All approvals in place, Japan nuclear deal comes into force

Source: The Economic Times, July 21, 2017

NEW DELHI: The landmark Indo-Japanese civil nuclear deal signed in November 2016 came into force from Thursday that would enable Japan to export nuclear power plant technology as well as provide finance for nuclear power plants in India.

Japan would also assist India in nuclear waste management and could undertake joint manufacture of nuclear power plant components under the Make in India initiative, persons familiar with the development told ET.

Japanese PM Shinzo Abe is expected to visit India this September and growing civil nuclear ties will be highlighted as one of the key elements of Indo-Japan strategic partnership.

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HPCL-ONGC deal to lead to mega projects, consolidation in oil & gas sector

Source: Business Standard, July 20, 2017

The Union Cabinet has approved the plan to sell the government’s 51 per cent stake in state-refiner HPCL to explorer ONGC.

For the government and economy, this move has multiple benefits. This single deal alone would fetch about 41 per cent of the total divestment target of Rs 72,500 crore, assuming that the deal happens at HPCL’s current market cap of Rs 58,500 crore. Though the management control would stay with the government through ONGC, in which it holds a 68.07 per cent stake, technically, the government’s hold over HPCL would be reduced from 51.11 per cent to 35 per cent (68.07% of 51.11%) effectively.

This consolidation could facilitate mega-refinery projects in the country – joining hands for mega oil & gas projects becomes a time-consuming process for independent entities. There were a few mega-project proposals jointly announced by independent PSUs in the past but most of them never took off. This move also paves the way for more consolidations and stake sales in the oil & gas sector.

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Govt to kick off new energy exploration round on July 1

Source: Business Standard, June 27, 2017

New Delhi: The government will on July 1 commence the first bidding round for oil and gas through an open acreage licensing policy (OALP), allowing bidders to select where they want to drill.

“The process will be kicked off from July 1, when interested parties can start submitting their expressions of interest (EoIs) for a particular area. That window will be open for three to four months till November. Then we will evaluate the EoIs and will invite bids. By the end of January, we are planning to award the blocks,” said an official close to the development. Read the rest of this entry »

US announces $7.5 mn to advance India’s power grid

download (7).jpgSource: The Hindu Business Line, June 22, 2017

The US will provide $7.5 million to help advance India’s power grid as part of their commitments to ensure access to affordable and reliable energy in both countries.

The Ministry of Science and Technology and industry will match the commitment of US’ Department of Energy, bringing the total commitment to $30 million, officials here said. “This new consortium demonstrates the US and Indian commitments to ensuring access to affordable and reliable energy in both countries,” Energy Secretary Rick Perry said ahead of Prime Minister Narendra Modi’s visit here next week.

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Oil companies to effect daily change in diesel, petrol prices from 16 June

images.jpgSource: LiveMint.com, June 09, 2017

Mumbai: State-run oil companies, Indian Oil Corporation (IOC) Ltd, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), will revise petrol and diesel prices every day in sync with international rates, beginning 16 June, the companies said on Thursday.

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Electricity generation growth in May highest in many years

Source: LiveMint.com, June 08, 2017

The Reserve Bank of India’s monetary policy statement mentions as a negative factor that “the output of eight core industries decelerated sharply in April on account of contraction in coal, crude oil and cement due to structural constraints and low demand. Furthermore, electricity generation decelerated due to depressed demand pricing out relatively expensive thermal output”.

Well, as far as electricity production is concerned, things have changed markedly in May.

Electricity production, which remained subdued in April, picked up in May. Generation increased by 7.2% from a year ago, the best growth seen in the month in at least five years. The growth reflects the increased demand during the summer season.

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India’s electricity requirement seen soaring 37% in 5 years

index.jpgSource: Financial Express, June 06, 2017

New Delhi: Electrical energy requirement is expected to grow by 37% in five years, according to the 19th electric power survey (EPS) report released by the Central Electricity Authority (CEA). The country needs 1,566 billion units (BUs) of energy in FY22, the report said.Energy requirement in FY17 was close to 1,143 BU, reflecting an annual growth of 2.6%.

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