...TRAINING PROJECT REPORT ON “Pricing and affordability of Gas for Different industries in India.” AT SBI Capital Markets, Mumbai Submitted in partial fulfillment of the requirement For the award of the degree Of Masters of Business Administration Session (2011-2013) Submitted to: Submitted by: Narsee Monjee Institute of Management Studies, Ankit Johri Mumbai MBA Capital Markets Roll No. A34 NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES, MUMBAI * Contents Acknowledgement 4 1. Introduction 4 History 4 GAS Utilization Policy: 5 NELP 6 Production sharing Contracts 6 2. Demand and supply 7 Supply Scenario: 7 Status of NELP discoveries 9 Supply from various regions: 9 Demand 10 Need for Imports 11 TAPI Pipeline Agreement : 12 3. PRICING 13 History 13 Prices Of Different fuels: 14 Pricing Regimes in the Indian Gas Sector 15 Pricing under the APM and Discovered Fields Regime 16 Pricing under the NELP regime 17 Pricing of LNG 18 4. Fuels and their shares : 20 Sector Demands and supply: 21 5. Gas v/s Coal and other liquid fuels: 22 Cost of Gas to different industries: 24 Power 24 Fertilizers: 26 CGD, Refineries and Petrochemicals 27 Other Advantages of Natural Gas: 28 6. Cost of Different fuels for Ceramic industries: 30 Asian Granito: 30 Nitco 32 7. Pooling mechanism: 35 Need for Pool Pricing 35 Proposed Roadmap of Pool Pricing Mechanism 36 8. Conclusions...
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...WHAT ARE THE CHALLENGES AND FUTURE PROSPECTS OF INDIA’S PETROLEUM PRODUCTS REFINERIES? Ruqayah Olowonirejuaro* ABSTRACT: The petroleum refining industry is a vital link in the energy chain in many developing and industrialised countries as it plays a key role in providing energy for all sectors of any economy. The structure, economic conditions, and developments in the industry are therefore important matters of national interest. In recent times, significant changes have taken place in India’s refining industry with resultant challenges. This paper seeks to evaluate the challenges faced by India’s petroleum refining industry in view of its recent performance and discuss the industry’s future outlook. Pricing is identified as a most important challenge which if addressed and combined with other complementary remedies could help maximize the industry’s potentials. * The author is currently an MSc candidate in Energy Studies specialising in Oil and Gas Economics at the CEPMLP, University of Dundee, UK. She has a Bachelor of Science (B.Sc Hons) Degree in Accounting from Igbinedion University, Nigeria. She is a student member of the Association of Chartered Certified Accountants (ACCA), and the Energy Institute (EI). Email: oruqayah@yahoo.com TABLE OF CONTENTS ABBREVIATIONS............................................................................................................iii LIST OF FIGURES..................................................................
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...(US) 1 832 326 3854 • (INDIA) + 91 80 227 3130 Email: pari@zinnov.com W H I T E P A P E R W H I T E P A P E R 2 ENERGY: Indian Demand- Supply Gap Table of Contents ENERGY: Indian Demand- Supply Gap ...................................... 1 1.0 Overview ......................................................................... 3 1.1 Drivers and Inhibitors in Energy Sector..................................... 3 1.2 Major Industry Players............................................................ 4 2.0 Demand Supply Scenario .................................................... 4 2.1 Demand................................................................................ 4 2.2 Supply .................................................................................. 5 3.0 Primary Energy Requirements of India ............................... 6 4.0 Regulatory Framework ....................................................... 9 5.0 Conclusion ........................................................................ 10 Disclaimer: ............................................................................. 11 W H I T E P A P E R Overview ENERGY: Indian Demand- Supply Gap 1.0 Overview Energy sector in India is one of the most challenging sectors for global players given the presence of large profit making Public Sector Units (PSU) with strong regulatory back up and market presence. As per Energy Information Administration (EIA) India is the sixth largest energy...
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...“Ratio Analysis and Comparative Study of Financials of IOCL with its Competitors” Submitted for partial fulfilment of the Award Of Master of Business Administration DEGREE (2011-2013) Submitted By ArushiBhutani 1103270034 UNDER THE GUIDANCE OF Internal Guide:JayaPandey School of Management ABES ENGINEERING COLLEGE, GHAZIABAD (ISO 9001:2000 certified) AFFILIATED TO MAHAMAYA TECHNICAL UNIVERSITY, NOIDA Candidate’s Declaration/Certificate I “ARUSHI BHUTANI” hereby declare that the work which is being presented in this report entitled “Ratio Analysis and Comparative Study of Financials of IOCL with its Competitors” is an authentic record of my own work carried out under the supervision of Ms. “JAYA PANDEY”. The matter embodied in this report has not been submitted by me for the award of any other degree. Dated: ARUSHI BHUTANI MBA Department This is to certify that the above statements made by the candidate are correct to the best of my knowledge. Prof. Rakesh Passi JAYA PANDEY Head of Department Designation: Date: Department: Date: ACKNOWLEDGEMENT “Interdependence is a higher value than independence” Some says “Managers are born and some says managers are made”. I was also in some dilemma before commencing my Summer Internship Project. But after the successful completion of my summer internship project, I came to know that managers are made if they are guided...
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...to get insight into practical situation. Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to advance a single step in the absence of Petroleum Industry. The Petroleum Industry is divided into two segments namely Upstream Sector consisting of Exploration and Production of crude oil while the Downstream Sector consists of Refining, Processing, Storing, Marketing and Distribution of petroleum products. The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways. Hence, for these reasons, we have chosen the Downstream Sector of the Indian Petroleum Industry for our Macro Analysis project. As this is a Macro Analysis project, we have concentrated on the Indian Petroleum Industry and that too focusing on the Downstream Sector for our study and not gone into the in depth analysis of the various players and their functioning. This project is prepared for academic purpose and inspite of our best efforts there may be some errors, which may please be excused. ACKNOWLEDGEMENT This Comprehensive Project Report is a result of contribution received from a number of people. No amount of words written will be sufficient and adequate...
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...begins to take hold in countries previously not seen as traditional powerhouses. Worldwide, prices have risen at a rate never before seen. With a burgeoning population of middle class workers, Asia as a whole, and China and India specifically, have fueled this pricing explosion. Research shows that the development of these former 3rd world countries is responsible for a large increase in global pricing due to the high demand for steel, oil, and agricultural products. One major industry which has been affected by this shift is the steel industry. The demand for steel along with the decreased supply has caused prices to increase by 25 to 45 percent in the US market. (Van Der Schans, 2007). Several factors have coincided to deal a damaging blow to the US steel market. Firstly, China and India have become major players in the steel industry, accounting for the consumption of over 25 percent of the worldwide steel supply. Cooney found that, “China has become both the world’s largest steelmaker and steel consumer.” (2006). China’s ability to dictate the market has led to a global shortage of structural steel, and as most people are aware, when the supply dwindles and the demand increases, higher prices are inevitable. The increased demand in China and India has caused these countries to redirect their exports in order to meet their own domestic demands. Some Chinese and Indian suppliers have halted exports completely;...
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...Energy India: Towards Energy Independence 2030 January 2014 Copyright © 2014, by McKinsey & Company, Inc. India: Towards Energy Independence 2030 January 2014 4 India: Towards Energy Independence 2030 Introduction India is the world’s fourth largest economy1 as well as the fourth largest energy consumer. India imports a substantial portion of its energy — 80 per cent of its oil, 18 per cent of its gas, and now even 23 per cent of its coal. As the Indian economy continues to grow, so will its energy consumption, especially as the growth of its manufacturing sector catches up with services and agriculture. With domestic resource production facing various challenges, the general expectation has been that Indian energy imports will continue to grow, and energy security concerns will intensify. The outlook and options for Indian energy independence therefore becomes an important topic. A 2030 outlook is particularly relevant since it is difficult to significantly change energy policy in 5 or 10 years, but almost any boundary conditions can be changed over a 15-year period. Moreover, there have been few if any, in-depth perspectives on this topic for 2030. This white paper builds off the ‘2030 Global Energy Perspective’, McKinsey’s substantial body of research on energy demand and supply, and our understanding of the evolution of the global and Indian energy sectors. We have tried to address some of the basic questions that arise about Indian energy in 2030: Is India’s...
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...SYNOPSIS In the early 1990s, Enron International entered into an agreement to build two gas fired power plants in India. The plants would help supply electricity in a country whose rapidly growing power needs were far exceeding existing generating capacity. The plants were to be gas fired, receiving a portion of the gas from Indian fields and a portion from a facility Enron was building in Qatar. While the general idea behind the projects had been approved at the highest levels of the federal government, final approval on many aspects needed to be approved by local bureaucrats. One of the plants, Dabhol, was located on India’s fast growing western seaboard near Bombay. Receiving approval was a slow process that was helped by the fact that the state government was run by the same Congress Party as controlled the federal government. During early stages of the project, state elections took place. The opposition party took the position that this was a corrupt project, with bribes and favors going to Congress party officials. When the Congress Party lost the state elections, the new administration decided to pull the plug on the project. Although investigations showed no bribes had taken place, the new government needed to assert its authority. Enron responded on multiple fronts. It filed a lawsuit for breach of contract, which required that the state reimburse Enron $300-800 million. On legal grounds its position seemed very strong. It also appealed directly...
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...Kumar Objectives: Objectives To study in detail about the Global Logistics Industry To study in detail about the Indian Logistics Industry To find out the areas where Logistics Industry in India is lacking To compare the Global Companies (UPS, FedEx and DHL) with the Indian Logistics Companies ( Gati , DTDC and First Flight) INTRODUCTION: INTRODUCTION What is Logistics? Management of flow of goods and services Integration of information, transportation, inventory etc Reduces operational cost, improve delivery performance and enhance customer satisfaction The importance of logistics is growing and now the logistics industry has become highly recognized in the global scenario Evolution of Logistics Industry: Evolution of Logistics Industry Global Scenario of Logistics Industry: Global Scenario of Logistics Industry Size of the Global Logistics Industry Annual logistics cost of the world is USD 3.5 trillion The annual logistics cost in any country varies in between 9% to 20% of their GDP Logistics market in US is 10% of its annual logistics cost Global Logistics industry is estimated to be worth USD 300 billion Largest service providers are located in Europe Biggest market - US Current Status and Dynamics of the Industry: Current Status and Dynamics of the Industry Issues – Pricing pressures, high cost of operations, low returns on investment, hiring and retaining talent and pressure from the client Role of service providers have become very important to complete supply...
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...Commercial Energy Production, Final Energy Consumption, Energy Needs of Growing Economy, Long Term Energy Scenario, Energy Pricing, Energy Sector Reforms, Energy and Environment: Air Pollution, Climate Change, Energy Security, Energy Conservation and its Importance, Energy Strategy for the Future, Energy Conservation Act-2001 and its Features. 1.1 Introduction Energy is one of the major inputs for the economic development of any country. In the case of the developing countries, the energy sector assumes a critical importance in view of the everincreasing energy needs requiring huge investments to meet them. Energy can be classified into several types based on the following criteria: • • • Primary and Secondary energy Commercial and Non commercial energy Renewable and Non-Renewable energy 1.2 Primary and Secondary Energy Primary energy sources are those that are either found or stored in nature. Common primary energy sources are coal, oil, natural gas, and biomass (such as wood). Other primary energy sources available include nuclear energy from radioactive substances, thermal energy stored in earth’s interior, and potential energy due to earth’s gravity. The major primary and secondary energy sources are shown in Figure 1.1 Primary energy sources are mostly converted in industrial utilities into secondary energy sources; for example coal, oil or gas converted into steam and electricity. Source Extraction Coal Processing Preparation Primary energy Coal Open...
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...M World Economy anagement’s discussion & analysis (Forming part of the Directors’ Report for the year ended 31st March 2010) INDUSTRY STRUCTURE & DEVELOPMENTS During the course of the year, international economic conditions exhibited a marked improvement with the global economy getting into an early recovery mode. The vital statistics of the engine of the world economy entered the positive territory. After June 2009, world trade flows entered into an expansionary mode after declining for several months and GDP growth turned positive. A corrective policy action on both fiscal & monetary fronts has been at the very core of the recovery witnessed. However, the recovery process has not been uniform and has varied in speed & strength across countries and regions, with emerging economies leading the way. While the recovery has been early, it is still nascent and fragile and the key risks and destabilising factors continue to exist. This calls for further reforms in the financial markets and controlling fiscal deficits in the light of rising commodity prices & high unemployment rates. The recent debt crisis in Greece has only highlighted the fragility of the recovery process and raised questions on the credibility of the economic recovery and the stability of financial markets. Indian Economy Indian economy has been amongst the first economies to emerge out of the grips of recessionary forces in a incredible recovery led by the industrial and services sectors. The acceleration...
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...Contents Executive Summary 2 1. Introduction 4 2. Demand of power 4 2.1 Energy demand with respect to sector has been continuously changing in India. 5 2.1.1 Agricultural sector 5 2.1.2 Industrial sector 5 2.1.3 Domestic Sector 5 3 Supply of power 5 4. Indian Power sector Growth – Recent and Future 5 5. Transmission and Distribution – 6 5.1 National Power Grid 7 5.2 Losses in T & D 7 5.3 Measures that can be taken to reduce losses are: 8 5.3.1 For Technical losses: 8 5.3.2 For Commercial losses: 8 6. India’s energy mix – Future investment required 8 7. Environmental issues 9 8. Sources of power 9 8.1 Coal 9 8.2 Natural Gas 10 8.3 Hydro power 10 8.4 Nuclear sources of power 10 8.5 Renewable sources of power 11 8.5.1 Solar power 11 8.5.2 Wind power 11 8.5.3 Biomass power 11 9. Regulatory changes 12 10. Disinvestment & consolidation 12 11. Challenges: 13 Appendix: 14 Appendix I 14 Appendix II 14 Appendix III 15 Appendix IV 16 Appendix V 16 Appendix VI 16 Appendix VII 17 References: 18 Executive Summary Availability of power is one of the important ingredients for industrial growth. It is an important infrastructure facility without which any industrial activity cannot be thought of in modern times. In the report, the main parameter used is the increase in the demand of power in India. Assuming a growth of 8%, the projected energy demand will be about 3600 billion kWh, almost 5 times the current demand. Based on the demand growth and the...
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...Fertilizer policies: lessons for India from abroad Policies regulating pricing and subsidy Government of India have adopted various policy measures to ensure the supply of fertilizers at affordable rates throughout the country. One such policy measure is the subsidies given to the fertilizer manufacturers. As per the existing subsidy policy, all farmers, irrespective of their income and holdings, are eligible for the subsidised fertilizers. Fertilizer manufacturers are entitled to receive the difference between the normative cost of production and the MRP at which fertilizers are sold. There is no restriction for them as per their efficiency or capacity utilisation. In other words the subsidy policy regime in India failed to oblige the fertilizer...
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...SCMHRD The Future of the Power Sector An Analysis Tushar Alva Roll No-2009A06 Executive Summary The electricity sector in India is predominantly controlled by Government of India's public sector undertakings (PSUs) but the private sector is also catching up fast. India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years. In March 2009, the installed power generation capacity of India stood at 147,000 MW while the per capita power consumption stood at 612 kWH. The country's annual power production increased from about 190 billion kWH in 1986 to more than 680 billion kWH in 2006. India faces a serious shortfall in power generation. During the tenth plan, only 23,000 MW of capacity was added against the original target of 41,000 MW. During the 11th plan, a target of 78,000 MW has been set. Anil Kakodkar, Chairman, Atomic Energy Commission, India had estimated that the per capita electricity generation would reach about 5300 kWh per year in the year 2052 and total about 8000 TWh. The Government of India has an ambitious mission of „POWER FOR ALL‟ BY 2012. This mission would require that the installed generation capacity should be at least 200,000 MW by 2012 from the present level of 144,564.97 MW. Power requirement will double by 2020 to 400,000MW. The ratio of energy generation and GDP growth...
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...9%, the non-OECD nation’s growth rate reached 5.5% in 2010. Even though there has been a significant upsurge in all types of energy, oil still remains the world’s leading fuel. In the current scenario, where the global oil consumption is surging, the production is unable to match such high growth. In the year 2011, the demand grew by 3.1% whereas the increase in supply was only for 2.1%, attributing to the implementation of OPEC production interruptions since late 2008. Therefore the unmatched demand and supply resulted into a consequent decrease in inventories. Demand for oil is relatively inelastic with respect to income in the advanced, OECD economies. However, income elasticity of demand (YED) in developing economies like China and India is likely to be higher, with estimates suggesting that YED is close to 1. Oil has possible close substitutes in the form of other energy...
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