Millennium Post

ONGC seeks green nod for drilling 45 KG basin wells

State-owned ONGC has approached the Ministry of Environment and Forests (MoEF) seeking clearance for drilling 45 Development Wells and other related infrastructure involving a cost of over Rs 53,000 crore in Krishna-Godavari basin. An expert appraisal committee (EAC) under the MoEF, however, sought more information in this regard.

The block KG-DWN-98/2 or KG-D5 is divided into two parts -- Northern Development Area (NDA) which is deep waters with a depth of up to 1,800 metres, and Southern Development Area (SDA) which has ultra-deep waters with depth ranging up to 3,100 metres. The present proposal is submitted for development in the Northern Development area. 

“The following facilities have been proposed to be set up as part of development drilling in NDA Offshore NELP-I Block KG-DWN-98/2 of KG Basin, Andhra Pradesh: Development drilling of 45 offshore wells, Floating Production Storage Offloading (FPSO), Fixed Offshore Platform, Subsea Equipment, <g data-gr-id="62">Sub-sea</g> pipeline and <g data-gr-id="61">Onland</g> Terminal,” the EAC said in minutes of the meeting. The NELP-I offshore block KG-DWN-98/2 is located off Godavari delta on the east coast of India. A public hearing was also conducted for the on-land terminal in December, 2013, by the Andhra Pradesh Pollution Control Board and other district officials. 

“The proposal was deferred till the desired information is submitted. The above information shall be provided with the uploading of minutes on the website,” the EAC said. It asked for details on forest land involved and a copy of forest clearance, besides evacuation plans involving the cost implication and measures to be undertaken in the event of a tsunami and cyclone.

ONGC is slated to begin production in 2019, with a peak output of 4.5 million tonnes a year, 20 <g data-gr-id="56">per cent</g> more than previous estimates. The Krishna Godavari basin block KG-DWN-98/2, or KG-D5, will see first large oil production from the east coast, which has 10 gas discoveries, ONGC had earlier said. KG-D5 sits next to Reliance Industries’ producing KG-DWN-98/3 or KG-D6 area. Meanwhile, the recent e-auction of regasified liquefied natural gas (R-LNG) will revive stranded gas-based projects but improving domestic gas availability will be crucial for the sector, Care Ratings said. According to the rating agency, the scheme has been devised for utilisation of stranded gas-based power plants by providing the subsidised fuel and tariff subsidy to improve availability of power and arrest deterioration in the credit quality for banks/financial institutions.

The auctions were conducted on May 12 and 13 and power plants with aggregate capacity of 10.27 GW have been selected based on the lowest quantum of subsidy per unit quoted. “However, the success of <g data-gr-id="43">entire</g> scheme is critically dependent on softer prices of R-LNG and favourable dollar/ rupee exchange rate. 

While the scheme is intended for interim relief, the long term viability of the gas based projects would depend on improvement in domestic gas availability,” it said. Apart from this, the ability of power generators to find buyers for electricity generated will be challenging as per unit price to <g data-gr-id="48">discoms</g> has been fixed at Rs 4.7-5.5 for stranded projects and Rs 3.39 for plants receiving limited domestic gas.

These power plants are expected to add 31.49 billion units power in primarily three states of Andhra Pradesh, Gujarat and Maharashtra. “The average cost of power purchase for <g data-gr-id="42">discoms</g> in these states are likely to increase between 35-40 paisa per unit in FY16 after implementation of the scheme. As the tariff, as per the scheme, is higher than the average power purchase cost for distribution entities in these states where power deficit levels are negligible, the ability to tie up PPAs would be crucial,” it said. 

Tata Power back in black with RS 159 <g data-gr-id="141">cr</g> Q4 net profit
Tata Power on Tuesday posted a consolidated net profit of Rs 159.14 crore for the January-March quarter of 2014-15 against a loss of Rs 145.33 crore in the same quarter of previous fiscal.

Total income of the company decreased to Rs 8,227.14 crore for the quarter ended March 31, 2015, from Rs 8954.87 crore for the quarter ended March 31, 2014, Tata Power Company said in a BSE filing.

It posted a net profit after taxes, minority interest and share of profit of associates of Rs 167.83 crore for the year ended March 31, 2015, against a loss of Rs 259.97 crore for the year ended March 31, 2014. Its total income fell to Rs 34,783.59 crore for the year ended March 31, 2015, from Rs 35,311.24 crore for 2013-14, it added.
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