Canada Pension Plan Investment Board (CPPIB) to invest up to $600 million through NIIF.

National Investment and Infrastructure Fund (NIIF) of India and Canada Pension Plan Investment Board (CPPIB) has announced an agreement for CPPIB to invest up to US$600 million through the NIIF Master Fund. The agreement includes a commitment of US$150 million in the NIIF Master Fund and co-investment rights of up to US$450 million in future opportunities to invest alongside the NIIF Master Fund.

With CPPIB’s investment, NIIF Master Fund now has US$2.1 billion in commitments and has achieved its initially targeted fund size. In addition, NIIF Master Fund investors have co-investment rights of US$3 billion, which will enable the NIIF Master Fund to invest at the scale required for India’s large infrastructure requirements. The NIIF Master Fund invests equity capital in core infrastructure sectors in India, with a focus on transportation, energy and urban infrastructure. 

CPPIB joins Abu Dhabi Investment Authority, AustralianSuper, Ontario Teachers’ Pension Plan, Temasek, Axis Bank, HDFC Group, ICICI Bank and Kotak Mahindra Life Insurance as investors in the NIIF Master Fund, alongside Government of India.  

CPPIB will also become a shareholder in National Investment and Infrastructure Fund Limited, NIIF’s investment management company. 

Sujoy Bose, Managing Director & Chief Executive Officer of NIIF, said: “We are delighted to welcome CPPIB as an investor in the NIIF Master Fund and as a shareholder in our investment management company. CPPIB is a prominent and established investor in India, and their investment demonstrates the alignment of the NIIF Master Fund’s investment strategy with what large international investors seek in the infrastructure sector in India. With this fourth close of the NIIF Master Fund, we are pleased that the fund has achieved its initial target size of US$2.1 billion with domestic and international investors of the highest reputation and quality. We thank all our investors, and the Government of India, particularly the Ministry of Finance and the Ministry of External Affairs, for their strong support.” 

Scott Lawrence, Managing Director, Head of Infrastructure, CPPIB, said: “The opportunity to invest in, and alongside, NIIF complements our existing direct investment strategy in Indian infrastructure. Through this investment in the NIIF Master Fund, we are also able to deploy capital in additional projects and sectors across the country, providing further long-term opportunities for CPPIB to invest in Infrastructure in India.”

Source - Press Release.

Qatar Investment Authority to invest Rs 3200 crores in Adani Electricity Mumbai Ltd.

Qatar Investment Authority picks up a 25.1% stake in Adani Electricity Mumbai Ltd (AEML). AEML is a major electricity distributor in the Western suburbs of Mumbai.

Adani Transmission Limited ("ATL"), Adani Electricity Mumbai Limited ("AEML") and a subsidiary of Qatar Investment Authority ("QIA") have signed definitive agreements for the sale of a 25.1% stake in AEML to QIA and for a shareholder subordinated debt investment by QIA in AEML. The total QIA investment in AEML will be approximately INR 3,200 Crore (equivalent to approximately $450 million).

AEML is the licensee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers across a license area of approximately 400 square kilometers in the city of Mumbai, the world's seventh-largest city by the size of population. AEML's market share of Mumbai is approximately 87% by license area, 67% by consumers served and 55% by electricity supplied.

As part of the Transaction, ATL and QIA have agreed on definitive plans to ensure that over 30% of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023. In addition, ATL and QIA have agreed on a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy.

The Transaction demonstrates the increasingly strong relations between India and Qatar and the commitment of both countries to further develop their close ties in the years ahead.

Adani Group Chairman, Mr. Gautam Adani, commented: "We are delighted to embark on this partnership with the Qatar Investment Authority. Together, we will continue to work towards improving the reliability of supply and consumer satisfaction for over 3 million AEML consumers served in Mumbai. We believe this transaction is a significant step in the journey of the Adani Group, marking the start of a long term partnership with QIA".

QIA Chief Executive Officer, Mr. Mansoor Al-Mahmoud, commented: "We believe that Adani Electricity Mumbai Limited is the best-in-class electricity utility in India and has tremendous potential for growth. We look forward to a long term partnership with the Adani Group, with whom we share an inter-generational perspective on investments and a common vision for the sustainable growth and continued success of AEML".

Mr. Al-Mahmoud added: "This investment demonstrates our confidence in India, with whom Qatar shares deep-rooted ties and excellent relations".

The Transaction is the latest in a series of investments undertaken by QIA in world-class infrastructure assets with trusted partners globally. The Transaction is expected to complete in early 2020 subject to receipt of regulatory approvals and satisfaction of customary conditions precedent.

SKN Advisors Limited acted as financial advisor and Cyril Amarchand Mangaldas acted as legal advisor to ATL and AEML on the Transaction.

J.P. Morgan acted as financial advisor and Cleary Gottlieb Steen & Hamilton LLP and AZB & Partners acted as legal advisors to QIA on the Transaction.

Source: Press Release.

ADNOC, Adani, BASF and Borealis sign MoU for Chemical Complex in Mundra, Gujarat.

ADNOC, Adani, BASF and Borealis vow to invest $4 billion for Propane DeHydrogenation Unit at Mundra, Gujarat.

Abu Dhabi National Oil Company (ADNOC), Adani Group, BASF SE and Borealis AG have signed a Memorandum of Understanding (MoU) to engage in a joint feasibility study to further evaluate a collaboration for the establishment of a chemical complex in Mundra, Gujarat, India. This is the next step of BASF’s and Adani’s investment plans as announced in January 2019. With the inclusion of ADNOC and Borealis as potential partners, the parties are examining various structuring options for the chemical complex that will leverage the technical, financial and operational strengths of each company. The total investment is estimated to be up to $4 billion.

The collaboration includes evaluating a joint world-scale propane dehydrogenation (PDH) plant to produce propylene-based on propane feedstock to be supplied by ADNOC. Propylene will be partially used as feedstock for a polypropylene (PP) complex, owned by ADNOC and Borealis, based on proprietary state-of-the-art Borealis Borstar technology.

The PP complex will be the first overseas production joint investment by ADNOC and Borealis as part of a strategic framework with their current joint venture Borouge. Furthermore, propylene will be the key raw material for the previously announced acrylics value chain complex comprising glacial acrylic acid (GAA), Oxo-C4 (butanols and 2-ethyl hexanol), butyl acrylate (BA) and potentially other downstream products as part of a joint venture of BASF and Adani in which BASF holds a majority.

The chemical complex in Mundra is intended to be entirely supplied from renewable energy resources. The partners are evaluating co-investment in wind and solar park with the plans at an advanced stage of development. If realized, this would be the world’s first CO2-neutral petrochemical site to be fully powered by renewable energy, fully in line with the partners’ commitment to sustainability and energy efficiency.

Commenting on the MoU signing, Dr. Sultan Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “This exciting collaboration is in line with ADNOC’s strategy to foster mutually beneficial partnerships. As a value-adding partner, ADNOC will play a crucial role as the propane feedstock supplier to this project. As the fastest growing global energy market, India is crucial to  our international growth ambitions in the downstream sector. As such, this project allows ADNOC  and its partners to capture the promising growth in the Indian polyolefins market.”

Gautam Adani, Chairman of the Adani Group, stated: “We are very pleased to collaborate with our international partners to establish a Chemical Manufacturing Complex at Mundra Port. We stand committed to the ‘Make in India’ initiative and serve the larger purpose of aligning growth opportunities with creation of goodness for the nation.”

“BASF remains committed to investing in India’s growth. We will play a key role in driving this joint collaboration which is also pioneering in terms of sustainability.  We look forward to working together with our partners in establishing a chemical cluster in Mundra and to supplying the Indian market with high-quality downstream products,” said Dr. Martin Brudermueller, Chairman of the Board of Executive Directors of BASF SE.

Alfred Stern, CEO of Borealis, added: “This partnership is a unique opportunity to strengthen our PP presence in India with proprietary Borealis Borstar PP technology and to create value and tangible benefits through innovation for customers across multiple industries.”

The partners aim to finalize the joint feasibility study by the end of Q1 2020. Production is intended to commence in 2024. Adani has allied infrastructure like sea port, airport and highway connectivity near the proposed unit. The designated site is planned at Mundra port in Gujarat, India, and the products are predominantly for the Indian market, serving a wide range of local industries, including construction, automotive and coatings.

ONGC signs MoU with EXXONMobil for study in PEL offshore blocks and open acreage areas.

Oil and Natural Gas Corporation (ONGC) Limited has signed a Memorandum of Understanding (MoU) with US petroleum giant EXXON-Mobil on 14 October 2019. This MoU will enable the two petroleum companies to undertake joint technical studies and cooperate in frontier areas like deep water and other Petroleum Exploration Licence (PEL) blocks of ONGC in the east and west coast and open acreages for joint bidding.

The MoU was signed on the side-lines of IHS-CERAWeek at Delhi by ONGC Director (Exploration) Mr R K Srivastava and EXXON-Mobil CEO, South Asia Mr William P Davis in the presence of Minister of Petroleum & Natural Gas and Steel, Mr. Dharmendra Pradhan, Petroleum Secretary, Dr. M M Kutty and ONGC CMD Mr. Shashi Shanker.

The work under the MoU will be carried out in three phases. This will lead to a joint technical study for potential collaboration areas.

Talking after the MoU, Vice President Asia Pacific ExxonMobil Mr. Michael Deal said, “We welcome the opportunity to work with ONGC and apply our collective expertise to be an even bigger part of India’s bright energy future”.

ONGC CMD Mr Shashi Shanker said, “This meaningful partnership with EXXONMobil will be a step towards unlocking value in ONGC PEL offshore blocks, study open acreage areas and enable us to get closer to meeting Country’s energy aspirations”.

Source - ONGC.

France's Total acquires 37.4% stake in Adani Gas to supply and market Natural Gas in India.

With this announcement of Total’s Acquisition of 37.4% Stake in Adani Gas, Adani and Total join to create one of India’s largest Downstream Energy Partnerships.

As part of its strategy to develop new gas markets, Total, the world's second-largest LNG player, expands its partnership with the Adani Group; the largest energy and infrastructure conglomerate in India, to contribute to the development of the Indian natural gas market.

The Indian natural gas market represents a substantial growth perspective. It is currently only 7% of the energy consumption but has grown over the last 3 years by more than 5% per annum, supported by an active policy of the Indian Government that aims to diversify its energy mix and develop domestic use of gas in cities and as fuel for vehicles. India has set the ambitious target of increasing the share of natural gas in its energy mix to 15% by 2030.

The partnership between Adani (50%) and Total (50%) includes several assets across the gas value chain notably two imports and regasification LNG terminals: Dhamra in East India and potentially Mundra in the West, as well as Adani Gas Limited, one of the 4 main distributors of city gas in India of which Adani holds 74.8% and of which Total will acquire 37.4%.

Adani Gas shall also pursue fuel retail business in India and target to setup 1,500 fuel stations offering top of the line products in the coming years.

Adani Gas Limited aims to expand its distribution of gas in the next 10 years through its 38 concessions covering 7.5% of the Indian population and market natural gas to industrial, commercial and domestic customers, targeting 6 million homes as well as through 1,500 CNG retail outlets across 71 districts, 68 towns across 15 states in India.

Speaking on the occasion, Adani Group Chairman, Mr. Gautam Adani, said, “Adani is delighted to deepen its strategic partnership with Total, a global energy major, to one of the largest downstream gas partnerships in India. Total’s investment in Adani Gas reinforces India’s natural gas and demand potential. The partnership will derive significant synergies between Adani’s capabilities of developing world-class assets and Total’s global best practices as well as leveraging business synergies across LNG, Fuel Retail and City Gas distribution. We look forward to working together towards delivering India’s vision for clean and green energy”

As part of this partnership, Total will bring its LNG and retail expertise and will supply LNG to Adani Gas Limited. Total and Adani will also establish a joint venture to market LNG in India and Bangladesh.

“Energy needs in India are immense and the Indian energy mix is key to the climate change challenge. Firmly investing to develop the use of natural gas in India is in line with Total’s ambition to become the responsible energy major. The natural gas market in India will have strong growth and is an attractive outlet for the world's second-largest LNG player that Total has become. Adani will bring its knowledge of the local market and its expertise in the infrastructure and energy sectors. This partnership with Adani is the cornerstone to our development strategy in this country.”, said Patrick Pouyanné, Chairman and CEO of Total.

Disclaimer: Shareholder of Adani Gas.

Govt of India sanctions subsidy for 5595 electric buses in 64 cities under FAME II.

Tata Ultra Electric bus has been deployed in Lucknow, Kolkata, Guwahati, Jammu Kashmir under FAME I scheme.

The Department of Heavy Industry has approved the sanction of 5595 electric buses to 64 Cities, State Government Entities, State Transport Undertakings (STUs) for intra-city and intercity operation under FAME India scheme phase II in order to give a further push to clean mobility in public transportation.

The Department had invited the Expression of Interest (EoI) from million-plus cities, smart cities, State/UT capitals and cities from special category states for submission of proposal for deployment of electric buses on an operational cost basis.

Eight six proposals from 26 States/UTs for the deployment of 14988 e-Buses were received. After evaluation of these proposals as per EoI, on the advice of Project Implementation and Sanctioning Committee, the Government sanctioned 5095 electric buses to 64 Cities / State Transport Corporations for intra-city operation, 400 electric buses for intercity operation and 100 electric buses for last-mile connectivity to Delhi Metro Rail Corporation (DMRC).

Each selected City/STUsis required to initiate the procurement process in a time-bound manner for the deployment of sanctioned electric buses on an operational cost basis. As per EoI, buses which satisfy required localization level and technical eligibility notified under FAME India scheme phase II will be eligible for funding under FAME India scheme phase II.

Tier 1 cities like Mumbai, Hyderabad, Delhi, Hyderabad, Bangalore will receive 300 electric buses each. Surprisingly, Chennai's proposal seems to be rejected. Pune and Surat are set to get 150 electric buses each. 400 electric buses will be deployed towards intercity operations and will be handed over to State Transport Corporations. Maharashtra has received highest allocation of 775 buses followed by Uttar Pradesh, Gujarat, and Tamil Nadu.

These buses will run about 4 billion kilometers during their contract period and are expected to save cumulatively about 1.2 billion liters of fuel over the contract period, which will result into avoidance of 2.6 million tonnes of CO2 emission.

Complete list - https://dhi.nic.in/writereaddata/UploadFile/Press%20Release%20Final.pdf

Source - PIB.

TVS launches India's first Ethanol based Motorcycle - Apache RTR 200 Fi Ei100 at Rs 1.2 lakhs.

A #MakeInIndia products which runs on #MakeInIndia fuel.

TVS Motor Company, a reputed manufacturer of two-wheelers and three-wheelers in the world have created a benchmark in the industry by launching India’s first Ethanol based motorcycle – TVS Apache RTR 200 Fi E100. The motorcycle was launched by Shri. Nitin Jairam Gadkari, Hon’ble Minister for Road Transport and Highways of India & Micro, Small and Medium Enterprises, Shri. Amitabh Kant, CEO of NITI Aayog, and Shri. Venu Srinivasan, Chairman, TVS Motor Company.

TVS Motor Company first showcased the TVS Apache RTR 200 4V Ethanol concept in Auto Expo 2018 held in Delhi. TVS Apache is the flagship brand of TVS Motor Company with over 3.5 million happy customers across the globe.

Commenting on this launch, Shri. Venu Srinivasan, Chairman, TVS Motor Company, said, “We are delighted to launch the TVS Apache RTR 200 Fi E100 in the presence of Hon’ble Minister for Road Transport & Highways of India; & Micro, Small and Medium Enterprises Shri. Nitin Jairam Gadkari who has created a roadmap for the implementation of future mobility in the country.”

Shri. Srinivasan further added, “Today, the two-wheeler industry is looking at green and sustainable future mobility solutions spanning across electric, hybrid and alternate fuels. TVS Motor Company believes that Ethanol-based products are an important option for our customers. This is due to the easy compatibility in the transition to Ethanol and its sustained positive impact on the environment without compromising on performance and total cost of ownership. TVS Apache RTR 200 Fi E100 is a breakthrough in the two-wheeler space that will set the trend for a green future in India.”

Ethanol will be domestically produced by the farmers of this country. It is cost-effective, import free and environmentally sustainable fuel.

Ethanol is domestically produced from renewable plant sources. It is non-toxic, biodegradable, as well as safe to handle, store and transport. An oxygenated fuel that contains 35% oxygen, Ethanol reduces nitrogen oxide emissions from combustion. Apart from this, Ethanol also helps reduce carbon monoxide emissions, particulate matter, and sulphur-di-oxide. Use of Ethanol as a fuel will also reduce dependence on the import of petroleum and increase energy security.

The TVS Apache RTR 200 Fi E100 sports a vibrant interplay of green graphics seamlessly woven with the ‘Ethanol’ logo. It is equipped with a Twin-Spray-Twin-Port EFI technology. This ensures better drivability, faster throttle response and reduction in emission levels. It delivers better usable power under varied ambient conditions. This motorcycle boasts of impressive peak power of 21 PS @ 8500 rpm with a torque of 18.1 Nm @ 7000 rpm and has an ascending top speed of 129 kmph.

Promising consistent performance coupled with a sustainable green solution, the TVS Apache RTR 200 Fi E100 is a winner for both the rider and the environment. This special edition would be available in Maharashtra, Uttar Pradesh, and Karnataka at an attractive price of Rs. 1,20,000.

- Press Release.

Shapoorji Pallonji's renewable energy arm Sterling and Wilson Solar Ltd ranked World's Largest Solar EPC Service Provider: IHS Markit.

Sterling and Wilson Solar Limited, a Shapoorji Pallonji group company, has been ranked as the world's largest Solar EPC service provider by IHS Markit in its recently announced Solar EPC and O&M Provider Tracker Q1 2019 report. The ranking is basis the annual installations of utility-scale PV systems of more than five MWp in the year 2018. As the largest global Solar EPC solutions provider, Sterling and Wilson Solar had a global market share of 4.6% in the year 2018 - a number more than double that of the 2nd largest company globally - according to IHS Markit. The company was also ranked as the largest Solar EPC solutions provider in India with a market share of 16.6%, 3 times the size of its closest competitor.

Declining costs, advancing technology trends and favorable regulatory environments across the world are some of the factors driving the growth of solar energy globally. Sterling and Wilson Solar has built more than 6 GWp of solar plants across the globe and the recognition as the world's largest solar EPC provider is a significant milestone in its trajectory.

With a strength of 1179 employees across the world including 138 in design and engineering, Sterling and Wilson Solar has been executing projects globally. Today, it has over 6062.83 MWp of solar EPC projects as part of its portfolio in different stages of implementation (commissioned and contracted). This impressive global portfolio also includes a 1,177 MWp single location Solar PV plant in Abu Dhabi - one of the world' s largest such Solar PV plants.

Sterling and Wilson Solar is present in 26 countries today, with operations in India, South East Asia, the Middle East, Africa, Europe, the Americas, and Australia. The company has been strategically focusing on markets that have conducive solar power policies and investing resources in geographies that have long-term solar opportunities in utility-scale solar power projects and rooftop solar projects.

In the year 2018, according to IHS Markit, the company was also the largest solar EPC solutions provider in Africa and the Middle East with a market share of 36.6% and 40.4% respectively. Today, Sterling and Wilson Solar is expanding its global presence through strategic acquisitions in its target markets. The company recently acquired a 76% equity interest in GCO Electricals Pty Limited, an electrical contracting company based in Australia with expertise in the execution of solar power projects in the region. 

The company provides EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manage all aspects of project execution from conceptualizing to commissioning. As the global solar market is likely to grow substantially in the years to come, Sterling and Wilson Solar has positioned itself well to be at the forefront of this tremendous opportunity.

Source: Press Release/PTI.

Morocco to inaugurate Africa's Largest Seawater Desalination Plant by 2021.

Desalination Plant in Sorek, Israel.

India has a coastline of 7500km and yet it struggles to provide unlimited water to its citizens, farmers and industries. In the words of Socialist Dr. Lohia, 'India's Shakti (here women) are capable to solve innumerable problems of themselves and Bharat Bhoomi in whole but first, we need to provide them with toilets and water'. India's newly formed Jal Shakti Ministry has released the target to provide potable tap water to every household by 2024. 

Despite having such a huge coastline and massive rivers like Ganga, Godavari and Brahmaputra, we Indians suffer due to lackluster planning and low investments in Water Technology. Israel, the land with no river provides 24x7 potable water to its citizens and farmers, thanks to the adoption of scientific Sea Water Desalination technology. 

It's not that desalination tech is something new to India. Reliance Industries produces desalinated water for its Jamnagar refinery and even provides additional water to Jamnagar Municipal Corp at a fee. Chennai drinks desalinated water from one of its desalinated plants on East Coast Road. In fact, Indian companies like VA TECH WABAG, Essel Infraprojects and L&T have been awarded works to set up desalination plants in abroad and India. City nations like Singapore, Qatar, Kuwait are using Desalination for decades. Recently, Morocco has awarded a contract to a Spanish firm to build 'Africa's Largest Seawater Desalination Plant' in the city of Adagir.

In 2017, Spain's Abengoa signed contracts to develop a desalination and irrigation project in the Agadir region. The project, valued €309 million, involves the construction of a desalination plant with a 275,000 m3 total production capacity of desalinated water per day which will be the largest plant designed for drinking water and irrigation. The contract also provides for the possible capacity expansion to up to 450,000 m3/day.

The project involves increasing plant capacity to 150,000 m3/d of drinking water. And the second project calls for the additional production of 125,000 m3/d of irrigation water as well as the construction of the corresponding irrigation network for a total of 13,600 ha. Project operations can be powered on renewable power with a focus to meet the demand for water for domestic use in addition to irrigation water needs in the area of Agadir.

Farmers have also contributed MAD 10,000 (1 MAD - INR 7.24) to the financing of the station. The government has promised them desalinated water for irrigation at a low price of MAD 5 per cubic meters in exchange for the investment in construction.

As of now, the world's largest sea water desalination plant is located in Saudi Arabia. The Ras Al Khair plant has a desalination capacity of 1,036,000 m3/day.

Piramal and CPPIB to launch India's maiden Renewable Energy focused InvIT.

CPPIB has committed $360 million while Piramal will provide $90 million

Piramal Enterprises Limited (“PEL”) has signed a Memorandum of Understanding with Canada Pension Plan Investment Board (“CPPIB”), a Canadian pension fund, to co-sponsor a renewable energy-focused Infrastructure Investment Trust (“InvIT”). With an initial corpus of US$ 600 million, and the option to scale further, the InvIT would seek to acquire up to 1.5-2GW of stable and cash generating renewables assets on a hold-to-maturity basis, with a firm focus on diversification of both asset type as well as off-taker profile.

"Piramal is pleased to partner with CPPIB on the launch of the first ever InvIT in India, focused on renewables. The foundation of this partnership is based on a shared ethos and values that leverage CPPIB’s global track record of value creation in the infrastructure space with PEL’s long term strategy and goodwill in India. We are enthusiastic about the opportunity as it is truly scalable and continue to remain committed to creating value for our shareholders." - Ajay Piramal, Chairman, Piramal Group.

Mumbai based Piramal Enterprises Limited (PEL) is one of India’s large diversified companies, with a presence in Financial Services, Pharmaceuticals and Healthcare Insights & Analytics with a consolidated revenue of over US$1.9 billion in FY2019, with ~40% of revenues generated from outside India.

Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, São Paulo, and Sydney, Canada Pension Plan Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. In mid-2018, CPPIB announced that it would foray in Green Bonds.

Both PEL and CPPIB will act as Co-Sponsors of the proposed InvIT and hold up to 75% of the units (with CPPIB committing US$360m and holding up to 60%; PEL committing US$90m and holding 15% ) and seek to raise capital from other like-minded investors for the remaining 25%. In the interim and prior to its launch, PEL and CPPIB will jointly warehouse seed assets for the proposed InvIT. PEL would act as the sole Investment Manager as well as Project Manager for the proposed InvIT.

The renewable energy sector is at an inflection point and is witnessing significant consolidation, the pace of which is likely to increase in the near future.  The timing of the issue is therefore opportune for aggregating assets in this sector given that the existing players are willing sellers in light of a constrained capital market environment - both debt and equity. This is the first truly neutral ‘white-label’ InvIT – led by a fiduciary and supported by patient capital with a strong record of corporate governance. Renewable InvITs can serve as a strong catalyst for the Green Energy sector as a whole.

BHEL and LIBCOIN to Build India’s First Lithium Ion Giga Factory.

Bharat Heavy Electricals Limited (BHEL) and Libcoin are in dialogue to form a world class consortium to initially build 1GWh lithium ion battery plant in India. Its capacity will be scaled up to 30GWh in due course. With this, India has finally taken steps into its energy security and clean energy commitment to the world.

BHEL will be sending a team of senior officers for the study of the facilities, R&D infrastructure and other techno-commercial issues soon. Based upon the evaluation and recommendations of the team, further process towards the formation of Joint Venture will be carried forward.

This project will bring energy independence by replacing oil imports with abundant renewable. This project also includes “Made by India, for India”, with focus on core-cost components manufactured domestically. It will also create an integrated manufacturing ecosystem resulting in self-reliance and lower cost.

A holistic view of the supply chain in combination with cutting edge digital technologies to replace high CAPEX and high OPEX processes will be the highlight of this project in India. 

Various Indian cities including Delhi have been struggling to cut down their pollution level for the last several years and electric transportation has been considered as one of the viable approaches to cut down emission. The number of electric cars in the world already hit million-mark last year and the International Energy Agency has projected almost 140 million electric cars globally by 2030, if countries meet Paris climate accord targets, in which India has already committed to actively participate.

Source: PIB.

Philippines based Atlantic Gulf and Pacific company bags 9 licenses in 10th City Gas Distribution bidding.

Atlantic Gulf & Pacific Company of Manila (AG&P), a leading global gas logistics company, has emerged as a dominant LNG player in South India, securing nine licenses in the 10th round auction of City Gas Distribution (CGD) concessions by the Petroleum & Natural Gas Regulatory Board (PNGRB). AGP will provide piped gas in 9 districts of South India and will establish more than 1000 CNG stations.

AG&P is only one of two foreign companies to secure the coveted agreements to deliver natural gas directly to the residential, commercial, industrial and transport sectors in some of India’s most densely populated states. AG&P’s 25-year exclusive rights cover natural gas pipelines to residential users, supply for commercial establishments and CNG stations for cars, buses and trucks in Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Rajasthan.

The districts are home to the automobile, chemical, fertilizer, glass, steel, ceramics, food and pharmaceutical industries as well as major commercial centres. AG&P will build compressed natural gas stations, supported by steel pipelines and delivery of LNG by truck. Through its CGD networks, AG&P will bring significant foreign direct investment and generate direct and indirect employment across the country. The construction and operation of AG&P’s CGD networks will create thousands of local jobs. Like all AG&P employees, these workers will be trained to the highest international standards of safety and technical excellence.

The cheaper supplies of natural gas will be made available by the Honourable Government of India for domestic and vehicular needs. The commercial and industrial sector needs will be secured through uninterrupted imported LNG supplies, channelled through commissioned and upcoming LNG terminals.

“AG&P Group, a 119-year young multinational, with operation headquarters in Manila, Philippines has arrived in the Indian sub-continent with a vision of supporting the growth and development of India’s ever-growing energy needs and to touch the lives of millions of people. As a global player, we understand and value the responsibility and commitment entrusted to us for shouldering the infrastructure development to meet these energy needs with international best practices in safety, technology, conserving the environment, efficient and cost-effective energy solutions,” - Mr. PPG Sarma, Managing Director, City Gas Distribution & Logistics.

List of cities/districts

Andhra Pradesh: Anantapur, Cuddapah, Nellore, Chittoor.

Karnataka: Kolar, Bagalkot, Kopal, Raichur, Chikmaggaluru, Hassan, Kodagu, Gulbarga, Vijaypura, Mysure, Mandya, Chamarajnagar, Uttara Kannada, Haveri, Shivamogga.

Tamil Nadu: Vellore, Ramanathapuram, Kanchipuram.

Kerala: Alapuzzha, Trivandrum, Kollam

Rajasthan (North West India): Barmer, Jaisalmer and Jodhpur.

Once operational, AG&P’s CGD networks will accelerate industrialization, drive further economic development and overall, improve the quality of life of millions of Indians, while helping lay the foundations for the delivery of India’s goal of a clean energy future. 10th CGD bidding will bring clean cooking fuel and cheap CNG in 50 districts of India which would further enhance safe cooking and viable transportation.

- Press Release.

BRICS funding agency New Development Bank plans to double its loan book to $16 billion

The New Development Bank (NDB), a multilateral finance institution established by Brazil, Russia, India, China and South Africa (BRICS) in 2014, plans to almost double its loan book to USD 16 billion this year and increase its impact, as the Bank seeks to broaden its global development partnerships and mobilise more institutional and private capital. These announcements were made at the 4th Annual Meeting of the NDB in Cape Town, South Africa which brought together senior government officials from BRICS countries, leaders of multilateral and national development institutions, distinguished scholars, prominent commercial bankers, captains of industry and representatives of civil society organizations.

NDB is headed by renowned Indian banker Shri KV Kamath. In his keynote speech, he mentioned that in the year 2019 New Development Bank will build on the strong momentum in its operations with an aims to double its loan approval book to about USD 16 billion. The Bank will ramp up its hard currency financing from the international capital markets.

The NDB was established to mobilize resources for infrastructure and sustainable development projects in member states as well as other emerging economies, and the Bank is strongly committed to supporting the sustainable development agenda of its member countries.

In 2018, the NDB approved 17 loans totaling about USD 4.6 billion, building on its base of 13 loans worth USD 3.4 billion as of the end of 2017. That brought the total loan book of the bank to 30 projects worth approximately USD 8 billion by the end of last year.

The NDB has approved five additional projects with loans aggregating to approximately USD 1.2 billion, two in China and three in South Africa, taking its total loan book to USD 9.2 billion as of today. These five new projects include RMB 825 million (USD 123 million) for the Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II); USD 300 million for the Guangxi Chongzuo Urban Water System Ecological Restoration Project; USD 480 million to Eskom for the Environmental Protection Project at Medupi Thermal Power Plant; ZAR 1.15 billion (USD 80 million) to the Industrial Development Corporation (IDC) for its Renewable Energy Sector Development Project; and ZAR 3.2 billion (USD 220 million) to South Africa's Trans Caledon Tunnel Authority (TCTA) for work on the Lesotho Highlands Water Project (Phase II).

In India, the New Development Bank has financed an ambitious Mumbai Metro Line 2B (DN Nagar - Mankhurd) prItst. It's loan book to India include Rural Road, Bridges and Water Supply projects in the states of Madhya Pradesh, Bihar and Rajasthan. NDB has also approved a Renewable Energy Financing Scheme of USD 250 million with Canara Bank.

New Development Bank has principally approved a loan to Mumbai Metropolitan Region Development Authority for the financing of Mumbai Metro Line 8 (Chhatrapati Shivaji International Airport - Navi Mumbai International Airport), Line 10 (Gaimukh - Shivaji Chowk) and Line 11 (Wadala - GPO). Other proposed loans to India include USD 224 million for 8km Brahmaputra bridge in Guwahati, Assam.

"The share of the BRICS countries in world GDP in PPP terms has grown from 30% to 36% since 2010. This growth has put increased pressures on natural resources and the environment. Fortunately, however, our members have explicitly recognized these pressures and are increasingly investing in undoing some of the past damage. Our members are also focusing on implementing development strategies aimed at minimizing adverse impacts in the future. In both these endeavours, the Bank is being called upon to assist," said Mr. Kamath in his keynote speech.

The NDB now plans to open additional regional offices in Brazil and Russia and is considering opening an Indian regional office in due course.

- Chaitanya Kulkarni.

GAIL, BHEL sign pact for development of Solar based power projects.

State-owned Gas utility GAIL India Limited has signed Memorandum of Understanding (MoU) with Bharat Heavy Industries Limited in New Delhi for cooperation in the development of solar-based power projects.

GAIL shall be the project developer and BHEL shall act as an Engineering, Procurement, Construction and Project Management Contractor. BHEL shall also provide Operation and Maintenance services during the initial period upon becoming successful bidder. This development will help both the companies to leverage their competitive strengths to build a substantial portfolio in solar power projects in line with INDC targets of Government of India. The MOU aims at building a closer strategic partnership between the two Maharatna PSUs for jointly pursuing commercial solar power projects through participation in Tariff / Viability Gap Funding (VGF) based competitive bidding process.

Speaking on the occasion, Shri Manoj Jain, Director (Business Development) stated “GAIL is a proud member of India’s clean energy infrastructure and is always committed to incorporate initiatives for sustainable development of the nation. We are happy to enter into this strategic relationship with BHEL, a pioneer in India’s Engineering sector. The skills and strengths of both the companies would create a synergy for achieving the objective of MoU."

GAIL (India) Limited is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG regasification, petrochemicals, city gas, E&P, etc. It owns and operates a network of around 11,400 km of high pressure trunk pipelines. It is working concurrently on multiple pipeline projects, aggregating over 5400 kms at an investment of about Rs. 24,000 crores, to operate over 16,000 kms by 2021. GAIL commands 75% market share in gas transmission and has a Gas trading share of over 50% in India. 

GAIL also has a formidable market share in City Gas Distribution and is currently operating in 38 cities/Geographical Areas directly and through its eight Joint ventures/ subsidiaries. In the Liquefied Natural Gas (LNG) market, GAIL has one of the largest portfolios in the world. GAIL has hired its first LNG vessel “Meridian Spirit" on time charter basis to transport US volumes to India. GAIL is also expanding its presence in renewable energy like solar and wind. In fact, it has India‘s second-largest rooftop solar PV power plant at its Petrochemical Complex at Pata, Uttar Pradesh. It has an overseas presence through offices and subsidiaries in the US, Singapore and Myanmar.

BHEL is one of the few companies in the world, and only company in India, having capability to manufacture the entire range of Power plant equipment and has proven turnkey abilities for executing Power projects from concept to commissioning in the field of Thermal, Gas, Hydro and Nuclear. BHEL has also been in the field of design, engineering, manufacturing, installation and commissioning of solar power plants over three decades and has a portfolio of more than 700 MW. BHEL is the only company in India having manufacturing capability of almost entire range for Solar equipment i.e. Solar Cells, Solar Modules, SCADA, Inverters, Power Transformers, Switchgear and Modules Mounting Structures with tracking system. BHEL has a dedicated R&D centre for Solar PV at ASSCP, Gurgaon to develop high-efficiency Solar Cells and process optimization.

Source - Press Release.

Indian Oil and Bharat Petroleum consortium wins ADNOC deal.

The Abu Dhabi National Oil Company (ADNOC) signed agreements awarding the exploration rights for Abu Dhabi Onshore Block 1 to a consortium of two Indian oil companies, Bharat Petroleum Corporation Limited and Indian Oil Corporation Limited. The award has been endorsed by Abu Dhabi’s Supreme Petroleum Council (SPC) and represents a further deepening of the fast-growing UAE-India energy relationship as well as the continued expansion of ADNOC’s strategic partnerships with those who can provide access to key growth markets for the company’s crude oil and products.

The consortium will hold a 100 percent stake in the exploration phase, investing up to AED 626 million (US 170 million), including a participation fee, to explore for and appraise oil and gas opportunities in the Block. Following successful exploration activities and appraisal of the existing discoveries, the Indian consortium will be granted the opportunity to develop and produce any discoveries. ADNOC has the option to hold a 60 percent stake in the production phase.

H.E. Dr. Al Jaber of ADNOC said: “This award highlights the important role of energy cooperation in strengthening the strategic relationship between the UAE and India. It also underlines ADNOC’s 2030 smart growth strategy and our targeted approach to engage with value-add partners who can contribute the right combination of market-access, capital and technology, as we reinforce our position as an essential energy provider to the world. 

“The consortium of Bharat Petroleum Corporation and Indian Oil Corporation, both of whom ADNOC already partners with offshore, was selected after a very competitive bid round. The open bidding process represents a major advance in how ADNOC is accelerating the exploration and development of Abu Dhabi’s substantial untapped hydrocarbon resources as we continue to maximize value, in line with the UAE leadership’s directives.”

The exploration phase will see the Indian consortium leverage, and contribute financially and technically to, ADNOC’s mega seismic survey, announced last year. The survey is deploying industry-leading technologies to capture high-resolution 3D images of the complex geology up to 25,000 feet below the surface and will be used to identify potential hydrocarbon reservoirs.

The award of Onshore Block 1 concludes Abu Dhabi’s first-ever competitive block bid round, which saw very competitive proposals submitted for the geographical areas initially offered in April 2018. ADNOC has awarded Offshore Blocks 1 and 2 to a consortium comprised of Eni and PTT Exploration and Production Public Company Limited; Onshore Block 3 to Occidental Petroleum; and Onshore Block 4 to INPEX CORPORATION.

Indian Oil Corporation, India’s largest commercial enterprise, caters to nearly half of India’s petroleum consumption with 11 of India’s 23 refineries and a 13,000-km pipelines network. Bharat Petroleum Corporation also has a number of major refineries in India. Both companies operate across the full hydrocarbon value chain.

- Press Release.

Siemens Financial Services to invest in 200MW Poovani Wind Power Project.

A definitive agreement has been signed between the parties for equity investment. First investment by Siemens Financial Services (SFS) in a wind farm in Asia. The project involves installation of 100 units of Siemens Gamesa Renewable Energy’s SG 2.0 - 114 wind turbines in Tamil Nadu. The project forms part of Solar Energy Corporation of India Limited (SECI) Wind Power Tranche II.

Greenko Group, India’s leading renewable energy player, has signed an agreement with Siemens Financial Services (SFS), the financing arm of Siemens AG, for an equity investment in its Poovani Wind Power project. The project is being developed in the state of Tamil Nadu and is backed by Solar Energy Corporation of India Limited (SECI), Central Public Sector Undertaking under the Ministry of New and Renewable Energy, Government of India.

As per the agreement, SFS has agreed to take a 46% equity stake in the 200 MW wind power project. Siemens Gamesa Renewable Energy is involved in installing the entire infrastructure for the wind farm, including supply, erection and commissioning of 100 units of SG2.0 – 114 wind turbines with a hub height of 106 m, specifically designed for low wind sites in India.

Commenting on the development, Mr. Anil Kumar Chalamalasetty, Chief Executive Officer and MD of Greenko Group, said, “Attracting an equity investment from Siemens Financial Services demonstrates the evolution of the Indian energy market with inter-state transmission of renewable energy, confidence of international financial institutions on project & technical capabilities and the necessary regulatory frameworks to further support growth. We are delighted to partner with SFS for our Poovani Wind Project and welcome them to India.”

Mr. Steffen Grosse, Chief Financial Officer of Energy Finance, Siemens Financial Services added, “We are excited to announce this new transaction with Greenko Group, one of the leading renewable IPPs in India. Completing our first equity investment in renewables in the region further underscores our company’s commitment to bringing optimal energy solutions to India backed by innovative Siemens Gamesa Technology.”

Clean and affordable energy generated from this project will offset approximately 651,000 tonnes of CO2e from environment and electrify approximately 155,000 households annually. The project will be connected to the central transmission system of India, which will enable inter-state flow of energy from a renewable resource rich state and enable other states comply with their renewable purchase obligations and secure long-term renewable energy supply at a fixed price.

Brookefield-led India Infrastructure Trust (InvIT) to acquire East West gas pipeline for Rs 13,000 crores.

Brookfield has filed the preliminary placement memorandum, in terms of which India Infrastructure Trust, an InvIT set up by Brookfield as Sponsor and 90% investor, will invest Rs. 13,000 crore to acquire the East West Pipeline (“Pipeline”). As a part of the transaction, the InvIT will acquire 100% equity interest in Pipeline Infrastructure Private Limited (“PIPL”) which currently owns and operates the Pipeline.

Pursuant to this acquisition by Brookfield, the existing pipeline usage agreement has been reworked as follows:

• The reserved capacity reduced to 33 MMSCMD against the 56 MMSCMD.
• Any unutilized capacity payment by RIL will be the difference between Rs. 500 crore a quarter and actual revenue earned by PIPL.
• RIL will continue to be entitled to transport gas, either by itself or of any customers, free of cost against any outstanding unutilized capacity payments.

At the current approved final tariff of Rs. 71.66/MMBTU, if the average volume of gas transported is 22 MMSCMD, RIL will not be liable to make unutilized capacity payments.

The next review of tariff in April 2020 will also consider upward revision to tariff arising from the determination of lower revised capacity of the pipeline. Considering the new investments in the upstream sector in the KG basin, and the growing LNG imports, ability to swap gas, the average volume expected to be transported through the pipeline is expected to be significantly higher compared to the current levels.

RIL will be entitled to a significant participation in the net earnings of PIPL under the mechanism specified in the pipeline usage agreement. RIL’s current investment in preference shares valued at Rs. 4,000 crore to continue and will be converted into equity at the end of 20 years.

Further, at the end of 20 years, RIL has the right to acquire equity shares of PIPL held by the InvIT at an equity value of Rs. 50 crore.

GMR Infra bags contract to develop greenfield Bhogapuram airport near Vizag.

GMR Infrastructure Limited has informed Bombay Stock Exchange that its subsidiary GMR Airports Ltd has emerged as the highest bidder for the Development, Operations and Management of Greenfield International Airport at Bhogapuram, Andhra Pradesh (AP) on a PPP basis. The initial investment for Phase-1 to be approx. Rs 2,300 crores.

Andhra Pradesh Airports Development Corporation Limited (APADCL), had initiated the RFP process for a new airport at Bhogapuram in November 2018. The project involves design, build, finance, construction, development, up-gradation, modernization, operation and maintenance of the Bhogapuram airport for a period of 40 years. As part of the qualification process, APADCL had shortlisted seven applicants viz GMR Group, GVK, Dolt Infra, !-Investment, NIIF, Esse! and Reliance Infra. However, only GMR Group, GVK and Dolt Infra submitted their financial bids.

In Calendar Year 2018, the existing civil enclave at Vishakapatnam Naval Airfield has handled 2.33 mn passengers and 5000 Tons cargo. Over the past 4 years, the passenger traffic at the Vizag airport has grown at 14% CAGR while the Airport ranks 5th amongst the custom airports in India in terms of Cargo traffic.

The proposed greenfield airport site lies on the border of Visakhapatnam and Vizianagaram districts, and is approximately 45 km from Visakhapatnam through NH-5 and 25 km from Vizianagaram via NH-43. The site is strategically located on the east coast and stands to get benefitted from the vast catchment area surrounding the region. Moreover, the beach corridor development is underway in proximity to the proposed International Airport in Bhogapuram which will provide impetus to retail and hospitality developments in the region.

Mr. GBS Raju, Business Chairman, GMR Group said, "It is a matter of great pride for us as Bhogapuram Airport win will add to the ever-growing portfolio of Airports developed, managed and operated by GMR Airports. We look forward to work on this prestigious airport and will aim to deliver an airport of global standards which would be a matter of pride for the region of Visakhapatnam and provide a further fillip to the economic potential of Andhra Pradesh." 

The company is looking forward to receiving a Letter of Award shortly.