New Delhi With the government preparing to rationalise gas distribution from RIL’s KG-D6 block in the wake of a drop in production, Lanco and GMR plants in Andhra Pradesh are a worried lot.

Lanco’s Kondapalli power plant expansion and GMR Tanir Bawi power plants in Andhra Pradesh, which are earning a fortune by selling power in the free market, are facing cancellation of gas allocation from RIL’s KG-D6 block.

New Delhi In an attempt to make power plants using imported coal viable, the government will recast its coal allocation policy to ensure these units get domestic coal too, but only up to 30% of their requirements.

An inter-ministerial committee is expected to formalise the decision on February 14. The new policy will benefit six power plants based on imported coal, namely Adani Power, JSW Steel, Coastal Energen, DCW and Ind Barath Power. The total capacity of these power projects is about 4,650 MW and their combined coal requirement is roughly 6 million tonnes.

New Delhi A new policy on natural gas allocation for the next 10 years that is under discussion will benefit gas trading companies like Gail India but will make consumers pay more for not only power but also a clutch of industrial goods. It could also upset the government’s plan to reduce the subsidy on fertilisers.

This policy envisages mandatory use of imported liquefied natural gas or LNG (a minimum of 25% of the fuel/feedstock mix), which is substantially costlier than domestic natural gas that is expected to be in short supply.

The government is planning to allow companies exploring coal bed methane (CBM) to simultaneously mine coal from the same block.

Stumped by political opposition to letting private companies into commercial coal mining, the government has found a way to achieve almost the same without having to face Parliament. It is planning to allot captive coal blocks to private miners like BHP Billiton, Rio Tinto and Sesa Goa on the condition that these firms have tied up with approved end users for supply.

The government proposes to offer gas for all power projects to be completed in the current Five Year Plan by creating a pool of domestic gas and imported re-gassified liquified natural gas (RLNG). The new mechanism will not only ensure that gas is available to meet around 80% of the requirement of these power plants, but also provide fuel to them at competitive rates as pooling will help moderate RLNG price.

Public sector steel major SAIL has dropped its plan to set up a stainless steel special economic zone (SEZ) at Salem in Tamil Nadu. Instead, the company has decided to set up a wind energy plant to meet its renewable energy requirement.
The government-owned steel major has already invited the expression of interests (EoIs) from private energy firms to develop the wind energy unit, according to sources privy to the development.

Environment minister Jayanthi Natar-ajan can’t easily disown the legacy of her predecessor, it seems.

New Delhi Move over bio-diesel, the new green diesel is all set to revolutionalise the fuel market by offering cost-effective and environment-friendly solution for the transport sector in the country. US-based diversified technology and manufacturing company, Honeywell, is planning to launch its new technology for the production of green diesel in India soon.

New Delhi The new mining Bill cleared by a group of ministers last week envisaging direct benefit to people from the minerals underneath the land they own, also has a provision for setting up a clutch of ultra mega mining plants (UMMPs) in the country.

As per the proposal, state governments will identify locations for large mines with respect to specific minerals such as iron ore, bauxite, chro