POWER: Of the 15 Mega and 5 UMPP Power projects almost 12 are beihnd schedule or tied down because of inability to complete land acquisition. Coal shortages dealt the final blow and with a lot of noise on rationing of coal for running and soon to be commissioned projects most have expected a slowdown and even fear bad debts forom SEBs to impact lenders in the sector  who would be delaying shchedules at most UMPP and mega power projects. Not only that only 39GW out of planned 60 GW was possible in the eleventh plan till this year, but also that not much is expected to change during the 12th period for the above mentioned constraints sthough funding and PPP models are likely to have more traction if such impediments were not the expected lot

OIL:  Energy major ONGC withdrew its FPO in the AM today, with the rupee falling through most earlier bottoms or stops and unlikely to reverse trend in a hurry. reliance will soon be asked to reverse costs of $1.8 bln it has already claimed from its public partner in profit sharing as its methods and practices, long questioned have been nailed down by the DGH and instead of $7 bln expenses it incurred it will only claim $5.2 bln. Though there are more details to how reliance has managed to claim more costs, and how it will not be able to claim discovery which it has hidden from the government, it will be under duress and disfavor most of this decade as Reliance and BP are unable to find new production levels int he KG D6 fields where production has fallen to 38 MMSCMD, much below the levels of 50 MMSCMD last year and the promised 60..

Currently, BP and Reliance are looking to rope in a state partner going ahead in the same fields (to bear costs of new production techniques? )

Mukesh Ambani is also rumored to pick  up a stake in kingfisher airlines which despite his protestations., seems mor e and more like his expression of disinterest in the core businesses of his flagship Reliance industries and his choice to go into more brand reliant businesses from the same flagships cash reserves 

Posted via email from The India Investment Post