Energy and Utilities Sector in India Monthly Update July 2013
Top Story Indian Wind Power Association (IWPA) asks government to reintroduce fiscal incentives Chennai‐based IWPA has asked the government to re‐consider the roll back of 2 fiscal incentives to facilitate investment by small scale industries and IPPs in the energy and utility sector. Due to lack of incentives fresh investments by small scale industries and IPPs in the wind power sector are diminishing. Equipment and spares manufacturing industry which is capable of manufacturing 5000 MW per year had no order and have collapsed since 2012. The ever vibrant Wind Power sector of India is lame and duck now. The Government had rolled back twin incentives such as Accelerated Depreciation (AD) and Generation‐Based Incentive (GBI) in April last year. India had invested around INR 192 bn to add 3,200 MW wind power capacity in 2011‐12. However, addition of wind‐based capacity declined 46% to 1,700 MW in 2012‐13. Reintroducing Accelerated Depreciation and Generation Based Incentives after a break of one year will give a big boost to the investment in the wind generation sector.
News Update General Gamesa India signed a wind project order with ITC Chennai‐based Gamesa Wind Turbine Private Limited has signed a 46 MW wind power project order with ITC Paperboards and Specialty Papers Division, part of the ITC Group. Gamesa would supply 23 X 2 MW turbines to ITC at Tagguparthi under this contract. The full scope of site development, supply & commissioning of the turbines and operation & maintenance would be undertaken by Gamesa India. The commissioning is programmed to be completed in the 1st quarter of 2014. Gamesa India will make a strong presence in the state of Andhra Pradesh with this business deal. UP to be a magnet for private investment in solar energy projects The Uttar Pradesh government has decided to attract private investment in the solar power generation sector by offering a competitive tariff to those, who are willing to set up such plants in 13 months time period. The solar power generation in Uttar Pradesh is only around 13 MW. Energy and Utility – Monthly Update
New and Renewable Energy Development Agency (NEDA) would handle the task to take up "tariff‐based competitive bidding" for purchase of 200 MW power from solar photovoltaic projects to be established in the state. In the competitive bidding, the companies will bid tariff at which they will be able to provide solar power to the state, taking into account their investment. Reliance Gas Pipeline Ltd (RGPL) gets license for ShahdolPhulpur pipeline Reliance Gas Pipeline Limited (RGPL) has been granted license for constructing a 312 km pipeline from Petroleum and Natural Gas Regulatory Board (PNGRB) on 11th July. The pipeline will be used to transport coal gas produced from Reliance Industries Limited’s Sohagpur block in Madhya Pradesh. The pipeline will have a capacity to transport 4.3 mn standard cubic meters per day of gas including 0.875 mmscmd capacity which will be available for any 3rd party for open access on fair basis. The regulatory board sanctioned the license rights to lay the pipeline from Shahdol in Madhya Pradesh to Phulpur near Allahabad in Uttar Pradesh. RGPL is allowed a maximum period of 3 years from the date of issue of authorization letter for commissioning of the natural gas pipeline project. A performance bond of INR 132 mn has been furbished by RGPL, as a guarantee for timely commission of the project. Long term demand outlook strong for wind energy in India Demand outlook for wind energy in India is expected to remain strong in the long run. Increasing demand will be supported by large wind energy requirements to meet the renewable purchase obligation (RPO) requirements in the country. Wind‐based energy has a better cost competitiveness compared to conventional power sources especially against the backdrop of scarcity and increase in fuel prices. The demand is further stimulated by National Action Plan for Climate Control (NAPCC), recommending a target of renewable energy mix in the overall energy procurement by utilities at 10% by 2015 and 15% by 2020. Pakistan seeks cooperation from India in Renewable Energy sector Pakistan has underlined the scope of cooperation in renewable energy with India. In the last few days, they have had expert level delegations. The Pakistan High Commissioner to India described the cooperation in the agriculture and electricity sector as mutually beneficial. The Pakistani visiting team was looking at renewable energy and use of solar power in agriculture especially. The team has also visited some solar power plants in India. Indian farmers can also benefit from each other's experience since both countries have almost similar weather conditions. There are some good agricultural universities in Pakistan which will be happy to team up with similar institutions in India.
Energy and Utility – Monthly Update
News Update Expansion Plans Oil India plans to invest INR 120,000 mn in North East by 2017 Oil India Ltd is planning to invest INR 120,000 mn in the North East by 2017 on projects which include expansion of exploration work and diversification of business. They have set a capex target of INR 190,000 mn for the 12th Five‐Year Plan till 2017. Out of this, INR 120,000 mn will be invested in the North East. The company will invest the money on various activities such as exploring new blocks, diversification, upgrading infrastructure and general corporate purposes. OIL India is planning to expand its presence in the wind energy segment in energy & utility sector by setting up units in the North East.
News Update Regulatory
Domestic government might impose 'AntiDumping Duty' on major importers of solar cells Major players in the Indian solar business of energy & utility segment have either shut down their manufacturing facilities such as Moser Baer or have idled their capacity by more than 50% such as Lanco and Indosolar. Domestic solar cell manufacturer filed a case last year, alleging that major importers of solar cells such as the US, China, Malaysia and Taiwan were exporting solar equipment to India at a very low prices which is bleeding the local industry. After listening to the grievances of domestic manufacturers, the Government of India might impose anti‐dumping duty on US, China, Malaysia, and Taiwan. Industry Expert Speak Oil India plans to invest INR 120,000 mn in North East by 2017 – Sunil Kumar Srivastava, Chairman and MD, Oil India Ltd (OIL) "We have set a capex target of INR 190,000 mn for the 12th Five‐Year Plan till 2017. Out of this, INR 120,000 mn will be invested in the North East."
Energy and Utility – Monthly Update
Domestic government might impose 'AntiDumping Duty' on major importers of solar cells – HR Gupta, Managing Director, Indosolar Ltd “There's an over capacity of solar cells globally due to over production by countries like China, which are also dumping at prices below our cost of production."
Transactions (May 2013 – July 2013)
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
570
N.A.
Completed
Private Equity
3,250
N.A.
Completed
Mergers & Acquisitions
Petroceltic International plc
10,391.9
20
Pending
Mergers & Acquisitions
Indraprastha Gas Limited
Central UP Gas Limited
700
50
Completed
Mergers & Acquisitions
13th Jun 2013
BanyanTree Growth Capital II LLC
Atria Brindavan Power Ltd.
500
N.A.
Completed
Private Equity
5th Jun 2013
Goldman Sachs
ReNew Power Pvt Ltd.
8,045.6
N.A.
Completed
Private Equity
Date
Buyer
Target
30th Jul 2013
GE Energy Financial Services Inc
8th Jul 2013
DLF
Gati Infrastructure Limited Bharat Light and Power Private Limited
2nd Jul 2013
Oil India Limited
26th Jun 2013
Annual Financial Results – Revenue (INR mn) Companies
FY ‘10
FY ‘11
FY ‘12
FY ‘13
14,644.8
17,610.5
23,673.6
29,810.8
1,238,167.2
1,537,649.1
2,121,395.6
2,420,433.9
Exide Industries Ltd.
39,788.5
47,660.8
53,156.5
63,658.9
GAIL India Ltd.
270,353.0
351,916.1
441,821.4
508,927.1
Amara Raja Batteries Ltd. Bharat Petroleum Corp. Ltd.
Energy and Utility – Monthly Update
Gujarat Gas Co. Ltd.
18,493.3
24,185.9
30,669.1
31,154.8
HBL Power Systems Ltd.
11,173.4
12,053.7
15,644.2
N.A.
IKF Technologies
2,101.123
2,398.691
1,877.888
N.A.
2,502,393.3
3,097,970.2
4,089,240.3
4,607,497.1
10,781.2
17,461.1
25,186.6
33,646.7
1,026,655.8
1,201,338.7
1,473,057.2
1,614,491.5
Oil India Ltd.
79,335.3
83,206.0
98,632.3
95,457.8
Petronet LNG Ltd.
106,490.9
131,972.9
226,958.6
314,674.4
Praj Industries Ltd.
7,344.4
6,649.3
10,031.1
9,190.7
Suzlon Energy Ltd.
206,196.6
178,791.3
210,823.7
187,431.4
Tata Power Co. Ltd.
189,765.2
194,507.6
260,014.0
328,360.5
Indian Oil Corporation Ltd. Indraprastha Gas Ltd. Oil and Natural Gas Corp. Ltd.
* Change in Financial Year Ending
Annual Financial Results – Income (INR mn) Companies
FY ‘10
FY ‘11
FY ‘12
FY ‘13
Amara Raja Batteries Ltd.
1,670.3
1,481.0
2,150.6
2,867.0
Bharat Petroleum Corp. Ltd.
16,323.6
16,349.6
7,808.3
18,808.3
Exide Industries Ltd.
4,935.2
6,188.2
4,460.6
5,493.5
GAIL India Ltd.
33,278.3
40,209.7
44,436.1
43,736.0
Gujarat Gas Co. Ltd.
2,577.5
2,734.8
2,866.1
2,809.4
995.9
168.6
185.4
N.A.
HBL Power Systems Ltd.
Energy and Utility – Monthly Update
IKF Technologies
354.144
434.884
262.145
N.A.
107,131.9
78,307.2
42,259.8
44,490.1
2,155.0
2,597.7
3,064.3
3,541.3
Oil and Natural Gas Corp. Ltd.
194,035.3
224,559.3
281,436.2
242,196.4
Oil India Ltd.
26,104.4
28,837.6
34,691.8
35,920.5
Petronet LNG Ltd.
4,045.0
6,196.2
10,575.4
11,492.8
Praj Industries Ltd.
1,195.9
577.5
678.9
680.2
Suzlon Energy Ltd.
(9,825.6)
(13,239.7)
(4,785.8)
(47,239.6)
Tata Power Co. Ltd.
19,668.4
20,596.0
(10,876.8)
(854.3)
Indian Oil Corporation Ltd. Indraprastha Gas Ltd.
* Change in Financial Year Ending
Quarterly Financial Results – Revenue (INR mn) Companies
AprJun 2012
JulSep 2012
OctDec 2012
JanMar 2013
Amara Raja Batteries Ltd.
6,937.9
7,187.2
7,591.5
8,037.5
Gujarat Gas Co. Ltd.
7,659.0
8,301.9
7,565.3
7,628.6
Indraprastha Gas Ltd.
7,606.8
8,546.4
8,680.3
8,817.8
Petronet LNG Ltd.
70,304.1
74,878.9
83,753.1
86,113.2
Suzlon Energy Ltd.
47,467.2
57,022.3
40,136.6
42,805.3
Tata Power Co. Ltd.
71,975.7
76,494.9
89,916.8
84,416.3
* Change in quarter
Energy and Utility – Monthly Update
Quarterly Financial Results – Income (INR mn) AprJun 2012
JulSep 2012
OctDec 2012
JanMar 2013
Amara Raja Batteries Ltd.
760.9
701.0
809.1
596.0
Gujarat Gas Co. Ltd.
520.6
994.8
701.2
592.8
Indraprastha Gas Ltd.
850.5
992.1
863.4
835.3
Petronet LNG Ltd.
2,708.5
3,147.9
3,185.0
2,451.4
Suzlon Energy Ltd.
(8,489.7)
(8,077.4)
(11,545.3)
(19,127.2)
Tata Power Co. Ltd.
1,459.3
(838.0)
(3,289.2)
1,813.6
Companies
* Change in quarter
Events Calendar Annual Conference on Solar Business in India Date: 8th Aug 2013 Venue: Hotel Crowne Plaza, New Delhi City: New Delhi Contact Person: Sachin Sonpitre Contact No: +91‐8655328100 Organizer: InfraMarket India Website: http://inframarketindia.com/events/index.php? event_id=5
Energy and Utility – Monthly Update
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Energy and Utility – Monthly Update