AIIB grants $160 mn for Andhra Pradesh power project

Source : Business Line
BEIJING, MAY 3:  China-sponsored Asian Infrastructure Investment Bank (AIIB) today approved USD 160 million loan for a power project in Andhra Pradesh, the first credit from the bank for an Indian project.

The AIIB, in which India is the second largest shareholder after China, has approved the project with the objective to strengthen the power transmission and distribution system in Andhra Pradesh, said a bank statement.

The ‘24×7 Power for All’ project is part of Government of India’s ‘Power for All programme’ that was launched in 2014 to provide an efficient, reliable and affordable electricity to all consumers across selected states within five years from the start of implementation.

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Govt to replace 7,738 MW old power plants with supercritical units

Source: The Hindu Business Line, Apr 16, 2017

New Delhi: The government has identified old power projects totalling 7,738-MW capacity owned by the Centre and states for replacement with energy-efficient supercritical plants, which will generate a gross 18,560 MW.

“The government has identified 7,738 MW inefficient thermal plants, which would be replaced with supercritical units, to conserve scarce natural resources like land, water and coal,” a senior official said.

According to the official, the replacement will result in creation of 18,560 MW of capacity as per the assessment of power generation utilities. Read the rest of this entry »

Shell India, Bharat Petroleum may tie up for Singapore energy trading

Source:, Mar 30, 2017

Mumbai: Royal Dutch Shell Plc’s India unit and Bharat Petroleum Corp. Ltd (BPCL), the country’s second largest fuel retailer, may team up to help the latter set up an energy trading unit in Singapore, two officials aware of the development said.

A Singapore office has been in the works for BPCL to expand its global reach and participate in trading of crude oil, natural gas and energy derivatives, the two said on condition of anonymity.

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Temasek-backed Sembcorp set to pump in $600 million in India power arm

Source:, Mar 28, 2017

New Delhi: Sembcorp Industries Ltd, controlled by Singapore’s state-run investment firm Temasek Holdings Pte Ltd, is set to provide about $600 million to its Sembcorp Gayatri Power Ltd (SGPL) unit that operates a 1,320 megawatt (MW) thermal plant in Andhra Pradesh.

Sembcorp will subscribe to $600 million worth of bonds issued by the Indian unit, a person with direct knowledge of the matter said on condition of anonymity. The funds will be used by Sembcorp Gayatri to pay down its domestic debt from about $1.05 billion to about $450 million, the person said.Sembcorp Gayatri built the power plant at an investment of about $1.5 billion.

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Cabinet clears policy for extension of oil & gas contracts

Source: The Economic Times, Mar 23, 2017

NEW DELHI: The Cabinet has approved a new policy to allow transparent extension of oil and gas contracts for companies that agree to increase the state’s share of profit by 10% — a move that raises government’s revenue and allows companies like Vedanta-controlled Cairn India to plan future investments.

This is expected to encourage investment of $5.4 billion to extract 426 million barrels, the government said after a late-evening meeting of the Cabinet, which also approved amendments to tax laws to abolish cesses and surcharges to facilitate goods and services tax (GST), made the provision of the funds for startups more user friendly, and sanctioned raising of NABARD’s authorised capital.

The new policy for oil and gas would apply to contracts that predate the New Exploration Licensing Policy of 1999. This includes Cairn India which has a 25-year contract for RJ-ON-90/1that expires in May 2020. The contract provides for a mutually-agreed 10-year extension if gas is being produced commercially. Commercial production of gas from the field commenced in 2013.

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Financial investors joining hands with utilities to acquire power projects

Source:, Mar 20, 2017

Ahmedabad/Mumbai: Attracted by India’s stressed infrastructure assets play, financial investors are joining hands with utilities to acquire power projects.Macquarie Group Ltd is the latest among financial investors to seek such a partnership. It is exploring a partnership with Chennai-based OPG Power Ventures to acquire power projects.

US-based private equity firm Latitude Capital is also scouting for investments in stressed power projects. Stressed assets accounted for around 12% of the total loans in the Indian banking system.

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Energy policy may bring subsidy cut, price control in power, fertilisers

index.jpgSource: The Economic Times, Mar 08, 2017

NEW DELHI: The government will soon outline comprehensive energy sector reforms that could free up sectors such as coal, electricity and fertilisers of subsidies and price controls, helping produce more power and make generation projects commercially viable for private companies.

The policy could also give greater emphasis towards improving the financial condition of power distribution companies (discoms), which are bogged down by debt, to make the sector profitable in the medium to long term.

Key suggestions being considered include overhauling the entire structural and functional capacity of discoms so that they operate more professionally.

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