Aravali Power's Jhajjar STPP in a mess-I: Singh forced to visit BHEL's facilities

July 29: BHEL`s inability to stick to deadlines for the supply of IP turbines to the second and third units of Aravali Power`s Jhajjhar STPP has forced BP Singh, Director (Projects) of NTPC, to intervene and ensure a swift end to this holdup. Subsequent to repeated missives failing to bring about the desired results, the Director personally visited BHEL`s facilities in Haridwar to assess the progress made by the equipment major in restoring the critical generator components.
8Pertinently, the problems of Aravali Power, a joint venture of NTPC, Indraprastha Power Limited and Haryana Power Generation Corporation Limited, stem from defects in the inner casing
of the turbines for the two units, which BHEL is, apparently, taking its own sweet time in rectifying. The 1500 MW project, located in the Jhajjhar district of Haryana, was expected to partly meet the elevated power requirements of NCR during the forthcoming Commonwealth Games in October 2010. However, BHEL`s abysmal performance has rendered this a remote possibility.
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Aravali Power's Jhajjar STPP in a mess-II: NTPC considers extreme steps

July 29: In view of the inordinate delay in the completion of major civil works at the Indira Gandhi super thermal power project (STPP), factions within NTPC are considering the legalities of hiring another company to supplement the contractor, Kirloskar Brothers Limited (KBL), or even terminate the contract with the Pune-based firm. Such extreme measures are being contemplated as even a high level meeting between NTPC and KBL failed to elicit the extra efforts needed for the quick completion of the contract.
8KBL, in September 2008, bagged the Rs 2,688 crore civil work contract for the power plant, being developed by Aravali Power Company Private Limited-- a joint venture between NTPC, Indraprastha Power Generation Corporation Private Limited (IPGCPL) and Haryana Power Generation Corporation Limited (HPGCL), at Jhajjar in Haryana.
8It would be pertinent to mention here that, KBL has been awarded several civil and structural work contracts by NTPC, for projects across the country. The company has undertaken work the supply of various pumps packages for 2x500 MW Vindhyachal STPP, Stage-II, CW pump sets for the Unchahar project, the ash water recirculation pump package for the Talcher STPP, the miscellaneous vertical pumps package for Stage-I of the Talcher STPP and the makeup water pumps package for the Simhadri STPP, amongst others.
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Govt signs exploration contract for CBM-IV blocks

July 29: The Government of India, today, signed exploration contracts with various companies for seven coal bed methane (CBM) blocks, awarded under the fourth round of CBM-block auctions (CBM-IV).  These blocks have a gas production potential of 330 billion cubic metres, which are expected to attract over $150 million in investments. They include four blocks awarded to Essar Oil Limited, one block awarded to Great Eastern Energy Corporation Limited, one block awarded to a consortium of Arrow Energy (AS) Pte Limited and Oil India Limited, and one block awarded to a consortium of Arrow Energy (ST) Pte Limited and Tata Power Company Limited. The seven CBM blocks are spread over the states of Assam, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa and Tamil Nadu.
8With this, the government has signed a total of 33 CBM contracts, till date. Out of the estimated cumulative 92 trillion cubic feet (TCF) of CBM in the country, 8.9 TCF have been established so far. Speaking on the occasion of the signing ceremony, the Minister of State for Petroleum and Natural Gas, Jitin Prasada,  advised the companies to take cognizance of the collective responsibility of all stakeholders, with respect to exploration and production, in order to achieve energy security for the country. On the issue surrounding coal and CBM gas block overlaps, Additional Secretary, Ministry of Coal, Alok Perti, claims that the issue would be resolved shortly, via the introduction of a suitable policy framework.
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Lanco bags BoP contract for Mahagenco's Koradi project

July 29: Lanco Infratech Limited (LITL), today, announced that it has bagged the contract, from Maharashtra State Power Generation Company Limited (Mahagenco), for execution of the balance-of-plant (BoP) package for three new 660 MW units at the Koradi thermal power plant, near Nagpur. The scope of work for the contract would include the erection, testing and commissioning of the BoP package, encompassing the coal and ash handling plants, de-mineralized water plant, cooling towers, fuel-oil handling system, compressed air system and water treatment plant, along with the associated civil and structural work.
 8According to LITL, the contract would be completed within 42 months from the date of commencement of work. The company, however, did not disclose the financial details of the order. Significantly, this is first major external contract for LITL's EPC Division, which, till now, has handled only the Lanco Group’s own power generating units. "While we have won the contract under stiff competition where there were six major EPC players who have tendered their bids, this contract depicts the confidence of the Mahagenco in the execution capabilities of LITL, it will also help us demonstrate our capabilities in executing projects other than our own portfolio," said S C Manocha, CEO, LITL–EPC.
 8Lanco`s power portfolio includes an operating capacity of 1,044 MW, while a capacity aggregating to more than 10,000 MW is under various stages of implementation. Lanco Infratech operates across a span of verticals, including power and non-power infrastructure, construction, EPC and realty. The Construction and EPC Division of Lanco is executing orders worth more than Rs 14,700 crore, at present. During the last fiscal, Lanco added 1,349 MW of power generation capacity, while Lanco Anpara, a group company, entered into an Memorandum of Understanding (MoU) with the Government of Uttar Pradesh (GoUP), to enhance the capacity of the existing Lanco Anpara TPP, from 1,200 MW, to 1,860 MW. Further, Lanco Infratech has entered into a MoU with the GoUP to set up a 2x660 MW coal-fired power plant at Fatehpur.
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Infrastructure performance (April-June 2010): Growth up marginally, at 4.6%

July 29:  

Change in infrastructure industry indices for June 2010
Industry	Wt. in IIP	June`10	June`09	FY 10-11	FY 09-10
Crude Oil	4.17%	6.8%	4%	5.9%	(-)1.3%
Petroleum Refinery	2.00%	2.9%	(-)3.8%	5.3%	(-)4.2%
Coal	3.2%	0.9%	15.2%	(-)0.4%	13%
Electricity	10.17%	3.4%	7.7%	5.6%	5.8%
Cement	1.99%	3.6%	12.7%	7%	12.1%
Carbon Steel	5.13%	3.5%	3.6%	3.6%	1.7%

As per the latest provisional production report released by the Ministry of Commerce & Industry, for the month of June 2010, the index of six industrial sectors related to national infrastructure, namely crude oil, petroleum refinery products, coal, electricity, cement and finished (carbon) steel, registered a growth of 4.6% (provisional) during April-June 2010, as against the 4.3% observed during the corresponding period of the previous year. The six-industry index, with a combined weight of 26.7% in the Index of Industrial Production (IIP), stood at 258.1 (provisional), taking 1993-94 as the base year, implying a growth of 3.4%, as compared to the increase of 6.3% observed for June 2009.
8The crude oil production index recorded a growth of 6.8% during June 2010, with a production of 2,939 thousand tonnes, compared to a growth of 4% in the same month the last year. During April-June 2010, the index registered a growth of 5.9 %, against a decline of 1.3% during the same period of 2009-10.
8The index for coal production witnessed a marginal growth rate of 0.9% in June 2010, as compared to the 15.2% observed in the same month of 2009. While, in June 2010, coal production stood at 39.75 million tonnes (MT), the same was recorded at 39.38 MT in the corresponding month of the last fiscal. It decreased by 0.4% for the first three months of FY 2010-11, against the 13% growth seen during the same period of last year.
8The electricity production index, a major component of the IIP, increased by only 3.4% during June 2010, with generation of 65,211.4 million Kwh of power, compared to the growth of 7.7% exhibited in June 2009. However, during April-June 2010, the growth rate, at 5.6%, was similar to that in April-June 2009, when it grew at 5.8%.
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Coal supplies to Farakka, Kahalgaon STPS-I: CIL blames NTPC's unloading facilities for low dispatch

July 29: Brushing aside NTPC's claim of being supplied lower-than-committed amounts of coal at its Farakka and Kahalgaon super thermal power stations (STPS), which are at present grappling with tremendous coal shortages, Coal India Limited (CIL) has blamed the entire situation on the lack of adequate unloading infrastructure at the project locations. According to CIL, while it makes every effort to dispatch eight to 10 rakes of coal to these plants, the average dispatch during April-June 2010 was restricted to 7.8 rakes per day due to the absence of track hoppers, which are essential for unloading Box-N wagons, via which Indian Railways prefers to transport coal. Further, the coal handling plants (CHP) at the two stations encountered faults on many occasions during the first quarter (Q1) of the current fiscal, claims CIL. According to the coal company, these constraints have caused even the supply of imported coal, which are also delivered by rail, to remain below target.
8Farakka and Kahalgaon STPSs are linked with the Chuperbita and Hurra-C coal mines, which are expected to commence production not before April 2012. In the interim, it has been allotted linkage from other CIL sources, which have been less than exemplary in meeting their requirements. While the total coal requirement of the Farakka and Kahalgaon-I and II projects is estimated to be around 25 million tonnes per annum (MTPA), CIL has, till the time the dedicated mines become operational, agreed to supply only 15 MTPA, leaving a gap of 10 million tonnes, which is to be sourced by NTPC from other sources.
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Coal supplies to Farakka, Kahalgaon STPS-II: Shipping min wants coal transport deal between NTPC, IWAI

July 29: While it seemed that the matter of inland waterways transport of coal to NTPC's Farakka and Kahalgaon stations had been finally dismissed outright by the power major, the issue appears to have been given a fresh lease on life due to the entry of the shipping ministry. The Ministry of Shipping, recently, convened a meeting with NTPC, Coal India Limited (CIL) and the power and coal ministries, in order to find ways to make the proposal put forward by Inland Waterways Authority of India workable.
 8This impasse was created with the power major making it clear that IWAI`s call for long-term commitments for the transport of 2-3 million tonnes per annum (MTPA) of imported coal to these power plants, using the proposed waterway, is not feasible, because NTPC doest not import coal directly. Rather, it imports coal via the state-owned companies-- Coal India Limited (CIL), State Trading Corporation and MMTC. Significantly, IWAI asked for these terms as in the absence of such assurance it would be difficult for the private port operators to invest resources on the development of necessary infrastructure-- barges, terminals, coal handling equipments etc.
8NTPC and IWAI signed a memorandum of understanding (MoU) in September 2008 to arrive at an appropriate methodology for the smooth and cost effective transport of coal to the three coal-starved power stations of NTPC. Subsequently, IWAI had commissioned a feasibility study by ILFS and a draft report was submitted to NTPC in February 2009, later revised in December 2009, following NTPC`s recommendations. However, nothing much has happened after that, as, on one hand, NTPC started claiming that the feasibility study lacks credibility, while, on the other, IWAI has been maintaining that the proposed IWT is a competitive logistics solution for the transport of coal to the power major`s key power stations, in a scenario where the Railways is unable to fulfill all requirements of these projects.
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KSK Energy's Dibbin HEP public hearing on July 30

July 29: The 120 MW Dibbin hydroelectric project (HEP) of KSK Energy Ventures Limited is set to achieve another important milestone on July 30, 2010, when the mandatory public hearing is scheduled to take place. With this, the project would be subject to a public debate over the ecological consequences of the project, to be set-up in the West Kameng district of the north-eastern state of Arunachal Pradesh. Following the hearing, the environment impact assessment (EIA) report and environment management plan (EMP) for the project will be forwarded by the state authorities to the union environment and forest ministry, by August 2010, for the grant of environment clearance. However, the forest clearance for the project is likely to take still some more time, as the Forest Department under the state government is still in the process of examining the the private company`s forestland diversion proposal. This, in turn, may postpone the award of civil works package for this HEP, currently scheduled for January 2011.
 8The Dibbin HEP is conceived as a run-of-the-river project on the Bichom river, a tributary of Kameng river. The project involves construction of a concrete gravity dam of height 98 m, a 3,970 m long circular head race tunnel (HRT) of 5.5 m dia and a tail race tunnel (TRT) of 150 m length. Further, a surface power house, with the installation of two Fransis turbines of 60 MW capacity, each, will be developed at 250 m upstream of the confluence of Bichom Bru and Debra Bru. To be constructed at a projected total expense of Rs 767.10 crore,  the project is estimated to afford an annual energy generation of 370.5 GWh in a year. The Central Electricity Authority accorded its concurrence to the project in December 2009. The project is due to commissioned during the 2014-15 fiscal.
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DPR for Reliance Power's 1000 MW Siyom HEP to be submitted by month-end

July 29: Siyom Hydro Power Private Limited (SHPPL), a subsidiary of the Anil Ambani-led Reliance Power, is likely to submit the detailed project report (DPR) for the 1,000 MW Siyom hydroelectric project (HEP), located in Arunachal Pradesh, to the Central Electricity Authority (CEA) by July 31, 2010. The DPR for the project was originally prepared by the public sector hydropower major, NHPC, in the year 2003, and was later handed over to the Reliance Power arm, to whom the project was subsequently awarded. The private company, subsequently, handed over the report to the UK based engineering consultancy group, Halcrow, for review and any modifications needed to expedite CEA's concurrence to the project. The project is scheduled for commissioning in March 2018, with award of the civil works package due in June 2011.
 8The Siyom HEP is being developed as run-of-river (RoR) project on the Siyom river in the West Siang district of the hydropower rich north-eastern state. Reliance Power bagged this project from the state government in February 2006, when a Memorandum of Agreement (MoA) was signed between the two parties to facilitate the execution of the project. As per the terms of the MoA, the project is required to be executed by the private company on a build-own-operate-transfer (BOOT) basis, for a period of forty years from the commissioning date. The project has already obtained environmental clearance from the Ministry of Environment and Forests, even as the proposal for  forest clearance is still under consideration of the state government.
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Himagiri Energy to award civil work contract for Panan HEP in Sept'10

July 29: In a bid to expedite execution of its 300 MW Panan hydroelectric project (HEP) in Sikkim, Himagiri Hydro Energy Private Limited has chalked plans to complete the award of civil contract for the project by September 2010. The subsidiary of NCC Infrastructure Holdings Limited has already initiated the bidding process, seeking expression of interest (EoI) from prospective bidders for the package. The company also plans to award the electro-mechanical (E&M) package for the HEP this November, though the bidding process for the same is still to start. The hydel venture, being developed on the Tolung Chu river, a tributary of Teesta, in North Sikkim, is likely to be commissioned during FY 2014-15.
 8According to the HEP-developer, the scope of work for the civil package would include the turnkey execution of the diversion tunnel, coffer dam, concrete gravity dam, intake structure, desilting chambers, silt flushing tunnels, access tunnels, head race tunnel and construction adits, surge shaft, valve chamber, penstock assembly chamber, pressure shafts, power house, tail race channel, etc. The package will also involve the supply of the needed manpower, construction equipment, materials, power, fuel, tools, transportation services and supervision of all incidental items necessary for successful completion of the work.
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DPRs to be prepared during 2010-11: A status update (as of June 30, 2010)

July 29:  For reference purposes, the website carries here, an updated status of progress on the preparation of detailed project reports (DPR) for the various hydroelectric projects (HEP) conceived under the "50,000 MW Hydroelectric Initiative" of the Government of India, for the fiscal 2010-11. This update was released by the Central Electricity Authority (CEA), and is current as of June 30, 2010. 
 8As per the data, DPRs for a total of nine HEPs, worth an aggregate capacity of 1,898 MW, are due to prepared during the fiscal. Of these, a total of seven HEPs with aggregate installed generation capacity of 841 MW are conceived for construction in the state of  Uttarakhand. DPRs for D S construction's 1,000 MW Naying HEP in Arunachal Pradesh and 57 MW Umduna HEP in Meghalaya, being developed by ETA Star Infrastructure, are also likely to be ready by the end of the 2010-11 fiscal.
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Only 10% of capacity addition target for 2010-11 met, so far

July 29: While the country grapples with power shortages, it is not being helped by the abysmal progress of capacity addition. Pertinently, out of the total capacity addition target of 20,359 MW for the current fiscal, only 2,105 MW, or 10.33%, has been achieved, so far. Out of this, the central undertakings have added 205 MW, while state and private participation stand at 1300 MW and 600 MW, respectively. Pertinently, the corresponding targets are pegged at 7,639 MW, 6,368 MW and 6,352 MW.  
 8Further, a sector-wise analysis reveals that targetted capacities of 1346 MW, 17793 MW and 1220 MW, in that order, have been assigned to the hydroelectric, thermal and nuclear power sectors, respectively. Of this, hydel projects aggregating to only 130 MW have been commissioned, so far, this year. At the same time, 1975 MW of capacity has been commissioned via thermal power projects, while no nuclear-powered units have been commissioned, yet, this fiscal.
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Hydro Power development in the Kameng Basin: Details

July 29: Against the original estimate of 3817 MW of hydel potential in the Kameng basin of Arunachal Pradesh, 26 projects, worth 3916 MW, have already been allotted in the region. While no project is currently in operation in the basin, the 600 MW Kameng hydroelectric project (HEP) of North Eastern Electric Power Corporation (NEEPCO) is expected to go on stream in the ongoing XIth Plan period itself. The project, located 350 km from Guwahati, in the West Kameng district, will harness the waters of Bichom and Tenga rivers, tributaries of Brahmaputra, through a 8.75-km link tunnel. The project envisages four units of 150 MW, each.
 8Out of the 26 projects allotted by the Government of Arunachal Pradesh in the region, the seven HEPs of Utung, Nazong, Dikhri, Dimijin, Dinen, Dinchang and Jameri, aggregating to 345 MW have been awarded to KSK Energy. For three projects, of capacity 158 MW, the Detailed Project Reports (DPR) are under examination by the state government, while for another three projects, the DPRs have been reviewed and returned.
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Storage projects in north-eastern India: Details

July 29: For reference purposes, the website carries here, an updated status of storage projects being undertaken in the north-eastern region of the country. The data is segregated here in terms of the name of the hydel scheme, the total installed capacity of the project, the live storage capacity, the submergence area and the number of people likely to be affected due to project activities.
 8As per the data, 15 projects are expected to come up in the state of Arunachal Pradesh, out of which ten projects, aggregating to a capacity of 27100 MW, are proposed as run-of-river (ROR) schemes. These projects include the 3000 MW Demwe, the 3000 MW Hutong, the 2600 MW Kalai, the 600 MW Kameng dam, the 300 MW Talong, the 11000 MW Siang Upper and Siang Intermediate, the 1600 MW Subansiri Middle, the 2000 MW Upper Subansiri and the 3000 MW Lohit merchant power plant (MPP). The other five projects, which are storage-based, include the 150 MW Duimukh, the 330 MW Kurung I & II, the 600 MW Tenga, the 1600 MW Siang Lower and 2000 MW Subansiri Lower. In addition, the 1500 MW Tapaimukh project and the 60 MW Upper Borepani project are proposed for the states of Manipur and Assam, respectively.
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HEP development in Dikrong Basin of Arunachal Pradesh

July 29: The Government of Arunachal Pradesh (GoAP) has allotted five new projects, with a total capacity of 405 MW, in the Dikrong basin of the state, which has an aggregate hydel potential of 860 MW. The 405 MW Ranganadi hydroelectric project (HEP) stage-I is currently in operation in the state while the 110 MW Pare HEP-II is under construction and is likely to be commissioned within 44 months from date of CCEA clearance. Pertinently, the Detailed Project Report (DPR) has been prepared for the 130 MW Ranganadi HEP stage-II.
 8The Ranganadi HEP is a two-stage development, with the first stage of the project, which is currently operational, being a run-of-river scheme that involves a 60 m high concrete gravity diversion dam for conveying water through a 10 km long tunnel of 6.8 m diameter to generate 405 MW of power. The eventual quantum of energy generated from this first stage depends on the construction of a storage scheme upstream of the first stage, the second stage development, in the form of a 134 m high concrete-rockfill composite dam for creating a storage capacity of 523.75 million cubic metres capacity. The other project features of the second stage are under finalisation.
 8The under-construction Pare HEP-II is also planned as a run-of-river (RoR) scheme on the Dikrong river, in the Papumpare district of the state. Located downstream of the Ranganadi HEP, this project is a part of the Dikrong-Panyor Development Scheme. The HEP involves the construction of a 78 m high concrete diversion dam, a 2.81 km long, modified horseshoe-shaped head-race-tunnel (HRT) of 7.5 m diameter and two 55 MW surface power house units.
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Vendible coal stock position for CIL subsidiaries (as on June 30, 2010)

July 29: At the end of June 2010, the total vendible coal stock at all the subsidiaries of Coal India Limited (CIL) stood at 588.18 LT. The company-wise break-up of the statistics indicates that the closing stock was the highest, at 213 LT, for Mahanadi Coalfields Limited (MCL), followed by Central Coalfileds Limited, at 148.81 LT. The lowest closing stock, of 3.23 LT, was observed for North Eastern Coalfields Limited (NEC). It was followed by Northern Coalfields Limited (NCL) and Eastern Coalfields Limited (ECL), with stock positions of 16.66 LT and 27.83 LT. respectively. Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL) and Bharat Coking Coal Limited (BCCL) had closing stock figures pegged at 33.84 LT, 64.65 LT and 80.16 LT, in that order.
 8In contrast to the total stock in June 2010, the stock levels for the last four fiscals were pegged at 635.40 LT (as on April 1, 2009), 477.33 LT (as on April 1, 2008), 430.54 LT (as on April 1, 2007) and 328.21 LT (as on April 1, 2006).
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Regulatory briefs

July 29: 8In line with the Central Electricity Regulatory Commission`s (CERC) order, the Delhi Electricity Regulatory Commission (DERC) has revised reactive energy charges within its jurisdiction to 10 paisa/KVArh (Kilo Volt Amps reactive hours), from the existing 2 paisa/KVArh. This new rate will be applicable between the state entity and the regional pool account for VAr interchanges.
 8Maharashtra Electricity Regulatory Commission has invited `Expression of Interest` from prospective applicants to undertake distribution of electricity in 183 villages, covering an area of 1880 sq. km., in the Ahmednagar district of the state. The distribution licence of Mula Pravara Electric Co-operative Society Limited (MPECS), which currently handles the distribution business in the above area, is expiring on January 31, 2011. As of now, certain legal cases are also pending against the company.

CEA calls for assessment of future coal requirements of power sector

July 28: The Central Electricity Authority (CEA) has called on the union power ministry to commission a comprehensive study of the coal requirements consequent to the fresh capacity addition envisaged in the country in the short and long-terms. The assessment, to be carried out by a third party consultant, is also expected to recommend timeframes within which various measures are to be implemented by the relevant agencies, to meet the burgeoning coal demand from the power sector. According to the central agency, such a study is essential in view of the massive generation capacity addition plans, aimed to cater to the power requirement anticipated in the country over the next 10 to 20 years, .
 8With capacity addition targets of 85,000 MW and 35,000 MW, respectively, for the 12^th and 13^th Plans, the power sector coal requirements in FY 2016-17 is likely to soar to 850 million tonnes (MT), almost double the current 434 million tonnes (MT). Accordingly, a paradigm shift, in terms of the formulation and implementation of realistic time-bound action plans for supply of domestic and imported coal, its transport and distribution and quality controls, is required. Accordingly, as per the authority, the comprehensive study would throw light on the procedural and technological changes required to effect the shift.
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