Weekly Newsletter #Energy sector Highlights the Policy news, Industry news, Investments news and Weekly snapshot.

1. ©
Gyan
Research
and
Analytics
Pvt.
Ltd.,
2015
1
Policy
News
❑ Petroleum
ministry
putting
reminder
to
Finance
ministry
on
gas
price
premium
In
October
2014,
the
government
took
decisions
on
new
gas
discoveries
in
deep-­‐water,
ultra-­‐deep
sea
or
high-­‐
temperature
and
high-­‐pressure
fields
which
were
planned
to
provide
with
a
premium
above
the
approved
price.
The
ministry
recommended
a
fixed
percentage
of
natural
gas
produced
from
difficult
fields
to
be
sold
at
market
price
and
the
remaining
as
per
the
approved
price.
Till
March
31,
2015,
gas
price
was
USD
5.05
per
million
British
thermal
unit
(mmBtu)
which
has
been
cut
to
USD
4.66
per
mmBtu,
in
line
with
international
movements.
The
present
price
is
among
the
lowest
in
the
Asia-­‐Pacific.
❑ Union
government
targets
to
reach
1-­‐crore
PNG
connections
in
2
years
In
the
next
two
years,
the
union
government
targets
to
reach
1
crore
piped
natural
gas
(PNG)
users
to
push
use
of
clean
fuel
and
create
'green
corridors'
for
compressed
natural
gas
(CNG)
stations
on
crucial
national
highways.
Currently
26.7
lakh
households
use
gas
received
from
pipeline
in
kitchen.
The
use
of
subsidised
liquefied
petroleum
gas
will
be
cut
down
by
the
increased
use
of
PNG.
In
Delhi-­‐NCR,
there
are
325
CNG
dispensing
stations,
the
highest
in
the
country
catering
to
7.6
lakh
vehicles.
❑ Oil
&
gas
producers
expected
to
bear
subsidy
burden
of
INR
5,000
-­‐
6,000
crore
in
FY2016
The
state-­‐run
oil
and
gas
producers
are
expected
to
bear
a
subsidy
burden
of
INR
5,000
-­‐
6,000
crore
under
a
new
subsidy
sharing
formula
devised
by
the
government.
The
fuel
retailers
are
compensated
by
Oil
and
Natural
Gas
Corporation,
Oil
India
Limited
and
the
government
for
losses
they
incur
on
selling
cooking
gas
and
kerosene
at
below-­‐
market
rates.
A
subsidy
of
INR
12
per
litre
of
kerosene
has
been
decided
by
the
government
under
the
new
formula.
Industry
News
❑ OMCs'
debt
on
diesel
margins
at
7-­‐year
low
The
overall
debt
burden
of
oil
marketing
companies
(OMCs)
reached
the
peak
of
INR
1.4
lakh
crore
in
FY14
which
is
now
down
to
INR
80,000
crore.
Interest
expenses
declined
30
percent
to
INR
7,190
crore
in
March
2015
from
INR
10,283
crore
in
March
2014.
According
to
a
Nomura
Research
report,
the
interest
burden
of
the
companies
has
reduced
significantly
and
ratios
like
debt
to
equity
and
interest
coverage
ratios
are
much
under
control.
By
the
end
of
FY2015,
oil
prices
declined
by
nearly
50
percent
to
USD
53
per
barrel
from
USD
107
per
barrel
at
the
beginning
of
the
year.
OMCs
have
registered
super-­‐normal
margins
on
diesel,
averaging
at
INR
1.8
per
litre.
❑ RIL
sells
diesel
to
Indian
Railways,
first
time
in
a
decade
Reliance
Industries
Limited
(RIL)
started
selling
diesel
to
the
railways
for
the
first
time
since
2005-­‐06.
Nearly
2.5
million
tonnes
of
the
fuel
is
consumed
by
Indian
Railways
each
year.
Last
October,
The
government
freed
diesel
pricing
providing
a
level
playing
field
to
private
companies
like
RIL
and
Essar
Oil
after
which
RIL
took
decisions
to
sell
diesel
to
Indian
Railways.
Energy
News
July
11,
2015
–
July
17,
2015

2. ©
Gyan
Research
and
Analytics
Pvt.
Ltd.,
2015
❑ Petrol,
diesel
prices
cut
in
Delhi
Petrol
and
diesel
prices
were
cut
by
INR
2
per
litre
by
oil
companies,
excluding
local
levies.
The
last
cut
was
on
July
1,
2015.
However,
petrol
would
actually
become
costlier
in
Delhi
due
to
a
rise
in
VAT
rate
here.
While
the
rates
will
reduce
much
more
in
other
parts
of
the
country;
petrol
price
in
Delhi
will
go
up
by
28
paise
a
litre
after
considering
local
government's
decision
to
hike
VAT
or
sales
tax
on
the
fuel
from
20
to
25
percent.
Similarly,
diesel
rate’s
VAT
has
been
raised
from
12.5
percent
to
16.6
percent.
Petrol
in
Delhi
will
cost
INR
66.90
per
litre
instead
of
INR
66.62
at
present
and
diesel
will
cost
INR
49.72
per
litre
as
against
INR
50.22
earlier.
❑ Global
oil
glut
likely
to
help
India
save
INR
1.5
lakh
crore
In
2015-­‐16,
one
of
the
longest
global
oil
gluts
is
expected
to
save
India
close
to
INR
1.50
lakh
crore.
It
would
be
enough
to
cover
the
centre's
school
education,
health,
women
and
child
development
budgets
and
pay
for
the
rural
jobs
scheme.
As
global
supply
exceeds
demand
for
the
fifth
quarter
in
a
row
and
thereby
lowering
crude
prices,
it
is
projected
that
India
is
likely
to
save
over
USD
24
billion
in
2015-­‐16.
Since
the
Asian
economic
crisis
of
1997,
this
will
make
it
the
longest
glut.
❑ GAIL
sells
2
million
tonnes
of
US
LNG
GAIL
India
Limited
sold
2
million
tonnes
of
liquefied
natural
gas
(LNG)
as
it
had
contracted
from
the
US.
1
million
tonne
has
been
sold
to
Royal
Dutch
Shell
out
of
the
2
million
tonnes
of
LNG.
GAIL
has
signed
a
contract
with
US-­‐based
Cheniere
Energy
to
buy
3.5
million
tonnes
of
LNG
per
year
for
20
years
from
them
and
has
booked
capacity
at
Dominion
Energy's
Cove
Point
liquefaction
plant
for
another
2.3
million
tonnes
per
annum.
❑ Hero
Future
Energies
gets
solar
power
project
from
Madhya
Pradesh
government
Hero
Future
Energies
(HFE)
has
bagged
a
38
MW
solar
PV
project
from
the
Madhya
Pradesh
government.
A
300
MW
solar
power
bid
was
floated
this
year
by
the
Madhya
Pradesh
government.
HFE
was
the
highest
successful
bidder
and
has
been
allotted
38
MW.
There
was
a
difference
of
about
INR
0.59
in
the
tariff
quoted
by
HFE
with
the
lowest
tariff.
❑ Adani
Power
gets
3
transmission
projects
Adani
Power
has
entered
into
contracts
of
worth
INR
3,600
crore
to
set
up
three
power
transmission
lines
in
Chhattisgarh,
bid
out
by
Power
Finance
Corporation.
Sipat
project
worth
INR
863
crore,
Chhattisgarh
(A)
project
worth
INR
823
crore
and
Chhattisgarh
(B)
worth
INR
1,976
crore
are
included
in
the
contract.
Companies
such
as
Power
Grid
Corporation,
Jindal
Power
and
Larsen
&
Toubro
had
been
pulled
out
of
the
projects
despite
being
technically
qualified
for
it.
2
Energy
News
July
11,
2015
–
July
17,
2015

3. ©
Gyan
Research
and
Analytics
Pvt.
Ltd.,
2015
Investment
News
❑ Canadian
JV
Sarus
plans
500
MW
solar
park
in
Maharashtra
A
joint
venture
of
three
Canadian
firms
named
Sarus
Solar
has
plans
to
invest
around
INR
6,500
crore
and
set
up
a
500
MW
solar
photo-­‐voltaic
farm
in
Maharashtra.
The
firm
has
already
bought
16
acres
of
land
on
lease
for
25
years
from
Dhanashree
Infratech.
For
the
ease
in
doing
business,
Sarus
Solar
has
also
partnered
with
Neelkanth
Solar
Energy,
a
domestic
firm
to
enter
the
Indian
market.
❑ BPCL
to
expand
Bina
oil
refinery
Bharat
Petroleum
Corporation
Limited
(BPCL)
plans
to
expand
its
Bina
refinery
in
the
central
part
of
the
country
by
30
percent
to
156,000
barrels
per
day.
The
expansion
is
likely
to
involve
a
cost
of
about
USD
472
million.
By
2018,
BPCL
plans
to
invest
INR
3,500
crore
in
raising
capacity
of
Bina
refinery
to
7.8
million
tonnes
a
year.
The
current
capacity
is
6
million
tonnes.
It
has
plans
to
invest
further
INR
18,000-­‐20,000
crore
in
raising
capacity
to
15
million
tonnes
in
the
next
5-­‐6
years.
❑ Thermax
buy
33
per
cent
in
First
Energy
Private
Limited
Thermax
has
entered
into
a
pact
to
acquire
33
percent
stake
in
First
Energy
Private
Limited.
In
the
next
four
years,
it
has
made
arrangements
to
increase
the
stake
to
76
percent.
It
aims
to
venture
into
consumer
business
and
the
acquisition
will
be
done
in
a
phased
manner
over
the
next
four
years.
❑ PFC
incorporates
BMPL
as
wholly-­‐owned
subsidiary
Power
Finance
Corporation
(PFC)
has
incorporated
Bihar
Mega
Power
Limited
(BMPL)
as
its
wholly-­‐owned
subsidiary.
BMPL
is
a
special
purpose
vehicle
for
implementation
of
an
ultra
mega
power
project
of
4,000
MW.
PFC
incorporated
two
subsidiaries
-­‐
Deoghar
Infra
Limited
and
Bihar
Infrapower
Limited
for
this
purpose
earlier
this
month.
❑ Rolta
Power
partners
with
Zhenfa
New
Energy
Science
&
Technology
Rolta
Power
has
partnered
with
Chinese
firm
Zhenfa
New
Energy
Science
and
Technology
to
develop
solar
power
projects
in
India.
This
will
allow
Rolta
to
share
revenue
with
Zhenfa.
It
is
expected
that
through
this
partnership
they
can
together
install
at
least
2,000
MW
by
2020
and
generate
revenues
of
around
USD
2.03
billion.
3
Energy
News
July
11,
2015
–
July
17,
2015

4. ©
Gyan
Research
and
Analytics
Pvt.
Ltd.,
2015
4
Energy
News
July
11,
2015
–
July
17,
2015
All
India
Region-­‐wise
Capacity
Availability
(As
on
July
8,
2015)
Region
Monitored
Capacity
(MW)
Planned
Maintenance
(MW)
Forced
Outage
(MW)
Other
Reasons
(MW)
Capacity
Under
Outage
(MW)
Capacity
on
Line
(MW)
Northern 60,744.53 2,816.00 8,638.20 1,319.00 12,773.20 47,971.00
Western 90,223.41 2,390.00 26,299.00 1,990.00 30,679.00 59,544.00
Southern 48,083.02 4,295.20 5,460.40 1,160.40 10,916.00 37,167.00
Eastern 36,393.50 1,377.50 9,212.00 12.50 10,602.00 25,792.00
North
Eastern 2,976.20 0.00 140.00 66.00 206.00 2,770.00
Total 2,38,420.66 10,878.70 49,749.60 4,547.90 65,176.20 1,73,244.00
Source:
Central
Electricity
Authority
Weekly
Snapshot

5. ©
Gyan
Research
and
Analytics
Pvt.
Ltd.,
2015
5
GYAN
RESEARCH
AND
ANALYTICS
PVT.
LTD.
Corporate
Office:
LG
37-­‐38,
Ansal
Fortune
Arcade,
Sector
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18,
Noida
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301
Delhi
NCR,
INDIA
Phone:
+91-­‐120-­‐4235181
Regd.
Office:
298-­‐A,
Pocket
2
Mayur
Vihar,
Phase
-­‐1
Delhi
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091,
INDIA
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Delivery
Centre:
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City
Kolkata
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700
064,
INDIA
Phone:
+91-­‐33-­‐40060084
E-­‐mail:
reports@gyananalytics.com
Website:
www.gyananalytics.com
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11,
2015
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2015
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