The Odisha government plans to invest INR 887 crore to renovate three major hydel projects in the state. The Gujarat government has laid the foundation for an 800 MW coal-based thermal power plant in Kheda district at a cost of INR 4,465 crore. The central government will introduce transparent LPG cylinders costing between INR 2,500 to 3,000 to ensure accurate fuel quantity delivery.

1. Policy News
 Odisha to renovate three hydel projects
Odisha government plans to invest about INR 887 crore to renovate three major hydro-power stations at
Chipilima, Hirakud and Balimela, in phases. The three power stations will increase production of green
electricity in the state. Of the total amount, INR 158 crore will be expended to renovate Hirakud’s two
units (37.5 X 2), which will take its capacity to 86 MW from the current 75 MW. Another INR 65.67 crore
will be spent on the Chiplima project and INR 664 crore on the Balimela hydel project. The renovation
project is expected to take nearly 54 months to complete. Though Odisha has six hydro-power stations
with installed capacity of 2,008 MW, it manages to generate only 535.0507 MW of power.
 Foundation for 800 MW Wanakbori power plant laid
The Gujarat government has laid the foundation stone for a 800 MW super critical coal-based thermal
power project at Wanakbori, in Kheda district. Bharat Heavy Electricals Limited (BHEL) will roll out the
plant at a cost of INR 4,465 crore in the next three years. The eighth unit will use super critical technology
that will consume lesser fuel and result in less emission - it will burn 25 percent less coal than the
previous units. The earlier seven units at Wanakbori have 210 MW capacity each adding up to a total
capacity of 1,470 MW. The new unit will be the eighth unit at the Wanakbori thermal power plant.
 Government to introduce transparent LPG cylinders
The central government will introduce transparent cooking gas cylinders to make it almost impossible for
vendors to deliver lower than the promised quantity. This will help to solve one of customers’ biggest
complaints regarding liquefied natural gas (LPG). The price of the cylinders will range between INR 2,500
to 3,000 - double the price of the regular steel cylinders. Initially, the government will import the
transparent cylinders and the old steel cylinders will be moved to the rural areas. The initiative may be
rolled out by March 2016. This is the most significant step after the improvement in service quality with
direct cash transfers and subsidy surrender campaigns that have improved the government's finances
and plugged leakage areas.
Industry News
 PTC India, SECI ties up for solar power trade
Power trading company, PTC India Limited, has signed a Memorandum of Understanding (MoU) with
Solar Energy Corporation of India (SECI) for 3,000 MW solar power trade. This deal will help to sell and
purchase of power for a period of 25 years from the date of commercial operation of each of the
projects. As per the agreement, SECI will facilitate the solar projects development at various locations in
India on behalf of the central public sector undertakings (CPSUs) or any other government or private
agencies. PTC will buy the solar power offered by SECI for onward sale through a competitive route or
reverse auction process.
© Gyan Research and Analytics Pvt. Ltd., 2015 1
Energy News
October 10, 2015 – October 16, 2015

2. © Gyan Research and Analytics Pvt. Ltd., 2015 2
 Adani Power to supply 50 MW to Indian Railways
Adani Power has inked an agreement with the Indian North Central Railways to supply 50 MW power at
INR 3.69 per kWh for three years. This move will result in savings of about INR 150 crore annually for the
railways. The power will be supplied from the company’s 4,620 MW Mundra plant in Gujarat. The Central
Electricity Authority (CEA) has recommended that the railways procure power directly from power
generators that are 'deemed licensees' instead of discoms. This agreement was the first step in the
migrating strategy.
 Punj Lloyd bags INR 367 crore contract in Odisha
Punj Lloyd has bagged an INR 367 crore engineering, procurement, construction and
commissioning contract from Indian Oil Corporation (IOC) at the Paradip refinery in Odisha. This is the
company’s second order in Paradip refinery. Through this new order, the company’s total order backlog
stands at INR 21,833 crore.
 IPCL to purchase three stressed power plants
Kolkata-based India Power Corporation Limited (IPCL) is in talks with the Jharkhand, Rajasthan and
Uttarakhand governments to acquire three stressed power plants with a total capacity of about 1,000
MW. The company is estimated to spend between INR 500 to 800 crore for the purchase of the plants, on
a 70:30 debt-equity ratio, with funds acquired through a mix of debt and internal reserves. IPCL is
negotiating with the bankers and management of these projects. Currently, the company operates 100.2
MW of wind assets in Karnataka, Rajasthan and Gujarat. It plans to expand its electricity distribution area.
 IOC to sell 5-kg LPG cylinders in rural India
IOC will sell subsidized 5 kg LPG cylinders to people in rural India to promote clean fuel for cooking. Up to
112 kg of subsidized cooking gas per year will be distributed to rural consumers below the poverty line.
Currently, the company sells 14-kg cylinders in urban areas at subsidised rates. Its 5 kg cylinders are
available at market price through kirana shops and petrol pumps for families with temporary residency in
cities. IOC is working on the logistics and is in the process of setting up infrastructure. The company plans
to lay pipelines at major centres, which will connect liquefied natural gas (LNG) terminals or bottling
plants to refineries. This initiative will increase the speed of delivery and reduce the cost of
transportation. IOC expects to grow consumption of LPG cylinders to 25 metric tonne (mt) by 2023 from
the current 18 mt, with most of the growth coming from rural and semi-urban areas.
 NBV expects to restart 50 MW power plant
Power, mining and ferro alloys company, Nava Bharat Ventures Limited (NBV), is expected to restart
operations of its 50 MW power plant by October 25, 2015, with efficiency of the unit and improved
turbine heat rate. The renovating and overhauling of the power plant at Paloncha, Telangana, was started
on August 24, 2015.
Energy News
October 10, 2015 – October 16, 2015

3. © Gyan Research and Analytics Pvt. Ltd., 2015 3
 IOC to set up Paradip-Durgapur LPG link
IOC will construct the proposed Paradip-Durgapur LPG link by 2016, to increase supplies. The Paradip
port terminal will link Paradip to Muzzafarpur touching Haldia, Durgapur and Patna and will be built at a
total expenditure of INR 2,700 crore. Another LNG terminal at Dhamra port in Odisha with 5 million
tonnes capacity will be set up at a cost of INR 690 crore. The completion of the pipeline construction will
leave no backlog in supplies for the company. IOC expects demand of LPG connections would rise to 25
mt by 2023 from the current 18 mt.
 Suzlon commissions wind power project
Wind turbine maker, Suzlon Group, has completed the commissioning its 50.40 MW wind power project
for Ostro Energy Private Limited in Tejuva, Jaisalmer, Rajasthan. The facility comprises 24 wind turbine
generators of 2.1 MW each. The power project will supply electricity to over 28,000 homes and control
0.10 million tonnes of carbon dioxide emissions, annually. Suzlon has handled the entire project lifecycle,
from construction to commissioning. It has also been contracted to undertake operations and
maintenance services of the turnkey project for the next 12 years. This turnkey project is part of Suzlon's
1,300 MW Jaisalmer wind park.
 Hinduja Group to invest INR 8,000 crore in two power plants
The Hinduja Group will invest around INR 8,000 crore to set up two power plants in Vizag Hinduja Power
Plant, in Visakhapatnam district of Andhra Pradesh. Each of the power units will have a capacity of 520
MW. One of the plants is scheduled to start operating by the end of October 2015, while the other will be
operational by December 30, 2015. The company expects to recover 15.5 percent of the project cost
through returns. The Andhra Pradesh Electricity Regulatory Commission has started working on it.
Investment News
 Welspun receives funding of USD 617 million
Welspun Renewables received another funding of USD 617 million, of which USD 405 million was
received as debt, USD 165 million as equity and the remaining in the form of line of credit. The
investment came through a combination of debt and equity infusion by its promoters and existing and
new investors. However, the company did not reveal details of the equity investors. These deals prove
that the renewable energy sector is a major investment choice and global players are interested in it. The
company will be setting up 5 GW capacity, of which 1 GW will be commissioned this year. Welspun
Renewables has solar and wind projects across eight states and has generated over 1.375 billion units of
clean energy, thereby diminishing 1.2 million tonne of carbon dioxide emissions.
Energy News
October 10, 2015 – October 16, 2015

4. © Gyan Research and Analytics Pvt. Ltd., 2015 4
 IOC to invest USD 5 billion on expansion
IOC will invest around USD 5 billion for expanding its exploration and production business. In the next five
to seven years, it will spend USD 2.6 billion to acquire new assets which are becoming available as fallout
of the global crude oil crash. The company continues to invest as part of a consortium with other state
firms and prefers producing or near-producing assets to eliminate risk. It is in advanced talks with
international potential strategic partners and is planning to participate in domestic auction of
hydrocarbon blocks. IOC has minority stake in the 10 blocks at home and seven overseas. The company
will invest USD 4 billion in an integrated upstream and LNG project in Canada, of which USD 1.6 billion
has already been invested. It will invest INR 50,000 crore to expand capacity of its existing refineries in
the next five-seven years. Further, IOC will be upgrading all its refineries at an expense of INR 15,000
crore and setting up new petrochemicals plants for INR 30,000 crore by 2022.
Energy News
October 10,2015 – October 16, 2015
Weekly Snapshot
Region-wise Availability of above 25 MW as on October 14, 2015
Region
Thermal (Excluding Gas &
Diesel)
Nuclear Hydro
Stabilised
Capacity
(MW)
Capacity on
Line (MW)
Stabilised
Capacity
(MW)
Capacity on
Line (MW)
Stabilised
Capacity
(MW)
Capacity on
Line (MW)
Northern 34,573.00 26,905.00 1,620.00 1,300.00 18,170.27 14,725.07
(Percentage of
Capacity)
100.00 77.82 100.00 80.25 - -
Western 62,321.00 46,647.00 1,840.00 1,460.00 7,392.00 6,842.00
(Percentage of
Capacity)
100.00 74.85 100.00 79.35 - -
Southern 28,452.50 23,542.50 2,320.00 1,320.00 11,357.70 9,277.10
(Percentage of
Capacity)
100.00 82.74 100.00 56.90 - -
Eastern 30,255.00 21,945.00 - 0.00 4,193.45 3,792.95
(Percentage of
Capacity)
100.00 72.53 - 0.00 - -
North Eastern 60.00 0.00 - 0.00 1,242.00 1,212.00
(Percentage of
Capacity)
100.00 0.00 - 0.00 - -
All India 1,55,661.50 1,19,039.50 5,780.00 4,080.00 42,355.42 35,849.12
(Percentage of
Capacity)
100.00 76.47 100.00 70.59 - -
Source: CEA

5. © Gyan Research and Analytics Pvt. Ltd., 2015 5
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Energy News, October 10, 2015 – October 16, 2015