Industry unhappy over unremunerative tariff in a scenario of rising biomass prices

Amid growing regulatory and administrative uncertainties the biomass-based power producers have sought the intervention of Forum of Regulators (FoR) for early resolution of issues relating to open access, cross subsidy, CDM sharing, penalty clause imposed by certain distribution companies for maintaining plant load factor and the tariff structure.

Maharashtra regulator starts proceedings for stakeholders' opinion

State Electricity Regulatory Commissions (SERCs) want to be very cautious before implementation of power ministry’s suggestion on providing open access for consumers with a demand for 1 MW and above. The Maharashtra Electricity Regulatory Commission (MERC) has taken a lead to solicit suggestions from members of public and all stakeholders in the state.

Amid the growing restriction over the availability of coal in the country, the ministries of coal and power have arrived at a consensus to freeze the capacity and list of power projects linked to Coal India Ltd (CIL) companies.

The power ministry has identified projects of 127,448 Mw capacity that would need 557 million tonnes of coal for the signing of fuel supply agreements (FSA) with CIL and its subsidiaries.

Considering the growing need for imports due to constraints in the availability of domestic coal, the Central Electricity Authority (CEA), in an advisory, has told all power-generating companies, power project developers and power equipment manufacturers that boilers, including auxiliaries, should be designed for a 30:70 blend ratio, in which 30 per cent would be imported/high gross calorific value (GCV) coal, while 70 per cent would be indigenous coal. The CEA has also said station facilities should be designed for unloading, handling and blending imported/high GCV coal.

The coal ministry has issued revised guidelines for preparing mine closure plans, incorporating a few stringent provisions.

Mine owners would now have to open escrow accounts with scheduled banks, with the Coal Controller’s Organisation (CCO) as an exclusive beneficiary. When the final mine closure scheme is implemented by the owner five years before the scheduled closure of operations, the CCO may permit withdrawals from the escrow account proportionate to the quantum of work carried out, as reimbursement. The withdrawn amount every year should not exceed 20 per cent of the total amount deposited in the account.

Hopes to begin generation by June or early July

The Nuclear Power Corporation (NPC), which is working on a war-footing for the commissioning of first phase (1,000-Mw) of Kudankulam nuclear project, has achieved yet another milestone. The state-run entity responsible for the generation of nuclear power for electricity has completed the prerequisites for opening the reactor pressure vessel.

In yet another push for granting open access to all electricity consumers with power requirement of 1 Mw and above, the power ministry, exercising its power under section 107 of the Electricity Act, 2003, has issued directives to the Central Electricity Regulatory Commission (CERC) stating that regulators have no jurisdiction to decide energy charges for such consumers.

The ministry resorted to this move after it observed that regulators had not taken seriously its letter of November 30, 2011, in this regard, and instead have either determined the energy charges or are in the process of determining the charges.

To attract investments, Maharashtra has rolled out a red carpet for the Gujarat textile sector. State textile minister Naseem Khan plans to lead a high level delegation to Ahmedabad in May to ask the textile industry in Gujarat to invest in Maharashtra in order to take the benefit of the newly released textile policy and the sops offered for development of textile parks in the state.

Maharashtra textile policy offers a 10 per cent capital subsidy for new textile projects in Vidarbha, Marathwada and north Maharashtra, and 12.5 per cent interest subsidy on long-term loans linked to centrally-sponsored Technology Upgradation Fund Scheme for new projects.

The Union Ministry of Environment and Forests (MoEF) has accepted coal-based power producers’ demand for a parallel processing of environment and forest clearances, instead of sequential clearances. This would help power producers secure these clearances early.

The MoEF’s decision, made last week, is expected to fast-track clearances to complete the proposed power capacity addition of 62,000 Mw of the total 75,000 Mw based on coal during the 12th five-year plan. The ministry’s April 19 office memorandum also comes at a time when Coal India has agreed to sign a fuel supply agreement with power producers.

Pending applications surge across categories, in breach of rules for disposal

The central government, in a bid to bring in transparency and accountability in the mining sector, has asked states to scrupulously ensure timely renewal of leases as prescribed under Rule 24A of the Minerals Concession Rules (MCR).