Upward Mobility: Heartening dat every year, 20-25 million Indians will now be experiencing air travel for the first time in their lives!

– Civil aviation set to soar

The Indian aviation industry is set to become the third-largest in the world by 2020. National Civil Aviation Policy has set a target of 1.4bn annual passenger capacity by 2017—meaning building five times more airport capacity in the next 10 years.

New angle! EcoSurvey > “Social Cost of Renewables 3X that of coal-based electricity” largely due to cost of stranded conventional assets

– Social costs of the renewables push

Share of renewable energy is expected to grow from 17.65% to 43% in 2027. Stranding of coal-powered projects will create an NPA risk for banks. NPAs in generation already account for around 5.9% of the total outstanding advances of Rs 4.73 trillion.

Commendable: Gadkari says ~ “saved Rs 3 lac crs of bad loans in Roads Sector by conducting meetings day and night & 22 Cabinet decisions”

– The road to preventing NPAs

When NDA-2 came to power, there were 403 stalled roads projects with a loan exposure of Rs 3.9 lakh crore. Now, there are none; Rs 50,000-crore worth projects have been terminated.

Good news on Transmission: India’s highest capacity line of 1728 km (with several novel features) to be ready soon ~NorthEast to Agra

– Powerful connect

A Rs 12,000-crore project has been executed by ABB for PGCIL. Transmitting cheap hydro-power—line can transmit 6,000MW at 800,000 volts—from the northeast to central India could bring tariffs down, lower dependence on coal-fired power.

UP trying really hard to clean up its power sector. After ‘chori roko abhiyaan’ it now proposes a steep hike in electricity rates

– UP power tariffs

UP Power Corp has sought an average electricity tariff hike of 22.66% for all sectors—a 60% increase for farmers’ unmetered tubewells, a 260-350% increase for unmetered rural domestic consumers & 150% hike for metered rural domestic consumers.

PFC-REC type funding institution for Highways sector? Possible—as Mr Gadkari says he is proposing such a financing institution

– Highways may get a funding boost

Japanese & Korean investors have expressed interest in such a funding firm. The ministry proposes a PPP of sorts—with NHAI and private investor jointly owning equity in it. In 2015, the govt set up NIIF, but it still hasn’t made a single investment or raised investment commitments from private concerns.

With PLFs of coal thermal plants likely to continue in d 55-60% range, technical heads worried as plants not designed to work < than 55%

– Breaching floor PLF

Generators such as NTPC are looking at retrofitting, etc, to contain the damage, as demand for power shrinks as well as renewables grow. Retrofitting would require investing around Rs 1 crore per megawatt. This will push up tariffs, making coal-based power even less competitive.

Those days of Coal being called ‘black gold’ are over. The 5th round of coal mines auction called off due to poor response from bidders

– Coal’s not selling

Six coking coal blocks were to be auctioned in fifth round—five in Jharkhand & one in Madhya Pradesh. With demand from steel industry low, the fifth round was annulled. This, despite India not being self-sufficient in metallurgical grade coal.

Unfactored Risk: Possibility of face-off with China worrisome for power sector as 60% of stressed power plants run on Chinese equipment

– Doklam could hit power plants

India’s military stand-off with China over Doklam could affect operations, maintenance, supply of spares for power projects which together have a debt burden of Rs 1.77 trillion. At a time when power demand is low, this could mortally hurt projects.