Damodar Valley Corporation (DVC), the government-run power utility jointly owned by the centre, West Bengal and Jharkhand governments, is all set to introduce prepaid energy card and install prepaid meters in commercial establishments. It would also install tamperproof electronic meters and introduce AB conductor and underground cables on theft-prone areas to prevent pilferage of energy.
Secretary and financial adviser of DVC Umesh Kumar told Financial Chronicle that due to power theft and unauthorised connection in and around DVC colonies, the company was losing nearly Rs 60 crore annually.
Besides, the company was also losing nearly Rs 3 crore every month due to power pilferage by some big consumers, said Kumar spearheading these changes in DVC said.
The power utility has also realised evasion of another Rs 12 crore by way of detection of underbilling. “By use of RMR (Reliability Must Run) facilities and Sema project, comparative analysis of bills have already been done and actual consumption of the consumers has been done,” he said.
As a result of close monitoring of various consumers with the help of Sema project, apparent voltage drop has been identified and transmission loss of approximately Rs 1 crore per month has been detected. Action is being taken for checking this transmission loss.
Tuesday, 31 May 2011
Damodar Valley Corporation asks for Rs 5000 crore capital infusion
KOLKATA: Damodar Valley Corporation (DVC) has requested the government for fresh capital infusion to the tune of 5,000 crore. The company says if it does not receive the money, capacity expansion plans to the tune of 5,000 mw would not be realised.
The DVC is not a company under the Company's Act 1956, and cannot approach the capital market for raising money to meet it equity requirements. The proposal is currently lying with the finance ministry.
This power generator and utility company is an entity under the DVC Act of 1948 which received its last tranche of capital from the government way back in1968-69 and it was about 200 crore.
The fund was used to set up the company's generation units then. Its current equity base from surpluses and profits generated over the years has grown to about 5,000 crore as of March 2011.
Confirming the development a senior DVC official said: "We have requested the government for fresh capital infusion and if it doesn't come within the next two months major projects will be stalled. We have a number of projects that will be taken up between June and September this year."
The government's capital in DVC will be required to finance the equity portion of the projects being undertaken.
The proposed projects will require equity capital of 11,000 crore of which about 6,000 crore has been met out of internal reserves. The rest at 5,000 crore is being asked by DVC from the government. According to the DVC Act, equity for power projects is financed in equal proportion by the centre and state governments of West Bengal and Jharkhand.
Source ET
The DVC is not a company under the Company's Act 1956, and cannot approach the capital market for raising money to meet it equity requirements. The proposal is currently lying with the finance ministry.
This power generator and utility company is an entity under the DVC Act of 1948 which received its last tranche of capital from the government way back in1968-69 and it was about 200 crore.
The fund was used to set up the company's generation units then. Its current equity base from surpluses and profits generated over the years has grown to about 5,000 crore as of March 2011.
Confirming the development a senior DVC official said: "We have requested the government for fresh capital infusion and if it doesn't come within the next two months major projects will be stalled. We have a number of projects that will be taken up between June and September this year."
The government's capital in DVC will be required to finance the equity portion of the projects being undertaken.
The proposed projects will require equity capital of 11,000 crore of which about 6,000 crore has been met out of internal reserves. The rest at 5,000 crore is being asked by DVC from the government. According to the DVC Act, equity for power projects is financed in equal proportion by the centre and state governments of West Bengal and Jharkhand.
Source ET
Tuesday, 10 May 2011
Coal crunch hits Damodar Valley units
KOLKATA: A 1,000-mw power generation capacity, set up at an investment of 5,500 crore by Damodar Valley Corporation (DVC), is lying idle due to lack of coal, though the units are ready to run for commercial generation.
DVC had applied for coal linkage to the Coal Ministry in 2007 but is yet to receive a green signal. The company has set up two units each having 500 mw capacity. The first of these was synchronised in September 2010. The second was synchronised in March 2011.
When a plant achieves synchronisation, it is ready to generate power and pump it into the grid.
Confirming the development, a senior DVC official said: "The first unit for the Mejia project was scheduled to start commercial production by March 2010 while the second was scheduled by June 2010. But we are way beyond target due to non-availability of coal. Construction for the projects started during January 2007 and was scheduled to be completed in 42 months."
"We are trying to arrange coal for these units but have not received anything so far. Hence none of the units has started commercial generation," the official said.
The Economic Times
DVC had applied for coal linkage to the Coal Ministry in 2007 but is yet to receive a green signal. The company has set up two units each having 500 mw capacity. The first of these was synchronised in September 2010. The second was synchronised in March 2011.
When a plant achieves synchronisation, it is ready to generate power and pump it into the grid.
Confirming the development, a senior DVC official said: "The first unit for the Mejia project was scheduled to start commercial production by March 2010 while the second was scheduled by June 2010. But we are way beyond target due to non-availability of coal. Construction for the projects started during January 2007 and was scheduled to be completed in 42 months."
"We are trying to arrange coal for these units but have not received anything so far. Hence none of the units has started commercial generation," the official said.
The Economic Times
Coal blocks allocated to DVC face cancellation
The Coal Ministry has decided to deallocate 14 coal blocks and one lignite block awarded to public sector companies like NTPC and DVC, besides three private firms, over their failure to develop the same for captive use, an official said.
"The ministry is going to deallocate 15 blocks, including five allotted to National Thermal Power Corporation (NTPC). These firms were allotted 14 coal blocks and one lignite block in 2007, but failed to explore and develop the same despite showcause notices," a senior Coal Ministry official said.
Apart from NTPC, the ministry has decided to cancel the licenses for blocks awarded to Damodar Valley Corporation, Andhra Pradesh Power Generation Corporation, Tenughat Vidyut Nigam Ltd and the Electricity Boards of Bihar and Jharkhand, among others, for non-adherence to norms, the official said.
The private firms to which deallocation notices were issued include VS Lignite and Baidyanath Ayurved Bhawan. Earlier, the government had served notices on 81 steel, power and cement firms for not developing the coal blocks within the allocated timeframe.
The firms had given different reasons, including land acquisition problems, for their inability to develop these blocks.
Coal Minister Sriprakash Jaiswal had said the government was serious over the issue as the same concerned precious resources lying idle. To weed out non-serious players, the government had last year issued notices to the firms and sought their responses as to why coal blocks allocated to them should not be withdrawn, as they had failed to develop them within the allotted timeframe.
The companies which were issued showcause notices include Jindal Steel and Power Ltd, JSW Steel and GMR Energy, among others.
"The ministry is going to deallocate 15 blocks, including five allotted to National Thermal Power Corporation (NTPC). These firms were allotted 14 coal blocks and one lignite block in 2007, but failed to explore and develop the same despite showcause notices," a senior Coal Ministry official said.
Apart from NTPC, the ministry has decided to cancel the licenses for blocks awarded to Damodar Valley Corporation, Andhra Pradesh Power Generation Corporation, Tenughat Vidyut Nigam Ltd and the Electricity Boards of Bihar and Jharkhand, among others, for non-adherence to norms, the official said.
The private firms to which deallocation notices were issued include VS Lignite and Baidyanath Ayurved Bhawan. Earlier, the government had served notices on 81 steel, power and cement firms for not developing the coal blocks within the allocated timeframe.
The firms had given different reasons, including land acquisition problems, for their inability to develop these blocks.
Coal Minister Sriprakash Jaiswal had said the government was serious over the issue as the same concerned precious resources lying idle. To weed out non-serious players, the government had last year issued notices to the firms and sought their responses as to why coal blocks allocated to them should not be withdrawn, as they had failed to develop them within the allotted timeframe.
The companies which were issued showcause notices include Jindal Steel and Power Ltd, JSW Steel and GMR Energy, among others.
Tuesday, 3 May 2011
DVC to raise Rs 7,100 crore to fund expansion
KOLKATA: Damodar Valley Corporation (DVC) plans to raise Rs 7,100 crore in the current fiscal through a mix of bonds and bank loans to fund its expansion plans.
The state-owned power producer has planned a capital expenditure of Rs 8,200 crore this fiscal to add 2,200 MW of generation capacity. Of the Rs 7,100 crore, Rs 3,500 crore will be raised through bonds, for which DVC has called for expression of interest from financial institutions. The remaining will be borrowed from lending institutions.
"The bond will have a tenure of 15 years and we hope to receive sanctions for the sum from institutions in the next 3-4 weeks," a senior DVC official told ET. The fund will be drawn in a staggered manner over the year. The bond interest rates will be linked to yield on government securities with a certain spread, the official said.
"This sum is being raised to finance a portion of DVC's ongoing thermal projects that are slated to commission in the 12th Five-Year Plan period," he said.
DVC's plans include addition of 1,200 MW capacity at its Raghunathpur Thermal Power Station, and a 500 MW plant at Maithon Raight Bank in Jharkhand in a joint venture with Tata Power Company.
The company will borrow Rs 2,800 crore from lenders for its 500 MW Bokaro project, a thermal power project in Jharkhand and to build road links and switch yards.
The Bokaro project, for which work has started, is to be commissioned in the early part of the 12th Plan period. It is being financed on a 70:30 debt-equity ratio.
"We have already spent our equity portion on the project from internal resources and will raise the debt portion of Rs 2,800 crore now," the DVC official said.
The company will also raise Rs 800 crore from financial institutions for transmission and distribution projects. Total investment on the project is estimated at Rs 1,182 crore, including 225 km of 400 kv transmission lines, 438 km of 220 kv lines, and 66 km of 130 kv lines.
The state-owned power producer has planned a capital expenditure of Rs 8,200 crore this fiscal to add 2,200 MW of generation capacity. Of the Rs 7,100 crore, Rs 3,500 crore will be raised through bonds, for which DVC has called for expression of interest from financial institutions. The remaining will be borrowed from lending institutions.
"The bond will have a tenure of 15 years and we hope to receive sanctions for the sum from institutions in the next 3-4 weeks," a senior DVC official told ET. The fund will be drawn in a staggered manner over the year. The bond interest rates will be linked to yield on government securities with a certain spread, the official said.
"This sum is being raised to finance a portion of DVC's ongoing thermal projects that are slated to commission in the 12th Five-Year Plan period," he said.
DVC's plans include addition of 1,200 MW capacity at its Raghunathpur Thermal Power Station, and a 500 MW plant at Maithon Raight Bank in Jharkhand in a joint venture with Tata Power Company.
The company will borrow Rs 2,800 crore from lenders for its 500 MW Bokaro project, a thermal power project in Jharkhand and to build road links and switch yards.
The Bokaro project, for which work has started, is to be commissioned in the early part of the 12th Plan period. It is being financed on a 70:30 debt-equity ratio.
"We have already spent our equity portion on the project from internal resources and will raise the debt portion of Rs 2,800 crore now," the DVC official said.
The company will also raise Rs 800 crore from financial institutions for transmission and distribution projects. Total investment on the project is estimated at Rs 1,182 crore, including 225 km of 400 kv transmission lines, 438 km of 220 kv lines, and 66 km of 130 kv lines.
DVC to raise INR 7100 crore to fund expansion
Damodar Valley Corporation plans to raise INR 7100 crore in the current fiscal through a mix of bonds and bank loans to fund its expansion plans.
The state owned power producer has planned a capital expenditure of INR 8200 crore this fiscal to add 2200 MW of generation capacity. Of the INR 7100 crore, INR 3500 crore will be raised through bonds for which DVC has called for expression of interest from financial institutions. The remaining will be borrowed from lending institutions.
A senior DVC official said that "The bond will have tenure of 15 years and we hope to receive sanctions for the sum from institutions in the next 3 weeks to4 weeks’."
The fund will be drawn in a staggered manner over the year. The bond interest rates will be linked to yield on government securities with a certain spread.
This sum is being raised to finance a portion of DVC’s ongoing thermal projects that are slated to commission in the 12th Five Year Plan period.
(Sourced from The Economic Times)
The state owned power producer has planned a capital expenditure of INR 8200 crore this fiscal to add 2200 MW of generation capacity. Of the INR 7100 crore, INR 3500 crore will be raised through bonds for which DVC has called for expression of interest from financial institutions. The remaining will be borrowed from lending institutions.
A senior DVC official said that "The bond will have tenure of 15 years and we hope to receive sanctions for the sum from institutions in the next 3 weeks to4 weeks’."
The fund will be drawn in a staggered manner over the year. The bond interest rates will be linked to yield on government securities with a certain spread.
This sum is being raised to finance a portion of DVC’s ongoing thermal projects that are slated to commission in the 12th Five Year Plan period.
(Sourced from The Economic Times)
DVC unit lockout called off
HAZARIBAG: The three-day lockout of the Damodar Valley Corporation's Koderma thermal power station at Banjhedih by the Visthapit Sangarh Samiti Mazdoor Sangh was called off on Sunday.
The agitation was withdrawn following a discussion between the protesters who had the support of three local MLAs Annapura Devi of the RJD and Uma Shanker Akela and Amit Kumar Yadav of the BJP and the DVC management at Koderma. The protesters were demanding that their 11-point charter of demand be fulfilled.
DVC director A K Mallik, who initiated the negotiations with the MLAs, said the management agreed to consider some of the demands like giving employment to causal workers in the construction of the plant and providing 64 tubewells in the 32 villages of displaced people.
Sources said the company management had not guaranteed the displaced persons permanent employment in the plant nor had it agreed to provide power from the 1,000 MW power station to the affected villages when the project is commissioned.
The DVC authorities had explained to the agitators that although the company generates power but it cannot distribute for domestic consumption since the distribution is made by the state electricity boards concerned.
The sources said the management had informed the villages that the next round of talks would be on April 27 in Ranchi in the presence of chief minister Arjun Munda and DVC chairman Devendra Singh. The three MLAs will also be present in the meeting.
All affiliated trade unions like the DVC Officers' Forum, DVC Shramik Union, DVC Karamchari Sangh and DVC Mazdoor Sangh and DVC Kamgar Union criticised the agitators and described the demands as illegal.
General secretary of the DVC Officers Forum Sanjay Kumar Singh claimed that the company incurred a lost of Rs 30 crore because of suspension of work. "The agitation has also delayed the scheduled commissioning time by more than three weeks.
The plant was scheduled to be commissioned in June but it will not be possible now," said Singh.
Times of India
The agitation was withdrawn following a discussion between the protesters who had the support of three local MLAs Annapura Devi of the RJD and Uma Shanker Akela and Amit Kumar Yadav of the BJP and the DVC management at Koderma. The protesters were demanding that their 11-point charter of demand be fulfilled.
DVC director A K Mallik, who initiated the negotiations with the MLAs, said the management agreed to consider some of the demands like giving employment to causal workers in the construction of the plant and providing 64 tubewells in the 32 villages of displaced people.
Sources said the company management had not guaranteed the displaced persons permanent employment in the plant nor had it agreed to provide power from the 1,000 MW power station to the affected villages when the project is commissioned.
The DVC authorities had explained to the agitators that although the company generates power but it cannot distribute for domestic consumption since the distribution is made by the state electricity boards concerned.
The sources said the management had informed the villages that the next round of talks would be on April 27 in Ranchi in the presence of chief minister Arjun Munda and DVC chairman Devendra Singh. The three MLAs will also be present in the meeting.
All affiliated trade unions like the DVC Officers' Forum, DVC Shramik Union, DVC Karamchari Sangh and DVC Mazdoor Sangh and DVC Kamgar Union criticised the agitators and described the demands as illegal.
General secretary of the DVC Officers Forum Sanjay Kumar Singh claimed that the company incurred a lost of Rs 30 crore because of suspension of work. "The agitation has also delayed the scheduled commissioning time by more than three weeks.
The plant was scheduled to be commissioned in June but it will not be possible now," said Singh.
Times of India
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