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................CMYK
CHENNAI
BusinessLineFRIDAY • JULY 17 • 2020 7NEWS
RICHA MISHRA/AMITI SEN
New Delhi, July 16
India will push for enhancedAmerican investments andparticipation of US companies in India’s energy space —power, oil and gas, renewable — at the second IndiaUSStrategic Energy PartnershipMinisterial meeting to beheld on Friday.
However, nuclear energy isunlikely to be taken up atthis platform formally.
India needs investmentsand the US needs market, solet us hope this meeting isjust not a goodwill talk, an industry tracker said.
Initially, due to geopolitical interests driven by the US— sanctions on Iran — Washington was keen that India
should look at other geographies including Americato meet its energy requirements.
India’s imports of mineraloils, mineral fuels and related products from the USincreased to $8.3 billion in201920, which is a fi��vefoldrise over 201617 imports of$1.6 billion.
“Apart from getting intoeffi��cient deals with the US toget assured supply of oil andgas at competitive prices, thestrategic partnership alsoseeks to get the US to investin building energy infrastructure in the country andsupport exploration projectsso that India’s import dependence goes down,” saidan offi��cial tracking the diplo
matic developments.
Renewable thrustIndia will also push for investments in the renewablespace with a thrust on solarenergy, to reduce its dependence on China for solar modules and cells.
Asked why nuclear energymay not be taken up at aformal level here, another offi��cial said, “nuclear is discussed at a higher platform.Someone may raise it at Friday’s meeting but it is unlikely to be debated upon.”
The stage for Friday’s meeting was set at the industrylevel interaction organisedby USIndia Business Council(USIBC) earlier this week,where Minister for Petroleum and Natural Gas Dharemendra Pradhan said thatcooperation in natural gassector has been identifi��ed asa priority area.
He had highlighted several upcoming new opportunities in the fi��eld of LNGbunkering, LNG ISO container development, petrochemicals, biofuels, andCompressed Bio Gas in theIndian energy sector. He hasalso invited greater participation from the US companiesin oil and gas blocks bidrounds.
On Friday Pradhan willmeet US Secretary of Energy
Dan Brouillette to cochairthe second Ministerialthrough the virtual medium.This meeting was due to beheld in Washington DC inApril, but got postponed dueto the pandemic outbreak.
The second Ministerialmeeting will review the progress made since the fi��rstmeeting and also take noteof accomplishments andagree on priorities going forward in the energy sector.
The Indian governmenthad in 2018 elevated the IndiaUS Energy Dialogue to aStrategic Energy Partnershipto be cochaired by Ministerof Petroleum and NaturalGas. The US side is cochairedby the Secretary of Energy.
The partnership was formally announced during thevisit of Prime Minister Narendra Modi to the US in June2017, and the fi��rst Ministerialmeeting was held in NewDelhi in April 2018.
The USIndia Gas TaskForce (GTF) was also set upunder the umbrella of thisPartnership as part of the Oil& Gas Pillar. The GTF hadidentifi��ed three key themesfor expanding natural gasuse in India and trade withthe US — Pricing, Markets andRegulation, Strengtheningof Gas Infrastructure andStimulating Natural Gas Demand Growth.
INDIA-US STRATEGIC ENERGY PARTNERSHIP
New Delhi wants investments; Washington...market accessOil Minister Pradhan to hold talks withUS Energy Secretary Dan Brouillettethrough video conferencing today
Oil Minister Dharmendra
Pradhan PTI
US Energy Secretary
Dan Brouillette AP
OUR BUREAU
New Delhi, July 16
The Ministry of Finance is planning to impose a 20 per cent basic customs duty on the importof solar energy generationequipment to aid localmanufacturing.
Speaking at a Renewable Energy Manufacturing Conferenceorganised by the Confederationof Indian Industry (CII) and theMinistry of New & Renewable Energy, Minister of State for Finance and Corporate Aff��airsAnurag Thakur said, “We areplanning to impose 20 per centbasic customs duty on solar cells,modules and inverters to discourage imports from othercountries.”
Thakur said this is being doneto support domestic manufacturing of these goods and dissuade imports.
He said, “Nearly 80 per cent ofall solar energy equipment imports come from China. Theseimports from China stood at $1.2billion in fi��nancial year 201819.”
Clean energy pushElaborating on the Centre’s cleanenergy agenda, Minister for Railways Piyush Goyal said that theRailways plans to be 100 per centclean energy based by 2030.
He said that the Railways aims
to have about 20 GW of solar capacity by then, all sourced from‘Made in India’ products.
Highlighting the measures being considered to increase localmanufacturing, Minister for Micro, Small and Medium Enterprises Nitin Gadkari said, “We areseeking views from the industryon what cooperation is neededfrom the government to reduceimport and increase export”.
Talking about a pain point ofindustry, Gadkari said, “It takesone year to get environment andforest clearances (EC/FC) andstart a manufacturing facility.”
Gadkari also said that the government is assessing measuresto speed up these approvals, “Weare in talks with the Environment Ministry for self assessment of EC/FC compliance. Therecan be heavier penalties for violations. But it can help reduce thetime required to start a manufacturing facility,” he said.
‘Govt may impose 20%import duty on solar gear’Move to cut relianceon Chinese imports
Minister of State for Finance
Anurag Thakur
OUR BUREAU
New Delhi, July 16
In about a week, loans sanctioned under the ₹��3lakhcrore100 per cent Emergency CreditLine Guarantee Scheme (ECLGS)to support MSMEs have increasedby ₹��3,245.79 crore, taking theoverall loans sanctioned as of
July 15 to ₹��1,23,345.16 crore. Thedisbursements too saw an increase to the tune of ₹��6,323.65crore as of July 15 compared tothe position on July 9, the Finance Minister’s offi��ce tweeted onThursday. As of July 9, the totaldisbursements under thescheme stood at ₹��68,311.55 crore.
ECLGS: Loans sanctioned touch ₹��1.23lakh cr
MAMUNI DAS
New Delhi, July 16
Following a demand from transport associations, the RoadTransport and Highways Ministry has reminded various Statesthat they are permitted to fi��x aminimum fl��oor price for cargomovement. This is provided forin the Motor Vehicle Act.
Simply put, freight rate is theamount charged by truck driversfor moving goods between twodiff��erent places.
States are free to fi��x a range ofminimum and maximum ratefor freight and several forms ofpassenger transport, the RoadTransport Ministry has reiterated in a letter to States on July10.
The Road Transport Ministryissued this guidance citing representation from transport associations that asked the Ministryto fi��x the minimum freight ratesin view of “economic turbulence,weak demand and other factors”,according to an advisory. Eventhough a section of transporters
had sought government intervention to fi��x a minimum freightrate limit, the move will create arift in other sections of transporters, say transport experts.
SP Singh, Senior Fellow, IndianFoundation of Transport Research and Training (IFTRT), toldBusinessLine that this is diffi��cultto implement as it interferes inthe concept of letting the marketforces operate in a free and fairmanner. Government intervention in fi��xing freight (for goodsmovement) is totally unwarranted, he said adding that someStates such as West Bengal hadtried to implement this butcould not. Also, the method ofdefi��ning freight rate is diffi��cultin the present context when thecontract between large andsmall truck players, large andsmall customers vary based onduration of contract, volume ofgoods, size of trucks, and severalother factors.
States can fix minimum freightrates for trucks: Road Ministry The problem lies inimplementation, say experts
WXTransport associations had
asked the Ministry to fix
the minimum freight rates
in view of “economic
turbulence, weak demand
and other factors”
OUR BUREAU
New Delhi, July 16
India has permitted Air France to operate 28 fl��ights between France andDelhi, Bengaluru and Mumbaibetween July 18 and August 1, saidHardeep Puri, Minister of State forCivil Aviation, on Thursday.
The resumption of Air France’sfl��ights is seen as the beginning of airbubbles’ or safe corridors between India and another country.
“We are at a very advanced stage ofnegotiations with at least three countries. In the case of one — Air France —we have signed formally,” the Minister said adding that an agreement hasalso been reached between US and India for United Airlines to operate 18fl��ights between July 17 and July 31.
An ‘air bubble’ is just short of normal civil aviation operations, said theMinister. “We have a request from theBritish and the Germans. I thinkLufthansa is almost done,” he added.
Air India privatisationThe Minister also said that the divestment of Air India is still on the cards.
“Privatisation is not only necessarybut leaves us with no option for thesimple reason that airlines the worldover were under strain in the preCovid time and the pandemic has introduced a new element. We have toface reality. Even if Air India wants tobe dependent on the government,
the government may not be in a position in view of the other demands being made on it in the current situation, like providing measures forrelief to vulnerable sections. We donot have a choice, we have to privatiseAir India,” the Minister said withoutgetting into details on entities interested in acquiring the stateownedairline.
The Minister also hinted at an extension beyond August 23 of the fareband on domestic fl��ights. “The way(passenger) demand is going now atstill less than 33 per cent you mayneed a short extension. This is myview,” he added.
When domestic fl��ights restarted onMay 25 the government had imposeda fare band within which domesticairlines could price their tickets.
Besides, the government also madeit mandatory for airlines to sell atleast 40 per cent of seats at a fare lessthan the midway point of the band.This comes to approximately ₹��6,700or below for a oneway DelhiMumbaifl��ight ticket.
Air France allowed to operate fl��ights to IndiaAir India sell-off on track,
says Aviation Minister
Civil Aviation Minister Hardeep Singh
Puri at a press conference in New Delhi
on Thursday PTI
OUR BUREAU
New Delhi, July 16
Staterun power generator NTPC andthe National Investment and Infrastructure Fund (NIIF) will now jointlyexplore business opportunities inIndia.
NIIF will be acting through National Investment and InfrastructureFund Ltd (NIIFL) to explore opportunities for investments in areas of mu
tual interest with NTPC, such as renewable energy and power distribution.
A Memorandum of Understanding(MoU) for the same was signed onThursday.
The partnership aims to bring together NTPC’s technical expertise andNIIF’s ability to raise capital, and bringin global best practices by leveragingexisting relationships with leadingplayers, said an NTPC statement.
NTPC group has a total installed capacity of 62,110 MW. It targets to havenearly 30 GW of its overall power generation capacity from renewable energy sources by 2032.
NIIFL manages over $4.3 billion ofequity capital commitments across itsthree funds — Master Fund, Fund ofFunds and Strategic OpportunitiesFund, each with its distinct investment strategy.
NTPC, NIIF to jointly explore business opportunities
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