The government is aiming to introduce electric buses on long-distance routes and may offer incentives to promote their adoption.

The government plans to introduce electric buses on long-distance routes, potentially offering incentives to boost their adoption. This initiative focuses on interstate passenger travel, targeting the current fleet of 1.25-1.45 million buses, of which about 250,000 are state-controlled. Most of these buses currently rely on diesel, and transitioning to electric models would notably reduce emissions, according to the report.

To support this initiative, the government plans to expand charging infrastructure along highways, including fast chargers on major routes connecting urban centers. Additionally, a roadmap for assisting state governments in purchasing electric buses for long-distance operations is in development.

Citing a government official, electric buses are viable for continuous travel of up to eight to nine hours, and incentives are being considered to facilitate their widespread use. While electric buses are currently subsidized for urban transportation under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (Fame India) Scheme, the government may introduce a similar scheme or extend the existing one to cover interstate transport.

Efforts are also underway to encourage private bus fleet operators, as well as institutional buyers such as schools and colleges, to transition to electric mobility. The official highlighted the potential for electric school buses, which typically operate for short durations within cities, to contribute to this shift and mentioned the consideration of incentives for private players to adopt electric buses.

In December last year, reports emerged that the government was devising a plan to replace 800,000 diesel buses, which make up around one-third of all buses on roads, with electric ones over the next seven years. The replacement strategy was to involve deploying 200,000 electric buses for state transport undertakings (STUs), 550,000 for private operators, and 50,000 for schools and employee transportation by 2030.

The Ministry of Heavy Industries initiated the Fame India scheme in 2015. In 2019, the scheme received funding of Rs 10,000 crore for three years. The official deadline for Fame II was March 2024.

India is facing its most significant power shortfall in 14 years for June, attributed to a decline in hydropower generation and delays in commissioning new coal-fired plants. To mitigate potential outages, the government is deferring planned plant maintenance and re-opening idled units.

The Central Electricity Authority (CEA) forecasts a peak shortage of 14 GW in June, particularly during nighttime when solar capacity is offline. This gap, the widest since 2009-10, has prompted urgent measures by the Power Minister, R K Singh, who deferred shutdowns for maintenance and revived 5 GW of idled coal plant capacity.

The Ministry emphasizes that all efforts are being made to maximize generation to meet power demand adequately. Grid-India projects a maximum nighttime demand of 235 GW in June, with approximately 187 GW of thermal capacity and 34 GW from renewable sources available. These figures highlight the challenge of balancing supply and demand amidst growing energy needs.

The power ministry recently invoked emergency measures to ensure gas-based and imported coal-based power plants operate at full capacity. This move underscores the government’s commitment to addressing the immediate power crisis while navigating its long-term energy transition goals.

India’s reliance on coal has been a subject of debate, with efforts to balance energy security with environmental sustainability. Prime Minister Narendra Modi’s administration has prioritized the green energy transition, aiming to achieve net-zero emissions by 2070. However, plans for new coal power plants gained momentum last year, highlighting the complexity of transitioning away from coal dependence.

Existing coal-fired and solar plants are expected to play a crucial role in meeting electricity demand, particularly during daytime hours. While the government is striving to bridge the power deficit, challenges remain in ensuring reliable and sustainable energy supply for India’s growing population and economy.

The current power shortfall underscores the need for strategic planning and investment in diverse energy sources to enhance resilience against future disruptions. As India navigates its energy transition journey, balancing short-term energy needs with long-term sustainability goals will be crucial for ensuring a stable and prosperous energy future.

The power shortfall in India serves as a wake-up call, highlighting the urgent need for diversified energy sources and robust infrastructure to meet growing demand while transitioning towards cleaner energy alternatives. The government’s swift response in deferring maintenance and reviving idle coal plants underscores the importance of agility in managing energy crises.

However, the reliance on coal-fired power generation presents challenges in achieving environmental sustainability and meeting ambitious emission reduction targets. Prime Minister Modi’s administration’s commitment to the green energy transition signals a shift towards cleaner and more sustainable energy solutions, but the pace of implementation remains a concern.

As India grapples with its energy challenges, it must prioritize investments in renewable energy infrastructure, grid modernization, and energy storage technologies to build a resilient and sustainable energy ecosystem. Collaborative efforts between government, industry, and civil society are essential to drive innovation, improve energy efficiency, and accelerate the adoption of renewable energy sources.

By embracing renewable energy technologies and implementing comprehensive energy policies, India can mitigate its dependence on fossil fuels, reduce greenhouse gas emissions, and pave the way for a cleaner, more sustainable energy future.

This transition will not only address the immediate power shortfall but also contribute to India’s long-term economic growth, environmental stewardship, and global leadership in combating climate change.

In April, liquefied natural gas (LNG) futures trading volumes experienced a significant surge amidst rising demand and geopolitical tensions, indicating robust activity in anticipation of the upcoming summer season. India, a key player in the global LNG market, has witnessed a steady increase in LNG imports driven by various sectors such as power, industry, and transportation.

Data from March 2024 revealed that India’s total LNG imports, including both long-term contracts and spot purchases, amounted to 1.9 million metric tonnes (MMT), valued at USD 1113 million. Over the fiscal year 2023-24, India’s cumulative LNG imports reached 23.3 MMT, totaling USD 13266 million. Forecasts suggest a further 7-8% increase in LNG imports in 2024, driven by growing demand and ongoing infrastructure development initiatives.

India’s aspirations to enhance its LNG import capacity align with its goal to increase the share of natural gas in its energy mix to 15% by 2030, aiming to reduce reliance on more polluting fossil fuels like coal and oil. Market data from S&P Global Commodity Insights indicated a significant uptick in Japan Korea Marker (JKM) LNG futures and JKM LNG balance-month next-day futures trading volumes in April, reflecting heightened market activity.

According to the Intercontinental Exchange (ICE), LNG futures trading volumes experienced a notable month-on-month increase of 5.65% and a remarkable year-on-year rise of 134.43%, with 87,209 lots cleared. These derivative contracts, equivalent to approximately 16.77 million metric tonnes or 264 cargoes, underscore strong trading interest in LNG futures. Open interest for these contracts reached a 26-month high of 107,972 lots by the end of April, demonstrating robust market participation.

Analysts attribute the surge in LNG futures trading to various factors, including a spike in Asia-Pacific spot LNG prices amidst geopolitical tensions. Market sentiment turned cautious following increased risks, particularly the conflict between Iran and Israel in mid-April. The Platts JKM, a key benchmark reflecting LNG delivered to Northeast Asia, witnessed an increase in April, with the average price rising to USD 10.07/MMBtu compared to USD 9.15/MMBtu in March.

Adani Energy Solutions Ltd (AESL) reported a 13.26% decline in its consolidated net profit to Rs 381.29 crore for the quarter ended March 2024, attributed to increased expenses, down from Rs 439.60 crore in the same period of the preceding financial year. For the entire fiscal year 2024, the company’s net profit stood at Rs 1195.61 crore, down from Rs 1280.60 crore in FY 23. However, AESL witnessed a significant surge in total income during Q4, reaching Rs 4,855.18 crore compared to Rs 3,494.84 crore a year ago. Similarly, for FY 24, total income rose to Rs 17,218.31 crore from Rs 13,840.46 crore in FY 23. Expenses also saw a corresponding increase, reaching Rs 4,358.83 crore in Q4 and Rs 14,978.74 crore for FY 24.

According to AESL, the revenue growth was driven by contributions from newly operationalized transmission assets, commissioning of elements at North Karanpura and MP-II package lines, and increased unit sales due to higher energy consumption in the distribution business at Mumbai and Mundra.

AESL’s Managing Director, Anil Sardana, highlighted the company’s progress in commissioning new lines and tapping market opportunities within the energy sector. The company achieved an Environmental, Social, and Governance (ESG) score of 25.3 from Sustainalytics, positioning it among the top 20 electric utilities globally.

In FY 24, AESL commissioned several key transmission projects, including the 765 kV Warora-Kurnool transmission line and the 765 kV KBTL (Khavda Bhuj line). Additionally, the distribution business, AEML, invested over Rs 1,334 crore in capital expenditure and reduced long-term debt by Rs 855 crore through a bond buyback program. AEML’s energy sales increased to 9,916 million units, attributed to an uptick in energy demand. The company also improved its distribution loss, which stood at 5.29% in FY 24 compared to 5.93% in FY 23.

Notably, AESL secured contracts for 21 million smart meters from various DISCOMs, with an under-implementation pipeline of 22.8 million smart meters. In transmission, AESL operationalized 1,244 circuit km during FY 24, ending with a total transmission network of 20,509 circuit km.

As part of the Adani Group, AESL maintains a significant presence across 17 states in India, boasting a cumulative transmission network of 20,509 circuit km and 57,011 MVA transformation capacity. AESL’s strategic investments in transmission and distribution infrastructure, coupled with efforts to enhance operational efficiency, reflect its commitment to meet the evolving energy needs of India.

The company’s focus on expanding its smart metering capabilities and reducing distribution losses underscores its dedication to sustainable growth. Despite facing challenges such as increased expenses and a decline in net profit, AESL remains optimistic about its prospects, driven by a robust revenue growth trajectory. With a strong presence across multiple states and a comprehensive transmission network, AESL continues to play a pivotal role in India’s energy landscape, ensuring reliable power supply nationwide.

India’s eight infrastructure sector grew 5.2 per cent in March 2024 driven by positive growth in production of cement, coal, electricity, natural gas, steel and crude oil as compared to March 2023. The combined index of eight core industries (ICI) which measures the combined and individual performance of the production of eight core industries — cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products and steel – “eased to 5.2 per cent with five of the components reporting a flattening trend in the sequential months,” notes Aditi Nayar, Chief Economist ICRA.

Cement production increased by 10.6 per cent in March 2024 over March 2023, coal production increased by 8.7 per cent yoy and electricity generation increased by 8.0 per cent in March 2024, displaying healthy expansion and maintained a robust pace in April 2024, with rising heat likely boosting agricultural and household demand, notes Nayar. Crude oil increased by 2.0 per cent yoy, but two segments displayed a contraction, namely petroleum refinery products with production declining by 0.3 per cent and fertilisers production declining by 1.3 per cent in March 2024 over March, 2023.

Natural gas production increased by 6.3 per cent yoy. Steel production increased by 5.5 per cent in March, 2024 over March, 2023. Its cumulative index increased by 12.3 per cent during 2023-24 over corresponding period of the previous year. Nayar expects IIP growth to moderate somewhat in March 2024, as the leap year effect fades at 3.5-5 per cent in March 2024.

This was on account of the reduction in gas cost by 6 per cent yoy due to easing of APM gas price and efficient gas sourcing. This helped ATGL pass on the benefit of lower gas price to consumers. For the quarter the company achieved 59 per cent increase in net profit at Rs 165 crore, 49 per cent increase in EBIDTA at Rs 305 crore and revenue from operations atRs 1,257 crore.

In terms of operations, the overall volume was up by 20 per cent yoy in Q4 FY24 and the CNG network increases to 547 stations inclusive of 108 DODO/CODO stations. The PNG household increased to 8.20 lakh homes. The year saw Barsana CBG plant phase 1 commissioned and spread of 606 EV charging points across 14 states. Suresh P Manglani, ED & CEO of Adani Total Gas credits the transformative year for ATGL to a robust operational and financial performance.

The company is on track to invest in creating world class infrastructure across its geographical areas (GAs) and diversifying into areas adjacent to core CGD business. According to Manglani, the company is incubating new business opportunities in the areas of compressed biogas, EV charging infrastructure, and lng for trucking and mining (LTM).

During the quarter, it commissioned the first phase of one of the India’s largest diversified feedstock-to-CBG plant at Barsana in Mathura and also expanded the e-mobility footprint to 23 states. “These, along with LTM are the next big growth drivers and ATGL is steadily executing a sustainable business plan around these neo-opportunities,” said Manglani.

Adani Total Gas on Tuesday reported 71 per cent increase in consolidated net profit at Rs 167.96 crore for the fourth quarter of financial year 2023-24 from Rs 97.91 crore a year ago. For the quarter the company achieved 49 per cent increase in EBIDTA at Rs 305 crore and revenue from operations at Rs 1,257 crore. In terms of operations, the overall volume was up by 20 per cent yoy in Q4 FY24 and the CNG network increases to 547 stations inclusive of 108 DODO/ CODO stations, the company said, announcing its performance for the full year (FY24) and quarter ended 31 March 2024.

Operational highlights for FY24 on standalone basis includes increase in CNG stations to 547, addition of 91 new CNG stations, 8.20 lakh total PNG home and 1.16 lakh new households on PNG network. Industrial and commercial connections increased to 8,331 with the company adding 896 new consumers. The company completed 12,023 Inch km of steel pipeline.

The CNG volume increased by 21 per cent yoy on account of network expansion across multiple Gas.With recovery of PNG Industrial volume and addition of new PNG connection in domestic and commercial segments, PNG volume has increased by 5 per cent yoy.

Although the combined CNG and PNG volume was at 865 MMSCM with a yoy increase of 15 per cent, revenue from operations has increased by 3 per cent yoy.