PPP Current Affairs

Cabinet approves filling of Padur Strategic Petroleum Reserves in Karnataka

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the filling of Padur Strategic Petroleum Reserves (SPR) in Karnataka by overseas National Oil Companies (NOCs). The filling of the SPR will be under PPP model and is being undertaken to reduce budgetary support of Union Government. The SPR facility at Padur is underground rock cavern with total capacity of 2.5 million metric tonnes (MMT) having four compartments of 0.625 MMT each.

Background

Indian Strategic Petroleum Reserves Ltd. (ISPRL) has constructed and commissioned underground rock caverns for storage of total 5.33 MMT of crude oil at three locations namely Mangalore (1.5 MMT), Vishakhapatnam (1.33 MMT), and Padur (2.5 MMT). The total 5.33 MMT capacity under Phase-I of the SPR programme is currently estimated to supply approximately 9.5 days of India’s crude requirement. Government also has given ‘in principle’ approval for establishing additional 6.5 MMT SPR facilities at Chandikhol in Odisha and Padur in Karnataka in phase II which is expected to augment India’s energy security by 11.5 days according the consumption data for FY 2017-18.

Month: Categories: India Current Affairs 2018

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India’s first STP under Hybrid Annuity Mode to come up in Haridwar and Varanasi

India’s first Sewage Treatment Plant (STP) under Hybrid Annuity Mode will come up in Haridwar (Uttarakhand) and Varanasi (Uttar Pradesh).

In this regard, a tripartite agreement was signed between National Mission for Clean Ganga (NMCG) and state level executing agencies Uttar Pradesh Jal Nigam and Uttarakhand Pey Jal Nigam and with concessionaires.

Key Facts

The agreement is major step forward in realizing dream of Nirmal Ganga as it is first time ever in India that Hybrid Annuity-based Public Private Partnership (PPP) mode is being applied in sewerage sector. Under this agreement maintenance of project will be responsibility of concessionaire. They will be paid based on performance in phased manner. This will ensure continued performance of sewage infrastructure assets created due to better ownership, accountability and optimal performance.

 Hybrid Annuity Model

The Union Cabinet had approved to Hybrid Annuity-PPP model in January 2016 with 100% central sector funding. Under this model, development, operation and maintenance of STPs will be undertaken ba Special Purpose Vehicle (SPV) created by winning bidder at local level.

As per this model, 40% of capital cost quoted will be paid on completion of construction while remaining 60% cost will be paid over life of project as annuities along with operation and maintenance cost (O&M) expenses. In this model, Annuity and O&M payments are linked to performance of STP mainly to ensure continued performance of assets created due to better accountability, ownership and optimal performance.

Month: Categories: India Current Affairs 2018

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