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Demand fal~s,- huts down power units i . I;- a+ .

ew DeUli: Incessant rains uld have caused chaus u? veral states. but the lvcent ell of monsoon seellls to

avo brought some relief to ower-starved Haryana. The ins have brought dawn the

lectricity dem;ind to an ex- nt that the someof the lller- a1 power generating units

f Harvana Power Genera- HPGCLsaid thatas w r t h e w

of the rains, illere lb negligl- ble demand &om this sector and so the demand had re- duced."confinned a senior of- ficial of DHBVN, tthc govern- ment discom company.

Now, the three llOMW ul i t . and one ZlOMY\'unlt uf Panipat thermal power sta- tionhave been closeddown. A HPGCL spokesperson said that thesr unitswouldremain closed uu to Sentember 13. Al-

gower equipment makers in for slow orders I - -

KANA B ww sets have been awarded, the Mumbai 9 September cmhactfmboiletsisvettobe.

future coal availabititv due to planningto augment its capac- itv to 20.000 Mw fmm 15.000

Dcmm, and joint venhra like Themax-Babcock. BGR-W-

more a m s s i v e in the Indian market. as there is a likelv 1

"Thou& tbe lonn-&rm de- .. .- " . -. -- .-- - DOMESTICpowereqipment mandoullook is good, in the maoufacturerslikeBIiELaod kunsixmmthrnntmaopproj- LBT Miuubishi may see a ects have been Pinmcially slower Row of orders in the c l m d due toanumberofui. short termdue76 challenps hwblingtfie sector.

Anhritiativebythe~opern- ment to sopport the domestic ioa~bywaydabol l ropder hum stateplwed NTPC. is al- softaW~delays.lheten- der said odgthme corn- having domestic manufacnu- ing facilitiescould participate. The order for 11 sets of

cenaintiesandthis is likely to eootioue," said SnbymmA Ma- jumdu, vice-president at rat- ing&Icml.

Icra, h its report on the do- A c boilefiNrbine and Ben- - (BTGiiUdushy, mi hh el worries in the seeter~nlght lead to delayed order place- ment 'The report said DI%IW

660 megawatts (Mw) was ini- reasons like a likely fall in the tiated in October 2009. but incrementaloutautdC~11n. . ~ ~~~~-~~~

there has been very slow dia, slow progress in develop. Progress due to litigation. mcnt ofcaptive coal blocks, While turbine and generator and agmwinguncertaintyon

~~~~ ~~~~~

and or&: weak financesof state electxidry b o d s has al-

.~~~~~ - ~ . ~ ~ ~ biwbytheendof themf i . nancial year. The UT-MI~.

-~~~~~~~~~

tachi, Bharat ~urgk-~ l s tom, and JSW.Tmhiba Theoverall

so taken a toll en investment decisiom of power generamrs, as the offtake of power has wme under question.

"Moreover. IPPs are in- creasingly exposed toexecu- tion, regulatoryand geopolititi cal risks in caae d coal asaets

annual capacity of the B X in- dushy is expeaed to rise wn- siderablv over the next two yearsto&ut 3 5 . ~ 0 MW. n e expected annual demand is around 15.000 Mw. which could lead to over-capacity. Maiumdar said they were ex-

acauired abmad!'the reoort ~ ~ ~ ~ ~~ ~~-~ ~~~~~, ~~~~ ~ ~

saib. These worries hav; i: ready started takinga tollon BHEL's orders whichsliuged by 77 percent year-my&in the first quarter.

acawAtgol4,W0Mwandhad s a i d h t theycouldrampit up to 6.000 Mw dewndinnon the

Among the lnd~an and In- ternahod WnIpanreSSetUng up incrementalcapadty in the counlry are US major GE En- gineering, Korean company

.........................................................................

pe&og high capacity utilisa- tion forthue new units.

c I ~ I N A ~ T ~ ~ E A T AU this is bad news for the do- mesticwwer eouioment sec- tor whiihis a l k d ; fighting a toughbatclewithchimemw- ufacturerswhohave already bagged many private sector of. ders. China is likely to become

............................................................................ ................................................. I

'/2GTPc blocks' cancellation reviewed I SUDHEER PAL SINGH New Delhl. 9 September

tainsoveralonginter-mhiste rial tussle. itwouldalsoset at

! the ebal ministrv is re+iewiIIR

............ the progress of the govem- ment's captive coal block de- v e l ~ e n t plan, as- dm-

any,~tsplarrptomtbandatb legemtioo~apecityto7S~WO Mw by 2017 would get aboost. Iheraiewwouldcmerthem

p~aecount for amajorpart of thereservesallottedtillmw.

"Aspartoftheexercise, we are seeking more information from the wmpany on the de- velonment dams of tbebeblodL$" a se io r official from the min- -~~

istry told BusinrssSmndard. Another senior official added,

slowdokn in the demand foi China-basedcoal capacity.

Experts say domestic BTG companies should be able to makeacutintbeorivate- as well. until m i many orders they have w i v e d art Runthe stateutilities. "Wlilemlyafew private sector independent power pmducers (IPPs) such as Baiai Hindusthan ana

' ~ ~ h e p a a e r ~ h a d ~ the issue and wem examining thematter. However, it would be oremature to conclude the

anotherpublicsectorunder- taldng under the power min istry,and&atihdWElec rricilvRoard(JSEB).

I C b l k b would be returned!'

. ~ - ~ . Tbe coal ministry had can

celled DVC's Saharpur Ja

~aipr ikash Power Veotures have awarded orders to do- mestic participants in the su-

----

domestic companies to bb. - suchorders Prom private w- tor IPPsremains important," the Icra report said.

..............................................

- - - - . - dimculty in returning these blo& is the '%ad pmxdernt'' it

be taken by an inter-ministen. al review committee.

The ongoing reviewexer- cise, s o m said, might beex- tended tothecancelled blocks of DamodarVsUey V o Q

marpani block in Jharkhanu andtheCondul~aracoalbIwk 1 ' ~~

in the state. iointlvallocated to I "-- . DVC and Tenughat Vidyut Nigam aharkhandchief min- isterAriunMmdahadUletd w minister Sri Prakash Jaiswal in July, seeking review 0) JsEB's blocks. / I'

/

fl4-power wants . b scr&Wmad power project BY MAKAMND GADGIL makamrrdg@llrremInt.com . . . . . , . . . . . . . . . . . . . . . .. . . MUMBAI

nil Ambani-controlled Rell- . A a n ce Power Ud (R-Power) wants to scmp a proposed 4,000 megawatts 0 power project at Shahpw In Mahacashtrams Raigad disaict because of the 1 state governments inability to complete land acquisition with- in the legally stipulated time

tridty it badly needs to feed an economy growingat dose to 8%.

I frame, further jeopardwng In- . dia's plan to generate the elec- i

The state government Issued

acres of land in Shahpur and six adjoin@ villages in November

l a nodacatlon to acquire 2,700 j

2007. The pro- had to be completed In three years under the state? land acquisition law, 8

which it hasn't done. i Power-starved lndia needs to . bolster its generaUngcapac&to ; maintain and speed ups'# rate that's constrainedFy inade-- quate infrastrunure, Lnduding electricity, roads and ports. In- dia wants to add a power gener- ation capacity of 62,374MW by 2012 to its existing 180,000MW. The country plans to add 100.000MW under the 12th Plan period beginning Aprll 2012. Fuel price revisions and en - ronmental concerns have ren

NRN TO PAGE 2,

1 -- S

0,2011, DELHl

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ts toscrap I

I

- ,-OM PAGE 1 R-Power plans to develop us mine in Indonesia. But fuel 39,993MW d power based on pmduced in that w u n q is set to

dered uncertain parts of this wal aed gas dmugh 12 projects beccrme more expensive as Jq- 1 mategy. across India, according to the don& recently pegged prices

R-Power sent a letter to dis- ewnpanp's wehsii. m prevailing international rates. I h'ict collecmr H.K. Jawale on 3 ,. & w w , its 7,480MW gas- W a ' s power programme

September, saying it wouldn't be based D&i project in Ultar needs a review, an analyst said. able to pursue the project in Fndesh has failed to get under 'A strategy rethink is valid and

I vlew of the government's f a h e way because of the non-availa- understandable for the mer- I to meet the Ian$ awuisltion biW of nas from Reliance 1%- chant olants (as) there is a mis- ' deadline. It also demanbed the dnshiee 'itd's Krishna-Godavarf match'today be&een local pow- , rmun of 145 cron that had been basin well. Besides this, the Ma- er tariffs and the overseas coal

deposited with the state govem- ment to srert the land acquisi- tion process. This armally comes after Jawale recommended that the land acquisition be scrapped as the wrnoany didn't seem to be interested in'the project

According to the RaiW dis- aict eo~ectir's letter m the state m e secretary on 3 August, R-Power executives had prom- ised in May 2010 a mitten un- deRaldnc within 15 daw offerinn a nhabilytation and re&t~emez oackaae for the dis~laced f lag- krs. B;t no such'undemkiig was pmvided by R-Power, de- spite a reminder in June this year, J a d e said.

The "memorandum of under- standing signed with the state government in 2005 ... emired in ioog", an R-Power 'spokes- person said. "Further, the time- lines to be met for the land ac- quisition process ... have also es- pired. In view of 6ese develop- ments, the company hag

bklforl the acquisition of land.' g,~riweLCo. M meam

e, IS going ahead with its to implement a 1,MMMW

2~309: the fkst MW is expected to

tioras in March 20U.

habad high court has struck down the project's land acquisi- tion process.

The company has also stopped work on the 4,OMIMW Krishnipatanam ultra mega power project ( W P ) M l o ~ an increase in international 4 prices. That makes Shahpur the third R-Power project facing an unmain future.

'A decision will be taken on. the issue very soon," said Mshprashtra revenue minister Balasaheb Thorat, who eon- h e d recehring the Raigad col- leaor's Letter.

¶!h~ w d vfbgek have al- ready challenged the land acqui- s l h n proceedings in the Born- bay hi* e o ~ , which earlier this week directed the state govern- ment to file an aE3davlt clarifyipg its position on the issue within three weeks.

"Both Reliance and the gov- m n l p r ( a t [ y l n g t o p w t h e blame on to eaJ1 other," said

& if the ~roiect is scrao~ed. a credit Asi go to the lo& && ers who ovoosed it tooth ?& -. . r nail."

The Shahpur project, b s developed by R-Power's sn ' : iary, Maharashha Energy erntion Ltd, has two pa^@& 1,ZQOMW will he baaed w e d coal and the rest

prices," said Kameswara Rao, leader of the enem, ufllities and mlning practice consultant hl~e~~teuheusaCoogar6 pp.t Ltd T h e regulated $ants have paw-through provisims and, hence, sbodtbe able to pass on higher costs to buyers." Shahpufs prospects have

dimmed as W Bnergy Ud hag put expansion plans at its Jaigad power plant in Maharashtra's Ratnaeiri district on hold The cornp& had planned to Qise cavadtv of the 1,200MW ~1ant to 3.%&. Maharasbm,'among India's trios h- Wuadal- i z e d s t a r s s , t s ~ t o m a & * - selfan-dm tlnatiah for nzawfwaters to maintain its primacy in the sec- tor. I

Elsewhere in India, Gujarat has ovwsed anv tarifl hike for the ~-$dra UM@P project belng developed by Tatn Power, as Mint rlpqned on 5 September. mt reported on ISWs plans to stan the Jaignd expansion on 22 July.

The UMPP oroeranune in- volves the set~& of 16 such ~lants to meet the needs of the &orld's second fastest growing tnaior economy after China. Of these, four havi been awarded.

R-Power has sued HT Media Ltd, oublisher of Mlnt, in the

%ewer firms failed to keep pace with demand during Games: C A G ~ Neha Alawadhi

NEW DELHI: The Comotmller and Auditor General of India for Delhi (2009-10) has said that power generation com- oanies in the Caoital could hot keep pace wiih growing demands of power and were not able to provide capacity addition in time for the Com- monwealth Games. It further found irregularities in oper- ational performance, finan- cial management and prescribed environmental norms.

The rewrt audited the two coal-basd and one gas-based station (installed capacity of 664.5 MW) under Indrapras- tha Power Generation Com- pany Limited (IPGCL) and one gas-based station (330 MW capacity) under the Pra- gati Power Corporation Lim- ited (PPCL).

lrrequlrrlties found in performance, financial manaaenent and cnvlronmental norms

Low piant availablllty. poor cdpacity utliisation. many forced outaqo, frequent shutdowns: CA6

It further noted a shortfall valued at Rs.510.03 crore and Rs.156.48 cmre at two power stations of IPGCL and one power station of PPCL be- cause of possible generation to actual generation based on horn for which the turbines actually operated.

Two power stations under IPGCL - Rajghat Thermal Power Station (RTPS) and Gas Turbine Power station (GTPS) - were also found to Lave list potentialgeneration of 53.91 MUs valued at Rs.8.63 crore due to evacua- tion constraints. Forced out- aces at RTPS and GTPS were

have increased, but there was no corresponding increase in the capacity, said the report.

On the financial front, the report s a ~ d IPGCL's accumu- lated losses amounted to Rs.15.99 crore and borrow- ings were Rs.36264 crore. General reserve and borrow- ings of PPCL came to Rs.594.96 and Rs.843.23 crore by March 2010.

"A net decrease in cashand ' cash equivalent in 2008-09 and 2009-10 for IPGCL, and in 2005-06, 2006-07 and 2009-10 for PPCL were ob- served," said the report. Rea- sons for the decrease

spares kept at IPGCL PPCL power stations found to exceed the Cent

plement the rewmmen tions made by ene auditors in 2006-07, said latest report.

awarded a contract for cap itvadditionon a turnkevbasis 1 i i ~ ~ r i 1 2 0 0 8 to~haratkeavy '. Electricals Limited (BHEL) - for design, engineering, man- ufacturing, supply, installa- tion and commissioning of a 1500-MWgas turbine plant at a value of Rs.3,500 crore on single quotation basis. Re- tenderinn was not considered

~ o ! v ~ l & t availability, poor f%d to he in excess olthe 10 included heavy interest com- in orderL complete the pro- capacity utilisation, excessive per cent fixed by CW, result- mitment on loans and 'lock- ject in time for the Common- foiced outages, frequent ing in further losses during ing UD funds in inventorv". wealth Games. But as a result I shutdowns an> delays <n re- pair and maintenance at the power stations were also pointed out by the report.

"Norms fixed by CEA/ DERC [Central Electricity Authority/ Delhi Electricity Regulatory Commission] for Dower generation were not achieve2 by the two power compa~es. Shortfall in gen- eration by the two compaiies during review period was equivalent to 1518.05 MUs valued at Rs.239.85 crore," said the report.

20b5-10. Instances of quality of repair and mainte- nance works were also noticed.

"Delhi had total installed capacity of 994.5 MW against the peak demand of 3,558 MWat the beginningof 2005- O6...[and at the] end of 2009- 10, the installed capacity re- duced to 735 MW against the peak demand of 4,464 MW leaving a deficit of 3,729 MW," said the report. The deficit of own demand versus peak generation was found to

- . According to the repoitit the

input consumptionfuelswere in excess of norms. The gas power stations under both power companies suffered generation loss amounting to Rs.114.50 crore due to short- age of gas supply by GAIL. The report further said "no claim was lodged for this loss, whereas the stations had to incur liability of Rs.37.75 crore" due to GAIL'S inability to provide minimum guaran- teed quantity of gas.

The value of stores and

of delays, the stipulated ca- pacity addition of 1,250 for the Games could not made available.

The CAG report made s en recommendations lng strengthening monitoring system, enhanc- in@ eBciencies to consume fuil within prescribed norms, ensuring adequate availabil- 1 ity of gas, strengthening re- pair and maintenance