The growth of eight core sectors slowed to 3-month low of 4.1 per cent in March due to weak performance in as many as six sectors including coal, crude oil and natural gas. 
 
The other sectors which showed slower growth rate were refinery products, steel and electricity. 
 
The growth rate of eight infrastructure sectors, which also include fertilisers and cement, was 5.2 per cent in March 2017, according to the data released by the commerce and industry ministry today. 
 
The previous low was in the core sectors was 3.8 per cent in December 2017. 
 
Cumulatively, the eight core sectors grew by 4.2 per cent in 2017-18, lowest in the last three financial years. Their rate of growth was 4.8 per cent in the previous fiscal and 3 per cent in 2015-16.

The&nbsp;core sector&nbsp;would have an impact on the Index of Industrial Production (IIP) data as these eight segments account for about 41 per cent of the total factory output. 
 
Output growth rate of only fertliser and cement reported healthy numbers. Both the sectors grew by 3.2 per cent and 13 per cent respectively in March.

On the other hand, coal, natural gas, refinery products and steel production growth slowed to 9.1 per cent (as against 10.6 per cent in March 2017), 1.3 per cent, 1 per cent, 4.7 per cent (as against 11 per cent a year ago) respectively during the month under review. 
 
Electricity generation growth rate too decelerated to 4.5 per cent as against 6.2 per cent in March 2017. 
 
Crude oil recorded a negative rate of growth of 1.6 per cent in March this year.

Cumulatively, the eight core sectors grew by 4.2 per cent in 2017-18, lowest in the last three financial years. Their rate of growth was 4.8 per cent in the previous fiscal

The growth of eight core sectors slowed to 3-month low of 4.1 per cent in March due to weak performance in as many as six sectors including coal, crude oil and natural gas. The other sectors which showed slower growth rate were refinery products, steel and electricity. The growth rate of eight infrastructure sectors, which also include fertilisers and cement, was 5.2 per cent in March 2017, according to the data released by the commerce and industry ministry today. The previous low was in the core sectors was 3.8 per cent in December 2017. Cumulatively, the eight core sectors grew by 4.2 per cent in 2017-18, lowest in the last three financial years. Their rate of growth was 4.8 per cent in the previous fiscal and 3 per cent in 2015-16. The core sector would have an impact on the Index of Industrial Production (IIP) data as these eight segments account for about 41 per cent of the total factory output. Output growth rate of only fertliser and cement reported healthy numbers. Both the sectors grew by 3.2 per cent and 13 per cent respectively in March. On the other hand, coal, natural gas, refinery products and steel production growth slowed to 9.1 per cent (as against 10.6 per cent in March 2017), 1.3 per cent, 1 per cent, 4.7 per cent (as against 11 per cent a year ago) respectively during the month under review. Electricity generation growth rate too decelerated to 4.5 per cent as against 6.2 per cent in March 2017. Crude oil recorded a negative rate of growth of 1.6 per cent in March this year.

Core sector growth rate slowed to 3-month low of 4.1% in March

The combined Index of Industrial Production (IIP) of Eight Core Industries stood 5.3 percent higher in February this year, compared to the same period last year, the government said on Monday.

As per official data from the Ministry of Commerce and Industry, the combined index for the core sectors stood at 123.1 in February this year, which was 5.3 percent higher as compared to the index of February last year. Furthermore, its cumulative growth during April to February 2017-18 was 4.3 percent, the data revealed.

-Coal production increased by 1.4 per cent in February, 2018 over February, 2017, and its cumulative index increased by 1.6 per cent during April to February, 2017-18 over the corresponding period of the previous year.

-Crude Oil production declined by 2.4 per cent in February, 2018 over February, 2017 and its cumulative index declined by 0.8 per cent during April to February, 2017-18 over the corresponding period last year.

-Natural Gas production declined by 1.5 per cent in February, 2018 over February, 2017, and its cumulative index increased by 3.1 per cent during April to February, 2017-18 over the corresponding period of previous year.

Among refinery products, petroleum refinery production was up by 7.8 per cent in February, 2018 over February, 2017, while its cumulative index increased by 4.9 per cent during April to February, 2017-18 over the corresponding period of previous year.

Furthermore, fertilizer production increased by 5.3 per cent in February, 2018 over February, 2017. However, the cumulative index declined by 0.2 per cent during April to February, 2017-18 over the corresponding period last year.

Steel production increased by five per cent in February, 2018 over February last year, while its cumulative index increased by 5.9 per cent during April to February 2017-18. Additionally, cement production increased by 22.9 per cent in February, 2018 over February last year. However, its cumulative index increased by 5.7 per cent during April to February, 2017-18 over the corresponding period of previous year.

Meanwhile, electricity generation increased by 4 per cent in February over the same month last year, while its cumulative index increased year-on-year by 5.2 per cent during April to February, 2017-18.&nbsp;

&nbsp;

As per official data from the Ministry of Commerce and Industry, the combined index for the core sectors stood at 123.1 in February this year, which was 5.3 percent higher as compared to the index of February last year. Furthermore, its cumulative growth during April to February 2017-18 was 4.3 percent, the data revealed.

The combined Index of Industrial Production (IIP) of Eight Core Industries stood 5.3 percent higher in February this year, compared to the same period last year, the government said on Monday. As per official data from the Ministry of Commerce and Industry, the combined index for the core sectors stood at 123.1 in February this year, which was 5.3 percent higher as compared to the index of February last year. Furthermore, its cumulative growth during April to February 2017-18 was 4.3 percent, the data revealed. -Coal production increased by 1.4 per cent in February, 2018 over February, 2017, and its cumulative index increased by 1.6 per cent during April to February, 2017-18 over the corresponding period of the previous year. -Crude Oil production declined by 2.4 per cent in February, 2018 over February, 2017 and its cumulative index declined by 0.8 per cent during April to February, 2017-18 over the corresponding period last year. -Natural Gas production declined by 1.5 per cent in February, 2018 over February, 2017, and its cumulative index increased by 3.1 per cent during April to February, 2017-18 over the corresponding period of previous year. Among refinery products, petroleum refinery production was up by 7.8 per cent in February, 2018 over February, 2017, while its cumulative index increased by 4.9 per cent during April to February, 2017-18 over the corresponding period of previous year. Furthermore, fertilizer production increased by 5.3 per cent in February, 2018 over February, 2017. However, the cumulative index declined by 0.2 per cent during April to February, 2017-18 over the corresponding period last year. Steel production increased by five per cent in February, 2018 over February last year, while its cumulative index increased by 5.9 per cent during April to February 2017-18. Additionally, cement production increased by 22.9 per cent in February, 2018 over February last year. However, its cumulative index increased by 5.7 per cent during April to February, 2017-18 over the corresponding period of previous year. Meanwhile, electricity generation increased by 4 per cent in February over the same month last year, while its cumulative index increased year-on-year by 5.2 per cent during April to February, 2017-18.

Core sectors register 5.3% IIP growth in February

If you were travelling via motorway from Islamabad to Lahore during November or December 2016, you might have felt like your head was in the clouds. That&rsquo;s thanks to the smog that engulfed large parts of Pakistan&rsquo;s Punjab and Sindh provinces in that period.

This was clearly &ldquo;not a natural phenomenon&rdquo;, as the Pakistani newspaper Dawn recently noted. Beyond causing acute ailments such as asthma, lung tissue damage, bronchial infections and heart problems, the smog also resulted in dozens of fatal road accidents due to poor visibility.

Qamar-uz-Zaman Chaudhry, former director general of Pakistan&rsquo;s meteorological office and now an international climate change specialist at the Asian Development Bank, attributed the smog primarily to toxic car emissions and atmospheric pollutants coming from coal-based industries in neighbouring Indian Punjab.

Imagine, then, what will happen to the environment when Pakistan begins mining billions of tonnes of coal, in part due to its plan to open at least five new coal power plants by 2018 under a new agreement with China.

Smog would spread across cities and rural areas, including in the Thar region, which spreads across Pakistan and parts of India. The poor indigenous people there might have to be relocated to other areas thanks to planned coal projects, losing their livelihoods, lands and villages to new mines.

A global challenge for climate change

Burning coal is not just a matter of local social and environmental concern. It is clear today that the coal that powered the developed world&rsquo;s industrial revolution has also triggered global climate changes.

According to Greenpeace International, coal is the single greatest threat to our climate. Emissions from burning coal fuel global warming and coal mining is also a source of climate-warming methane gas.

Pakistan is responsible for a mere 0.43 per cent of global greenhouse gas emissions, but it is among the world&rsquo;s ten most vulnerable countries to climate change. Domestic climate change experts see the issue as a bigger threat than terrorism.

The country is grappling with many issues, including receding glaciers, floods, heatwaves, droughts, shifting weather patterns and declining groundwater levels &ndash; and the list goes on.

Agriculture, which comprises 21 per cent of Pakistan&rsquo;s GDP, 60 per cent of exports and employs 45&nbsp;per cent of the national labour force, is particularly vulnerable to climate change.

China reduces coal investments at home but not abroad

In the landmark December 2015 Paris Agreement, 195 countries agreed to curtail climate change by keeping global warming to &ldquo;well below 2&deg;C and &hellip; pursu[ing] efforts to limit the temperature increase to 1.5&deg;C above pre-industrial levels&rdquo;.

All told, 141 countries (including Pakistan and China), jointly responsible for over 82 per cent of global greenhouse gas emissions, have ratified the agreement.

China &ndash; world&rsquo;s second-biggest economy and largest coal consumer, which also has the world&rsquo;s highest coal-fired power plant capacity &ndash; is considered a crucial player in the success of the Paris Agreement.

Domestically, China has realised that its over-dependence on coal causes severe air pollution and other environmental impacts. The most recent data show reductions in coal use for the third year in a row.

Yet China also invested US$25 billion in coal projects worldwide between 2007 and 2015, according to a recent report by the Natural Resources Defense Council. The report criticises China and other G20 countries for such investments, which are in conflict with their climate commitments under the Paris Agreement.

It shows how some of the world&rsquo;s leading polluters have, on one hand, pledged to control climate-changing carbon emissions within their borders, and, on the other, continued to finance fossil fuel projects elsewhere.

That&rsquo;s precisely what happened with Pakistan. After most international financial institutions turned away from coal, China established itself as Pakistan&rsquo;s partner in developing the new coal power plants.

Under the 2015 China Pakistan Economic Corridor (CPEC) initiative, the Chinese government and banks have planned to finance companies to invest US$27.6 billion in energy and infrastructure projects in Pakistan over the next six years, of which Pakistan is contributing US$18.1 billion. According to Pakistan&rsquo;s Ministry of Planning, Development and Reform, coal-fired plants with a combined capacity of 7,560 mW will be established as CPEC-energy priority projects.

In the guise of bringing energy, this investment will harm the air, water, public health and environment of Pakistan. The costs and lifespans of such coal projects can stretch over decades, trapping developing nations in a system of carbon-intensive energy use.

Rapid utilisation of coal &ndash; the &ldquo;dirty&rdquo; energy-generation option &ndash; has given many Chinese cities, including Shanghai and Beijing, the world&rsquo;s worst air quality.

Pakistan&rsquo;s proposed Port Qasim Power Project, a 1320-mW coal plant in Sindh province, will be located near Karachi, a metropolis of 25 million. This could cause disastrous damage to air quality and environment.

Potential for clean energy

No country can be expected to compromise on development, and development requires energy. But, as the cases of Jordan, Peru and Mexico demonstrate, it doesn&rsquo;t require dirty energy. Instead of using coal, Pakistan could drive development with renewables, in particular solar energy.

Much of Pakistan&rsquo;s territory is arid or semi-arid, an ideal setting for harnessing solar energy with more than the necessary number of sunny days per year.

In addition to providing clean energy, solar solutions can produce energy in the same places it is consumed, making it useful in remote areas that may lack transmission infrastructure.

Recent research suggests that the deployment and maintenance of renewable energy projects are also likely to create better quality jobs than coal.

The costs of renewables are declining rapidly worldwide. Solar and wind now cost the same or less than new fossil fuel in more than 30 developing and developed countries.

India&rsquo;s energy minister noted last year that solar tariffs had become cheaper than coal-based electricity, and India is pushing ahead with its renewables plan.

China, too, has realised the economic potential of leading in renewable sources. By the end of 2016, its solar energy capacity hit 7,742 mW, double that of 2015, and this year it claimed the title of world&rsquo;s biggest solar power producer.

The investment bank Lazard reckons that, given proper infrastructures, prices will continue to decline in the near future.

Yet under the CPEC, there is only one sizeable solar project in Pakistan, the Quaid-e-Azam Solar Park project, with a relatively skimpy total capacity of 1,000 mW. 
So why is China, a leader in renewable energy technologies, investing in coal-based projects abroad? It may be a way to provide overseas business opportunities for Chinese coal-plant equipment manufacturers, engineering and construction companies as a recent Bloomberg article pointed out.

Pakistan&rsquo;s domestic interests are otherwise. Instead of seeking foreign investment to fulfil its energy needs with fossil fuels, it can ride the renewables wave, developing its workforce and technical and institutional capacity to harness solar energy. Climate conditions suggest the country could produce enough power to both cover&nbsp;domestic needs and to export, along with associated equipment and technology.

What Pakistan needs now are forward-looking policies to foster renewable development, innovative business models, and strong leadership in obtaining financial and technical partnerships, both local and international. The World Bank&rsquo;s new solar maps of Pakistan can support these clean-energy efforts. Transparency in costs and production also need to be ensured.

One thing is certain: Winning the future will not be done with technologies of the past.

This article was originally published on <a href="http://theconversation.com" rel="nofollow">The Conversation</a>. Read the <a href="https://theconversation.com/in-china-and-pakistans-coal-romance-wheres-the-love-for-the-climate-74772" rel="nofollow">original article</a>.

(Disclaimer: The author writes here in a personal capacity).

Massive new coal plants planned for Pakistan will further harm the environment in a country already suffering the effects of climate change. Solar energy is a clear alternative

If you were travelling via motorway from Islamabad to Lahore during November or December 2016, you might have felt like your head was in the clouds. That’s thanks to the smog that engulfed large parts of Pakistan’s Punjab and Sindh provinces in that period. This was clearly “not a natural phenomenon”, as the Pakistani newspaper Dawn recently noted. Beyond causing acute ailments such as asthma, lung tissue damage, bronchial infections and heart problems, the smog also resulted in dozens of fatal road accidents due to poor visibility. Qamar-uz-Zaman Chaudhry, former director general of Pakistan’s meteorological office and now an international climate change specialist at the Asian Development Bank, attributed the smog primarily to toxic car emissions and atmospheric pollutants coming from coal-based industries in neighbouring Indian Punjab. Imagine, then, what will happen to the environment when Pakistan begins mining billions of tonnes of coal, in part due to its plan to open at least five new coal power plants by 2018 under a new agreement with China. Smog would spread across cities and rural areas, including in the Thar region, which spreads across Pakistan and parts of India. The poor indigenous people there might have to be relocated to other areas thanks to planned coal projects, losing their livelihoods, lands and villages to new mines. A global challenge for climate change Burning coal is not just a matter of local social and environmental concern. It is clear today that the coal that powered the developed world’s industrial revolution has also triggered global climate changes. According to Greenpeace International, coal is the single greatest threat to our climate. Emissions from burning coal fuel global warming and coal mining is also a source of climate-warming methane gas. Pakistan is responsible for a mere 0.43 per cent of global greenhouse gas emissions, but it is among the world’s ten most vulnerable countries to climate change. Domestic climate change experts see the issue as a bigger threat than terrorism. The country is grappling with many issues, including receding glaciers, floods, heatwaves, droughts, shifting weather patterns and declining groundwater levels – and the list goes on. Agriculture, which comprises 21 per cent of Pakistan’s GDP, 60 per cent of exports and employs 45 per cent of the national labour force, is particularly vulnerable to climate change. China reduces coal investments at home but not abroad In the landmark December 2015 Paris Agreement, 195 countries agreed to curtail climate change by keeping global warming to “well below 2°C and … pursu[ing] efforts to limit the temperature increase to 1.5°C above pre-industrial levels”. All told, 141 countries (including Pakistan and China), jointly responsible for over 82 per cent of global greenhouse gas emissions, have ratified the agreement. China – world’s second-biggest economy and largest coal consumer, which also has the world’s highest coal-fired power plant capacity – is considered a crucial player in the success of the Paris Agreement. Domestically, China has realised that its over-dependence on coal causes severe air pollution and other environmental impacts. The most recent data show reductions in coal use for the third year in a row. Yet China also invested US$25 billion in coal projects worldwide between 2007 and 2015, according to a recent report by the Natural Resources Defense Council. The report criticises China and other G20 countries for such investments, which are in conflict with their climate commitments under the Paris Agreement. It shows how some of the world’s leading polluters have, on one hand, pledged to control climate-changing carbon emissions within their borders, and, on the other, continued to finance fossil fuel projects elsewhere. That’s precisely what happened with Pakistan. After most international financial institutions turned away from coal, China established itself as Pakistan’s partner in developing the new coal power plants. Under the 2015 China Pakistan Economic Corridor (CPEC) initiative, the Chinese government and banks have planned to finance companies to invest US$27.6 billion in energy and infrastructure projects in Pakistan over the next six years, of which Pakistan is contributing US$18.1 billion. According to Pakistan’s Ministry of Planning, Development and Reform, coal-fired plants with a combined capacity of 7,560 mW will be established as CPEC-energy priority projects. In the guise of bringing energy, this investment will harm the air, water, public health and environment of Pakistan. The costs and lifespans of such coal projects can stretch over decades, trapping developing nations in a system of carbon-intensive energy use. Rapid utilisation of coal – the “dirty” energy-generation option – has given many Chinese cities, including Shanghai and Beijing, the world’s worst air quality. Pakistan’s proposed Port Qasim Power Project, a 1320-mW coal plant in Sindh province, will be located near Karachi, a metropolis of 25 million. This could cause disastrous damage to air quality and environment. Potential for clean energy No country can be expected to compromise on development, and development requires energy. But, as the cases of Jordan, Peru and Mexico demonstrate, it doesn’t require dirty energy. Instead of using coal, Pakistan could drive development with renewables, in particular solar energy. Much of Pakistan’s territory is arid or semi-arid, an ideal setting for harnessing solar energy with more than the necessary number of sunny days per year. In addition to providing clean energy, solar solutions can produce energy in the same places it is consumed, making it useful in remote areas that may lack transmission infrastructure. Recent research suggests that the deployment and maintenance of renewable energy projects are also likely to create better quality jobs than coal. The costs of renewables are declining rapidly worldwide. Solar and wind now cost the same or less than new fossil fuel in more than 30 developing and developed countries. India’s energy minister noted last year that solar tariffs had become cheaper than coal-based electricity, and India is pushing ahead with its renewables plan. China, too, has realised the economic potential of leading in renewable sources. By the end of 2016, its solar energy capacity hit 7,742 mW, double that of 2015, and this year it claimed the title of world’s biggest solar power producer. The investment bank Lazard reckons that, given proper infrastructures, prices will continue to decline in the near future. Yet under the CPEC, there is only one sizeable solar project in Pakistan, the Quaid-e-Azam Solar Park project, with a relatively skimpy total capacity of 1,000 mW. So why is China, a leader in renewable energy technologies, investing in coal-based projects abroad? It may be a way to provide overseas business opportunities for Chinese coal-plant equipment manufacturers, engineering and construction companies as a recent Bloomberg article pointed out. Pakistan’s domestic interests are otherwise. Instead of seeking foreign investment to fulfil its energy needs with fossil fuels, it can ride the renewables wave, developing its workforce and technical and institutional capacity to harness solar energy. Climate conditions suggest the country could produce enough power to both cover domestic needs and to export, along with associated equipment and technology. What Pakistan needs now are forward-looking policies to foster renewable development, innovative business models, and strong leadership in obtaining financial and technical partnerships, both local and international. The World Bank’s new solar maps of Pakistan can support these clean-energy efforts. Transparency in costs and production also need to be ensured. One thing is certain: Winning the future will not be done with technologies of the past. This article was originally published on The Conversation. Read the original article. (Disclaimer: The author writes here in a personal capacity).

Opinion: China and Pakistan are dabbling with 'dirty' energy

At least 20 people including women and children were killed on Monday when a lorry toppled over and shed its load of coal onto a passenger van in southern Pakistan, police said.

Five people were injured in the accident in Khairpur district in Sindh province.

A senior district police official said the truck was trying to overtake the van when it toppled and crushed the other vehicle.

&quot;The van (was) buried under the coal and at least 17 people including children and women died on the spot,&quot; Azfar Mahesar told AFP.

Eight injured people were rushed to hospital but three subsequently died, said hospital doctor Ghulam Jafar.

Several of the bodies were badly crushed by the coal and so far just 10 have been identified, he added.&nbsp;

Pakistan has one of the world&#39;s worst records for fatal traffic accidents, due to poor roads, badly maintained vehicles and reckless driving.

At least 20 people including women and children were killed on Monday when a lorry toppled over and shed its load of coal onto a passenger van in southern Pakistan, police said

At least 20 people including women and children were killed on Monday when a lorry toppled over and shed its load of coal onto a passenger van in southern Pakistan, police said. Five people were injured in the accident in Khairpur district in Sindh province. A senior district police official said the truck was trying to overtake the van when it toppled and crushed the other vehicle. "The van (was) buried under the coal and at least 17 people including children and women died on the spot," Azfar Mahesar told AFP. Eight injured people were rushed to hospital but three subsequently died, said hospital doctor Ghulam Jafar. Several of the bodies were badly crushed by the coal and so far just 10 have been identified, he added. Pakistan has one of the world's worst records for fatal traffic accidents, due to poor roads, badly maintained vehicles and reckless driving.

20 killed as truck topples onto van in Pakistan

A special court today sentenced former coal secretary&nbsp;HC Gupta, including senior government officials K S Kropha and K C Samaria to a two-year jail term in the coal scam case.&nbsp;

Besides the jail term, the court also imposed a fine of Rs one lakh each on the three convicted men. The special court also imposed a fine of Rs 1 crore on a private firm Kamal Sponge Steel and Power Ltd, while its managing director Pawan Kumar Ahluwalia was awarded a three-year jail term by the court. The court also ordered Ahluwalia to pay a fine of Rs 30 lakh.

HC Gupta Gupta and two serving senior officials - &nbsp;K S Kropha and K C Samaria were earlier convicted by the court for irregularities in the allocation of the Thesgora-B Rudrapuri coal block in Madhya Pradesh to a private firm.

The coal scam erupted after the CAG(Comptroller and Auditor General of India) found irregulariets in allocation of coal bocks by the Congress government in the period between 2004-2009. The BJP lodged a complaint with the CBI leading to probe which resulted in agency naming several firms linked to the coal scam leading to arrests and the Indian Parliament being stalled by the then opposition BJP.

The Paliamentry standing committee in a report said coal and steel allocation between 1993 to 2008 were done in an unortharised manner. After the BJP government came to power in 2014, the coal block was put under a transparent e-auction with the government earning 80,000 crore with the sale of 11 coal blocks.

(WION with PTI inputs)&nbsp; 
&nbsp;

A special court has sentenced former coal secretary?HC Gupta, including senior government officials K S Kropha and K C Samaria to a two-year jail term

A special court today sentenced former coal secretary HC Gupta, including senior government officials K S Kropha and K C Samaria to a two-year jail term in the coal scam case. Besides the jail term, the court also imposed a fine of Rs one lakh each on the three convicted men. The special court also imposed a fine of Rs 1 crore on a private firm Kamal Sponge Steel and Power Ltd, while its managing director Pawan Kumar Ahluwalia was awarded a three-year jail term by the court. The court also ordered Ahluwalia to pay a fine of Rs 30 lakh. HC Gupta Gupta and two serving senior officials - K S Kropha and K C Samaria were earlier convicted by the court for irregularities in the allocation of the Thesgora-B Rudrapuri coal block in Madhya Pradesh to a private firm. The coal scam erupted after the CAG(Comptroller and Auditor General of India) found irregulariets in allocation of coal bocks by the Congress government in the period between 2004-2009. The BJP lodged a complaint with the CBI leading to probe which resulted in agency naming several firms linked to the coal scam leading to arrests and the Indian Parliament being stalled by the then opposition BJP. The Paliamentry standing committee in a report said coal and steel allocation between 1993 to 2008 were done in an unortharised manner. After the BJP government came to power in 2014, the coal block was put under a transparent e-auction with the government earning 80,000 crore with the sale of 11 coal blocks. (WION with PTI inputs)

Special court convicts former coal secretary, two others in coal scam

The Supreme Court ruled on Tuesday that Adani Power Ltd cannot charge its customers more to cover a surge in the cost of imported coal, overturning a decision by a power regulator in December.

The ruling sent Adani Power&#39;s shares down as much as 20 per cent on Tuesday, its biggest intra-day loss since it went public in 2009.

The court did, however, allow the utility to claim relief for the higher costs, which resulted from a shortage in domestic supplies at state-run Coal India Ltd.

Both Adani Power and competitor Tata Power - which was also party to the ruling although it was not mentioned directly in it - struck long-term deals in the middle of the last decade with distribution companies to supply power from plants they each operate in Prime Minister Narendra Modi&#39;s home state of Gujarat.

The companies also struck deals with domestic and foreign miners in the latter part of the last decade to fuel their plants in Gujarat, which each have over 4,000 megawatt (MW) of capacity.

&nbsp;

LENGTHY LEGAL BATTLE

In 2010, Indonesia adopted new benchmark coal prices leading to an increase in the price of coal imported from the country.

Adani and Tata appealed for relief, arguing that they had to be compensated for an unforeseen change in economic conditions which made the terms of the deal with distribution companies unviable.

Following a legal battle that stretched over half a decade, the Central Electricity Regulatory Commission (CERC) ruled in December last year that the companies could charge their customers more to compensate for higher costs.

The case, which was argued by former minister and lawyer Kapil Sibal and renowned anti-corruption lawyer Prashant Bhushan among others, was then escalated to the country&#39;s top court by the state distribution companies.

The top court ruled in favour of the distribution companies, saying the agreements did not state that &quot;coal is to be procured only from Indonesia at a particular price&quot;.

&quot;The price payable for the supply of coal is entirely for the person who sets up the power plant to bear,&quot; the top court&#39;s judges said in Tuesday&#39;s ruling.

CERC will now look at the matter afresh and determine what relief should be granted to the companies to make up for the shortage in domestic coal supplies.

Companies will now be more cautious when entering into long-term power purchase agreements, a Mumbai-based analyst told Reuters.

Adani Power&#39;s shares recovered some losses on the day to close about 16 per cent lower at 37.20 rupees. Shares in Tata Power closed down 1.8 per cent at 85.45 rupees.

(Reuters)

The ruling sent Adani Power's shares down as much as 20% on Tuesday, its biggest intra-day loss since it went public in 2009

The Supreme Court ruled on Tuesday that Adani Power Ltd cannot charge its customers more to cover a surge in the cost of imported coal, overturning a decision by a power regulator in December. The ruling sent Adani Power's shares down as much as 20 per cent on Tuesday, its biggest intra-day loss since it went public in 2009. The court did, however, allow the utility to claim relief for the higher costs, which resulted from a shortage in domestic supplies at state-run Coal India Ltd. Both Adani Power and competitor Tata Power - which was also party to the ruling although it was not mentioned directly in it - struck long-term deals in the middle of the last decade with distribution companies to supply power from plants they each operate in Prime Minister Narendra Modi's home state of Gujarat. The companies also struck deals with domestic and foreign miners in the latter part of the last decade to fuel their plants in Gujarat, which each have over 4,000 megawatt (MW) of capacity. LENGTHY LEGAL BATTLE In 2010, Indonesia adopted new benchmark coal prices leading to an increase in the price of coal imported from the country. Adani and Tata appealed for relief, arguing that they had to be compensated for an unforeseen change in economic conditions which made the terms of the deal with distribution companies unviable. Following a legal battle that stretched over half a decade, the Central Electricity Regulatory Commission (CERC) ruled in December last year that the companies could charge their customers more to compensate for higher costs. The case, which was argued by former minister and lawyer Kapil Sibal and renowned anti-corruption lawyer Prashant Bhushan among others, was then escalated to the country's top court by the state distribution companies. The top court ruled in favour of the distribution companies, saying the agreements did not state that "coal is to be procured only from Indonesia at a particular price". "The price payable for the supply of coal is entirely for the person who sets up the power plant to bear," the top court's judges said in Tuesday's ruling. CERC will now look at the matter afresh and determine what relief should be granted to the companies to make up for the shortage in domestic coal supplies. Companies will now be more cautious when entering into long-term power purchase agreements, a Mumbai-based analyst told Reuters. Adani Power's shares recovered some losses on the day to close about 16 per cent lower at 37.20 rupees. Shares in Tata Power closed down 1.8 per cent at 85.45 rupees. (Reuters)

Supreme Court stops Adani Power from charging higher prices

&nbsp;

The World Bank is indirectly financing a boom in some of Asia&#39;s dirtiest coal-fired power generation despite commitments to end most funding for the sector, a development advocacy group charged Monday.

The power plants, which contribute to climate change and deforestation as well as premature deaths due to illness, are cropping up from Bangladesh to the Philippines, all with financing provided by financial intermediaries supported by the Bank, said a report produced by the organisation Inclusive Development International.

In a policy shift in 2013, the Bank said it would end virtually all support for the creation of coal-burning power plants, supporting them only in &quot;rare circumstances&quot; where there are no viable alternatives.

However, since that pledge, 41 coal projects have received funding from banks and investment funds supported by the World Bank&#39;s private-sector arm, the International Finance Corporation, according to the report.

In response to questions from AFP, Frederick Jones, an IFC spokesman, said the global lender took the report seriously.

&quot;It raises important long-term questions about how we need to create stronger markets for clean energy and create incentives for countries and the private sector not to invest in coal, but rather in renewable energy,&quot; he said.

Jones added that since 2005 the IFC had already invested more than $15 billion in renewable energy, energy efficiency and other areas, and had mobilized $10 billion more.

However, Jones conceded that IFC policy did not prohibit equity clients from funding coal plants, meaning the institution might be indirectly exposed to the industry.

This is despite the fact that IFC loans to financial services industry players are not intended to finance coal-related projects and targeted lending is &quot;ring-fenced&quot; to prevent this, according to Jones.

The report&#39;s release coincided with the start of this week&#39;s high-profile annual meetings of the Bank and the International Monetary Fund, as the world&#39;s finance chiefs gather to discuss efforts at poverty reduction.

Campaigners in recent years have been sharply critical of the IFC&#39;s support for third parties in the financial services sector, such as banks and investment funds, saying they can represent an end-run around environmental and social safeguards that apply to projects directly supported by the IFC.

Financial-sector lending now accounts for 52 per cent of the IFC&#39;s long-term commitments, according to IDI, which jointly produced the report with other advocacy organizations including the Bank Information Center and Accountability Counsel. Founded in 2011, IDI is an advocacy organization focusing on human rights and ethics in development.

&nbsp;Seeking compensation tough&nbsp;

The IFC does not identify the end recipients of financing received by such intermediaries.

That can make it difficult for people harmed by such projects to demand compensation or seek redress, the report said.

However, through an analysis of records, the report identified 56,127 megawatts of new coal capacity funded indirectly by the IFC.

These included the planned 1,360-megawatt Rampal power station in Bangladesh, to be situated on the edge of the sprawling Sundarbans mangrove forest, which is home to endangered species and supports the livelihoods of two million people.

The report said the World Bank itself declined to support the project, which could threaten the Sundarbans with air and water pollution. But six local banks, all IFC-financed, agreed to support the project instead.

The report also cited power construction in the Philippines, where coal burning is estimated to result in almost a thousand premature deaths annually and where more than thirty environmental activists were killed in 2015 alone.

IFC-financed banks have supported at least 20 new coal projects since 2013 in the Philippines.

They include the proposed 540-megawatt Lanao Kauswagan power station, which is expected to begin operations next year and may threaten marine life in nearby Panguil Bay and the livelihoods of fishing communities, Inclusive Development International said.

&quot;While the IFC has tried to distance itself from the projects funded by its intermediaries, the fact is that these banks are brazenly disregarding the IFC&rsquo;s environmental and social requirements,&quot; David Pred, IDI&#39;s managing director, said in a statement.

(AFP)

The bank had said in 2013 that it would not fund any more coal power plants but it has indirectly backed 41 since then

The World Bank is indirectly financing a boom in some of Asia's dirtiest coal-fired power generation despite commitments to end most funding for the sector, a development advocacy group charged Monday. The power plants, which contribute to climate change and deforestation as well as premature deaths due to illness, are cropping up from Bangladesh to the Philippines, all with financing provided by financial intermediaries supported by the Bank, said a report produced by the organisation Inclusive Development International. In a policy shift in 2013, the Bank said it would end virtually all support for the creation of coal-burning power plants, supporting them only in "rare circumstances" where there are no viable alternatives. However, since that pledge, 41 coal projects have received funding from banks and investment funds supported by the World Bank's private-sector arm, the International Finance Corporation, according to the report. In response to questions from AFP, Frederick Jones, an IFC spokesman, said the global lender took the report seriously. "It raises important long-term questions about how we need to create stronger markets for clean energy and create incentives for countries and the private sector not to invest in coal, but rather in renewable energy," he said. Jones added that since 2005 the IFC had already invested more than $15 billion in renewable energy, energy efficiency and other areas, and had mobilized $10 billion more. However, Jones conceded that IFC policy did not prohibit equity clients from funding coal plants, meaning the institution might be indirectly exposed to the industry. This is despite the fact that IFC loans to financial services industry players are not intended to finance coal-related projects and targeted lending is "ring-fenced" to prevent this, according to Jones. The report's release coincided with the start of this week's high-profile annual meetings of the Bank and the International Monetary Fund, as the world's finance chiefs gather to discuss efforts at poverty reduction. Campaigners in recent years have been sharply critical of the IFC's support for third parties in the financial services sector, such as banks and investment funds, saying they can represent an end-run around environmental and social safeguards that apply to projects directly supported by the IFC. Financial-sector lending now accounts for 52 per cent of the IFC's long-term commitments, according to IDI, which jointly produced the report with other advocacy organizations including the Bank Information Center and Accountability Counsel. Founded in 2011, IDI is an advocacy organization focusing on human rights and ethics in development. Seeking compensation tough The IFC does not identify the end recipients of financing received by such intermediaries. That can make it difficult for people harmed by such projects to demand compensation or seek redress, the report said. However, through an analysis of records, the report identified 56,127 megawatts of new coal capacity funded indirectly by the IFC. These included the planned 1,360-megawatt Rampal power station in Bangladesh, to be situated on the edge of the sprawling Sundarbans mangrove forest, which is home to endangered species and supports the livelihoods of two million people. The report said the World Bank itself declined to support the project, which could threaten the Sundarbans with air and water pollution. But six local banks, all IFC-financed, agreed to support the project instead. The report also cited power construction in the Philippines, where coal burning is estimated to result in almost a thousand premature deaths annually and where more than thirty environmental activists were killed in 2015 alone. IFC-financed banks have supported at least 20 new coal projects since 2013 in the Philippines. They include the proposed 540-megawatt Lanao Kauswagan power station, which is expected to begin operations next year and may threaten marine life in nearby Panguil Bay and the livelihoods of fishing communities, Inclusive Development International said. "While the IFC has tried to distance itself from the projects funded by its intermediaries, the fact is that these banks are brazenly disregarding the IFC’s environmental and social requirements," David Pred, IDI's managing director, said in a statement. (AFP)

World Bank secretly financing Asian 'coal boom': Development group

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