New Delhi: Indian Oil, the nation's leading energy major, proudly announces the launch of STORM-X, a high-octane racing fuel tailored for racing cars, at the Madras International Circuit during the Indian National Car Racing Championship. This landmark event also celebrates the strategic partnership agreement signed between Indian Oil and the Madras Motor Sports Club (MMSC), aimed at revolutionizing motorsports in India.

The event was graced by Indian Oil's Director (Marketing) V Satish Kumar, who officially launched STORM-X by unveiling the brand logo in the presence of Indian Oil's Director (R&D) Alok Sharma and the office bearers of MMSC, including Ajit Thomas – President, Prabha Shankar – Secretary, and Vicky Chandhoke – Vice President. This collaboration marks a significant milestone, as Indian Oil will supply race fuels and lubricants and provide branding for the venue and vehicles during the Indian National Racing Championships (INRC).

In his speech, Indian Oil's Director (Marketing) V Satish Kumar mentioned, "At Indian Oil, we have always been at the forefront of providing high-quality fuels and lubricants to meet the diverse needs of our customers. We have numerous firsts to our name, including the launch of the country’s first 100 Octane fuel, XP100, and the introduction of XTRAGREEN diesel, which offers reduced emissions and improved fuel efficiency. Our portfolio also includes Ethanol100 for Flex fuel vehicles and Green Lubricants with established fuel economy and reduced CO2 emissions."

He further emphasized, "Indian Oil has a rich history of supporting motorsports, evidenced by its role as the title sponsor of MotoGP Bharat 2023 and its partnership with FIM for the Asia Road Racing Championship (ARRC) from 2024 to 2026. Indian Oil’s dedication to fostering excellence and innovation in motorsports is unwavering, and today's launch of STORM-X reinforces this commitment.”

MMSC's President Ajit Thomas expressed his enthusiasm, saying, “We are thrilled to collaborate with Indian Oil, a leader in the energy sector, to enhance the quality and competitiveness of motorsports in India. The launch of STORM-X at the Madras International Circuit is a testament to our shared commitment to advancing motorsport technology and providing an unparalleled racing experience."

New Delhi: The Employees' Provident Fund Officers' Association (EPFOA) has sought the intervention of the Union Labour Minister to improve the information technology infrastructure of the retirement fund body. In a letter to the minister earlier this week, the EPFOA emphasized the urgent need to upgrade the EPF IT systems – software, hardware, and IT manpower – which are causing significant strain on EPF staff and adversely affecting EPFO services.

The situation has become critical, with officers and offices reporting significant system deficiencies daily, the association said. The severely inadequate EPFO IT systems and resultant service bottlenecks are negatively impacting EPF services, it added. The EPFO application software is the foundational component of its service delivery infrastructure.

The body highlighted that this software is the primary platform through which regional offices process and adjudicate member claims. Recently, the software has shown significant instability, characterized by frequent outages, it stated. Over the past several weeks, the application's performance has deteriorated, leading to frequent system slowdowns, involuntary user logouts, and complete system failures, it pointed out.

Previously, the EPFO management attributed the software performance issues to concurrent user logins. However, the situation has now escalated to a critical juncture where system crashes and slowdowns occur even in the absence of heavy user traffic.

It has been observed that field offices have reported system failures during off-peak hours as well, it stated. The exigency of a comprehensive overhaul of the EPFO application software has been apparent for quite some time now, it noted. Despite this critical need, the implementation of such an overhaul has been repeatedly postponed for reasons that remain unclear, the body added.

While the EPFO is a financially robust organization independent of government administrative funding, the delay in launching the 2.0 version of the application software stands in stark contrast to the rapid technological advancements achieved by other departments, such as the Income Tax department, it stated. This discrepancy suggests a systemic failure to acknowledge the gravity of the situation, the EPFOA pointed out.

Any technological challenges have been vehemently denied, with an emphasis placed on purported progress, it added. It is reasonable to speculate that the claim settlement process would be exponentially accelerated with a fully functional software system.

"We respectfully urge your immediate attention to the escalating frustration experienced by EPFO officers and staff due to the persistent deficiencies of the application software and the perceived unresponsiveness of upper management," EPFOA said in the letter.

A comprehensive evaluation of the software by leading industry experts is imperative to diagnose the root causes of the issues and develop a contemporary software solution commensurate with the EPFO's status as the world's largest social security organization, it suggested.

"Over the past thirty months, we have consistently brought to the attention of the CPFC the ongoing critical issues affecting the EPFO’s IT infrastructure," the body said.

Piyush Goyal on Saturday appealed to the Indian diaspora of the US to help promote the country as a preferred investment destination, highlighting the vast opportunities available in various sectors

New Delhi: The Commerce and Industry Minister Piyush Goyal on Saturday appealed to the Indian diaspora of the US to help promote the country as a preferred investment destination, highlighting the vast opportunities available in various sectors.

He said that the government has taken a series of measures to attract investments and those steps include promoting ease of doing business, reducing compliance burden, opening sectors like space and efface for foreign direct investments.

Goyal also asked the diaspora to participate in making India a developed nation by 2047.

"Help promote brand India as a premium investment destination. Investing in India has tremendous growth potential and we saw NRI deposits (increasing to) $3 billion between April and May, and that is four times what it was last year. I am sure many of you would be looking at investments in the Indian stock market, bond market, banking systems, fixed deposits, depending on your appetite for risks," he said while virtually interacting with the Indian diaspora of the US.

He added that though at present the US is attractive for investors because of high interest rates, going forward India provides huge opportunities for businesses.

"I would invite all of you to invest in India. India's growth story will continue unfettered at a scorching pace. India would continue to lead the world economy and will continue to be the most favoured destination for investment, and manufacturing," Goyal said.

On clean energy, he said that India has the world's largest renewable energy programme of 500 GW.

"We already have 200 GW and we are ramping it up and may be on Tuesday's budget, let us wait and watch what further initiatives in these directions of sustainability are brought," he said.

Replying to a question about social media confusion during the general election, the union minister said "we have" lessons to learn as every election teaches a lot of new things.

"I can assure you that we are all working to understand evolving dynamics, what changed, what we need to focus on. After an election, there is always a period of time when anybody who has performed better than expected does have a little more arrogance and somebody who has performed less than expected does take time to introspect and course correction.
 

"So I think it's too early to provide the solution and talk of the solutions, but I can assure you that nobody here is resting one minute of the day, we are all focused," he added.

Replying to a question on judicial reforms, the minister said that it is a delicate subject.

"Everybody who becomes a judge talks of judicial reforms but resists any reforms, so it's a conundrum that we have to break. I am fairly confident that it's an idea whose time has come and we will see this sector also undergoing reform particularly to reduce the pendency of cases and the long duration to get justice," he said.

Airline operations across airports, which were impacted due to a global IT outage on Friday, returned to normalcy on Saturday with all services resuming.

New Delhi: Airline operations across airports, disrupted by a global IT outage on Friday, returned to normalcy on Saturday. All services, including ticket bookings, reservations, and the issuance of boarding passes, have fully reverted to the online mode, sources reported.

Earlier in the day, Union Minister for Civil Aviation K Ram Mohan Naidu announced that airline systems had started functioning normally, and all issues were expected to be resolved by noon on Saturday.

"All operations are back to normal. All our services, including bookings and reservations, have been online since late Friday evening," said an airline executive.

"The system is restored, and there is no disruption in our services. It is getting back to normalcy," said a senior executive from a budget airline.

Nevertheless, six to eight domestic flights were canceled at Chennai Airport on Saturday, according to airport authorities.

"About six flights in the domestic sector, including those to Coimbatore, Kolkata, Kochi, and Pune, were canceled by some airlines on Saturday. On the international route, there were no cancellations, though some airlines reported delays in departures and arrivals," an official stated.

On Friday, in one of the largest-ever IT outages, an update of a product by global cybersecurity firm CrowdStrike caused problems with Microsoft's Windows systems globally. This impacted operations at financial sector companies and airlines, led to the postponement of hospital operations, and caused some television channels to go off air.

Airports across the country experienced chaotic scenes as online passenger booking, reservation, and boarding systems reverted to manual mode due to the outage. This resulted in increased passenger handling time and consequently, hundreds of flights were delayed or canceled.

"Since 3 AM on Saturday, airline systems across airports have started working normally. Flight operations are proceeding smoothly now," Naidu said in a statement.

There is a backlog from the disruptions on Friday, which is being cleared gradually, the minister said, adding that the ministry is constantly monitoring operations at airports and airlines to ensure travel readjustments and refunds are managed.

Air India reported that its own resilient IT infrastructure remained unaffected on Friday and continues to function normally.

"We confirm that none of Air India's flights on 19 July were canceled due to the worldwide outage of travel systems, though there were some delays due to the impact on airport services," the airline stated.

The reservation and check-in systems of most airlines, including IndiGo, SpiceJet, Akasa, and Air India Express, are now operational, sources had said earlier in the day.

"I am going to Ahmedabad. Online printing (Digi Yatra) is convenient, which wasn't happening yesterday. Everything's fine today. Flights are on time. What happened yesterday was a network issue. No one can do anything about that," said a passenger at Delhi Airport.

"The global outage that led to operational difficulties is nearly resolved, and our teams have made significant progress in restoring normal operations. However, customers may still experience delays and schedule disruptions over the weekend," budget carrier IndiGo said.

IndiGo, the largest airline by domestic market share, operating over 2,000 daily flights, had to cancel around 200 flights due to the Microsoft outage issue.

Two other carriers, SpiceJet and Akasa Air, said late Friday evening that all their systems at airports, including ticket bookings, were up and running.

SpiceJet stated that "all its systems at airports, ticket bookings, and call centers are up and running smoothly after a successful resolution of a Microsoft outage that impacted the aviation industry throughout the day."

"While the global systems downtime of reservations, check-in, and boarding systems posed an unprecedented operational challenge to our ground services team, Akasa Air confirms that all its scheduled flights on Friday operated with minimal disruptions and no cancellations," the airline reported.

Union Minister of Coal and Mines G Kishan Reddy on Saturday launched the National District Mineral Foundation (DMF) portal, a centralised platform to gather information on the District Mineral Foundations across the country
Hyderabad: Union Minister of Coal and Mines G Kishan Reddy on Saturday launched the National District Mineral Foundation (DMF) portal, a centralised platform to gather information on the District Mineral Foundations across the country.

The portal provides details of 645 DMFs in the country with enhanced transparency, featuring centralised visibility of activities, project oversight, and dynamic analytics, as well as a repository of best practices for effective implementation, an official release said.

Reddy also launched the Mineral Exploration Hackathon focused on innovative mineral hunt techniques.

The hackathon is aimed at promoting use of emerging technologies like Artificial Intelligence (AI) and Machine Learning (ML) for geophysical data, integration of multiple mineral exploration data sets such as baseline data, available exploration data, etc, to identify new mineral targets, particularly for deep seated/concealed ore bodies.

During the programme, Reddy handed over certificates to eight preferred bidders of the second and third tranche of the e-auction of critical and strategic mineral blocks, the release added.
Deputy Chief Minister of Bihar Vijay Kumar Sinha and officials from various organisations were also present at the event.

Nepal to Sign Historic Tripartite Power Trading Deal to Export Electricity to Bangladesh via India

New Delhi: Nepal is set to sign a tripartite power trading agreement next week to export 40 MW of electricity to Bangladesh via India, a senior official said on Thursday.

This historic agreement marks the first time the Himalayan nation will sell electricity to a third country other than India.

"Ground has been cleared for the three countries to sign the agreement on exporting electricity to Bangladesh," said Chandan Kumar Ghosh, spokesperson at the Nepal Electricity Authority (NEA), the government-owned electricity body.

The Power Sales Agreement will be signed by officials from the NEA, the Bangladesh Power Development Board (BPDB), and NTPC Vidyut Vyapar Nigam Ltd (NVVN) of India at a function here on July 28, Ghosh said.

Nepal's Minister for Energy, Water Resources and Irrigation, Dipak Khadka; India's Power Minister, Manohar Lal Khattar; and Bangladesh's Power, Energy and Mineral Resources Minister, Nasrul Hamid, will witness the signing ceremony, he said.

Details of the Agreement

Under the agreement, the NEA will export 40 MW of hydroelectricity to Bangladesh via India from June 15 to November 15 every year. Nepal will receive a tariff of USD 0.064 per unit for selling electricity to Bangladesh.

The energy will be transmitted to India through the 400kV Dhalkebar-Muzaffarpur cross-border transmission line. India will then transmit the equivalent to Bangladesh. The delivery point will be a 400kV substation at Muzaffarpur in India, and Bangladesh will pay the transmission charge for using the Indian transmission infrastructure.

According to an estimate by the NEA, Nepal will earn around Rs 330 million through the sale of electricity.

Background and Future Plans

Last month, a meeting of the ‘Cabinet Committee on Government Purchase’ of Bangladesh approved a proposal to import 40 MW of electricity from Nepal.

In January, Nepal signed a long-term agreement for the export of 10,000 MW of power to India and jointly inaugurated three cross-border transmission lines during the two-day visit of External Affairs Minister S. Jaishankar to the Himalayan nation.

Nepal has prepared an energy development strategy with the intention of producing 28,000 MW of electricity in the next 12 years. Of that, a target has been set to export 15,000 MW to different countries, including India, according to Nepalese media.

NHPC-REL and Tata Power Renewable Energy Sign MoU for Rooftop Solar Projects under PM Surya Ghar Yojna

New Delhi: State-run NHPC Limited’s green subsidiary, NHPC Renewable Energy Limited (NHPC-REL), has signed a Memorandum of Understanding (MoU) with Tata Power Renewable Energy Limited (TPREL) to collaborate on the installation of Rooftop Solar projects across government buildings of Central ministries, states, and Union Territories. This initiative will be implemented under the PM Surya Ghar Yojna Scheme, which aims to achieve 100 percent solarisation of all government-owned buildings by December 2025.

The Ministry of New and Renewable Energy (MNRE) has appointed NHPC Limited as a Scheme Implementing Partner (SIP) to drive the Rooftop Solar (RTS) Projects, which will be executed by its wholly-owned subsidiary, NHPC-REL.

“TPREL, a distinguished leader in the solar energy sector, brings extensive expertise to ensure the seamless and timely execution of these projects. This powerful alliance is set to support the transformation of India’s energy landscape by harnessing the untapped potential of rooftop spaces on government buildings, fostering a cleaner and greener future,” said a statement issued by TPREL on Thursday. The MoU was signed on July 17 at the NHPC office complex in Faridabad. Key signatories included Deepesh Nanda, CEO and MD of TPREL, and SP Rathour, CEO of NHPC-REL.

Reducing Carbon Footprint of Government Buildings

NHPC CMD RP Goyal stated, “Partnering with Tata Power Renewables aligns perfectly with our mission to expand the use of renewable energy in India. This initiative will not only help us meet our solarisation targets but also contribute significantly to reducing the carbon footprint of government buildings. We look forward to a successful collaboration that paves the way for more sustainable energy solutions.”

Commenting on the development, Nanda, the CEO and MD of Tata Power Renewable Energy Limited, said, “We are excited to join hands with NHPC-REL in this significant venture to solarise government buildings across India. This collaboration represents a major step forward in our shared vision of a sustainable and green energy future. By leveraging our combined strengths, we are confident in achieving our goal of 100 percent solarisation by 2025, setting a benchmark for renewable energy projects in the country.”

Gevra and Kusmunda Mines Rank Among World's Largest Coal Mines

New Delhi: The Gevra and Kusmunda blocks of state-owned South Eastern Coalfields Limited (SECL) have secured the second and fourth spots, respectively, in the list of the world's 10 largest coal mines in terms of production volume, according to WorldAtlas.com.

Located in the Korba district of Chhattisgarh, these two mines collectively produce over 100 million tonnes (MT) of coal annually, accounting for approximately 10% of India's total coal production. SECL announced in a statement on Thursday, "Gevra and Kusmunda coal mines have secured the 2nd and 4th spots in the list of the world's 10 largest coal mines released by WorldAtlas.com."

Production Capacities and Achievements

The Gevra mine boasts an annual production capacity of 70 MT, having produced 59 MT of coal in FY'24. The Kusmunda mine, with a production exceeding 50 MT, further highlights the capacity of these open-cast mining projects managed by SECL.

SECL Chairman and Managing Director Prem Sagar Mishra expressed pride in the accomplishment, stating, "It is a proud moment that two of the world's five largest coal mines are in Chhattisgarh."

Global Comparison

In comparison, the Black Thunder Mine and North Antelope Rochelle Mine in the US claimed the first and third spots, with estimated productions of 62.68 MT and 56.25 MT of coal in 2023, respectively. Northern Shaanxi Mine in China secured the fifth spot with a production of 41.34 MT last year.

SECL's Contribution and Future Plans

Based in Bilaspur, SECL is one of the top three coal-producing subsidiaries of Coal India Ltd (CIL), operating under the Ministry of Coal. SECL operates 59 blocks, contributing significantly to CIL's total output. In FY24, CIL's production was 773 MT, with SECL contributing 187 MT.

SECL is committed to further enhancing its production capabilities through technological advancements and sustainable mining practices. The company is exploring the use of automation and advanced machinery to increase efficiency and reduce the environmental impact of its operations.

Economic Impact

The Gevra and Kusmunda mines play a critical role in supporting India's energy needs and contribute significantly to the local economy by providing employment and supporting ancillary industries. The success of these mines underscores India's capability in large-scale mining operations and its importance in the global coal market.

Environmental and Sustainability Initiatives

SECL is also focused on implementing environmentally sustainable practices. The company is investing in reclamation and rehabilitation of mined-out areas, and implementing water management and dust control measures to minimize the environmental footprint of its operations.

Government Offices in India Mandated for 100% Solarisation by 2025 under PM Surya Ghar Scheme

New Delhi: Government offices in India have been mandated to achieve 100% solarisation by 2025 under the PM Surya Ghar scheme. All government buildings under the administrative control of the Centre, states, and Union Territories must be equipped with rooftop solar systems. An official order to this effect has been issued to all Central ministries on Thursday, according to a source. The ministries can either install rooftop solar systems through the CAPEX model or the RESCO model, with the project being given top priority.

Earlier this month, the Ministry of New and Renewable Energy (MNRE) released operational guidelines for the installation of rooftop solar systems on government buildings under the PM Surya Ghar: Muft Bijli Yojana.

PM Surya Ghar: PSUs to Assist Ministries in Deploying Rooftop Solar

Public Sector Undertakings (PSUs) experienced in renewable energy technology deployment will be allocated on a nomination basis to assist Central Ministries in deploying rooftop solar on their assets. On July 17, NHPC Limited signed an agreement with Tata Power Renewable Energy Limited (TPREL) to deploy rooftop solar across government buildings. NHPC is one of the Scheme Implementing Partners (SIP) for this component of the PM Surya Ghar Yojana. Other PSUs assigned as SIPs include NTPC, SJVN, Power Grid Corporation, THDC, Energy Efficiency Services Limited (EESL), Solar Energy Corporation of India (SECI), NEEPCO, Damodar Valley Corporation (DVC), REMC Limited, and NTPC Vidyut Vyapar Nigam (NVVN).

No central financial assistance will be provided to ministries and departments for these projects. "Under the scheme, all government rooftops under the administrative control of Central Government Ministries/Departments, including autonomous bodies and subordinate offices, shall be equipped with rooftop solar to the extent that is technically feasible by December 31, 2025. Ministries may utilize available rooftop space for this purpose through the RESCO mode or CAPEX mode, on a priority basis," according to the guidelines released by the MNRE.

Arvind Kumar Appointed Director (Refineries) at Indian Oil

New Delhi: Indian Oil, the oil Maharatna, announced on Wednesday that Arvind Kumar has assumed office as Director (Refineries). Previously serving as Managing Director of Chennai Petroleum Corporation Limited (CPCL), a group company of Indian Oil, Kumar brings a wealth of experience and achievements to his new role.

During his tenure at CPCL, Kumar spearheaded significant achievements, including the turnaround of CPCL and Manali refinery, achieving record throughput in fiscal year 2023-24. His strategic leadership enabled CPCL to produce nationally significant fuels such as ISROSENE and JP-7, critical for ISRO and DRDO.

Before CPCL, Kumar served as Executive Director (Projects) at Indian Oil's Refineries Headquarters and as Executive Director & Refinery Head at Mathura Refinery from 2020-21. He also chaired Indian Additives Limited (IAL), a joint venture specializing in lubricating oil additives, achieving record profits in 2023-24. Additionally, he served on the Board of Cauvery Basin Refinery and Petrochemicals Limited (CBRPL), overseeing a new refinery and petrochemicals complex in Nagapattinam.

Arvind Kumar holds a Bachelor's Degree in Mechanical Engineering, a Master's Degree in Business Administration, and is a Certified Project Director (IPMA Level A) by the International Project Management Association (IPMA). With a distinguished 34-year career in the oil & gas sector, Kumar is well-positioned to drive Indian Oil's refinery operations forward.

Commerce Minister Piyush Goyal Advances India-UK FTA Talks at G7 Meeting

New Delhi: Commerce and Industry Minister Piyush Goyal met UK Secretary of State for Business and Trade Jonathan Reynolds in Italy to discuss advancing negotiations on the proposed free trade agreement (FTA), according to an official statement on Wednesday.

The bilateral meeting occurred on the sidelines of the G7 Trade Ministers' gathering in Reggio Calabria, Italy.

The India-UK FTA talks, initiated in January 2022, paused during respective general election cycles after the 14th round.

"Goyal congratulated Mr. Jonathan Reynolds on his appointment and discussed enhancing bilateral economic relations, including plans to move forward with FTA discussions," stated the commerce ministry.

FTAs aim to significantly reduce or eliminate customs duties on a broad range of traded goods while promoting trade in services and investments through eased norms.

Key issues include Indian industry's demand for expanded UK market access for skilled professionals in IT and healthcare, alongside duty-free entry for specific goods. Conversely, the UK seeks reduced tariffs on scotch whiskey, electric vehicles, lamb meat, chocolates, and confectionery.

Negotiations also encompass a bilateral investment treaty spanning goods, services, investments, and intellectual property.

India-UK bilateral trade rose to USD 21.34 billion in 2023-24 from USD 20.36 billion the previous year. The Labour Party manifesto pledged to finalize the deal.

Goyal also engaged with Valdis Dombrovskis of the European Commission on bolstering India-EU economic ties and ongoing FTA negotiations. Discussions with New Zealand's Trade Minister Todd McClay explored avenues for enhancing bilateral trade and investment.

New Delhi: The European Union's Carbon Border Adjustment Mechanism (CBAM) will impose additional 25 percent tax on energy-intensive goods exported from India to the EU, a new report said on Wednesday.

This tax burden would represent 0.05 percent of India's GDP, according to the report titled "The Global South's response to a changing trade regime in the era of climate change" by the independent think tank Centre for Science and Environment (CSE).
 

These findings are based on data from the past three years (2021-22, 2022-23, and 2023-24).

CBAM is the EU's proposed tax on energy-intensive products, such as iron, steel, cement, fertilizers, and aluminum, imported from countries like India and China. The tax is based on the carbon emissions generated during the production of these goods.

The EU argues that this mechanism creates a level playing field for domestically manufactured goods, which must adhere to stricter environmental standards, and helps reduce emissions from imports. But other nations, particularly developing countries, are worried this would harm their economies and make it too expensive to trade with the bloc.

The move has also sparked debate at multilateral forums, including UN climate conferences, with developing countries arguing that, under UN climate change rules, countries cannot dictate how others should reduce emissions.

Avantika Goswami, who leads CSE's climate change programme, said that India's CBAM-covered goods exports to the EU accounted for 9.91 percent of its total goods exports to the bloc in 2022-23.

She said 26 percent of India's aluminum and 28 percent of its iron and steel exports were destined for the EU in 2022-23. These sectors dominate the basket of CBAM-covered goods shipped from India to the EU.
 

In 2022-23, the exports of CBAM-covered goods to the EU made up about one-fourth (25.7 percent) of India's total such goods exported globally, which is significant for the industries operating in these sectors.

Currently, hydrogen and electricity are not exported from India to the EU.

Of India's total goods exported worldwide, CBAM-covered goods exports to the EU constitute only about 1.64 percent.

Increased Power Sector Demand Drives LNG Imports Up by 11.3% in June

New Delhi: On account of increased demand from the power sector, Liquefied Natural Gas (LNG) imports for the month of June saw an 11.3 percent year-on-year increase, according to government data. India imported 2,648 MMSCM (Million Metric Standard Cubic Meters) of LNG in June this year compared to 2,380 MMSCM in June 2023. The total natural gas consumption for June stood at 5,594 MMSCM, marking a 7.1 percent increase from the same month the previous year.

The rise in LNG imports for June was also influenced by a modest 2.9 percent growth in domestic natural gas production compared to the corresponding month of the previous fiscal year. This surge in import demand underscores the power sector's dependency on LNG to meet its energy requirements.

LNG Imports in Q1 of FY25 See Minimal Growth

Despite the significant increase in June, the overall LNG imports for Q1 of FY2024-25 grew by only 0.6 percent compared to the same quarter of the previous financial year. This limited growth is attributed to a sluggish increase in natural gas consumption during the April-June period of FY2024-25 and a relatively higher rise in domestic production. Natural gas consumption in the first three months of FY2024-25 increased by only 3.8 percent to 16,707 MMSCM, while domestic production rose by 5.7 percent to 9,056 MMSCM in the same period. Consequently, the import dependency for Q1 of FY25 for natural gas stood at 46.7 percent.

Government Targets for Natural Gas Share in Energy Mix

The share of natural gas in India's overall energy consumption has remained static at 5.8 percent over the past six years. The Indian government has set an ambitious target of increasing this share to 15 percent by 2030. The country's natural gas consumption was 64,144 MMSCM in 2019-20, rising by 3.8 percent to 66,634 MMSCM in 2023-24. The spike in June is largely due to seasonal demand from gas-based power plants, which have been mandated by the government to operate at full capacity to meet peak power demands during the summer months.

Future Projections and Strategic Measures

To achieve the 2030 target, the government is focusing on expanding infrastructure, including LNG regasification terminals, pipeline networks, and boosting domestic production capabilities. Initiatives like the North-East Gas Grid and the Pradhan Mantri Urja Ganga project are expected to enhance connectivity and access to natural gas across the country, promoting a shift towards cleaner energy sources.

Furthermore, the government is encouraging the adoption of gas-based power generation through policy measures and incentives aimed at improving the viability and competitiveness of natural gas in the energy market. This includes facilitating long-term LNG import contracts, reducing taxes and tariffs on natural gas, and providing financial support for the development of gas infrastructure.

International Collaboration and Market Dynamics

India is also seeking to strengthen its energy security through international collaborations and diversifying its LNG import sources. Recent agreements with countries like the United States, Russia, and Qatar aim to ensure a stable and affordable supply of LNG. The global LNG market dynamics, including price fluctuations and supply chain disruptions, will continue to play a crucial role in shaping India's natural gas strategy.

Narendra Modi-led NDA Government Reconstitutes NITI Aayog with New Members

New Delhi: The Narendra Modi-led NDA government has reconstituted the NITI Aayog, appointing four full-time members and 15 union ministers, including members from BJP allies, as either ex-officio members or special invitees.

Prime Minister Narendra Modi remains the chairperson, and economist Suman K. Bery will continue to serve as the vice-chairperson of NITI Aayog, according to an official notification.

Scientist V.K. Saraswat, agricultural economist Ramesh Chand, pediatrician V.K. Paul, and macro-economist Arvind Virmani will also continue as full-time members of the government think-tank.

The four ex-officio members are Union Ministers Rajnath Singh (Defence), Amit Shah (Home), Shivraj Singh Chouhan (Agriculture), and Nirmala Sitharaman (Finance).

The Prime Minister has approved the revised composition of the National Institution for Transforming India (NITI Aayog), the notification stated.

The special invitees in the reconstituted NITI Aayog include Union Ministers Nitin Gadkari (Road Transport and Highways), Jagat Prakash Nadda (Health), H.D. Kumaraswamy (Heavy Industries and Steel), Jitan Ram Manjhi (Micro, Small and Medium Enterprises), and Rajiv Ranjan Singh, also known as Lalan Singh (Fisheries, Animal Husbandry, and Dairying).

Other special invitees are Union Ministers Virendra Kumar (Social Justice and Empowerment), Kinjarapu Rammohan Naidu (Civil Aviation), Jual Oram (Tribal Affairs), Annpurna Devi (Women and Child Development), Chirag Paswan (Food Processing Industries), and Rao Inderjit Singh (Statistics and Programme Implementation).

Kumaraswamy belongs to NDA partner JD-S, Manjhi is from Hindustani Awam Morcha, Rajiv Ranjan Singh is from JD-U, Naidu is from TDP, and Paswan is from Lok Janshakti Party (Ram Vilas).

The National Institution for Transforming India, better known as NITI Aayog, was constituted in 2015 when the Modi government chose to replace the 65-year-old Planning Commission.

"Embracing a vision for holistic development and innovation, NITI Aayog is on a journey of transformative initiatives that promise to redefine India's future," the Aayog said in a Facebook post.

The government has reconstituted the NITI Aayog following changes in the council of ministers.

The Government is expected to announce a slew of measures in the full Budget for fiscal year 2024-25 to promote investments in the renewable energy space

New Delhi: The Government is expected to announce a slew of measures in the full Budget for fiscal year 2024-25 to promote investments in the renewable energy space, experts say.

Finance Minister Nirmala Sitharaman will present the 2024-25 Union Budget in Parliament on July 23.

Their expectation is that the government may announce policy-related measures, viability gap funding (VGF) and incentive schemes for the clean energy industry, the experts said.

"We expect the focus of the budget to remain green growth based... We expect the budget to focus more on renewables, storage, transmission and distribution network strengthening schemes.

"We expect policy measures to incentivise, and to encourage investments in (battery) storage groups," Girishkumar Kadam, Senior Vice President & Group Head - Corporate Ratings, ICRA Ltd said.

There is a slow progress being witnessed in pumped storage projects (PSP) space. Some policy bridges need to be announced to expedite the implementation of these projects as these are going to be very systemically important assets for India as far as energy transition is concerned, he said.

A VGF scheme can be thought of which has been announced for the battery storage products. The Production-Linked Incentive (PLI) Scheme is also being proposed but its framework is yet to be finalized. So that needs to be expedited by the government, Kadam said.

Ashwin Jacob, Partner, Industry Leader - Energy, Resources & Industrials at Deloitte said the government is also expected to provide concessional tax rate on sale of all carbon credits and Renewable Energy Credits (RECs) and, not limited to carbon credits validated by the UN Framework on Climate Change (UNFCC), along with clarification on set-off of losses and unabsorbed depreciation thereof.

He also recommended hydrogen purchase obligation (HPO) for sectors such as refinery and fertiliser to drive domestic demand.

Jacob further said currently, indirect tax has become a major cost component for the Green Hydrogen (GH) sector in two ways. First, the customs duty paid on the import of solar modules or solar cells used in setting up solar power plants for supplying renewable energy to GH plants.

Second, the loss of GST input pertaining to all procurements made by solar/wind power plants in setting up the unit, as the output electricity is exempt.

The electricity supplied by a solar/wind power plant to a GH unit should be considered as deemed export, so that the solar/wind power plant is eligible to claim refund of input GST, which then does not become a cost for the GH unit.

Alternatively, the Central Board of Indirect Taxes and Customs (CBIC) should also allow direct refund of the GST paid on all capital goods, inputs and input services used in generating power to solar/wind power plants, with the condition that output electricity is supplied exclusively to a GH unit.

The CBIC should provide upfront exemption from a 40 percent basic customs duty on the import of solar modules, with specified end-use condition of using such solar power plant for supplying electricity exclusively to a GH project, or provide the benefit of project import with concessional basic customs duty of 7.5 percent on solar power plant or solar power project, being set-up for supply of electricity exclusively to GH project.