Oil cos? waiting game on price hike before polls
It was widely reported that oil retailers IOC, HPCL and BPCL did not increase the price of petrol ? on which they have pricing freedom ? in the months preceding assembly polls in five states, because of lack of approval from the petroleum ministry. Sources in companies, however, have now disclosed that they never approached the government for clearance of any price increase on petrol in those months. They say the companies consciously did not approach the government for fear that any negative reply could have made it impossible to raise prices even after the elections. Companies were willing to wait for a few months rather than risking their hard-earned pricing freedom on the ?rich man?s fuel?, sources say. Retailers? patience has proved worthwhile as the hike of R5/litre on petrol in May, the current moderation in crude to $106 a barrel and the reduction of 5% customs duty on auto fuel has wiped off the losses they were making on petrol.
World Bank okays $648 m for project on Alaknanda
The World Bank has approved a $648-million loan for the 444-MW Vishnugad Pipalkoti Hydroelectric Project on river Alaknanda being developed by THDCIL, a mni-ratna PSE under the ministry of power. With this, the project has achieved full financial closure. Earlier, ministry of environment and forest issued clearance for diversion of 80 hectare of forest land for the project. A run of the river project, it will generate 1,665 million units of electricity annually. The project is expected to be completed during the Twelfth Plan. THDC (formerly Tehri Hydro Development Corporation) currently has a portfolio of hydro projects with an aggregate capacity of 8,868 MW under various stages of implementation/ investigation in Uttarakhand, Maharashtra and Bhutan. The Tehri Dam & HPP (1,000 MW) is operational since 2006-07. Two Units of the 400 MW Koteshwar HEP were commissioned during 2010-11 and the remaining two units are scheduled to be commissioned in 2011-12.