New Delhi The government proposes to constitute an empowered group of officials along the lines of the Foreign Investment Promotion Board (FIPB) as a single-window mechanism for granting statutory clearances to coal mining projects.

The purpose is to facilitate and expedite approval process and step up coal production in the country. Though composition of the proposed body is yet to be finalised, sources said the ministries of environment, coal, power and steel as well as concerned state governments would be represented on the panel. The group would periodically take up individual cases referred to it and would take decisions in a time-bound manner.

New Delhi It’s a throwback to history for the power distribution sector where reforms are a non-starter.

New Delhi US-based First Solar, which has mainly operated as a project contractor in Indian solar power market so far, is now looking at a second business model based on development of solar power plants for subsequent sale to an equity investor or an independent power producer (IPP).

The world’s largest supplier of thin-film modules for solar plants has successfully applied this business model in the US market. Major equity players like GE Energy Financial Services and Mid-American Energy, a fund owned by Warren Buffett’s Berkshire Hathaway, have shown interest in picking up equity in projects being developed by First Solar.

New Delhi American firms woo Indian buyers with long-term contracts, discounts

The US is emerging as a new source of coal supply for India as traditional exporters like Indonesia and Australia jack up their coal prices. American firms are trying to woo Indian buyers with offers of long-term contracts and discounts on international prices. In what marks a new trend in international coal trade, US-based FJS Energy has signed a $7 billion deal to supply 9 million tonnes a year coal to India’s Abhijeet Group for 25 years.

New Delhi Nearly half of the 1,000-Mw capacity addition envisaged under the first phase of the national solar mission is likely to miss the commissioning schedule, with technical and equipment availability issues hampering progress in project execution.

Developers are required to commission these projects by May next as per the terms of the power purchase agreement (PPA). In case of default on PPA, they would be liable to pay penalty. Apprehensive that they could fail to meet the committed schedule on power supply, developers have approached the nodal ministry for extension.

New Delhi States use all means to defy the grid code for drawing power — they openly flout the code, default on payment of unscheduled interchange (UI) charges meant to check overdrawing when the grid frequency is low and even resort to litigation. However, the recent synchronised failure of three of the country’s power grids that left half the country without power for hours might come as an eye-opener, analysts reckon.

Tamil Nadu, for instance, has obtained a stay from the Madras High Court on enforcement of the Central Electricity Regulatory Commission’s revised (tightened) grid code on the state. With the recent outages, the state might be forced to review its stand, source say. In April this year, the CERC narrowed the permissible frequency band from 49.5-50.2 Hz to 49.7-50.2 Hz to ensure grid safety.

New Delhi Jindal Power continues to sell electricity from its Tamnar power plant on a merchant basis, ignoring the coal ministry’s recent directive that stipulates that power plants running on captive coal must not quote a higher price for power supply in tariff bidding than those offered by generating stations based on fuel linkage from Coal India.

JPL, a subsidiary of Jindal Steel and Power, has quoted a R5.27-a-unit price to supply power to APCDPCL, an Andhra Pradesh discom, from its Tamnar plant based on captive coal, compared with R4.29 and R4.4 a unit offered by KSK Mahanadi and Corporate Power plants running on coal supplied by CIL under long-term linkage, according to industry sources.

The Centre introduced a mandatory bidding regime for allocating power projects in January 2006 to revive investor interest in power. Several states adopted this model, but the subsequent fuel crisis has made the model unattractive. Issues like uncertainty about tariff revision — which is necessary to pass on the increase in fuel cost to consumers — and state power distribution companies’ weak financial position have not helped matters either.

New Delhi States that have rejected developers’ proposals for hike in electricity tariff to reflect the actual increase in imported fuel cost for existing projects are unlikely to get cheaper power elsewhere. This is the inference one makes from the offers received by an Andhra Pradesh utility in response to its tender for 2,000 mw power supply.

Central Power Distribution Company of Andhra Pradesh and Andhra state utility, had recently floated tender for procurement of 2,000 mw power for three years. In response to the tender, bidders have quoted Rs.4.29-6.24 a unit price for supplying power.

New Delhi THE government’s promise of another reform-linked mega-bailout for power distribution companies comes even though there is little evidence that such largesse prompts states to mend their ways and restructure the sector.

In July 2008, the Centre had launched the Restructured-Accelerated Power Development and Reform Programme (R-APDRP) scheme to help states finance projects and reduce theft and other “commercial losses” that undermined the viability of the sector.