Matthias's Feed
Aug 16, 2013

Delhi power company struggles to pay dues as blackouts loom

NEW DELHI, Aug 16 (Reuters) – Gopal Saxena, the chief
executive of a power distribution company run by Reliance
Infrastructure Ltd, which is controlled by Indian
billionaire Anil Ambani, faces a tough choice.

He could break a mandate to supply around-the-clock
electricity to 1.8 million customers in south and west Delhi, or
he could wait for two power utilities to make good on threats to
cut off supplies to his company unless they are paid $590
million owed in late payments.

Aug 12, 2013

GVK looks to reschedule debt as power business ails

NEW DELHI (Reuters) – GVK Power and Infrastructure (GVKP.NS: Quote, Profile, Research) has asked lenders to reschedule loans worth $214 million to its power business, which has been hit by gas supply shortages that have left its power plants running far below their normal capacity.

The company, whose interests span highway construction to coal mining, has asked lenders for an extended moratorium of two years on its debt, Isaac George, the chief financial officer of GVK, told Reuters by phone.

Aug 12, 2013

India’s GVK looks to reschedule debt as power business ails

NEW DELHI, Aug 12 (Reuters) – India’s GVK Power and
Infrastructure has asked lenders to reschedule loans
worth $214 million to its power business, which has been hit by
gas supply shortages that have left its power plants running far
below their normal capacity.

The company, whose interests span highway construction to
coal mining, has asked lenders for an extended moratorium of two
years on its debt, Isaac George, the chief financial officer of
GVK, told Reuters by phone.

Aug 8, 2013
via India Insight

India’s energy price reforms face hurdles

Photo

(Any opinions expressed here are those of the author and not of Thomson Reuters)

India has raised gas prices and also made it easier for power companies to pass on the rising costs of imported coal to customers – two policy steps aimed at boosting fuel supplies and helping to minimize the country’s chronic power shortages.

However, the reforms are unlikely to be a quick fix for India’s blackouts. It may take at least two years for the gas price rise to boost fuel supplies as investments in output and import facilities bear fruit, but even then the key to the plan may lie with distribution companies.

Jul 5, 2013

Energy price reforms no quick fix for India’s blackouts

NEW DELHI (Reuters) – India is betting a gas price hike will boost supply and help fix the country’s chronic power shortages, but the plan may falter unless the debt-laden industry can pass on higher energy costs to consumers or win government subsidies.

The government last week set out a formula that could double gas prices from next April to around $8.40 per million British thermal units (mmBtu), bringing them nearer to globally traded prices in a bid to lift imports of liquefied natural gas (LNG) and spur investment in local output.

Jun 21, 2013

India allows power firms to pass on imported coal costs

NEW DELHI, June 21 (Reuters) – India has decided to allow
some power companies to pass on the costs of foreign coal to
customers, a minister said on Friday, in a move likely to boost
imports and investment in power generation but bring higher
prices.

The policy will apply only to power stations that rely
principally on domestic coal and buy imports to make up for
local shortfalls, however. Tata Power Co, one of the
country’s best known utilities, said the policy should be
extended to plants that rely on imported coal.

Jun 17, 2013

Road building revival offers rare hope for India infrastructure overhaul

NEW DELHI/MUMBAI (Reuters) – K. Ramchand, managing director at one of India’s biggest road builders, is doing something unusual to help dispel the gloom pervading much of the country’s infrastructure sector today: bidding for new projects.

His company, IL&FS Transportation Networks Ltd (ILFT.NS: Quote, Profile, Research, Stock Buzz), signed a $300 million contract in April to build a six-lane highway. The project will link an eastern industrial zone afflicted by some of India’s worst traffic snarls to mining districts such as Dhanbad, the nation’s coal capital.

Jun 16, 2013

JD(U) splits away from BJP ahead of election

NEW DELHI (Reuters) – Powerful regional party Janata Dal (United) pulled out of the main opposition alliance on Sunday, a split that could hobble the rise of controversial Hindu nationalist leader Narendra Modi who hopes to oust the ruling Congress party in elections due by May 2014.

The Janata Dal (United) party or JD(U) , based in Bihar, announced it would end a 17-year-old alliance with the Bharatiya Janata Party (BJP) after the BJP promoted firebrand leader Narendra Modi to lead its election campaign.

Jun 16, 2013

India’s main opposition alliance splits ahead of election

NEW DELHI (Reuters) – A powerful Indian regional party pulled out of the main opposition alliance on Sunday, a split that could hobble the rise of a controversial Hindu nationalist leader who hopes to oust the ruling Congress party in elections due by May 2014.

The Janata Dal (United) party, based in the eastern state of Bihar, announced it would end a 17-year-old alliance with the Bharatiya Janata Party (BJP) after the BJP promoted firebrand leader Narendra Modi to lead its election campaign.

Jun 5, 2013

L&T wins $300 million gas project in Saudi Arabia

NEW DELHI (Reuters) – Larsen & Toubro (L&T)(LART.NS: Quote, Profile, Research) won an infrastructure contract worth nearly $300 million from Saudi Aramco as India’s biggest construction and engineering firm chases overseas projects to offset a slowdown at home.

L&T has steadily expanded its global footprint, recently winning a construction project at the Abu Dhabi airport. The firm is further bidding for about $3 billion worth of projects in the region, including more construction work for Aramco and an oil refinery in Oman, its CEO told Reuters.