CESC Limited reported financial results for the quarter ending March 31, 2015. Net sales increased 13.64% year-over-year to Rs. 14,160 million. Net profit grew 0.41% to Rs. 2,440 million. EBITDA increased 2.12% to Rs. 4,810 million. The company expects net sales and profit to grow at a CAGR of 7-8% through 2017 on plans to strengthen its distribution network. It recommends a dividend of Rs. 9 per share.
Buy Rural Electrification, MoU signed with TSGENCO for funding for proposed p...IndiaNotes.com
Rural Electrification Corporation Ltd (REC) reported a 20% increase in net sales to Rs. 53334 million for Q4 FY15 compared to the same period last year. Net profit decreased by 8% to Rs. 10965 million. EBITDA grew by 11% to Rs. 47535 million. REC signed a memorandum with Telangana state government to provide Rs. 240000 million in funding for power projects. For FY15-17E, the company expects net sales and profit to grow at a CAGR of 17% and 13% respectively.
Power distribution tariff in india 2016 discom wise and consumer wise compre...Sakshi Saini
By meticulously examining the regulation, the latest trends governing the key fuel resources and deeply analysing the possible impacts on all the stakeholders, enincon llp attempts to blend the factual power tariff data and present a dossier which would enable clients with reliable insights and better understanding of the power tariff dynamics in the country.
The document discusses tariff-based competitive bidding for power projects in India. Some key points:
- Tariff is determined through a competitive bidding process where the lowest bid tariff is awarded the contract.
- There are two types of bidding mechanisms - Case I where the developer bears more risk and Case II where the procurer bears more risk.
- Financial factors like debt-equity ratio, loan tenure, and interest rates can significantly impact the tariff rates determined through bidding. Operational improvements in plant efficiency and reduced auxiliary power consumption through technology upgrades can also lower tariffs.
Bharat Heavy Electricals Ltd. (BHEL) is India's largest engineering and manufacturing company, established in 1964 and owned by the Government of India. BHEL manufactures power generation and transmission equipment and operates in sectors including power, oil and gas, transmission, transportation, and solar. The company pursues strategies such as capacity enhancement, strategic focus on skills and recruitment, product cost competitiveness, and diversification into new growth areas like solar, nuclear, water, and transportation to position itself for steady profitable growth. BHEL researches and develops new technologies to meet current needs while preparing for future demand.
LCC Asia Pacific's weekly market update on the Australian engineering, mining services and infrastructure services sector - including updates on valuations, deal activity and commercial developments
Power Grid Q4FY15: Surplus scenario to continue for next three years; BuyIndiaNotes.com
Power Grid Corporation of India Ltd reported financial results for Q4 FY15 with net sales growing 18% to Rs. 47032.20 million. Net profit increased 20.13% to Rs. 14124.80 million. EBITDA rose 19.11% to Rs. 42647.90 million. The company approved investments for substation creation and transmission systems. It also acquired Vindhyachal Jabalpur Transmission Ltd and recommends a final dividend of Rs. 1.31 per share.
The document discusses investment opportunities in India's power transmission and distribution sector. It notes that investment in transmission is expected to increase significantly under the 12th Five Year Plan, with the central government planning to invest Rs. 100,000 crore and states and private sectors contributing additional funds. The distribution sector is also expected to see a large increase in investment between the 11th and 12th Plans. Significant capacity additions will be needed in generation, requiring further expansion of the transmission network to evacuate and deliver the additional power. Private sector participation will be important to achieving transmission investment targets.
Bnp paribas india diversified financials-e rr group- powf &Atul Tandon
The document discusses the outlook for Rural Electrification Corporation (RECL) and Power Finance Corporation (POWF) in India. It finds that their stock prices have outperformed benchmarks recently due to depressed valuations, earnings growth, and government reforms in the power sector. The analyst increases target prices for both stocks by 15-17% to reflect higher earnings estimates as power sector fundamentals are expected to improve with measures to ensure fuel supply and increase electricity tariffs. Key risks are insufficient fuel supply and higher distribution losses negating tariff hikes. The summary provides an overview of the document's analysis and conclusions about the two companies.
Buy Rural Electrification, MoU signed with TSGENCO for funding for proposed p...IndiaNotes.com
Rural Electrification Corporation Ltd (REC) reported a 20% increase in net sales to Rs. 53334 million for Q4 FY15 compared to the same period last year. Net profit decreased by 8% to Rs. 10965 million. EBITDA grew by 11% to Rs. 47535 million. REC signed a memorandum with Telangana state government to provide Rs. 240000 million in funding for power projects. For FY15-17E, the company expects net sales and profit to grow at a CAGR of 17% and 13% respectively.
Power distribution tariff in india 2016 discom wise and consumer wise compre...Sakshi Saini
By meticulously examining the regulation, the latest trends governing the key fuel resources and deeply analysing the possible impacts on all the stakeholders, enincon llp attempts to blend the factual power tariff data and present a dossier which would enable clients with reliable insights and better understanding of the power tariff dynamics in the country.
The document discusses tariff-based competitive bidding for power projects in India. Some key points:
- Tariff is determined through a competitive bidding process where the lowest bid tariff is awarded the contract.
- There are two types of bidding mechanisms - Case I where the developer bears more risk and Case II where the procurer bears more risk.
- Financial factors like debt-equity ratio, loan tenure, and interest rates can significantly impact the tariff rates determined through bidding. Operational improvements in plant efficiency and reduced auxiliary power consumption through technology upgrades can also lower tariffs.
Bharat Heavy Electricals Ltd. (BHEL) is India's largest engineering and manufacturing company, established in 1964 and owned by the Government of India. BHEL manufactures power generation and transmission equipment and operates in sectors including power, oil and gas, transmission, transportation, and solar. The company pursues strategies such as capacity enhancement, strategic focus on skills and recruitment, product cost competitiveness, and diversification into new growth areas like solar, nuclear, water, and transportation to position itself for steady profitable growth. BHEL researches and develops new technologies to meet current needs while preparing for future demand.
LCC Asia Pacific's weekly market update on the Australian engineering, mining services and infrastructure services sector - including updates on valuations, deal activity and commercial developments
Power Grid Q4FY15: Surplus scenario to continue for next three years; BuyIndiaNotes.com
Power Grid Corporation of India Ltd reported financial results for Q4 FY15 with net sales growing 18% to Rs. 47032.20 million. Net profit increased 20.13% to Rs. 14124.80 million. EBITDA rose 19.11% to Rs. 42647.90 million. The company approved investments for substation creation and transmission systems. It also acquired Vindhyachal Jabalpur Transmission Ltd and recommends a final dividend of Rs. 1.31 per share.
The document discusses investment opportunities in India's power transmission and distribution sector. It notes that investment in transmission is expected to increase significantly under the 12th Five Year Plan, with the central government planning to invest Rs. 100,000 crore and states and private sectors contributing additional funds. The distribution sector is also expected to see a large increase in investment between the 11th and 12th Plans. Significant capacity additions will be needed in generation, requiring further expansion of the transmission network to evacuate and deliver the additional power. Private sector participation will be important to achieving transmission investment targets.
Bnp paribas india diversified financials-e rr group- powf &Atul Tandon
The document discusses the outlook for Rural Electrification Corporation (RECL) and Power Finance Corporation (POWF) in India. It finds that their stock prices have outperformed benchmarks recently due to depressed valuations, earnings growth, and government reforms in the power sector. The analyst increases target prices for both stocks by 15-17% to reflect higher earnings estimates as power sector fundamentals are expected to improve with measures to ensure fuel supply and increase electricity tariffs. Key risks are insufficient fuel supply and higher distribution losses negating tariff hikes. The summary provides an overview of the document's analysis and conclusions about the two companies.
Credit outlook for India’s Wind Power Producers Remains Stable’-09-02-2013Mekhala Leelasagar
The credit outlook for wind power producers in India remains stable due to persistent energy deficits, relatively low costs compared to conventional sources, and government support through preferential tariffs and targets. While capacity additions decreased in 2013 after policy changes reduced incentives, additions are expected to increase again as larger utility-scale projects backed by institutional investors become prevalent. Counterparty risk from distribution companies remains a challenge, but effective policy implementation and improved off-taker creditworthiness would support ratings going forward.
T&D India (January 2017): INTELECT 2017 SpecialT&D India
UDAY making good progress
Inside the Magazine:
Leading Story China dominates super critical power equipment in XII Plan
Interactions: Hartek Power, mjunction, NTL Group, Siemens AG, Toshiba JSW Power Systems
Viewpoint: Clean power is the need for data centers
Special Report: FDI in Indian transformer industry
1) NTPC is India's largest power generation company with a capacity of 29,394MW and plans to triple its capacity to 75,000MW over the next decade.
2) Power demand in India is expected to grow substantially over the coming years, outpacing supply growth and exacerbating current shortages.
3) NTPC aims to increase its generating capacity multifold to 50GW by 2012 and 75GW by 2017 to meet demand and maintain its leadership position.
The document discusses several topics related to the energy sector:
1) Oman's power sector subsidy is projected to cost $2.7 billion in 2014, a 12% increase from 2013, highlighting the economic costs of supporting the growing electricity and water sector.
2) Siemens has handed over a 1,600 megawatt power plant in Abu Dhabi to begin commercial operations in a partnership with Daewoo.
3) The National Drilling Company in the UAE has inaugurated five new rigs as part of plans to expand its fleet and enhance oil well operations.
AIP Chicago Bridge & Iron Research Report (1)Ryan Sopinski
This document provides an analysis of Chicago Bridge & Iron Co (CBI) stock to support a recommendation to purchase the stock. Key points include:
- CBI has a large backlog of projects that will provide revenue for 2+ years and continues to grow, despite lower oil prices negatively impacting the stock.
- Analyst models estimate the stock is undervalued by 39-56% based on fair value estimates.
- CBI has diversified its business through acquisitions, now deriving half of revenue domestically after acquiring Shaw Group.
- The analyst recommends a buy on CBI with a 1.75% portfolio weight, funded by trimming holdings of 3M and Caterpillar to
The document is a Request for Proposal issued by the Punjab Energy Development Agency to invite bids for new grid connected solar photovoltaic power projects with a total capacity of 300 MW under Phase I. It provides background information on PEDA and the solar power potential in Punjab. Key details include the fiscal incentives available for solar power developers under the state's NRSE policy 2012, the process for project selection through competitive bidding and e-auction, timelines, technical requirements, formats for bid submission and various other terms and conditions.
The document provides an overview of the Indian power sector including its background, major challenges, mergers and acquisitions, and performance of key industry players. Some key points:
- India ranks 4th in energy consumption but 5th in generation capacity. The sector faces challenges like coal shortages, environmental clearances, and transmission/distribution issues.
- Major M&A deals include NTPC acquiring Nabinagar Power and FPM Power Holdings acquiring GMR Energy.
- Performance is analyzed using EV/EBITDA and Price/Book value multiples. NTPC and NHPC have relatively lower multiples indicating undervaluation. Reliance Power and Torrent Power have higher multiples.
- NTPC
The document discusses power distribution in India, focusing on distribution franchisees. It provides an overview of the current state of power distribution, noting high AT&C losses around 27% on average. Distribution franchisees are presented as a form of public-private partnership that provides flexibility. The types of franchise models are described, including management contracts, franchise models, and private licensee models. Recent deals involving distribution franchisees are listed. Key issues related to franchisee area structuring, contract period, qualification criteria, and reserve pricing are identified. Benefits to utilities, franchisees, and consumers are outlined.
T&D India (December 2016): The Need for Real TransformationT&D India
One cannot imagine transmission and distribution of electricity without the ubiquitous transformer. Whether it is an extra high-voltage power transformer at the power generating plant or whether a low-voltage one at the local substation, the role of a transformer is integral.
New grid connected solar photo voltaic power projects 500 mw capacity under...ank_
This document is a Request for Proposal issued by the Punjab Energy Development Agency to invite private developers to set up 500 MW of grid-connected solar photovoltaic power projects in Punjab, India. It provides background information on Punjab's solar energy potential and the incentives available for solar power projects. The RfP includes sections on project details, bidder qualifications, the selection process, implementation agreements and power purchase terms. Bidders are invited to submit proposals by the specified deadline to be considered for development of these new solar projects.
BHEL is India's largest engineering company providing systems for power, industry, and transportation. It has 13 manufacturing plants, 8 service centers, and over 46,000 employees. BHEL works in both domestic and international markets, receiving orders from countries around the world. While it aims to grow steadily and be profitable, challenges include maintaining commitments and reducing delivery cycles.
The document discusses power distribution in India, focusing on distribution franchisees. It provides an overview of the current state of power distribution, including high AT&C losses around 27% on average. Distribution utilities have been losing money, with aggregate losses increasing from 2008-2009 to 2009-2010 before decreasing in 2010-2011. The document discusses steps taken to privatize distribution, including different models of private sector participation like management contracts, franchise models, and private licensees. It provides examples of recent distribution franchise deals across several states. Key benefits to utilities and franchisees from franchise models are outlined. Issues around standardizing bidding documents for franchisees are also mentioned.
Distribution franchisee an overview of df in indiaChanmeet Singh
The document discusses distribution franchise models in India. It provides an overview of distribution franchising as defined in the Electricity Act of 2003. Several pilot franchise projects have been implemented, with the Bhiwandi franchise awarded to Torrent Power being the most successful to date. The document argues that future franchise models should incorporate features of existing successful models while ensuring risks and rewards are balanced between distribution companies and private players through structures like 51% private ownership. Combining franchise projects with the government's R-APDRP program for grid modernization could help finance infrastructure improvements.
This case study analyzes Bharat Heavy Electricals Limited (BHEL), India's largest engineering company. BHEL provides total systems for core sectors of the Indian economy like power, industry, and transportation. It receives orders from several countries. The summary outlines that BHEL is the largest engineering company in India, provides equipment for power, industry and transportation sectors, and receives international orders from countries like the US, UK, Germany, and Russia.
The document discusses regulatory asset build up in Delhi and potential ways to amortize it. Some key points:
- Delhi distribution companies (discoms) have accumulated massive regulatory assets of Rs. 16,000-20,000 crores due to factors like costly long-term PPAs, non-cost reflective tariffs, inadequate PPAC formulas, and losses from selling surplus power.
- Regulatory assets in other states like Tamil Nadu, Rajasthan, Uttar Pradesh and West Bengal also run into thousands of crores. The build up is hampering discoms' ability to raise funds and invest in infrastructure.
- Options proposed to address the issue include time-bound recovery
Rfp for tariff based competitive bidding for upto 170 mw solar power plant by...Harish Sharma
The document is a Request for Proposal (RfP) issued by Uttarakhand Renewable Energy Development Agency (UREDA) to select developers through competitive bidding for setting up of grid connected solar PV power projects with an aggregate capacity of up to 170 MW. The RfP provides information to bidders regarding the qualification criteria, terms and conditions of tariff based competitive bidding process, timelines, and formats for bid submission to UREDA for procurement of power on long term basis by Uttarakhand Power Corporation Limited.
This document provides an industry analysis of the DTH (direct-to-home) satellite television industry in India. It discusses the history of broadcasting in India, the current players in the DTH market, and analyzes the industry environment using Porter's Five Forces model. Some of the key challenges facing the DTH industry are issues with policies and regulations, lack of available transponders, weak financials among players, and quality of service problems. The document recommends friendlier policies, accelerated subscriber growth, and improved quality of service to help address these challenges.
edition 386 of lcc asia pacific's long standing weekly research into the australian mining services, mineral processing and services sector. This edition covers off on a number of developments in the sector including acquisitions undertaken by Southern Cross Electrical and NRW Holdings Limited
PFC Q4FY15: Surplus scenario likely to continue for next three yearsIndiaNotes.com
Power Finance Corporation Ltd (PFC) reported financial results for Q4 FY15 with a 13.44% increase in net sales to Rs. 63895.70 million. Net profit grew 10.58% to Rs. 15607.60 million. Loan assets increased 15.09% to Rs. 2175160.00 million. PFC is recommended as a "BUY" with a target price of Rs. 300 based on expected 16% and 12% CAGR in top-line and bottom-line over FY2014-17E.
- The document initiates coverage of Skipper Ltd with a buy rating and target price of INR 195, representing a 39% upside.
- Skipper is India's third largest transmission tower manufacturer and is expanding its manufacturing capacity for both transmission towers and PVC pipes.
- The investment rationale includes strong growth opportunities from increased government spending on power transmission and distribution over the next several years, as well as Skipper's locational advantages and asset light expansion strategy.
Credit outlook for India’s Wind Power Producers Remains Stable’-09-02-2013Mekhala Leelasagar
The credit outlook for wind power producers in India remains stable due to persistent energy deficits, relatively low costs compared to conventional sources, and government support through preferential tariffs and targets. While capacity additions decreased in 2013 after policy changes reduced incentives, additions are expected to increase again as larger utility-scale projects backed by institutional investors become prevalent. Counterparty risk from distribution companies remains a challenge, but effective policy implementation and improved off-taker creditworthiness would support ratings going forward.
T&D India (January 2017): INTELECT 2017 SpecialT&D India
UDAY making good progress
Inside the Magazine:
Leading Story China dominates super critical power equipment in XII Plan
Interactions: Hartek Power, mjunction, NTL Group, Siemens AG, Toshiba JSW Power Systems
Viewpoint: Clean power is the need for data centers
Special Report: FDI in Indian transformer industry
1) NTPC is India's largest power generation company with a capacity of 29,394MW and plans to triple its capacity to 75,000MW over the next decade.
2) Power demand in India is expected to grow substantially over the coming years, outpacing supply growth and exacerbating current shortages.
3) NTPC aims to increase its generating capacity multifold to 50GW by 2012 and 75GW by 2017 to meet demand and maintain its leadership position.
The document discusses several topics related to the energy sector:
1) Oman's power sector subsidy is projected to cost $2.7 billion in 2014, a 12% increase from 2013, highlighting the economic costs of supporting the growing electricity and water sector.
2) Siemens has handed over a 1,600 megawatt power plant in Abu Dhabi to begin commercial operations in a partnership with Daewoo.
3) The National Drilling Company in the UAE has inaugurated five new rigs as part of plans to expand its fleet and enhance oil well operations.
AIP Chicago Bridge & Iron Research Report (1)Ryan Sopinski
This document provides an analysis of Chicago Bridge & Iron Co (CBI) stock to support a recommendation to purchase the stock. Key points include:
- CBI has a large backlog of projects that will provide revenue for 2+ years and continues to grow, despite lower oil prices negatively impacting the stock.
- Analyst models estimate the stock is undervalued by 39-56% based on fair value estimates.
- CBI has diversified its business through acquisitions, now deriving half of revenue domestically after acquiring Shaw Group.
- The analyst recommends a buy on CBI with a 1.75% portfolio weight, funded by trimming holdings of 3M and Caterpillar to
The document is a Request for Proposal issued by the Punjab Energy Development Agency to invite bids for new grid connected solar photovoltaic power projects with a total capacity of 300 MW under Phase I. It provides background information on PEDA and the solar power potential in Punjab. Key details include the fiscal incentives available for solar power developers under the state's NRSE policy 2012, the process for project selection through competitive bidding and e-auction, timelines, technical requirements, formats for bid submission and various other terms and conditions.
The document provides an overview of the Indian power sector including its background, major challenges, mergers and acquisitions, and performance of key industry players. Some key points:
- India ranks 4th in energy consumption but 5th in generation capacity. The sector faces challenges like coal shortages, environmental clearances, and transmission/distribution issues.
- Major M&A deals include NTPC acquiring Nabinagar Power and FPM Power Holdings acquiring GMR Energy.
- Performance is analyzed using EV/EBITDA and Price/Book value multiples. NTPC and NHPC have relatively lower multiples indicating undervaluation. Reliance Power and Torrent Power have higher multiples.
- NTPC
The document discusses power distribution in India, focusing on distribution franchisees. It provides an overview of the current state of power distribution, noting high AT&C losses around 27% on average. Distribution franchisees are presented as a form of public-private partnership that provides flexibility. The types of franchise models are described, including management contracts, franchise models, and private licensee models. Recent deals involving distribution franchisees are listed. Key issues related to franchisee area structuring, contract period, qualification criteria, and reserve pricing are identified. Benefits to utilities, franchisees, and consumers are outlined.
T&D India (December 2016): The Need for Real TransformationT&D India
One cannot imagine transmission and distribution of electricity without the ubiquitous transformer. Whether it is an extra high-voltage power transformer at the power generating plant or whether a low-voltage one at the local substation, the role of a transformer is integral.
New grid connected solar photo voltaic power projects 500 mw capacity under...ank_
This document is a Request for Proposal issued by the Punjab Energy Development Agency to invite private developers to set up 500 MW of grid-connected solar photovoltaic power projects in Punjab, India. It provides background information on Punjab's solar energy potential and the incentives available for solar power projects. The RfP includes sections on project details, bidder qualifications, the selection process, implementation agreements and power purchase terms. Bidders are invited to submit proposals by the specified deadline to be considered for development of these new solar projects.
BHEL is India's largest engineering company providing systems for power, industry, and transportation. It has 13 manufacturing plants, 8 service centers, and over 46,000 employees. BHEL works in both domestic and international markets, receiving orders from countries around the world. While it aims to grow steadily and be profitable, challenges include maintaining commitments and reducing delivery cycles.
The document discusses power distribution in India, focusing on distribution franchisees. It provides an overview of the current state of power distribution, including high AT&C losses around 27% on average. Distribution utilities have been losing money, with aggregate losses increasing from 2008-2009 to 2009-2010 before decreasing in 2010-2011. The document discusses steps taken to privatize distribution, including different models of private sector participation like management contracts, franchise models, and private licensees. It provides examples of recent distribution franchise deals across several states. Key benefits to utilities and franchisees from franchise models are outlined. Issues around standardizing bidding documents for franchisees are also mentioned.
Distribution franchisee an overview of df in indiaChanmeet Singh
The document discusses distribution franchise models in India. It provides an overview of distribution franchising as defined in the Electricity Act of 2003. Several pilot franchise projects have been implemented, with the Bhiwandi franchise awarded to Torrent Power being the most successful to date. The document argues that future franchise models should incorporate features of existing successful models while ensuring risks and rewards are balanced between distribution companies and private players through structures like 51% private ownership. Combining franchise projects with the government's R-APDRP program for grid modernization could help finance infrastructure improvements.
This case study analyzes Bharat Heavy Electricals Limited (BHEL), India's largest engineering company. BHEL provides total systems for core sectors of the Indian economy like power, industry, and transportation. It receives orders from several countries. The summary outlines that BHEL is the largest engineering company in India, provides equipment for power, industry and transportation sectors, and receives international orders from countries like the US, UK, Germany, and Russia.
The document discusses regulatory asset build up in Delhi and potential ways to amortize it. Some key points:
- Delhi distribution companies (discoms) have accumulated massive regulatory assets of Rs. 16,000-20,000 crores due to factors like costly long-term PPAs, non-cost reflective tariffs, inadequate PPAC formulas, and losses from selling surplus power.
- Regulatory assets in other states like Tamil Nadu, Rajasthan, Uttar Pradesh and West Bengal also run into thousands of crores. The build up is hampering discoms' ability to raise funds and invest in infrastructure.
- Options proposed to address the issue include time-bound recovery
Rfp for tariff based competitive bidding for upto 170 mw solar power plant by...Harish Sharma
The document is a Request for Proposal (RfP) issued by Uttarakhand Renewable Energy Development Agency (UREDA) to select developers through competitive bidding for setting up of grid connected solar PV power projects with an aggregate capacity of up to 170 MW. The RfP provides information to bidders regarding the qualification criteria, terms and conditions of tariff based competitive bidding process, timelines, and formats for bid submission to UREDA for procurement of power on long term basis by Uttarakhand Power Corporation Limited.
This document provides an industry analysis of the DTH (direct-to-home) satellite television industry in India. It discusses the history of broadcasting in India, the current players in the DTH market, and analyzes the industry environment using Porter's Five Forces model. Some of the key challenges facing the DTH industry are issues with policies and regulations, lack of available transponders, weak financials among players, and quality of service problems. The document recommends friendlier policies, accelerated subscriber growth, and improved quality of service to help address these challenges.
edition 386 of lcc asia pacific's long standing weekly research into the australian mining services, mineral processing and services sector. This edition covers off on a number of developments in the sector including acquisitions undertaken by Southern Cross Electrical and NRW Holdings Limited
PFC Q4FY15: Surplus scenario likely to continue for next three yearsIndiaNotes.com
Power Finance Corporation Ltd (PFC) reported financial results for Q4 FY15 with a 13.44% increase in net sales to Rs. 63895.70 million. Net profit grew 10.58% to Rs. 15607.60 million. Loan assets increased 15.09% to Rs. 2175160.00 million. PFC is recommended as a "BUY" with a target price of Rs. 300 based on expected 16% and 12% CAGR in top-line and bottom-line over FY2014-17E.
- The document initiates coverage of Skipper Ltd with a buy rating and target price of INR 195, representing a 39% upside.
- Skipper is India's third largest transmission tower manufacturer and is expanding its manufacturing capacity for both transmission towers and PVC pipes.
- The investment rationale includes strong growth opportunities from increased government spending on power transmission and distribution over the next several years, as well as Skipper's locational advantages and asset light expansion strategy.
Kenya Power intends to increase electricity inclusion from 30% to over 70% by 2017 in an ambitious plan. The company plans to invest an additional USD 1.3 billion to support this distribution expansion, 70% of which will be debt. This rapid expansion risks accumulating excessive debt that could choke the company. A more sustainable target would be to achieve 70% inclusion by 2019 without compromising Kenya Power's financial health. Kenya Power is currently undervalued and presents a buying opportunity, with a fair value estimate of 24.9 per share compared to the current trading price of 16.45.
Buy KPR Mill: Large green field facility of 36 mln garments to be addedIndiaNotes.com
India’s textiles sector is one of the mainstays of the national economy. It is also one of the largest contributing sectors of India’s exports contributing 11 per cent to the country’s total exports basket.
This document provides financial information and analysis on Shilpi Cable Technologies Ltd. Key points include:
- In Q4 FY15, the company's net sales increased 36% to Rs. 9024.47 million and net profit grew 49.26% to Rs. 422.88 million.
- Estimates predict the company's net sales and PAT will grow at a CAGR of 48% and 42% from FY14 to FY17.
- The target price for the company is Rs. 47.00 per share based on an EPS of Rs. 15.59 for FY15.
Kengen is a Kenyan power company that aims to generate 3,000MW of power by 2018 (Horizon II of its "Good to Great" plan). As of 2015, installed capacity was 1,537MW, making the Horizon II target unlikely. Kengen plans to raise capital through a rights issue and debt conversion to equity to fund projects that could add 1,000MW by 2018. However, the company has high capital expenditures, accounting policies that boost profits, and is expected to have slowing growth. The analyst recommends selling the stock, as its ambitious expansion plans threaten cash flows and it is unlikely to deliver long-term value.
Exide Ind: Net sales grows 17.51% to Rs19123.60 mn; Maintain buyIndiaNotes.com
Exide Industries' Net sales registered a growth of 17.51% to Rs.19123.60 million for the quarter ended June 30th 2014 as against Rs.15412.00 million for the corresponding quarter last year. Buy for a target of Rs.180.00.
Rajratan Global Wire Ltd reported financial results for the quarter ending March 31, 2015. Net profit increased 62.31% to Rs. 24.46 million compared to the same quarter last year. Revenue rose 3.56% to Rs. 624.64 million. Earnings per share was Rs. 5.62, up from Rs. 3.46 last year. The company expects sales and profits to grow annually by 8% and 3% from 2014-2017. The document provides an analysis of the company's quarterly performance, financial estimates, industry overview and a recommendation to buy the stock.
This document provides an analysis of PTC India Limited by ICICIdirect. It includes key financial details, an overview of the company and investment rationale. The power trading market in India is growing significantly and expected to continue growing as power deficit remains high. PTC India is well positioned in this expanding market as the largest power trading company in India with over 46% market share. It also has investments in several power generation projects that will contribute to its future growth. The analyst initiates coverage on PTC India with an OUTPERFORM rating due to its leadership position and growth opportunities in power trading.
Firstcall recommend GHCL on 31.45% y/y rise in Q4FY15 net profitIndiaNotes.com
GHCL Limited reported financial results for the quarter ended March 31, 2015. Net profit rose 31.45% to Rs. 511.10 million compared to Rs. 388.83 million in the corresponding quarter of the previous year. Revenue increased 7.10% to Rs. 6410.45 million. EBITDA grew 7.58% to Rs. 1324.14 million. EPS stood at Rs. 5.11, up from Rs. 3.89 in the year-ago quarter.
M M Forgings: Q4FY15 net profit up 42.18% y/y to INR111.15m, BuyIndiaNotes.com
The document provides a stock analysis report for M.M. Forgings Ltd, an Indian steel forging manufacturer. It includes the company's financial highlights for Q4 FY2015, with net profit up 42% and revenue up 17.8%. Forecasts estimate a 15% CAGR in net sales and 28% CAGR in PAT from FY2014-FY2017. The report recommends buying the stock with a target price of Rs 740, citing its historical financial performance and growth prospects in the growing Indian engineering sector.
Technofab Eng: Q4FY15 net profits up 129.55% y/y to INR37.44m; BuyIndiaNotes.com
This document provides an analysis of Technofab Engineering Ltd for the quarter and fiscal year ending March 2015. It recommends buying the stock with a target price of Rs. 187. Key highlights include:
- Net profit for Q4 FY15 was Rs. 37.44 million, up 129.55% YoY. Revenue was down 25.76% YoY.
- For FY15, net profit was Rs. 84.45 million, up 22% YoY. Revenue was up 3.15% to Rs. 4198.85 million.
- EPS for Q4 FY15 was Rs. 3.57, up 129.55% YoY. EPS estimates for FY16 and
Credit & Risk analysis of Hubco power company PakistanIrfan Tanwari
Hubco Pakistan was incorporated in 1991 as a limited liability company to generate additional power and help reduce Pakistan's energy costs. It has become a major player in Pakistan's power sector. The document analyzes Hubco's key performance indicators from 2008-2013, including increased turnover, profits, assets and generation. It also discusses Hubco's market share, financial performance, credit risk, liquidity risk, interest rate risk, foreign exchange risk and credit rating. Findings note increased net profit and return on equity in the current year. Recommendations include continuing coal-fired generation and strengthening health and safety systems.
Bharat Heavy Electricals Ltd (BHEL) is India's largest power equipment manufacturer. It has over 180 products and provides equipment to core sectors like power, transmission, and industry. While BHEL has a large order backlog, its profitability has been decreasing in recent years due to higher costs and delays in order fulfillment. However, it remains financially sound with a strong order pipeline.
Confidence Cement Limited is a Bangladeshi cement manufacturer with a current market price of BDT 135.5 per share. In the first quarter of 2016-2017, the company's revenue declined 6.4% year-over-year to BDT 607.1 million due to capacity constraints, though earnings per share were maintained at BDT 1.30 due to profits from associates. Confidence Cement has bid on two proposed power plants that could generate additional revenue if successful. The company is also nearing completion of a capacity expansion project to increase production from 2,000 to 4,500 tons per day by April 2017.
Coral India Finance: Buy for medium to long-term investmentIndiaNotes.com
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CESC Q4FY15: Net sales up 13.64% y/y to INR14,160m, Firstcall recommend 'Buy'
1. CMP 558.00
Target Price 620.00
ISIN: INE486A01013
MAY 25th
, 2015
CESC LIMITED
Result Update (PARENT BASIS): Q4 FY15
BUYBUYBUYBUY
Index Details
Stock Data
Sector Electric Utilities
BSE Code 500084
Face Value 10.00
52wk. High / Low (Rs.) 828.10/517.75
Volume (2wk. Avg. Q.) 71000
Market Cap (Rs. in mn.) 74214.00
Annual Estimated Results (A*: Actual / E*: Estimated)
YEARS FY15A FY16E FY17E
Net Sales 61890.00 65974.74 70988.82
EBITDA 16340.00 17892.53 19255.60
Net Profit 6980.00 7809.90 8529.65
EPS 52.48 58.72 64.13
P/E 10.63 9.50 8.70
Shareholding Pattern (%)
1 Year Comparative Graph
CESC LIMITED BSE SENSEX
SYNOPSIS
CESC limited is the flagship company of the R. P.
Sanjiv Goenka Group. Registered in 1897, the
Company is a fully integrated power utility engaged
in the generation and distribution of electricity.
Net sales of Rs. 14160.00 million, an increased by
13.64% y-o-y for the 4th quarter of the FY 2015
against Rs. 12460.00 million in the corresponding
quarter of the previous year.
For the Mar quarter of FY15, the company has
posted a net profit after tax of Rs. 2440.00 million as
compared to Rs. 2430.00 million for the Mar quarter
of FY14.
In Q4 FY15, EBITDA grew by 2.12% y-o-y to Rs.
4810.00 million from Rs. 4710.00 million in Q4
FY14.
Profit before tax (PBT) stood at Rs. 2920.00 million,
in Q4 FY15 as compared to Rs. 3080.00 million in
Q4 FY14.
The company has recommended a Dividend @ 90%
of Rs. 9.00/- per share on face value of Rs. 10.00/-
each for the year ended March 31, 2015.
Private power producer CESC Ltd will invest about
Rs. 20000.00 million to strengthen its distribution
network in Kolkata.
During the quarter, CESC Ltd won back the
Sarisatolli coal mine at a closing bid of Rs 470 per
tone.
Net Sales and PAT of the company are expected to
grow at a CAGR of 7% and 8% over 2014 to 2017E
respectively.
PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
CESC Ltd 558.00 74214.00 52.48 10.63 1.03 90.00
Reliance Infrastructure Ltd 434.10 114164.00 60.20 7.21 0.56 75.00
NTPC Ltd 134.40 1108190.40 12.66 10.62 1.29 57.50
JSW Energy Ltd 109.85 180160.00 6.06 18.13 2.25 20.00
2. Analysis & Recommendation s- ‘BUY’
For the 4th quarter of the financial year 2015, CESC Ltd has posted Net sales of Rs. 14160.00 million, an increase
of 13.64% y-o-y as against Rs. 12460.00 million in the corresponding quarter of the previous year. For the same
period net profit after tax grew by just 0.41% y-o-y of Rs. 2440.00 million as compared to Rs. 2430.00 million for
the Mar quarter of FY14. The company has reported an EBITDA of Rs. 4810.00 million, grew by 2.12% over prior
period of previous year. Shown a Profit before tax (PBT) at Rs. 2920.00 million in Q4 FY15 compared to Rs.
3080.00 million in Q4 FY14.
For the financial year 2014-15, CESC registered a 7.06 per cent rise in standalone net profit at Rs 6980.00 million
compared to Rs 6520.00 million in the previous fiscal. The company's net sales for 2014-15 fiscal stood at Rs
61890.00 million, registering a year-on-year growth of 12.32 per cent. CESC is able to achieve its improvements
due to concerted efforts aimed at upgrading the distribution infrastructure and processes for enhancing the
quality and security of supply, reducing downtime and overloads. The company beliefs that the performance will
be go a long way in establishing the credibility of the Company and create significant long term value for all its
stakeholders in this current year. We expect the company to post a CAGR of 8% and 7% in its top-line and
bottom-line respectively. Hence, we recommend ‘BUY’ for ‘CESC LTD’ with a target price of Rs. 620.00 on
the stock.
QUARTERLY HIGHLIGHTS (PARENT BASIS)
Results updates- Q4 FY15,
CESC limited is a fully integrated power utility engaged in the generation and distribution of electricity across
567 square kilometers of licensed area in Kolkata and Howrah, West Bengal. Reported its financial results for the
quarter ended 31st March, 2015.
The company has achieved a turnover of Rs. 14160.00 million, an increase of 13.64% y-o-y for the 4th quarter of
the financial year 2015 as against Rs. 12460.00 million in the corresponding quarter of the previous year. The
company has reported an EBITDA of Rs. 4810.00 million, grew by 2.12% over prior period of previous year. For
Q4 FY15, net profit of Rs. 2440.00 million against Rs. 2430.00 million for Q4 FY14. The company has reported an
EPS of Rs. 18.35 for the 4th quarter as against an EPS of Rs. 19.29 in the corresponding quarter of the previous
year.
Rs. In million Mar-15 Mar-14 % Change
Net Sales 14160.00 12460.00 13.64
PAT 2440.00 2430.00 0.41
EPS 18.35 19.29 (4.87)
EBITDA 4810.00 4710.00 2.12
3. Break up of Expenditure:
During the quarter, total expenditure rose by 19 per cent, mainly on account of other expenditure by 243% is the
main attribute for the increase of Expenditure. Cost of Fuel down by 36% and depreciation by 13% when
compared with corresponding quarter of the previous year. Total expenditure in Q4 FY15 stood to Rs. 10420.00
million as against Rs. 8780.00 million in Q4 FY14.
Break up of Expenditure
(Values in Millions)
Q4 FY15 Q4 FY14
Cost of Fuel 3170.00 4960.00
Employee benefits expense 1520.00 1610.00
Depreciation & Amortization
Expenses
750.00 860.00
Other Expenditure 4980.00 1450.00
COMPANY PROFILE
CESC limited is the flagship company of the R. P. Sanjiv Goenka Group. Registered in 1897, the Company is a fully
integrated power utility engaged in the generation and distribution of electricity across 567 square kilometers of
licensed area in Kolkata and Howrah, West Bengal. It supplies safe, cost-effective and reliable electricity to over
2.8 million customers. CESC has received the “Top Infrastructure Company” award under the category Power
Distribution at the ‘Dun & Bradstreet Infra Awards 2013’. Apart from spearheading the Group’s interest in the
power sector, the Company, through its subsidiaries, is also active in the organized retail, BPO and infrastructure
sectors as a part of its strategy for diversification and long-term growth.
All PF (Pulverised Fuel) stations of CESC are ISO 9001:2008 certified in respect of Quality Management Systems.
Business Area
CESC’s existing operations in the power sector comprise generation and distribution of electricity to its 2.8
million customers across its licensed areas in Kolkata and Howrah, west Bengal. For its existing operations in
Kolkata, the demand for the power is quit variable, with the company registering a peak demand higher than
1900 MW and lean period demand as low as 500 MW. During peak demand period, in addition to its own
generation, CESC also purchases power from the state and national Power grid. During the lean period, it exports
surplus power, when possible.
4. Generation
CESC operates four generating stations: Budge Budge, Southern, Titagarh and New Cossipore, which
cumulatively produce 1,225 MW. Three of these stations (Budge Budge, Southern and Titagarh) use pulverised
fuel (PF) as the primary energy source and during the year 2013-14, CESC’s composite PLF (Plant Load Factor) of
the three PF plants was 89.34%, as compared to the national average of 86.41%. In order to achieve this, the
Company has taken various steps such as full utilization of designed limit, benchmarking with best-in-class
power plants, integrated operation and maintenance planning.
Distribution
In the present situation there is a demand for high quality supply apart from that there is an increase of
customers in the High Tension and Medium Voltage Alternating Current (MVAC) segments. So, if we observe the
company’s previous year’s report, it had highlighted CESC’s success in achieving a load shedding free
environment for its customers. During 2013-14, the Company made further progress in this regard, with HT
faults and restoration times coming down by 39% and 45% respectively.
During 2013-2014, CESC put together a comprehensive master plan for development of its distributions network
and infrastructure taking in to account the long term demand forecast. This includes a three years short term
plan up to 2016-17 as well as a 10 year master plan up to 2023-24.
5. FINANCIAL HIGHLIGHT (PARENT BASIS) (A*- Actual, E* -Estimations & Rs. In Millions)
Balance Sheet as at March 31,2014-2017E FY14A FY15A FY16E FY17E
I. EQUITY AND LIABILITIES:
A) Shareholders’ Funds:
a) Share Capital 1256.00 1330.00 1330.00 1330.00
b) Reserves and Surplus 69130.00 79470.00 87417.00 92662.02
Sub-Total Net worth 70386.00 80800.00 88747.00 93992.02
B) Non-Current Liabilities:
a) Long-term borrowings 28035.20 31830.00 35013.00 37673.99
b) Advance against Depreciation 7769.00 8600.00 9288.00 9938.16
c) Consumers Security Deposits 12799.60 14080.00 15347.20 16574.98
d) Other Long Term Liabilities 16411.40 18450.00 20295.00 22121.55
e) Long Term Provisions 1405.20 1610.00 1803.20 2001.55
Sub-Total Long term liabilities 66420.40 74570.00 81746.40 88310.23
C) Current Liabilities:
a) Short-term borrowings 5755.80 11410.00 13235.60 14691.52
b) Trade Payables 2079.70 3260.00 4042.40 4931.73
c) Other Current Liabilities 16847.00 17190.00 17774.46 18663.18
d) Short Term Provisions 1805.40 1950.00 2074.80 2178.54
Sub-Total Current Liabilities 26487.90 33810.00 37127.26 40464.97
TOTAL EQUITY AND LIABILITIES (A+B+C) 163294.30 189180.00 207620.66 222767.21
II. ASSETS:
D) Non-Current Assets:
a) Fixed Assets 90293.80 94960.00 97808.80 100156.21
b) Other non-current assets 1223.30 6110.00 8431.80 10118.16
c) Non Current Investments 31910.90 37580.00 43592.80 48823.94
d) Long Term Loans and Advances 12519.30 13430.00 14289.52 15004.00
Sub-Total Non-Current Assets 135947.30 152080.00 164122.92 174102.30
E) Current Assets:
a) Current Investments 0.00 4910.00 6775.80 7859.93
b) Inventories 3455.50 4050.00 4617.00 5171.04
c) Trade Receivables 11848.20 13820.00 15941.94 18104.39
d) Cash and Bank Balances 7813.90 7380.00 7749.00 8213.94
e) Short Term Loans and Advances 2005.50 2040.00 2142.00 2227.68
f) Other Current Assets 2223.90 4900.00 6272.00 7177.93
Sub-Total Current Assets 27347.00 37100.00 43497.74 48664.91
TOTAL ASSETS (D+E) 163294.30 189180.00 207620.66 222767.21
6. Annual Profit & Loss Statement for the period of 2014 to 2017E
Value(Rs.in.mn) FY14A FY15A FY16E FY17E
Description 12m 12m 12m 12m
Net Sales 55100.00 61890.00 65974.74 70988.82
Other Income 1000.00 850.00 1003.00 1153.45
Total Income 56100.00 62740.00 66977.74 72142.27
Expenditure -40770.00 -46400.00 -49085.21 -52886.67
Operating Profit 15330.00 16340.00 17892.53 19255.60
Interest -3690.00 -4080.00 -4488.00 -4757.28
Gross profit 11640.00 12260.00 13404.53 14498.32
Depreciation -3390.00 -3430.00 -3512.32 -3673.89
Profit Before Tax 8250.00 8830.00 9892.21 10824.43
Tax -1730.00 -1850.00 -2082.31 -2294.78
Net Profit 6520.00 6980.00 7809.90 8529.65
Equity capital 1260.00 1330.00 1330.00 1330.00
Reserves 59520.00 70960.00 81249.20 89778.85
Face value 10.00 10.00 10.00 10.00
EPS 51.75 52.48 58.72 64.13
Quarterly Profit & Loss Statement for the period of 30th Sept, 2014 to 30th June, 2015E
Value(Rs.in.mn) 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15E
Description 3m 3m 3m 3m
Net sales 16610.00 12490.00 14160.00 19257.60
Other income 170.00 210.00 320.00 229.12
Total Income 16780.00 12700.00 14480.00 19486.72
Expenditure -12380.00 -9500.00 -9670.00 -14886.12
Operating profit 4400.00 3200.00 4810.00 4600.60
Interest -950.00 -990.00 -1140.00 -1192.44
Gross profit 3450.00 2210.00 3670.00 3408.16
Depreciation -930.00 -810.00 -750.00 -843.00
Profit Before Tax 2520.00 1400.00 2920.00 2565.16
Tax -600.00 -290.00 -480.00 -561.77
Net Profit 1920.00 1110.00 2440.00 2003.39
Equity capital 1260.00 1330.00 1330.00 1330.00
Face value 10.00 10.00 10.00 10.00
EPS 15.24 8.35 18.35 15.06
8. OUTLOOK AND CONCLUSION
At the current market price of Rs. 558.00, the stock P/E ratio is at 9.50 x FY16E and 8.70 x FY17E
respectively.
Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.58.72 and
Rs.64.13 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 7% and 8% over 2014 to 2017E
respectively.
On the basis of EV/EBITDA, the stock trades at 5.62 x for FY16E and 5.24 x for FY17E.
Price to Book Value of the stock is expected to be at 0.90 x and 0.81 x respectively for FY16E and FY17E.
We recommend ‘BUY’ in this particular scrip with a target price of Rs. 620.00 for Medium to Long term
investment.
9. INDUSTRY OVERVIEW
Power or electricity is one of the most critical components of infrastructure affecting economic growth and well-
being of nations. The existence and development of adequate infrastructure is essential for sustained growth of
the Indian economy.
The Indian power sector is one of the most diversified in the world. Sources for power generation range from
conventional ones such as coal, lignite, natural gas, oil, hydro and nuclear power to other viable non-conventional
sources such as wind, solar, and agriculture and domestic waste. The demand for electricity in the country has
been growing at a rapid rate and is expected to grow further in the years to come. In order to meet the increasing
requirement of electricity, massive addition to the installed generating capacity in the country is required.
Market Size
The Indian power sector is undergoing a significant change that is redefining the industry outlook. Sustained
economic growth continues to drive power demand in India. The Government of India’s focus to attain ‘Power
For All’ has accelerated capacity addition in the country. At the same time, the competitive intensity is increasing
on both market side as well as supply side (fuel, logistics, finances and manpower).
The Planning Commission’s 12th Plan expects total domestic energy production to reach 669.6 million tonnes of
oil equivalent (MTOE) by 2016–17 and 844 MTOE by 2021–22.
By 2030 – 35, energy demand in India is projected to be the highest among all countries according to the 2014
energy outlook report by British oil giant BP.
As of April 2014, total thermal installed capacity stood at 168.4 gigawatt (GW), while hydro and renewable
energy installed capacity totalled 40.5 GW and 31.7 GW, respectively. At 4.8 GW, nuclear energy capacity
remained broadly constant from that in the previous year.
Indian solar installations are forecasted to be approximately 1,000 megawatt (MW) in 2014, according to
Mercom Capital Group, a global clean energy communications and consulting firm.
Wind energy market of India is expected to attract about Rs 200000.00 mn (US$ 3.16 billion) of investments next
year, as companies across sectors plan to add 3,000 MW of capacity powered by wind energy.
Investment
Around 293 global and domestic companies have committed to generate 266 gigawatts (GW) of solar, wind,
mini-hydel and bio-mass based power in India over the next 5-10 years. The initiative would entail an
investment of about US$ 310-350 billion.
10. The industry has attracted FDI worth US$ 9,548.82 million during the period April 2000 to February 2015.
Some of the major investments made into the Indian power sector are as follows:
• Inox Wind Ltd, a subsidiary of Gujarat Fluorochemicals and a wind energy solutions provider, plans to double
its manufacturing capacity to 1,600 MW at a total investment of Rs 2000.00 mn (US$ 31.64 million) by the
end of next financial year.
• Suzlon Energy Ltd announced that it has completed installing and commissioning 350 MW of wind energy in
Brazil. This combined capacity includes projects located in the high wind states of Rio Grande do Norte and
Ceara in Brazil.
• ACME Group plans to invest Rs 6000.00 mn (US$ 94.93 million) to develop 74 MW of solar photovoltaic (PV)
power projects in Punjab.
• The Dilip Shanghvi family, founders of Sun Pharma, plans to acquire a 23 per cent stake in Suzlon Energy
with a preferential issue of fresh equity for Rs 18000.00 mn (US$ 284.8 million).
• Reliance Power Ltd has signed an accord with the Government of Rajasthan to develop 6,000 MW of solar
power projects in the state over the next 10 years.
• Global private equity (PE) fund Actis will invest US$ 230 million to create an Indian renewable energy
platform, Ostro Energy, the fund said in a press release. Ostro Energy’s first project Tejuva—a 50.4 MW wind
project—is already under construction in Jaisalmer, Rajasthan.
Government Initiatives
The Government of India has identified the power sector as a key sector of focus to promote sustained industrial
growth.
The RE-INVEST 2015 which concluded on February 17, 2015, is a significant step in making India self-reliant in
energy. The three day RE-INVEST 2015 received 2,800 delegates participating from 42 countries and saw green
energy commitments worth 266,000 MW.
Some of the initiatives taken by the Government of India to boost the power sector of India are as follows:
A Joint Indo-US PACE Setter Fund has been established with a contribution of US$ 4 million from each
side to enhance clean energy cooperation.
The Government of India has announced a massive renewable power production target of 175,000 MW
by 2022, comprising 100,000 MW from solar power, 60,000 MW from wind energy, 10,000 MW from
biomass and 5,000 MW from small hydro power projects.
11. The Union Cabinet of India has approved 15,000 MW of grid-connected solar power projects of National
Thermal Power Corp Ltd (NTPC).
The Indian Railways has signed a bilateral power procurement agreement with the Damodar Valley
Corporation (DVC). The agreement was signed between North Central Railway and DVC. This is the first
time the railways will directly buy power from a supplier.
US federal agencies have committed a total of US$ 4 billion for projects and equipment sourcing, one of
the biggest deals for the growing renewable energy sector in India.
A memorandum of collaboration (MoC) was signed in New Delhi on January 20, 2015 between the Indian
Institutes of Technology (IITs) and Oil & Natural Gas Corporation (ONGC) to work towards a collective
research and development (R&D) programme for developing indigenous technologies to enhance
exploration and exploitation of hydrocarbons and alternate sources of energy.
Road Ahead
The Indian power sector has an investment potential of Rs 15 trillion (US$ 237.35 billion) in the next 4-5 years,
providing immense opportunities in power generation, distribution, transmission and equipment, as per Union
Minister of Coal, Power and Renewable Energy.
The immediate goal of the government is to produce two trillion units (kilowatt hours) of energy by 2019. This
will mean doubling the current production capacity in order to achieve provide 24x7 electricity for residential,
industrial, commercial and agriculture use.
He added that his government had rewritten the National Solar Mission with target of 100,000 MW capacity by
2022. The government has also sought to restart stalled hydro power projects and increased the wind energy
target from 20 GW to 60 GW by 2022.
Disclaimer:
This document is prepared by our research analysts and it does not constitute an offer or solicitation for the
purchase or sale of any financial instrument or as an official confirmation of any transaction. The information
contained herein is from publicly available data or other sources believed to be reliable but we do not represent that
it is accurate or complete and it should not be relied on as such. Firstcall Research or any of its affiliates shall not be
in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the
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