Companies & Sectors
Gas worth Rs.11,000 crore migrated from ONGC to RIL fields: Report
American consultants DeGolyer & MacNaughton have submitted their final report on the gas dispute between state-run explorer ONGC and Reliance Industries (RIL) that says natural gas worth over Rs.11,000 crore has migrated from ONGC's idling KG fields to RIL's adjoining KG-D6 block, an official source said on Tuesday
 
"The report more-or-less reiterates what D&M had said in their draft report that some gas had migrated from ONGC's Krishna Godavari basin blocks to RIL's KG-D6 fields," said the petroleum ministry source, adding that the government will now examine the report to decide the extent of compensation to ONGC for its gas being produced by RIL.
 
"The Supreme Court had in its order stated that the government will, in six months from the date of receipt of D&M report, have to decide on addressing the ONGC contention. That we will do," he said.
 
The D&M report says 11.122 billion cubic meters (bcm) of ONGC gas has migrated from Godavari-PML and KG-DWN-98/2 its Krishna Godavari basin KG-DWN-98/2 (KG-D5) and the Godavari Producing Mining Lease (PML) to Dhirubhai-1 and 3 (D1 & D3) field located in the KG-DWN-98/3 (KG-D6) Block of RIL, as the reservoirs in question are connected.
 
It says that of the 58.68 bcm of gas produced from KG-D6 block since April 1, 2009, 49.69 bcm belongs to RIL and 8.981 bcm could have come from ONGC's side
 
At gas price of $4.2 per million British thermal unit, the volume of gas belonging to ONGC which RIL has produced comes out to worth $1.7 billion (Rs.11,055 crore).
 
ONGC had moved the high court here alleging that RIL extracted gas upto 18 billion cubic meters (bcm) from ONGC blocks resulting in loss of several thousand crores of rupees.
 
In October, RIL had said it has "scrupulously followed every aspect of the production sharing contract and has confined its petroleum operations within the (boundaries of its) KG-D6 Block".
 
It said all its wells were drilled "strictly within the KG-D6 block boundaries, as per the Development Plan approved by the relevant authorities under the PSC (production sharing contract)".
 
"After submission of the final report by D&M, RIL, while reserving its rights under the PSC and in law, will continue to fully cooperate with the ministry of petroleum and natural gas and any actions it takes to comply with the Delhi High Court's order," it added.
 
D&M was jointly appointed by ONGC and RIL to investigate and submit a report on the matter.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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UDAY debt recast reforms vital for power sector: Fitch
American Ratings agency Fitch on Monday maintained a stable outlook for state-run power utilities - NTPC PowerGrid and NHPC - saying the implementation of the government's UDAY debt recast and reform package is key to their ratings outlook in future.
 
"Successfully addressing the weak financial positions of state distribution companies (discoms) is key to improving the health of India's power sector. The weak fiscal position of these entities has led to sustained delays in payment to market participants and weak offtake from power generators, in addition to increasing the risks associated with much-needed investment in the sector," Fitch said In a report.
 
"States opting for the package and delivering on loss reductions and efficiency improvements over the medium term remains essential for the success of the programme.
 
"The debt restructuring plan will substantially reduce discoms' near-term debt burden; and more importanly, their high interest costs, which account for a large share of the discoms' losses," it added.
 
Fitch said a failure of the distribution companies' (discom) reforms would be negative for the entire power sector.
 
Moreover, any increase in receivable days for central utilities following the expiry of tri-partite agreements would be a negative for their financial profiles of these entities, it added.
 
State-run power distribution companies have accumulated a debt burden of over Rs.400,000 crore, crippling capacity in many cases to purchase power.
 
Earlier this month, the union cabinet approved the Ujjwal Discom Assurance Yojana (UDAY), under which states are being encouraged to take over 75 percent of the debt of the ailing state electricity boards.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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GE, Alstom ink JVs for rail engine plants in Bihar

GE Transport India managing director Nalin Jain and Railway Board director (mechanical works) Jayant Kumar signed for Marhowra plant, while Alstom Transport India managing director Bharat Salhotra and Railway Board executive director (electrical development) Sudheer Kumar signed for Madhepura plant

 

America's General Electric (GE) and France's Alstom on Monday signed joint venture (JV) agreements with Indian Railways to set up high horse power diesel and electric engines at Bihar's Marhowra and Madhepura at a combined cost of Rs.40,000 crore.
 
"High-tech diesel locomotives will roll out from Marhowra factory and hi-tech electric locomotives from Madhepura factory," an official statement after the agreements were signed by top officials in presence of Finance Minister Arun Jaitley, Railways Minister Suresh Prabhu, central ministers from Bihar and other dignitaries.
 
GE Transport India managing director Nalin Jain and Railway Board director (mechanical works) Jayant Kumar signed for Marhowra plant, while Alstom Transport India managing director Bharat Salhotra and Railway Board executive director (electrical development) Sudheer Kumar signed for Madhepura plant.
 
GE Transport chief executive Jamie Miller and Alstom chief executive Henri Poupart-Lafrage were also present on the occasion.
 
Marhowra is about 80km from Patna, while Madehpura is 290 km from the state's capital.
 
As per the deal, Marhowra plant will make 4,500HP (horse power) and 6,000HP diesel engines, which in combination can operate as 9,000HP and 12,000HP units, while Madhepura will produce 12,000HP electric locomotives.
 
"About 1,000 diesel locos will be manufacture in 11 years at a cost of Rs.14,656 crore and 800 electric locos in 11 years at Rs.19,904 crore. Taking into account cost of setting up plants and maintenance facilities, the twin projects together will cost Rs.40,000 crore," the statement said.
 
The high horse power electric and diesel engines will be used for heavy haul freight operations in the dedicated freight corridors.
 
Early this month, the railways awarded letters of acceptance for both the plants as part of the government's 'Make in India' programme to indigenise production of modern transportation solutions and create thousands of jobs.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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