Crude on upswing; fuel, cooking gas prices at new peaks

Source: LiveMint.com, Oct 01, 2018

New Delhi: With Brent crude prices continuing their upward trend and hitting $83.21 per barrel, fuel prices in India touched all-time highs on Monday, stoking fears of inflation before the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) meeting on Friday.

On Monday, petrol and diesel were selling at Rs 91.08 per litre and Rs 79.72 per litre, respectively, in Mumbai at state-run Indian Oil Corporation’s outlets. In Delhi, prices hit Rs 83.73 and Rs 75.09 per litre for petrol and diesel, respectively.

Also, subsidised domestic cooking gas prices have been increased by Rs 2.89 per 14.2 kg cylinder to Rs 502.40, an all-time high. Read the rest of this entry »

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With Brent touching $80, fuel prices on upswing

Source: LiveMint.com, Sept 25, 2018

New Delhi: Fuel prices in India hit all-time highs on Monday, with a litre of petrol costing more than ₹90 in Mumbai, stoking inflation fears and adding pressure on the government to cut taxes on fuel.

On Monday, vehicles in Mumbai tanked up at ₹90.08 for a litre of petrol and ₹78.58 for diesel, while in Delhi prices have hit ₹82.72 and ₹74.02 per litre, respectively. The price of Brent crude has touched $80 per barrel for the first time since 2014.

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India plans power sector mergers to raise ₹ 20,000 crore

Source: LiveMint.com, Sept 24, 2018

New Delhi: India is planning to sell its stake in SJVN Ltd and Power Finance Corp. to other government-controlled companies in deals that may fetch the federal government about ₹ 20,000 crore, helping it to rein in the fiscal deficit amid growing risks of a slippage, people with knowledge of the matter said.

The government plans to sell its 63.8% stake in hydropower producer SJVN to NTPC Ltd, the nation’s largest thermal power producer, to garner about ₹ 8,000 crore, the people said, asking not to be named as the information isn’t public. The other deal being considered will see Rural Electrification Corp. Ltd buying the federal government’s 65.6% ownership in Power Finance Corp. Ltd, they said.

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Power prices surge to a record on higher demand

Source: LiveMint.com, Sept 17, 2018

New Delhi: Electricity spot prices in India surged to a more than eight-year high because of lower quantum of traded power, higher demand amid a retreating monsoon, which has also forced power sellers such as Telangana to turn buyers.

Prices touched ₹14.08 per unit for Tuesday on the India Energy Exchange (IEX). It was the highest since April 2010 when spot prices rose to ₹13.90 per unit. The all-time high for electricity in the spot market was ₹17 per unit in April 2009, according to IEX.Lower generation from hydro and wind power projects, and rise in humidity and temperatures contributed to the rise in electricity spot prices for Tuesday delivery.

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‘India to buy Iranian oil despite sanction threat’

Source: The Hindu Business Line, Sept 03, 2018

New Delhi: India is allowing state refiners to import Iranian oil with Tehran arranging tankers and insurance after firms including the country’s top shipper Shipping Corp of India (SCI) halted voyages to Iran due to US sanctions, sources said.

New Delhi’s attempt to keep Iranian oil flowing mirrors a step by China, where buyers are shifting nearly all their Iranian oil imports to vessels owned by National Iranian Tanker Co (NITC).

The moves by the two top buyers of Iranian crude indicate that the Islamic Republic may not be fully cut off from global oil markets from November, when US sanctions against Tehran’s petroleum sector are due to start. Read the rest of this entry »

Centre allows flexibility in power supplies to lower costs to consumers

Source: The Hindu Business Line, Sept 03, 2018

New Delhi: Consumers can soon expect some relief every time they pay their electricity bills. The Ministry of Power has allowed a power generation company (Genco) to supply cheaper power from any of its power plants to meet its commitments to a power distribution company (Discom).

This has been enabled under a scheme for flexibility in generation and scheduling of thermal power stations to reduce the cost of power to consumers. The scheme is in continuation of an earlier scheme that allowed Gencos to supply cheaper renewable energy instead of committed thermal power to Discoms.

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Parliament panel suggests new framework for stressed assets in power sector

Source: The Economic Times, Aug 07, 2018

A Parliamentary panel today recommended new framework for resolution of stressed assets in power sector saying the Reserve Bank’s framework, brought in February, “addresses only financial issues, ignoring the whole range of vital issues of electricity sector”.

The RBI’s revised framework for resolution of stressed assets has laid down strict timelines after which insolvency proceedings are initiated. The framework terms even a one-day delay in debt servicing as default. The banks are required to ensure resolution plans within 180 days after default. It covers debt exposure of Rs 2,000 crore or more.

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