P&NG Board finalises norms for city gas

The Petroleum & Natural Gas Regulatory Board has informed gas manufacturing companies about gas distribution regulations to households, vehicles and industries, included within cities. It is learnt that, the companies will receive distribution contracts through competitive bidding, and the award will be based on network tariff, gas compression charges, the length of the proposed pipeline and the number of households. The company will be allowed a five-year marketing exclusivity to set up a gas distribution network to a city. It will have 25-years lifetime exclusivity for its network. After completing its five years of marketing gas, other companies can undertake marketing gas, at a fee, and use the existing network.

New hydropower policy to benefit N-E states

The Centre has finalised a new hydropower policy for north-eastern states. The policy identifies that 1 per cent power from a power project be earmarked for the local area development fund, which will be a source for income generator and welfare schemes. During the XI Plan, the capacity addition has been marked at 4,261 MW, to be generated through projects like 2,000 MW Lower Subansiri hydroelectric project, 1,200 MW Kameng hydro project, 750 MW Bongaigoan thermal project and the 750 MW Tripura gas project.

Power Ministry amends tariff policy

The Power Ministry has issued an amended tariff policy to promote private sector investment in hydro power generation. The new policy outlines the long-term PPA to be at least for 60 per cent of the total saleable design energy. However, this 60 per cent will be enhanced by 5 per cent for a delay of every six months in commissioning the last unit, against the scheduled date as approved by the appropriate commission before construction commences.

The total saleable design energy will be arrived at by deducting the following from the design energy at the bust bar: 13 per cent of free power (12 per cent for the host government and 1 per cent as contribution towards local area development fund as constituted by the state government). The energy equivalent to 100 units of electricity, to be provided every month free of charge, to every project affected family identified by the state government, through the concerned distribution licensee in the designated resettlement area/projects for 10 years from the date of commissioning.

It is learnt that, the hydro power project in the private sector will have the option of determining the tariff by the appropriate commission, based on performance cost of service regulations. An appropriate commission will determine the tariff after studying that the project site has been allotted to the developer by the concerned state government, following a transparent two state process.

The first stage should be for pre-qualification on the basis of financial strength as measured by networth, past record of developing infrastructure projects of similar size, on time and within estimated costs turnover, and the ability to meet performance guarantee. Moreover, in the second stage, bids are to be called on the basis of a single quantifiable parameter, such as, free power in excess of 13 per cent, equity participation offered to the state government, or upfront payment.

Union Cabinet approves two significant policy initiatives

On 24 April 2008, the Union Cabinet cleared two policy initiatives, allowing private developers to set up captive airstrips and general airports. The Civil Aviation Ministry and the Directorate General of Civil Aviation (DGCA) will henceforth decide on all such proposals, after security clearance from the Ministry of Home Affairs. The new airport policy does away with the requirement of Cabinet approvals for greenfield airports, and instead suggests a steering committee under the Civil Aviation Secretary to coordinate and monitor approvals. A greenfield airport project to be set up by AAI or a private developer in compliance with the guidelines and located beyond 150 km of an existing civilian airport, will not require approvals from the Central government. DGCA will now directly grant licenses for such projects . A project beyond 150 km of an existing airport, but seeking some relaxation, will first be considered by the proposed steering committee, and approvals will depend on its recommendations. The proposal will be sent to the Cabinet if no consensus is reached with the committee. The policy also outlines that cargo airport and heliport proposals need not be submitted to the Ministry of Civil Aviation, but could be considered and decided by the DGCA. The government is also likely to appoint an Independent regulator for the Aviation sector by October 2008.

Orissa government to announce new agriculture policy

Orissa government is soon expected to announce the new agriculture policy, as the final draft has been prepared and will be placed before the state cabinet for approval. The policy aims at touching 4 per cent growth rate in the state's agricultural sector, by 2011-12, and benefiting farmers with increased incomes. This will be achieved through increase in foodgrain production like paddy, wheat, maize, ragi, millets, cereals and pulses. The new policy will emphasise on sustainability and environment protection.