According to the consumer society, Gujarat Urja Vikas Nigam is charging more from consumers by showing additional T&D losses
Ahmedabad-based Consumer Education Research Society (CERS) said as per its study the state owned Gujarat Urja Vikas Nigam (GUVNL) has been charging more money from customers by showing higher losses in transmission and distribution (T&D). According to CERS, GUVNL is adopting faulty practices in considering high T&D losses for calculation of fuel price and power purchase agreement (FPPPA) charges.
CERS said its study shows the average T&D losses across the country are 26.4%, which cuts generation capacity by 28,000 million units (MUs). Using the Rajadhaksha Committee report, if the losses are reduced to 14%, then the losses can be brought down to 14,800 MUs. The saving of 13,200 MUs would generate additional revenues of Rs3,960 crore.
“The Gujarat situation is not different where T&D losses are 22.67%. Gujarat loses nearly 14,600 MUs every year, which compels GUVNL to purchase costly power from independent power producers. This puts heavy burden on consumers in Gujarat. If these losses are reduced to 14%, then GUVNL can save nearly 6,140 MUs, which will generate additional income of Rs1,854 crore. This in turn can help avoid increase in tariff at least for couple of years,” the CERS said in a release.
Gujarat Electricity Regulatory Commission (GERC) in its tariff orders on 2 April 2013 had praised electricity distribution companies (discoms) in the state for bringing down distribution losses below the target set by the Commission. However, CERS pointed out that how only Uttar Gujarat Vij Company (UGVCL) can bring down these losses by 4%-5% in just one year.
In its order, GERC has considered following distribution losses...
Uttar Gujarat Vij Company (UGVCL) 9.81 %
Dakshin Gujarat Vij Company (DGVCL) 10.24 %
Madhya Gujarat Vij Company (MGVCL) 12.18 %
Paschim Gujarat Vij Company (PGVCL) 27.87 %
Average 15.03 %
Therefore, as per CERS the actual calculation for T&D losses should be
Transmission Losses of GETCO 4.30%
Distribution losses of four DISCOM 15.03%
Actual T&D losses 19.33%
CERS said from the above it is proved that GUVNL is misleading the Commission and consumers from the state by showing high T&D losses.
T&D losses as per GUVNL for FPPPA 22.67 %
T&D losses as per GERC order & CERS 19.33 %
Difference in T&D losses 3.34%
It said, the above calculations shows how GUVNL is collecting additional amount as FPPPA charges by showing 3.34% additional loss for T&D.
“It is shocking to know that how GERC can approve higher T&D losses for calculation of FPPPA charges by which GUVNL has collected Rs668 crore more every year from consumers of Gujarat. GERC should direct GUVNL to refund additional FPPPA charges collected, which may be more than Rs3,000 crore in last five years,” the CERS said.
In a letter to GERC, KK Bajaj, chief general manager of CERS and an expert in power sector has requested third party scrutiny to ascertain correct and actual T&D losses and impose penalty as per Section 142 of Electricity Act, 2003 for providing wrong and misleading details to GERC thereby illegally collecting more money from consumers of Gujarat.
According to a report by the Expert Appraisal Committee under the MoEF, the petroleum major has also to get the Environmental Impact Assessment report and Environment Management Plan for the 9 MMTPA (million metric tonnes per annum) Complex
The ministry of environment and forests (MoEF) has asked state-owned Hindustan Petroleum Corporation (HPCL) to hold a public hearing for its proposed Rs37,230 crore refinery-cum-petrochemical complex in Barmer district of Rajasthan.
According to a report by the Expert Appraisal Committee (EAC) under the MoEF, the petroleum major has also to get the Environmental Impact Assessment (EIA) report and Environment Management Plan (EMP) for the 9 MMTPA (million metric tonnes per annum) Complex.
The EAC also said the draft EIA/EMP report should be submitted to Rajasthan Pollution Control Board before the public hearing.
“The draft EIA/EMP report should be submitted to the Rajasthan State Pollution Control Board for conducting public hearing/consultation. The issues emerged and response to the issues raised during public hearing should be incorporated in the EIA/EMP report and submitted to the Ministry for obtaining environmental clearance,” the EAC said in its report made public recently.
HPCL had approached the MoEF for environmental clearance and the proposal was reviewed by the EAC last month.
The project will be set up as a joint venture between HPCL, Rajasthan State Refinery and other equity partners.
“Issues raised in the public hearing and commitments made by the project proponent on the same should be included separately in EIA/EMP Report with financial budget for complying with the commitments made,” the EAC further said.
According to the details submitted to the ministry, the plot area for the project will be 3,866 acres and 50% of the crude requirement would be sourced from Rajasthan and balance from Persian Gulf. A 210 MW gas-based power plant will also be set up for captive use.
The refinery-cum-petrochemical complex is designed to produce motor fuels with latest environmental specifications and wide range of petrochemicals.
The mega project is expected to take about 4 years to go on stream after getting necessary approvals.
The short uptrend seems to be maturing. A close below the day’s low on the Nifty may bring in several days of downtrend. However, a close above 6,140 would take the market higher
Late buying in FMCG and auto stocks helped the market close higher amid a high degree of volatility. The short uptrend seems to be maturing. A close below the day’s low on the Nifty may bring in several days of downtrend. However, a close above 6,140 would take the market higher. The National Stock Exchange (NSE) reported a higher volume of 68.56 crore shares and advance-decline ratio of 569:807.
The market opened lower tracking its Asian peers which were in the negative in morning trade today. US benchmarks closed down on Wednesday no gains in US Treasury bonds, which have been on the upmove since Federal Reserve chief Ben Bernanke hinted at curbing its bond-buying programme. The local market is expected to see volatile trade on account of the expiry of the May F&O derivatives contract, which takes place today.
The Nifty opened 32 points down at 6,072 and the Sensex resumed trade at 20,067, a cut of 81 points from its previous close. The opening figures on both the benchmarks were also their intraday lows.
Gains in auto, fast moving consumer goods and capital goods sectors soon saw the market moving higher. However, intense choppiness saw the market taking a roller-coaster ride as trade progressed.
A positive opening of two of the three key European markets saw the domestic benchmarks venturing into the positive in noon trade. The indices fluctuated between red and green in the late session.
Buying interest in FMCG and auto stocks helped the indices hit their highs in the last half of trade. The Nifty rose to 6,134 and the Sensex went up to 20,254.
The market settled off the highs amid a high degree of volatility associated with the F&O contract expiry. The Nifty closed 20 points (0.32%) higher at 6,124 and the Sensex finished the session at 20,215, a gain of 68 points (0.34%).
The broader indices witnessed a mixed close as the BSE Mid-cap index rose 0.04% and the BSE Small-cap index declined 0.35%.
The top sectoral gainers were BSE Auto (up 2.29%); BSE FMCG (up 1.88%); BSE Power (up 0.71%) and BSE PSU (up 0.12%). The main losers were BSE Realty (down 2.39%); BSE Metal (down 1.11%); BSE Oil & Gas (down 0.74%); BSE Capital Goods (down 0.56%) and BSE Healthcare (down 0.40%).
Out of the 30 stocks on the Sensex, 15 settled higher. The major gainers were Mahindra & Mahindra (up 4.61%); Tata Motors (up 4.31%); ITC (up 3.51%); HDFC (up 1.80%) and NTPC (up 1.62%). The key losers were Cipla (down 4.62%); Tata Steel (down 3.90%); Hindalco Industries (down 3.18%); ICICI Bank (down 2.71%) and Hero MotoCorp (down 1.96%).
The top two A Group gainers on the BSE were—Mphasis (up 8.42%) and Adani Power (up 7.53%).
The top two A Group losers on the BSE were—HDIL (down 6.88%) and Madras Cements (down 5.06%).
The top two B Group gainers on the BSE were—Networth Stock Broking (up 20%) and Prime Capital Market (up 19.96%).
The top two B Group losers on the BSE were—Fourth Generation Information Systems (down 19.97%) and Sharp India (down 18.13%).
Of the 50 stocks on the Nifty, 21 ended in the in the green. The main gainers were M&M (up 4.93%); Tata Motors (up 3.69%); ITC (up 3.60%); Asian Paints (up 2.55%) and Kotak Mahindra Bank (up 2.41%). The major losers were Cipla (down 4.72%); Tata Steel (down 3.80%); Jaiprakash Associates (down 3.47%); Hindalco Ind (down 3.36%) and ICICI Bank (down 3.04%).
Markets across Asia closed in the negative on falling commodity prices and strengthening of the yen against other key global currencies. Japanese economy minister Akira Amari said that investors should not overreact to the market declines and reiterated that economic policies would be pursued without anxiety in regard to recent stock market volatility.
The Shanghai Composite fell 0.27%; the Hang Seng declined 0.31%; the Jakarta Composite dropped 1.37%; the KLSE Composite declined 0.48%; the Nikkei 225 tumbled 5.15%; the Strait Times contracted by 0.93%, the Seoul Composite shed 0.05% and the Taiwan Weighted settled 1.13% down.
At the time of writing, the CAC 40 of France was trading 0.86% higher, the DAX of Germany gained 0.54% and UK’s FTSE 100 rose 0.15%. At the same time, the US stock futures were trading with minor gains.
Back home, foreign institutional investors were net buyers of equities amounting to Rs643.81 crore on Wednesday while domestic institutional investors were net sellers of shares aggregating Rs308.11 crore.
State-owned Balmer Lawrie & Co plans to acquire a domestic company offering tour operating services. Its travel services arm, Balmer Lawrie Tours and Travel, garnered revenues of Rs 1,132 crore during 2012-13, accounting for nearly 44% of the company’s net sales. The stock climbed 1.79% to close at Rs397 on the NSE.
BEML has posted a Rs85.35-crore profit for the fourth quarter of financial year 2012-13, against a loss of Rs13.99 crore in the same period the previous fiscal (2011-12). The company’s revenues for Q4 grew 41.43% to Rs1,122.04 crore (Rs793.35 crore). The EPS was at Rs20.49 (Rs3.36). BEML advanced 8.96% to close at Rs183 on the NSE.
Tata Communications has deployed a range of unified communications solutions at mid-size IT company KPIT Cummins. As per the deal, the Tata group company has completed a multi-technology implementation of network consolidation, business video and managed voice services for KPIT Cummins. Tata Communications declined 3.82% to Rs211.40 on the NSE.