Power trading on the two power exchanges in India has been stagnant for the past six months. Volumes are expected to increase, only if more states agree to participate in the open access system.
While, the prices of merchant power traded have been volatile at India's two power exchanges, growth of volumes on both the exchanges has been stagnant. The volumes in June on both exchange has been around in the same range as in January.
According to the monthly volume data available with Indian Energy Exchange (IEX), 7,23,403.16 MWh was the total volume traded on the exchange in January 2010. In June 2010, the total volume traded was 7,48,388.58 MWh, with a month-on-month (m-o-m) change of a mere 3%. In July so far, volumes declined.
Similarly, the total monthly volume traded on Power Exchange India Ltd (PXIL) has remained stagnant for the past six months. In January 2010, around 1,44,009MWh was traded on the power exchange. In June 2010, around 1,44,434.3 MWh was traded on the exchange. The m-o-m change for January and June volumes is less than 1%. PXIL's volumes too declined in July.
The total volume of power traded on IEX showed a decline in February and March at -9% and -14% m-o-m, respectively compared to their previous months. The exchange has witnessed a rise in May and June at 5% and 26% respectively over the immediate previous months.
In PXIL volumes declined by -15%, -30% and -8% respectively in March April and May compared to their immediate previous months. In June volume growth was positive in both the exchanges.
The stagnant trend in volumes has been attributed to various reasons. According to sources from IEX, the fall in March was due to the fact that more power was being supplied through long-term contracts.
On the other hand, more states have been allowing open access since April, which has triggered a rising trend from April onwards. States like Andhra Pradesh and Tamil Nadu allowed their industries open access during this period. Active participation from Punjab, which allowed open access earlier, was also noticed April onwards.
While the growth in volumes have been stagnant over a period of six months, officials from IEX are positive that volumes are bound to increase over a period of time, as both the market as well the power sector are evolving. Volumes are expected to increase, if more states agree to participate in the open access system.
IEX is the country's first power trading exchange, which started operations in June 2008, followed by PXIL which started operating from October 2008. IEX has been far ahead in terms of volumes with a monthly average of 6,45,829.397 MWh traded in the last six months against 1,21,077.814 MWh traded on PXIL for the same period.
New Delhi: Effective use of technology for in-house audit processes could help prevent accounting fraud in a company, as it will be easier to monitor the flow of data online, says global consultant PricewaterhouseCoopers (PWC), reports PTI.
A new PwC report, '2010 Internal Audit State of the Productivity of the Profession Survey', said that about 48% of Indian companies lack skill and knowledge of data tools used in internal audit softwares, while 18% have no access to these tools.
"With a predicted increase in scope and responsibility and heightened focus on risks, it is essential that internal audit functions prioritise focus, employ smarter resourcing and skill models and use technology as an enabler," PwC India executive director Satyavati Berera told PTI.
However, a number of internal auditors in India are not convinced that technology has a measurable benefit, with 38% of the respondents to PwC's survey unable to calculate the benefit.
Of the companies that saw benefits in the use of information technology, 38% said it provides greater coverage, 28% talked about targeted risk testing, 18% were eyeing efficiency and 17% were keen on the ability for continuous monitoring, the study said.
PwC suggested that companies can initiate a pilot project for a technology-enabled audit methodology or audit lifecycle so that an assessment can be made about the opportunity for technology to enhance and streamline that process.
"It is important for raising the performance bar because this year's survey results indicate that auditors at present are not convinced that technology has a clear benefit," PwC said.
The role of internal audit processes hold significance in India in the aftermath of the Rs10,000 crore accounting scam at Satyam Computer Services that was brought to light in January last year by the IT firm's founder and the fraud's perpetrator, B Ramalinga Raju.
The firm's internal audit team head V S Prabhakar Gupta, who is not out on bail, was booked by the Central Bureau of Investigation (CBI) for being party to the crime - the largest in India's corporate history.
New Delhi: State-owned Steel Authority of India Ltd (SAIL) today said it will invest Rs100 crore to revive its Uttar Pradesh unit, formerly known as Malvika Steel, which the steelmaker acquired last year, reports PTI.
"The total cost of Jagdishpur SAIL Unit's (JSU) phase-1 revival has been estimated to be Rs100 crore," the company said in a statement here. SAIL acquired the defunct Malvika Steel for Rs209 crore last year and rechristened it as JSU.
As part of the revival plan, SAIL will set up a steel mill at a cost of Rs46 crore to produce items required by infrastructure and construction companies.
"The entire team of JSU has to work with exemplary dedication, zeal and commitment to fulfil the objectives of acquiring the unit," said steel secretary Atul Chaturvedi, who along with SAIL chairman C S Verma laid the foundation stone for the mill.
The TMT bar mill has an annual production capacity of 1.5 lakh tonnes per annum (TPA).
"The proposed facilities and product-mix envisaged in phase-1 also include a 10,000 TPA cold forming line and a 13,000 TPA corrugation line," the statement added.
Verma said SAIL also envisages resumption of integrated iron and steel production at JSU under the second phase of its revival plan, for which a feasibility report has been prepared.
Going forward, SAIL said it will also set up a 475-MW gas-based power plant at Jagdishpur through a joint venture.
"The process for identification of a suitable partner has started," it added.
The country's largest steel-maker plans to enhance its annual production capacity to about 23 million tonnes from the current output of around 14 million tonnes with an estimated investment of Rs 70,000 crore by 2012. SAIL plans to further enhance its annual capacity to 60 million tonnes by 2020 to cater to anticipated demand on account of rapid growth of the infrastructure sector.