very day. "In the railway, change was very difficult," Mr. Pathak said. "In Metro, we are open to all ideas."

Some of its changes seem simple but are revolutionary by Indian standards. The Metro has contracted out as much of its work as possible, keeping its payrolls slim and its management structure as simple as possible, officials say. They jettisoned the ubiquitous string-tied paper files, emblematic of India's vast bureaucracy, doing as much work as possible electronically.

Some critics of the Metro system say that the project ran roughshod over environmental concerns and land-rights issues, two factors that typically cause long delays in infrastructure projects. Others say that it has not integrated fully with the city's vast network of buses, which are much cheaper and cover far more ground. Nor is it clear that it can easily be replicated, since New Delhi is less densely populated than most large Indian cities, making land acquisition easier.

No one appreciates the Metro more than riders. Pawan Sharma, a civil servant who commutes from the western suburb of Dwarka, was so impressed with the Metro that he signed up to be a volunteer monitor. With a blue badge affixed to his chest, he patrols the train cars for two hours in the morning and evening, looking for people breaking the rules. He receives no compensation, not even free Metro rides.

The Metro's rules are strictly enforced. Spitting, a common habit of Northern Indian men, is forbidden. So is sitting on the floor, a habit from India's often-squalid railways, where passengers without tickets squat on the floor of overcrowded trains. Public urination, another unfortunate habit in a country where there are more cellphones than toilets, is off limits. Eating and drinking are forbidden, too.

Such rules chafe against the anything-goes chaos of urban life in India, Mr. Sharma said.

"People ask me, 'Why are you bothering me?' " he said on a recent afternoon as he cajoled a young rider to stand up, not squat on the floor. "But I tell them, 'The government has given us this nice facility. Why do you want to spoil it?' "

Mr. Sharma said he had to be strict in this crowded, hectic city.

"Small things add up to big things," he said. "If you ease up they will start spitting in the trains. They will sit on the floor and play cards. The whole system will become a mess."

Indeed, it remains to be seen if the Delhi Metro will remain as well-run as it is today, and whether its lessons can be applied elsewhere. Mr. Sreedharan recently had heart bypass surgery and is on extended medical leave, and he plans to retire once the Metro is completed later this year.
 

ajtr

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Koyambedu-Mount Metro stretch to be ready by 2013


Special Correspondent
The target date for completing I phase of the project is 2015
Major portion of project is to be executed on government land only

State government trying to integrate other modes of transport with Metro Rail

CHENNAI: Chennai Metro Rail Ltd. is planning to inaugurate the elevated stretch of Koyambedu – St.Thomas Mount by 2013, though the target date for completing the first phase of the Rs.14,000-crore project is 2015.

The first phase of the project consists of two corridors — from Washermenpet to Airport; and from the Chennai central to St. Thomas Mount.

Talking to mediapersons here on Wednesday, after reviewing the progress of the project with officials, Chennai Metro Rail Ltd Chairman M. Ramachandran, who is also the Secretary to the Union Ministry of Urban Development, hoped that it would be possible to run the services on this portion of the elevated stretch if the current progress was maintained.

As of now, the work was progressing as per schedule and the Board of Directors had charted out the work schedule for the current financial year. About Rs 2,000 crore had been allocated for carrying out the work.

Mr. Ramachandran said tenders for design and construction of three viaducts — Koyambedu to Ashok Nagar, Ashok Nagar to St.Thomas Mount and Saidapet to Officers Training Academy (OTA) — had already been awarded and the work was in progress. Tender for construction of one more viaduct would be awarded soon. By the end of current year, one could see visible progress of the project.

Regarding land acquisition, he said it would not be a problem as major portion of the project was to be executed on government land only. Most of the public facilities would be provided on public land and the project at the most required seven hectares of private land. The company had already appointed a private consultant to negotiate with land-owners.

The company was eager to set up parking facilities in all major stations and it was negotiating with the Chennai Corporation and other local bodies on how best it could be provided.

Mr.Ramachandran said the CMRL would be a standard gauge project. In the absence of sufficient standard gauge coach manufacturing units in the country, the company would float global tenders for acquiring the stocks.

T.V. Somanathan, Managing Director of the company, who was also present, admitted that there would be some traffic disruption while executing the project. But the company was trying its level best to minimise the traffic disruption. The State government was trying to integrate other modes of transport with the Metro Rail for the convenience of commuters.
 

ajtr

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Aban gas rig loss to jack up energy cos' insurance costs


MUMBAI: Insurance costs for Indian energy companies are likely to rise with the sinking of Aban Offshore's $240-million gas exploration rig Aban Pearl in the Caribbean sea off Venezuela early on Thursday.

The sinking of the rig comes in even as insurers worldwide are trying to come to grips with the oil spill in the Gulf of Mexico caused by an explosion in BP's oil rig off the US Gulf Coast. Some insurers fear that losses arising out of the Gulf of Mexico spill will be far greater than the $4.3 billion spent on the Exxon Valdez disaster in Alaska 21 years ago.

"This will be bad news for Indian energy companies," said an energy specialist with an insurance firm responding to the sinking of the Aban Pearl.

Although there is no gas leakage and the Venezuelan president Hugo Chavez has said that there is no damage to the environment, insurers are a bit wary of liability claims. Fortunately, ONGC concluded its insurance programme at a lower price before these incidents.

"The sinking of the rig will put pressure on prices. But there is still a lot of capacity in the markets," said Sanjay Kedia, managing director, Marsh India.

The rig has been insured by ICICI Lombard along with state-owned United India Insurance and New India with stakes of 75%, 15% and 10% respectively. ICICI Lombard has reinsured the rig with the Lloyd's syndicate and has said that it does not expect a significant impact on its balance sheet.

The worst impact of the sinking so far has been on Aban Offshore — the company that owns the rig. According to officials in the insurance industry, the company is not covered for loss of profits and it could take several months for it to get a replacement.

A report by Ambit Research said: "We compute a negative cash flow impact of $65 million or -20% annually on the company following the incident. We note that the company has a debt obligation of $1,025 million for FY11e-FY12e, against expected cash flows of $500 million and $240 million from operations and insurance compensation respectively, implying an unfunded portion of $285 million. The company, in our view, will find it challenging to fund (either by equity or debt) this gap given the loss of revenues from a high-cash generating asset".

According to the report, Aban Offshore will suffer an annual revenue and EBITDA loss of $125 million and $81million respectively on account of this incident.
 

ajtr

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India, Turkmenistan explore energy cooperation
In a sign of continuing interest in the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, New Delhi has offered to host a technical meeting of experts under the aegis of the Asian Development Bank.

India has shown interest in the possibility of Turkmenistan exporting some of the gas to northern Iran. It could then be swapped with gas from Iran's southern seaboard into an under-sea pipeline, obviating the need for a surface Iran-Pakistan-India pipeline.

The SAGE (South Asia Gas Enterprise Pvt. Ltd.) project envisages a Middle-East natural gas gathering system connecting gas sources to the coast of the Arabian peninsula. From there, the SAGE family of pipelines plans to follow a route surveyed 15 years back and declared unviable as techniques of deepwater pipe-laying and manufacturing had not matured.

"Technology has made this feasible now," said an official. The SAGE has finalised a MoU with National Iranian Gas Export Company for developing gas exports through this route, bypassing the territory of Pakistan. The Gas Authority of India Limited has also entered into a "principles of cooperation arrangement" for this sea route. However, the pipeline would pass on Pakistan's continental shelf.


the time has come to seriously invest in deep-sea pipeline. Earlier, towards the end of last century, India investigated three options for evacuating gas from Iran to India (apart from LNG using ships). One was deep-sea (with some stretches around 3200 metres depth) from Oman to India (with another pipeline from the South Pars field of Iran to Oman), the second was a shallow and coast-hugging pipeline within the territorial waters of Pakistan along the Makran coast and the third was the landline through Balochistan etc. The deep-sea pipeline was dropped after some studies as the cost and technological challenges were found to be not worth it, especially crossing the Dalrymple trough. The shallow water line within the territorial waters of Pakistan could not even start because of Pakistani objections. The landline therefore appeared to be the only feasible route.

The deep-sea at that point of time was very challenging though it was not considered impossible. The deepest at that time was the still-under-construction Bluestream project which was at depths of ~2200 metres carrying gas to Turkey across the Blacksea. Since then, as oil&gas explorations at deeper oceans proliferate in search of new fields and as technologies improve, the Oman-India gas pipeline does not appear as challenging as it was a decade back. In fact, gas collecting pipelines regularly operate at >2500 m depths in the Gulf of Mexico and even in KG Basin oil fields to collect gas from wells, though they may not traverse great distances. In East Timor field, the pipeline is being considered at depths of 3500 metres. Pipelaying barges are available today that work beyond 3500 m depths, they have more accurate positioning capability so that pipelines can be laid exactly over the chartered route and pipes can be built to withstand the pressure requirements.

As distances increase, pipelines become very cost effective and attractive. Unfortunately, with practically no possibility of either IPI or TAPI, due to unsettled situations in Pakistan and Afghanistan for the foreseeable future, the Oman-India deep-sea pipeline must be immediately revived for India's energy security with Iran linking to the Oman pipeline.
 

ajtr

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Shale gas, not Iran pipeline, our energy hope


S A Aiyar, 30 May 2010, 01:58 AM IST
External affairs minister S M Krishna visited Tehran in mid-May and said India was still interested in the proposed Iran-Pakistan-India (IPI) gas pipeline, but expressed reservations on security grounds. However, there is now a more important economic reason to oppose the pipeline.

The IPI gas price has become ridiculously high in the light of new technology for extracting gas from shale, a common sedimentary rock found across the world. The IPI project never made sense from a security viewpoint. It now makes no sense from an economic viewpoint.The US has pioneered shale

gas technology. This has created a glut, sending gas prices plummeting from $13/mmbtu (million British thermal units) four years ago to just $4/mmbtu today, even as the price of oil has more than doubled. By contrast, the IPI formula links the gas price to oil prices. This implies that India will have to pay $10/mmbtu at today's oil price of $70/barrel, and a whopping $20/mmbtu for gas if oil returns to its 2008 peak of $150/barrel. India cannot possibly accept such a price formula when shale gas technology has sent prices plummeting.

It must insist that the Gulf countries abandon the old price link between gas and oil, and accept the new low prices established at trading hubs like Henry Hub in Louisiana. Iran, Qatar and other Gulf countries are aghast at the emergence of shale gas as a rival, and want to stick to the gas-oil price link. India must refuse to do any gas deals with them until they drop the link.

Indeed, India may need no gas deals at all with Gulf countries for a long time. Gas from the Krishna-Godavari offshore basin is going to flow in huge quantities in the next few years, making India self-sufficient. New gas deposits are constantly being found offshore.

Besides, India also has massive shale deposits, and should give priority to exploiting these over sinking billions into a highly dubious pipeline through Pakistan. Reliance Industries Ltd has been the first to grasp the new opportunity. It has just bought a 40% stake in the operations of a US company, Atlas Energy, in the Marcellus Shale, a huge deposit extending from New York to West Virginia. Reliance is looking for maybe two more shale gas acquisitions in the US, and Essar Oil will probably follow suit. The ONGC, as always, is slow off the mark, but will lumber into this game soon.

Gaining experience and technology in the US can help Indian companies launch a large shale gas programme in India.

Shale has long been known to contain gas, but this does not flow from a normal well since shale is not porous. The new technology cracks open shale with sand and water under high pressure, opening up the formation and allowing gas to flow. The share of shale gas in the US gas production has shot up from zero to 8% in the last decade. One single deposit, the Barnett Shale in Texas, produces 1.1 trillion cubic feet per year, and other deposits (Bakken, Haynesville) could be as productive.

Four years ago, US companies thought a gas price of at least $6/mmbtu was needed to make the extraction of shale gas viable. But as technology has improved, shale gas has become viable in some cases at just $3/mmbtu. Indeed, Anadarko Petroleum thinks it can produce gas from the Marcellus shale at just $2.50/mmbtu. This is well below the $4.20/mmbtu set by the Indian government for offshore gas.

India has huge shale deposits spread across the Gangetic plain, Assam, Punjab, Rajasthan, Gujarat and southern coastal areas. All these are potentially gas bearing. The government has no policy framework for shale gas, and needs to devise one quickly so that exploration can begin. Seismic surveys on a massive scale are needed to produce basic data. If these data are then made available to bidders, prospective shale gas deposits can be put on the bidding block.

In the case of offshore gas, the government has given itself complete powers of price control. This has kept foreign companies away from the last round of bidding. For shale gas, blocks must be auctioned with a clear provision that there will be no price control.

Europe is frenziedly getting into shale gas, hoping to reap a bonanza as in the US, and also free itself from dependence on Russian gas. India needs to provide terms for shale gas blocks that are at least as good as European terms. That alone will attract global firms with the necessary technology.
 

dextercath96

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Thanks for the information about energy in different sector of India. I hope that they can also produce solar power in that place and sectors.
 

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http://www.businessgreen.com/business-green/news/2263925/india-doubles-renewables


India adds record renewables capacity in past year

Country outstrips UK, Japan, France and Canada as renewable energy capacity soars
Tom Young, BusinessGreen, 01 Jun 2010


India added 2.33GW of grid-connected renewable power capacity during the year to the end of March, according to a statement from the Ministry of New and Renewable Energy, more than doubling the rate at which it installed renewables capacity during the previous year.

The record performance takes the country's total installed capacity of renewable energy to 16.8GW, far outstripping the performance of many industrialised nations including the UK, France, Japan and Canada.

According to the new figures, 1.57 GW of wind power were added during the year compared to 790 MW the previous year, although the rate of expansion dropped slightly compared to 2007-2008 when 1.66GW of new wind energy capacity was added.

But the country has still installed more capacity than leading wind energy markets Germany and Spain over the past two years and now boasts over 11GW of wind capacity, making India the fifth largest wind energy generator in the world.

The highest growth was shown by the biomass-agriwaste and small hydro sector, which nearly tripled their contribution from 250MW in 2008-2009 to 750MW a year later.

Only eight megawatts of solar energy capacity was installed, although the government has announced that it wants to add one gigawatt of new solar capacity by 2013, and 20GW by 2020 as part of its high profile Solar Mission project.

The spike in installed renewables this year gives India a boost towards reaching its target of having 25GW of installed renewables by March 2012, representing over 10 per cent of the 220GW of installed power nationwide.

But critics say the nation will struggle to meet the target, which would require it to install 3.6GW a year for the next two years – a third higher than the amount it installed this year.

Last week, local reports suggested the Indian government is working on plans for a new renewable energy certificate (REC) scheme designed to drive investment in low carbon energy projects.

The RECs, which are based on a model pioneered in the US, could be bought by companies and government bodies to count towards renewable energy targets.

The scheme would provide renewable energy developers with anadditional revenue stream while giving companies the ability to bolster their green credentials by demonstrating that they have purchased renewable energy.

The country also launched its first feed-in tariff scheme for renewable energy last year as part of further efforts to drive investment in low carbon projects.
 

Pintu

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http://timesofindia.indiatimes.com/...ks-up-Rajarhat-pieces/articleshow/6026320.cms

DLF picks up Rajarhat pieces
TIMES NEWS NETWORK & AGENCIES, Jun 9, 2010, 06.03am IST

KOLKATA: Real estate major DLF, which had last year pulled out of developing an IT SEZ on a 25.8-acre plot in Rajarhat, has obtained fresh sanction from the board of approvals (BoA) of the Union commerce department to revive the venture.

DLF had pulled out midway through construction, citing the global downturn.

Commerce ministry additional secretary D K Mittal said in New Delhi on Tuesday : "The board of approvals has allowed renotification of DLF's SEZ in Kolkata." The BoA is the final authority on SEZ-related issues nationwide.

State IT minister Debesh Das was elated and felt it augured well for the industry. "It's a very good development from the state's point of view because it proves conclusively that the IT industry is well on its way to recovery. Since a major portion of the construction is already through, DLF should be able to give shape to its SEZ plans at Rajarhat quite quickly," Das said.

DLF already operates another IT facility, not an SEZ, on a smaller 10-acre plot in Rajarhat. According to current regulations, an IT SEZ needs to occupy a minimum of 25 acres. Experts said DLF starting operations at the Rajarhat SEZ would help push up software exports from the state as it would be able to attract several blue chip clients.

Exports from Kolkata's software technology park recorded a marginal increase in 2009-10 over the previous financial year. Local units registered with the STPI scheme (distinct from the SEZ scheme as there are no restrictions on space requirements) registered exports of Rs 5,430 crore in the just concluded fiscal, up 6% from Rs 5,129 crore posted in 2008-09.
 

Pintu

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http://timesofindia.indiatimes.com/...-Metro-to-open-on-Wed/articleshow/6043974.cms

Delhi-Gurgaon Metro to open on Wed
PTI, Jun 13, 2010, 06.10pm IST

NEW DELHI: Decks have been cleared for opening of the metro line from Qutub Minar to Gurgaon this week after the DMRC got the mandatory clearance certificate, ending the satellite town's long wait for an effective transport link to the national capital.

The 14.47 km corridor connecting the millennium city with south Delhi is likely to be inaugurated by Wednesday by Union Urban Development Minister S Jaipal Reddy, Delhi Chief Minister Sheila Dikshit and her Haryana counterpart Bhupinder Singh Hooda.

Sources said the exact date of the inauguration will be known tomorrow as the DMRC got the certificate only yesterday.

DMRC had yesterday received the mandatory no objection certificate from the Commissioner of Metro Rail Safety (CMRS) R K Kardam who inspected the line on Wednesday and Thursday.

It is learnt that Kardam has asked the DMRC to make some changes on the line, which will be carried out by the Metro before it opens the line.

Once the services start, Gurgaon will become the second satellite city to get Metro connectivity after Noida, where it reached last November.

The people of Gurgaon have been waiting for an effective transport system to travel to and from Delhi and the launch of Metro services is likely to ease some pressure on road traffic.

The DMRC will initially put eight trains on the line at a frequency of five minutes and once the entire corridor opens, there will a total of 60 trains at a frequency of three to four minutes.

Earlier, the DMRC had planned to inaugurate the entire stretch from Central Secretariat-Gurgaon at one go. But now the 27-km corridor will be thrown open in two phases.

The 13 km line connecting Qutub Minar with Central Secretariat is likely to be opened by mid-July. Ultimately, the line will be integrated with the existing Line 2 (Jehangirpuri-Central Secretariat).

Once the entire section becomes operational, passengers can hope to reach Gurgaon in around an hour from Connaught Place in the heart of Delhi.

The Central Secretariat-HUDA City Centre line, built at a total cost of Rs 3,720 crore, is expected to add over 3.4 lakh people to the Metro system by 2011.
 

ajtr

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RIL discovers more oil in Cambay Basin


Reliance Industries on Friday said that it has made a sixth oil discovery in the Gujarat block, but did not give the reserves that the latest find may hold.

The well CB10A-T1 encountered hydrocarbon bearing zone between 1,390 and 1,402 meters below the earth in the block CB-ONN-2003/1 near Ahmedabad, the company said in a press statement here.

"The well flowed at a rate of 415 barrels of oil per day," it said. RIL, which has so far drilled 16 exploratory wells in the block, named the discovery 'Dhirubhai-49'. This is the sixth oil discovery in the block, so far, but the company has not put a reserve estimate for any of the finds in the area.

Stating that the find has been notified to the government and to the Directorate General of Hydrocarbons, the company said, "The potential commercial interest of the discovery is being ascertained through additional data gathering and analysis."

The block CB-ONN-2003/1 is located at a distance of about 130 kms from Ahmedabad in Gujarat, in the Cambay Basin. The block covers an area of 635-sq km in two parts -- Part A and Part B.

RIL, as operator, holds 100 per cent interest in the block. It had won the block in the fifth round of auction under the New Exploration Licencing Policy P). While the entire block was covered with 2D seismic, about 80 per cent of the block area has 3D seismic coverage.

Of the 16 exploratory wells drilled in the block by RIL, so far, 12 are located in Part-A and the remaining 4 in the Part B of the block.

"RIL is continuing further exploratory drilling efforts in the block," the statement said. The well CB10A-T1 was drilled to a total depth of 1500 meters in Part A of the block. "The discovery is significant as this play fairway is expected to open more oil pool areas, leading to better hydrocarbon potential within the block," RIL said, adding "the discovery supplements the understanding of the petroleum system in the Cambay basin in general, and the block in particular."

Based on the interpretation of the acquired 3D seismic campaign in the contract area, RIL has identified several more prospects with upside potential at different stratigraphic levels.
 

ajtr

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Cairn starts crude oil supply through pipeline network


Goes on stream: The world's longest continuously heated and insulated crude oil pipeline by Cairn India is ready. The pipeline passes through Rajasthan and Gujarat. The first phase of the Barmer-Salaya line is operational with oil supplies having started to the private refineries from the delivery point at Salaya.
Essar Oil's Vadinar refinery has become the first recipient of the crude oil through Cairn India's insulated crude oil pipeline.

Cairn India and its joint venture partner ONGC commenced sale of crude oil through its Barmer-Salaya pipeline network on Tuesday.

The 590-km long Barmer to Salaya section of the Barmer to Bhogat pipeline (670 km) is now operational with oil supplies having commenced to the private refineries from the delivery point at Salaya, said Mr Rahul Dhir, Managing Director and Chief Executive Officer, Cairn India.

Sale of crude oil to Indian Oil Corporation (IOC) through the pipeline is also expected to start soon. Cairn and ONGC, the 70:30 joint venture partners in the Rajasthan block, RJ-ON-90/1, have been trucking the crude oil from the fields.

Till now it has sold 13 parcels (about 3.1 million barrels) to Reliance Industries Ltd and eight parcels (about 1.9 million barrels) to MRPL. Current production from the fields is 60,000 barrels of oil per day (bopd). Sources told Business Line that the pipeline filling capacity from Mangala to Salaya is 1 million barrels.

Sales through the pipeline will lead to cost and operational benefits to the joint venture. Essar is likely to take about 30,000 barrels a day of crude oil from Cairn.

The estimated pipeline operating expenditure is $1.5/bbl whereas the trucking cost was $8-10/bbl. The joint venture is selling crude oil at 10-15 per cent discount of Brent. The June average of Brent till date was $73 a barrel.

The joint venture has started initial supplies through the pipeline network and offtake volume to the refiners will be ramped up gradually, Mr Dhir said.

The crude oil sales from the Barmer fields are expected to reach 125,000 bopd in the second half of calendar year 2010. The company has sales arrangements in place for 143,000 bopd.

"Construction work is now set to start on the Salaya to Bhogat section of the pipeline on the Gujarat coast with completion targeted for 2011," Mr Dhir said. The pipeline, which is part of the Mangala Field Development Plan, has been approved by the Government.

Mr Naresh Nayyar, CEO of Essar Energy, said, "This is an important event for Essar Energy as dedicated supplies from a domestic source will improve crude oil supply security and lower logistics costs and taxes. It also fits well with Essar's strategy to diversify its portfolio of crude oil supply sources."

The crude oil supply from Mangala will ramp up over the next few weeks and is expected to account for around 10 per cent of the total refinery intake, he said.

The refinery is a cracking refinery with a current capacity of 14 mtpa, which is being expanded to 18 mtpa, with mechanical completion due in March 2011.

[email protected]
 

satyam

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Clogged Rail Lines Slow India's Development

http://www.nytimes.com/2010/06/16/business/global/16indiarail.html?hp=&pagewanted=all

To subsidize passenger travel, the railways levy some of the highest freight tariffs in the world. India charges $395 to move a ton of freight one kilometer — four times what American companies charge and twice as much as in China. Business executives say their best hopes for improving the railroad's costs and capabilities may ride on solutions not wholly reliant on Indian Railways. Four years ago, the government began allowing private companies to operate container trains. One of the new carriers is IndiaLinx, which buys rail cars and leases tracks, locomotives and workers from the Railways.
 

tarunraju

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Skewed view. IR has high freight costs because it makes up for some of the world's lowest passenger fares with increased freight tariffs. So people's commute savings make up for slightly costlier commodities. I can travel from Hyderabad to Nanded city (MH), which is 250 km away in Express for 60 rupees ($1.30). You can imagine how little the railways asks per km to haul my 75 kg arse.

We have to admit though, that IR as an organisation is way too bloated, and has too big a workforce for its requirements. It's just so railway ministers could create jobs to win votes.
 
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ajtr

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New solar mission norms launched



Thu, Jun 17 01:50 AM
Welcoming the guidelines for off-grid and roof-top solar applications, launched by non-renewable resources minister Farooq Abdullah in the capital on Wednesday, solar industry leaders have expressed the hope that the government would soon follow up with guidelines for grid-connected solar power projects.

Saying that it's a step in the right direction, K Subramanya, CEO, Tata BP Solar added, "Given the size of the country, we need to not only think big, but also act big. The forthcoming norms for grid-connected solar power projects would lead to the big leap in our energy security quest." Agreeing with him, Rajiv, CEO of Photo Voltaic, added, "The norms are very encouraging for the industry, giving the hope that the solar mission is on the right trajectory."

Solar industry body, Solar Energy Society of India, too welcomed the guidelines. While the society president Ajay Prakash Shrivastava said the emphasis on solar thermal is good to promote this fledgling segment, the society director-general Jagat S Bawa emphasised that the focus on India made modules will promote the domestic industry.

Earlier launching the guidelines, Abdullah said, "The guidelines are flexible and market friendly. They seek to address four critical areas—access to rural households for lighting and daily power requirements, reduction in consumption of kerosene and diesel, energy demand management through solar thermal systems and improvement of efficient transmission by feeding power at consumption points." The norms require project developers to apply between July 15 and August 16, 2010.
 

ajtr

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Govt may float bonds to fund solar mission

Jacob P. Koshy, [email protected]

India could float special bonds to generate funds for the Jawaharlal Nehru National Solar Mission, an ambitious plan to create capacity to produce 22,000MW of electricity from sunlight by 2022.

The proposal to float these bonds finds mention in a document made public on Wednesday by the ministry of new and renewable energy.

The mission will be implemented in three phases. The government has approved the setting up of 1,100MW grid-connected solar plants and 200MW capacity equivalent off-grid solar applications in the first phase till 2012-13.

The ministry says that it or organizations such as the Indian Renewable Energy Development Agency can issue green energy bonds, akin to infrastructure and gold bonds. It also says soft loans and subsidies would be given to the industry to help it ramp up capacity to generate solar power.

The ministry is considering issuing bonds along with other initiatives such as renewable energy vouchers to ensure energy development projects are completed on deadline.

"Currently, these are guidelines, but we are still to make all of this final as well as clarify how these bonds would work," said S. Bandhopadyay, a ministry adviser involved in solar energy projects.

The industry is upbeat about the guidelines.

"The size of the industry in the first phase would be in the range of $3.5-4 billion (Rs16,240-18,560 crore). This is a significant step which will help domestic manufacturers like us," Deepak Puri, chairman and managing director, Moser Baer India Ltd, said in an email. Moser Baer makes storage media such as compact disks as well as solar energy products.

India has announced several policy initiatives this year to promote capacity development of renewable energy sources.

Finance minister Pranab Mukherjee hiked annual budgetary allotment to the renewable energy ministry by 60% to Rs1,000 crore and announced several concessions on equipment used to make solar energy instruments.
 

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