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Energy Sector - 2
<b>Ravish Ji :</b>

Here is an Old Article from the Economist that I have on disk on the Green Burning of Coal :

<b>The environment - Environmental enemy No. 1 - Jul 4th 2002 :Cleaning up the burning of coal would be the best way to make growth greener</b>

<img src='http://www.economist.co.uk/images/20020706/2702LD1.jpg' border='0' alt='user posted image' />

IS GROWTH bad for the environment? It is certainly fashionable in some quarters to argue that trade and capitalism are choking the planet to death. Yet it is also nonsense. As our survey of the environment this week explains, there is little evidence to back up such alarmism. On the contrary, there is reason to believe not only that growth can be compatible with greenery, but that it often bolsters it.

This is not, however, to say that there are no environmental problems to worry about. In particular, the needlessly dirty, unhealthy and inefficient way in which we use energy is the biggest source of environmental fouling. That is why it makes sense to start a slow shift away from today's filthy use of fossil fuels towards a cleaner, low-carbon future.

There are three reasons for calling for such an energy revolution. First, a switch to cleaner energy would make tackling other green concerns a lot easier. That is because dealing with many of these—treating chemical waste, recycling aluminium or incinerating municipal rubbish, for instance—is in itself an energy-intensive task. The second reason is climate change. The most sensible way for governments to tackle this genuine (but long-term) problem is to send a powerful signal that the world must move towards a low-carbon future. That will spur all sorts of innovations in clean energy.

The third reason is the most pressing of all: human health. In poor countries, where inefficient power stations, sooty coal boilers and bad ventilation are the norm, air pollution is one of the leading preventable causes of death. It affects some of the rich world too. From Athens to Beijing, the impact of fine particles released by the combustion of fossil fuels, and especially coal, is among today's biggest public-health concerns.

<b>Dethroning King Coal</b>

The dream of cleaner energy will never be realised as long as the balance is tilted toward dirty technologies. For a start, governments must scrap perverse subsidies that actually encourage the consumption of fossil fuels. Some of these, such as cash given by Spain and Germany to the coal industry, are blatantly wrong-headed. Others are less obvious, but no less damaging. A clause in America's Clean Air Act exempts old coal plants from complying with current emissions rules, so much of America's electricity is now produced by coal plants that are over 30 years old. Rather than closing this loophole, the Bush administration has announced measures that will give those dirty old clunkers a new lease on life. Nor are poor countries blameless: many subsidise electricity heavily in the name of helping poor people, but rich farmers and urban elites then get to guzzle cheap (mostly coal-fired) power.

The harm done to human health and the environment from burning fossil fuels is not reflected in the price of those fuels, especially coal, in most countries

That points to a second prescription: the rich world could usefully help poorer countries to switch to cleaner energy. A forthcoming study by the International Energy Agency estimates that there are 1.6 billion people in the world who are unable to use modern energy. They often walk many miles to fetch wood, or collect cow dung, to use as fuel. As the poor world grows richer in coming decades, and builds thousands of power plants, many more such unfortunates will get electricity. That good news will come with a snag. Unless the rich world intervenes, many of these plants will burn coal in a dirty way. The resultant surge in carbon emissions will cast a grim shadow over the coming decades. Ending subsidies for exporters of fossil-fuel power plants might help. But stronger action is probably needed, meaning that the rich world must be ready to pay for the poor to switch to low-carbon energy. This should not be regarded as mere charity, but rather as a form of insurance against global warming.

The final and most crucial step is to start pricing energy properly. At the moment, the harm done to human health and the environment from burning fossil fuels is not reflected in the price of those fuels, especially coal, in most countries. There is no perfect way to do this, but one good idea is for governments to impose a tax based on carbon emissions. Such a tax could be introduced gradually, with the revenues raised returned as reductions in, say, labour taxes. That would make absolutely clear that the time has come to stop burning dirty fuels such as coal, using today's technologies.

<b>The dawning of the age of hydrogen</b>

None of these changes need kill off coal altogether. Rather, they would provide a much-needed boost to the development of low-carbon technologies. Naturally, renewables such as solar and wind will get a boost. But so too would “sequestration”, an innovative way of using fossil fuels without releasing carbon into the air (see article).

This matters for two reasons. For a start, there is so much cheap coal, distributed all over the world, that poor countries are bound to burn it. The second reason is that sequestration offers a fine stepping-stone to squeaky clean hydrogen energy. Once the energy trapped in coal is unleashed and its carbon sequestered, energy-laden hydrogen can be used directly in fuel cells. These nifty inventions can power a laptop, car or home without any harmful emissions at all.

It will take time to get to this hydrogen age, but there are promising harbingers. Within a few years, nearly every big car maker plans to have fuel-cell cars on the road. Power plants using this technology are already trickling on to the market. Most big oil companies have active hydrogen and carbon-sequestration efforts under way. Even some green groups opposed to all things fossil say they are willing to accept sequestration as a bridge to a renewables-based hydrogen future.

Best of all, this approach offers even defenders of coal a realistic long-term plan for tackling climate change. Since he rejected the UN's Kyoto treaty on climate change, George Bush has been portrayed as a stooge for the energy industry. This week, California's legislature forged ahead by passing restrictions on emissions of greenhouse gases; a Senate committee has acted similarly. Mr Bush, who has made surprisingly positive comments about carbon sequestration and fuel cells, could silence the critics by following suit. By cracking down on carbon and embracing hydrogen, he could even lead.

Note : I will try and locate a couple more.

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
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<b>Ravish Ji :</b>

Your Post 23-02-2006 02:49 AM

1. U K Coal : Maggie Thatcher destroyed the Coal Mining Industry single handed in a “Payback Time” for the Coal Miners who had held the Conservative Government to Ransom in the Early Seventies.

I believe that the British Coal Mines – though having excellent and large Deposits are a bit on the “Deep” side and therefore “Costly to Operate”

2. I have read about Indian Companies being licensed for Coal Bed Gas (Methane?) and the same will be supplied to Industrial and Domestic Users – I have no clue about it.

3. I understand that Indian Coal is basically of the High Ash Content type and is unsuitable for Metallurgical Purposes. In fact I believe Haldia has a Thermal Coal Loading Plant for export. The Ore Export Loading Plant can also be used for Loading Thermal Coal

I cannot find any information on the Quantities of Thermal Coal being Exported.

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<b>British firm wins contract for India-bound gas pipelines</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->E Wood hopes to clinch the work for the second and third phases of the project, which will see 3,500 km of gas pipeline manufactured in China before being sent to India.<!--QuoteEnd--><!--QuoteEEnd-->
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Geostrategy Feeds America's Oil Addiction</b>
Opinion (more from this section)
<b>The large players in oil - Saudi Arabia, Canada, Kuwait, UAE, Libya and Nigeria - are playing in toe with the US and British Administrations. The problems lie with the Soviet Union, Iraq, Iran and, Venezuela</b>.
By Jacob Matthan
Mar. 1, 2006

With no end in sight for America's oil addiction, it is imperative for the neoconservative agenda that the US controls the trade of oil and natural gas to maintain Dollar Power.

The Oil Bourses run by the US in New York and the British in London have allowed the US to print unlimited amounts of the US Dollar and the British to hold on to their emotional Pound Sterling and stay outside of the Euro currency zone.

Any threat to Dollar or the Pound Sterling would cause an upheaval so enormous that the US Depression of the Twenties and Thirties would look like a children's Happy Holiday party.

Woe betide any country that shows up to be resource rich. The economic hitmen would soon be around to start their play. Control, per se, of resource has not been enough in their game.

The large players in oil - Saudi Arabia, Canada, Kuwait, UAE, Libya and Nigeria - are playing in toe with the US and British Administrations. The problems lie with the Soviet Union, Iraq, Iran and, Venezuela.

Oil Reserves by Country, 2005 Rank Country Proven Reserves (billion barrels)
1. Saudi Arabia 261.9
2. Canada 178.8
3. Iran 125.8
4. Iraq 115.0
5. Kuwait 101.5*
6. United Arab Emirates 97.8
7. Venezuela 77.2
8. Russia 60.0
9. Libya 39.0
10. Nigeria 35.3
* Leaked internal records reveal that Kuwait's reserves are actually less than 50 billion barrels

In the case of natural gas, the situation is worse, as the Soviet Union, Iran, Venezuela and Iraq lie outside of the control of the US/British "axis of evil".

Natural Gas Reserves by Country, 2006 Rank Country Proven Reserves (trillion cu. m.)
1. Russia 47.57
2. Iran 26.62
3. Qatar 25.77
4. Saudi Arabia 6.65
5. United Arab Emirates 6.01
6. United States 5.35
7. Nigeria 4.98
8. Algeria 4.55
9. Venezuela 4.28
10. Iraq 3.12

With the oil rich former states of the Soviet Union now controlled by puppets of the US, the next in line for destabilisation were Iraq, Iran and Venezuela.

Target One was the ways and means to get the oil and natural gas economically out of the land-locked Caspian Sea region to the international market, making Afghanistan the first target of the neocon agenda. This has been played out.

However, the pipeline scenario to take the products out of the region is still a major headache. A puppet government in Afghanistan permitting the permanent residence of US and British (NATO) forces is essential in this strategy.

Target Two was Iraq. Despite the catastrophe, chaos has been established, and Iraqi oil is firmly in the control of the US corporations.

Target Three was Iran. This destabilisation process is now in play.

The intention has been to invade Iran. To do that there has to be provocation. With a moderate leader in power, this would be difficult, as diplomacy would be the name of the game. A radical had to be elected. The US needed a demonic character to point the finger at.

Many theories abound as to the fraud and stealing of the last Iranian election. Was President Mahmud Ahmadinejad of Iran actually elected by the people of Iran? Is it not more likely that the US engineered the election of this radical?

Since his election, President Ahmadinejad has not failed his US neocon admirers with his outpourings, posturing and defiance, making Iran an easy target for the US and the world.

Target Four is Venezuela. This act has been in play for a few years, but the massive grassroots support for President Hugo Chavez, not only in Venezuela, but also in Latin and South America is proving problematic for the US neocon agenda. However, the end game is approaching.

<b>Indian Influence</b>
US President Bush is to visit India in March 2006. He is not going to receive a pleasant public welcome.

Here are a few headlines that appeared on January 26th, the Republic Day of India:

William M. Arkin, The Nuclear Option in Iraq, The Los Angeles Times, January 26, 2003

Mike Whitney, Iran's Oil Exchange Threatens The Greenback, Dissident Voice, January 26, 2006

Dan Dombey, US warns India to back Iran UN referral or lose nuclear deal>, Financial Times, January 26, 2006

India Rejects U.S. Attempt to Link Iran Vote to Nuclear Accord, Bloomberg, January 26, 2006

India summons US envoy over Iran, BBC News, January 26, 2006
The Indian Government is bending over backwards, as a result of corporate pressure, to keep relations cordial between the US and India and protect the huge inflow of outsourcing business from the US. The Indian urbanisation boom, at the expense of the America middle class, is essential to keep Indian growth rate at the eight to ten percent level.

Many major Indian corporations are benefiting greatly from the mismanagement of the American economy by the Bush administration. They are anxious to keep this US Administration group in power at any cost.

India voted to move the Iran nuclear issue to the UN Security Council. The Indian Government says that it did not take notice of a US threat to withdraw civilian use of nuclear technology. US needs to market this civilian nuclear technology to business, but India does not depend on this source. They have alternate plans in place with France and Russia.

The underlying reason for the shift in the Indian stand on Iran was at the behest of the Indian multinationals, who did not want to cause problems for the Bush Administration as they enjoy the enormous fall-out benefits of the Bush Administration's policies.

Intelligent, concerned Indian liberals are, on the other hand, planning mass protests to follow Bush. They intend to show the displeasure with the policies being followed.

<b>Target One: Afghanistan</b>
What did the innocent people of Afghanistan do to be bombed to oblivion? What logical reason could there be for the North Atlantic Treaty Organisation (NATO), having its presence in Afghanistan? Should NATO now be renamed as the Arabian Sea Treaty Organisation?

<b>Cliché - 9/11!</b>

The attack on Afghanistan had nothing to do with 9/11, Osama bin Laden or the Taliban. With the now white elephant, Dabhol Thermal Power Plant, being constructed south of Mumbai by a subsidiary of Enron Inc., the firm was desperate to get access to the cheap natural gas and oil from the land-locked Caspian Sea area.

The Dabhol project, located on the Maharashtra coast approximately 180 kilometers south of Mumbai, was to be Enron's flagship project in India. Dabhol Phase I was to generate 740 MW of power and begin operating in May 1999.

When Phase II was completed at the end of 2001, Dabhol was to have generated 2,450 MW of power to become the world's largest independent natural gas-fired power plant.

Enron hammered its way to get everything in place, but the final outcome was that the Indians saw through this ruse and killed the project, which added to the woes of a company tottering on the edge of collapse.

The nations involved - Azerbaijan, Kazakhstan, and Turkmenistan - are sitting on about 10 percent of the earth's potential oil reserves. Proven reserves are between 16-32 billion barrels of oil. About 100-300 billion barrels are not yet proven.

Route for Natural Gas Pipeline from Iran to India (click on the image to see a larger map in a new window)
The pipeline was to have run through Afghanistan, into Pakistan and across to Delhi, with a feeder from the Multan-Delhi pipe direct to Dabhol. The gas pipeline across Pakistan was to have a spur to the seaport of Gwadar to ship the raw materials to the proposed Dabhol terminal.

A pipeline through Iran would have been the most economical solution. The shorter distance and the well developed oil production and exporting capabilities were plus points. But the U.S. had to control Iran before this option could be considered, hence the inclusion of Iran in the "axis of evil".

Politically speaking, Americans wanted to see the oil distributed away from the volatile Middle East, which already controls the bulk of the world's supply. Hence, the unprovoked attack on the nation of Afghanistan, with American creation Osama bin Laden providing the ideal foil!

<b>Target Two: Attack Iraq</b>
As Colin Powell's former Chief of Staff, Lawrence Wilkerson, said on the PBS Program NOW, the pre-war intelligence in Iraq was a "hoax on the American people". The US was quite happy with sanctions in place on Iraq as the Oil-For-Food programme netted huge profits for many US corporations.

With sanctions likely to be lifted, and the threat by Saddam Hussain to deal Iraqi oil in the Euro rather than the US Dollar loomed closer, it was the straw that broke the back of the US neocon administration. The Project for the New American Century (PNAC) document dated 1998 had spelt out the details but was rejected by President Bill Clinton.

Bush was there to convert an idea into reality, hence the pounding of the war drums to take out Iraq and to take control of Iraqi oil. It is not necessary to repeat here what everyone knows were the falsehoods used to invade and occupy Iraq.

<b>Target Three: Attack Iran</b>
Iran broadened its oil and natural gas goals away from US controlled markets as demand burgeoned in China and India. Iran has also been talking about starting the Iranian Oil Bourse. Further, there is the deal between Iran and energy starved nuclear power India, for the former to supply natural gas directly to the latter via a pipeline through Pakistan.

The proposed 2,600-kilometer gas pipeline from Iran to India would cost $7.6 billion and would carry natural gas from Iran, through Pakistan, to India. Strained relations between India and Pakistan prevented negotiations progressing during the last decade. With the current thaw, the proposal gained new momentum.

India needs the Iranian gas. India produces only half the natural gas it needs and imports 70 percent of its crude oil. India must tap new energy sources to sustain the eight to nine percent growth.

Pakistan favoured the project as it would generate $1 billion annually in transit fees. Each year, Iran could ship five million tons of natural gas to India over the next 25 years. These shipments would be worth approximately $22 billion dollars.

With this, and with the exploding demand by China for Iranian energy, the Iranians were confident they could start their own Oil Bourse. No US or European players were needed in either of these markets. That was too much for the US Administration. The US Dollar is tied to energy resource capitalisation.

There are two important aspects to the Dollar Security. The first is the transportation and the super profits to be gained out of controlling the international trade of oil and natural gas. The second is the enormous national debt of the US and the way it is financed - in worthless paper, which the US can produce by the shiploads - the US Dollar and Treasury Bills (T-Bills).

The first step of the US administration was to try to destroy this Iranian-India deal by lifting the sanctions on India to supply technology for furthering nuclear power generation in India. When this did not stop the deal, then came the more direct attack on the deal with a threat to India to stop talking natural gas supplies - or else.

This deal would provide the much needed finances for Iran to establish its independence of the Oil Bourses in London and New York, which would be a huge tragedy for the American economy. Without control of the Oil Bourse, the American Dollar could lose its power on the world stage.

All the talk about Energy Security, which was the prime subject of the recent G8 summit in Moscow, was aimed primarily at maintaining the dollar at the centre of the oil bourse.

Swiss banking giant UBS AG has announced it is no longer doing business with Iran due to "the company's economic and risk analysis of the situation in that country."

Iran is under increasing international pressure over its nuclear program and mindful of the freezing of its U.S. assets after the 1979 seizure of the American Embassy in Tehran. The nation has an estimated $50 billion in European banks and Iran's Central Bank governor said over the weekend that it will move its reserves quickly if it deems it necessary to do so.
There are several issues at stake with the huge budget deficit that the US has run up. The only way that the US can continue this policy is to prop up the US Dollar by printing more notes and issuing more T-Bills. This can only be done so long as the US has ensured that other countries keep their end of the bargain by accepting the dollar as the preferred currency of trade and by investing in T-Bills.

Any doubt in either could cause the US Dollar edifice to tumble like a pack of cards. At this stage, selling of the family jewels is the only alternative available to prop up the US Dollar. Hence such deals as the takeover of the sea ports by all those who hold the US currency and T-bills, immaterial of the security of the US!

As Scott Ritter, the now "discredited" former US member of the UN Weapons Inspection Team said recently, the attack on Iran is imminent after a dramatic speech at the UN by interim Bush appointee, US Ambassador, John Bolton. Asked how he knew, Ritter replied that he had got the information from the horse's mouth, the speech writer!

That Peninsular and Oriental Steam Navigation Company (P & O), the British firm that owned several ports in the US, decided to cash in and get out by disposing US ports to an energy-rich country, United Arab Emirates, is the best possible pointer of what lies ahead for the US Dollar.

~
<i>Jacob Matthan is a writer, activist, and retired technology consultant who lives in Oulu, Finland with Anniki, his wife of 39 years. He maintains a political blog at http://jmpolitics.blogspot.com/.</i>
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Commies are out ---

Economic Times
March 10, 2006
<b>Don't switch over to nuclear power</b>
M V RAMANA
http://economictimes.indiatimes.com/articl...444956.cmsTIMES NEWS NETWORK[ FRIDAY, MARCH 10, 2006 12:15:04 AM]
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As expected
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Sunday, March 12, 2006
<b>India can’t count on Iran for energy: US</b>
Press Trust of India

Washington, March 11: Recognising India's ‘enormous’ energy needs, the US has,
nevertheless, warned it that Iran was not a reliable long-term supplier of fuel
and advised it to turn its attention to other places in Central Asia.

"India has enormous energy needs and India is right to look out to the world to
see how it can secure its energy future," Under Secretary of State Nicholas
Burns said yesterday during a presentation to the 'Coalition for Partnership
with India' which is being coordinated by US Chamber of Commerce.

"The only point we have been making is that we don't believe that Iran is a
reliable partner in the long term. So our advice to our friends in India has
been you really can't count on the Iranians to be reliable," he said when asked
about the India-Pakistan-Iran gas pipeline and whether it will have any impact
on the Indo-US ties.

To meet its energy needs, burns said, "there are many other places India could
look -- Kazakasthan, Turkmenistan, (and also methods like) clean coal technology
and certainly the growing nuclear power sector..."

URL: http://www.expressindia.com/fullstory.php?newsid=64217<!--QuoteEnd--><!--QuoteEEnd-->
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<img src='http://www.worldsecuritynetwork.com/ArticleImages/oil-TAPI-pipeline_web.gif' border='0' alt='user posted image' />
<i>The proposed TAPI gas pipeline.</i>
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<b>Venezuela sends 2 million barrels of crude to India</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Venezuela sent 2 million barrels of crude oil to India in April as the South American country expands its efforts to find new markets beyond the United States, its top buyer.

A tanker departed on April 5 for India's Sikka port carrying 1.3 million barrels of light-sour Mesa crude and 700,000 barrels of heavy Merey crude, state oil company Petroleos de Venezuela SA, or PDVSA, said in a statement on Tuesday.

PDVSA made a similar shipment in February.

<b>Venezuela, the world's fifth largest oil exporter, plans to send 2 million barrels of oil monthly to India.</b>

Under President Hugo Chavez, Venezuela has sought new markets for its crude, especially in rapidly growing Asian economies.
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<b>Chevron invests in India refinery</b>

<b>US oil giant Chevron is investing $300m in a new Indian refinery as it looks to meet growing demand from Asia.

It is buying 5% of Reliance Petroleum</b>, a company set up by Indian conglomerate Reliance Industries to operate a new export refinery in north-west India.

The 580,000 barrels-per-day site in Jamnagar will process heavy crude and is due to open in December 2008.

<b>It will sit next to another similar sized Reliant-owned facility, creating the world's biggest refinery complex.</b>

Chevron has the right to increase its stake in the refinery to 29% at a late date. It has an agreement with Reliance to try to collaborate on other energy projects in the region.

"This underscores the importance of Asia to Chevron generally, and India specifically," said Chevron chief executive Dave O'Reilly.

<b>Chevron said the new refinery would increase its ability to process a wide variety of hard-to-refine crude oils.</b>

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
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<b>'India's choice: Medha Patkar or megawatt</b>?'<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->He pointed out that this was a project of national importance in which the concerned states had already put in an investment of Rs 21,000 crore in the last about 16 years.

“If the dam height is not allowed to be raised upto 121.92 meters, the country will lose 1,450 mw of power and the water will not reach 4,000 thirsty villages of Gujarat and Rajasthan for drinking as well as for irrigation,” he said.
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What one can expect when spineless is a PM of India?
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<b>PM asks Soz to retract dam statement </b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->It seems there is a complete confusion among the Congress leaders over the issue.

After ordering to stop the dam construction, Soz met Dr Singh in the evening and only then he agreed to retreat.

Now, Soz argues that the matter is pending in the Supreme Court and only court will decide about the construction.<!--QuoteEnd--><!--QuoteEEnd-->
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<!--emo&:felx--><img src='style_emoticons/<#EMO_DIR#>/flex.gif' border='0' style='vertical-align:middle' alt='flex.gif' /><!--endemo--> Narmada dam brings new hope for Gujarat villages

- Rohit Bhan

Thursday, April 20, 2006 (Jawaraj):


Even as the debate over the Sardar Sarovar dam continues, thousands of farmers in Gujarat are already benefiting from the project with increased irrigation prospects.

These include farmers in the Jawaraj village in Dhanduka tehsil, where water was made available from the dam during the sowing season.

Farms in the village have now yielded a rich wheat crop for the first time in many years.

"Thanks to the irrigation water from the Narmada canal the produce from the field has increased 50-60 per cent this year," said Bhupet Patel, a local farmer.

Over 50 villages in Dhanduka, and many others in the other tehsils, have benefited from the Narmada waters in the last few years.

"We used to face enormous difficulties due to the lack of irrigation waters. Earlier we depended solely on the monsoons, but the Narmada water has eased our problems," said Chandubhai Dabhi, Sarpanch, Jawaraj village.

Drinking water

The dam has also provided clean drinking water in villages like Pipli, where saline groundwater had earlier caused major health problems.

The water supply board at Pipli now receives water from the dam at an off-take plant, where it is treated and supplied to the water-starved villages of Saurashtra.

"We used to put alum and use other traditional methods to clean the water, but the salinity was still a source of disease. Some families even shifted out because of these problems," said Dharmendrasinh Chudasama, Sarpanch, Pipli village.

Prime Minister Manmohan Singh has already said that work on the project will go ahead, while also assuring proper rehabilitation of those who are displaced by the dam.

There can be no denying that the project is generating benefits for a large section of people, and it can now be hoped that the government will find a way to protect the interests of the maximum numbers in going ahead with it.
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Pain at the pump is the price of this country’s addiction to oil. Americans are feeling it intensely—outraged over oil company profits, fearful that another hurricane in the gulf, or a terror attack in the Middle East is all it would take to send prices even higher.

But what if there was one solution to all of this? Something that could solve America’s energy crisis, strengthen our national security, and help save the planet at the same time?

Vinod Khosla: I looked, did my research and found this was brain dead simple to do.

Stone Phillips, Dateline anchor: Is it going to mean spending less at the pump?

Khosla: Absolutely. The consumer would be paying a dollar a gallon or less.


At age 51, Vinod Khosla is one of the world’s most successful venture capitalists and a self-made multi-billionaire.

He came to the U.S. from India in 1976, and over the next 25 years, is said to have created six new jobs for every day he’d been in the country. Though not a household name, Khosla was a co-founder of Sun Microsystems and renowned in business circles for his meticulous research and ability to spot the kind of innovative technology that can revolutionize an industry.

Three years ago, he turned his attention to alternative fuels.

Khosla: What could be better than a greener fuel that’s cheaper for consumers, that doesn’t feed Mideast terrorism, yet instead fuels rural America?

He’s talking about a new generation of ethanol— the fuel made from plants. It’s one fuel he says is just around the corner and will deliver 4 to 10 times the energy of today’s corn ethanol. Khosla knows, because he’s talked to top scientists, visited labs and he’s a bio-medical engineer himself. He believes this new ethanol can replace gasoline and eliminate America’s dependence on foreign oil.

Phillips: How long before you believe this country could be energy independent if it switched to homegrown bushels instead of imported barrels?

Khosla: I think you’ll be surprised by my answer. In less than five years, we can irreversibly start a path that can get us independent of petroleum.

Phillips: What convinced you this was a must for America?

Khosla: I heard about Brazil. I heard they were already doing it. Brazil’s proven it already. How dumb can we be?

Sao Paulo, Brazil is a sprawling city of 18 million people. Late last month, we flew here with Khosla to see what a country transformed by ethanol looks like.

Phillips: This has you pretty charged up, doesn’t it?

Khosla: It is very exciting.

Here, ethanol is just part of life. It’s sold at every gas station, including some with very familiar names. Consumers can’t get enough.

Although Brazil’s been committed to ethanol for 30 years, if you want to know how it became such a hot commodity lately, start by looking for this label: “flex”. It means these cars run on gas or ethanol.

The key to ethanol’s popularity here in Brazil is choice. If you drive a flex-fuel car, you get to choose every time you pull up to the pump.

The choices: gasoline, ethanol—or alcohol as they call it there— or a mixture of the two. You check the prices and make your choice.

Most drivers here choose ethanol, because it’s so much cheaper that even though they get fewer miles to the gallon, it still saves them money.

The flex-fuel cars that triggered the ethanol boom were introduced here three years ago. Already, 3 of every 4 new cars sold have the technology.

And who’s helping to feed Brazil’s flex-fuel fever? American car makers like GM and Ford.

Barry Engle, president of Ford Brazil: 70 percent of a particular model is sold with the flex engine. And 90 days from now it will be 100 percent.

Barry Engle is the president of Ford Brazil.

Engle: This isn’t science fiction, this is real world technology that we’re using in Brazil everyday on a broad scale basis.

At a time when ford and other U.S. automakers are posting huge losses, sales here are up.

Phillips: Are you telling your fellow executives up in Detroit, "Get more flex-fuel, this is the future?" Has that been the message that you feel like you’ve been bringing.

Engle: Yeah, there is already in Detroit, on the part of the company, a lot of interest in this particular technology.

In fact, both Ford and GM already sell flex cars in the U.S. And how much more does this new technology add to the sticker price? Not a dime.

Phillips: This is not an expensive proposition for automobile makers.

Engle: No. It doesn’t have to be.

Phillips: And there’s no reason it can’t be translated elsewhere?

Engle: As long as the fuel is available.

In Brazil, that fuel is plentiful thanks to a crop as sweet as candy— sugar cane.

Brazil is turning sugar cane into the equivalent of 300,000 barrels of oil a day. To people in this country, what you’re looking at is a field of dreams. Homegrown security that has helped this country to completely free itself from foreign oil.

Last month, Brazil announced it no longer has to import oil from the Middle East or anywhere else. And much of the credit goes to ethanol.

The worlds largest sugar cane mill is located in Barra Bonita, Brazil, producing more than 100 million gallons of ethanol a year.

After the cane is harvested, by hand or machine, the stalks are fed into the mill. They’re crushed. The juice separated and sent to tanks to ferment. Ethanol operations are really just industrial-sized moonshine stills. Khosla sampled the product straight from tank.

But what really intoxicates him isn’t what he tasted, but the opportunity he sees in what’s being thrown away. With new technology, Khosla says you can process these mountains of leftovers and triple the amount of ethanol you get, dramatically reducing costs.

Khosla: My bet is it’d be a lot cheaper than $1 a gallon. It might even be less than 70 cents a gallon right there. Right today.

And that’s exactly Khosla’s vision for America— putting new generation ethanol plants next to paper mills, turning their leftovers into fuel. Or even next to orange juice factories, where he says ethanol from peels could replace petroleum.

But that’s only part of it. To really make America an ethanol nation, Khosla says billions of gallons will come from something as common as prairie grass.

He says it’ll be much cheaper and deliver 10 times the energy it takes to make it.

Khosla: We could return the country back to the prairie grass that it used to have hundreds of years ago and make, and meet all our petroleum needs.

Phillips: Back to the future?

Khosla: Back to the future. There is nothing standing in the way.

He’s so sure about it he’s become an ethanol evangelist— preaching to governors, senators and even key advisors to the president who despite his roots in Texas oil is sounding like one of the converted.

In his April 25th speech, President Bush said, “Ethanol will replace gasoline consumption. Ethanol is good for the whole country.”

Khosla: The environmentalists love it because it’s greener. he neo-conservatives like it because it ensures energy independence and security for America. The farmers love it because it takes oil dollars and moves it to rural America.

Phillips: It sounds almost too good to be true.

Khosla: I’m not this “imagine some kind of hypothetical future” kind of person. But it is a very pragmatic vision.

He may be man of vision but Khosla’s under no illusions about the resistance ethanol faces back home from big oil.

Some oil companies have complained that putting ethanol at their stations would require costly and complicated changes to their trucks, tanks and pumps.

Phillips: How much of a burden will that put on oil companies to start distributing ethanol? To dedicate a pump to ethanol? I mean what about trucks? What about their holding tanks?

Khosla: In most cases, the same holding tanks can be used. The same trucks can be used to transport the ethanol. There are logistics problems to be solved, to be sure, but it’s not a difficult transition. I’ve looked at all the issues they raise. In fact, most of them are bogus.

As for the expense, Khosla estimates it would cost about $15 to 20 million to offer ethanol pumps at a thousand gas stations in California.

Khosla: $15 to 20 million dollars. Exxon alone made 36 billion dollars last year.

But Khosla, who’s invested millions of his own money in companies working on ethanol technology, says government must play a role as well, by requiring that gas stations everywhere offer ethanol, that all new cars be flex-fuel, and that oil companies play fair.

Khosla: We need to make sure that the major oil companies don’t manipulate the price of oil enough to drive ethanol out of business.

Phillips: Do you believe oil companies would deliberately drop the price of oil?

Khosla: Absolutely. A senior executive of a major oil company came up to me and said, “Be careful.” In a very warning tone he said, “Be careful, we can drop the price of gasoline.”

The battle to bring ethanol to your neighborhood pump is just beginning, but Vinod Khosla is confident that time and technology are on his side.

Phillips: What do you say to skeptics, who say, you’re a money maker, you’re an investor and what you’re trying to do here is to drum up support and governmental help to make sure your investment pays off?

Khosla: Well, I am in the business of investing, but in fact, this has become a mission for me. To get the message out of how simple it is to get independent of petroleum. In fact, my mission now is to put the fossil in fossil fuels.

President Bush is expected to meet later this month with the heads of the Big Three American auto-makers -- and ethanol will top the agenda. Wal-Mart has also confirmed to Dateline that it's working out details to sell a fuel that's 85 percent ethanol at its retail locations that sell gas.
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<b>High quality gas reserves found in Rajasthan</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Focus Energy Limited has discovered high quality gas reserves in the exploratory well drilled at Shahagarh block in Jaisalmer at a depth of 3,161 metres.

The gas, similar to the that found in Pakistan's Miano and Swan gas fields, is estimated to have 88 to 91 per cent hydrocarbon
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>The bad outweighs the good in our economy </b>
FT
Farrukh Saleem : <i>Our economy is freer than India's; yet, foreigners do not invest here. Why?</i>  <!--emo&Big Grin--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
   
<b>First, the good news:</b> according to The Heritage Foundation’s ‘Index of Economic Freedom’ Pakistan’s economy is ‘freer’ than India’s, China’s and Bangladesh’s. Pakistan’s trade policy is liberal than India’s. In India, according to the US Trade Representative, “non-tariff barriers remain extensive, including a high level of confusing bureaucracy, onerous standards and certifications on many goods, discriminatory sanitary and phytosanitary measures, and a negative import list that bans or restricts imports.”

The Indian government’s intervention in the economy is much higher than Pakistan’s. On foreign investment, according to the US Department of Commerce, “India controls foreign investment with limits on equity and voting rights, mandatory government approvals, and capital controls.” According to The Economist Intelligence Unit India is “a difficult market for foreign companies. Most economic activities are bound by restrictions, public services and infrastructure are poor, and the government continues to impede the free flow of capital across its borders.” The Government of Pakistan, on the other hand, allows foreign investors to own up to 100 percent of most businesses.

In India, according to the US Department of Commerce, “Businesses must contend with extensive federal and state regulation. Firms have identified corruption as one obstacle to investment. Indian businessmen agree that red tape and wide-ranging administrative discretion serve as a pretext to extort money.” Additionally, labour laws are rigid in India but not so stern in Pakistan. To be certain, property rights are better protected in India than they are in Pakistan.

For the record, Pakistan started opening up its economy in 1988 (the Zia-government had promulgated the first Disinvestment Ordinance on July 16, 1988). Whereas, India was a latecomer to the liberalisation game (India began opening up in 1991 when Manmohan Singh was appointed finance minister on June 21, 1991).

Our trade policy is liberal, government intervention is low, corporate taxes are competitive and we allow 100 percent ownership to foreigners. So far so good. Musharraf zindabad. Why aren’t foreigners then queuing up to invest in Pakistan?

<b>Reasons:</b> internal security is the first followed by political instability. The third is a lack of economic depth. We continue to be a 2-commodity, 1-port economy.

Four, the market size, particularly Pakistani purchasing power, is not at a level whereby it can attract serious dollars. Shaukat Aziz has done what he could and 9/11 has done what it could. <span style='color:red'><b>Pakistan can attract serious-investment dollars only if multinationals can be assured access to the Indian market (to be sure, the Iran pipeline is feasible only if India is a buyer).</b></span> <!--emo&Big Grin--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->

<b>Five, and most importantly, it makes little sense to talk about attracting foreign investment when national security is the priority and economics a mere subsidiary. When ‘strategic depth’ is the priority, education takes a backstage and Pakistan, as a consequence, now lacks the human capital that would be needed to produce anything worth producing.</b>
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<!--QuoteBegin-Mudy+Jun 2 2006, 06:57 PM-->QUOTE(Mudy @ Jun 2 2006, 06:57 PM)<!--QuoteEBegin--><b>The bad outweighs the good in our economy </b>
FT
Farrukh Saleem : <i>Our economy is freer than India's; yet, foreigners do not invest here. Why?</i>  <!--emo&Big Grin--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
   
Four, the market size, particularly Pakistani purchasing power, is not at a level whereby it can attract serious dollars. Shaukat Aziz has done what he could and 9/11 has done what it could.<b> <span style='font-size:14pt;line-height:100%'>Pakistan can attract serious-investment dollars only if multinationals can be assured access to the Indian market (to be sure, the Iran pipeline is feasible only if India is a buyer).</span></b> <!--emo&Big Grin--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->

[right][snapback]52017[/snapback][/right]<!--QuoteEnd--><!--QuoteEEnd-->

<b>Mudy Ji :</b>

Absolutely and Entirely Correct.

Pakistan’s Projected demand for Natural Gas in 2010 is Half a Billion Cubic Feet a Day.

This will require a Twelve Inch Pipe Line and the only saving between a 48-42-36 Inch Pipe Line and a Twelve Inch Pipe Line is the Difference in the Cost of Steel Pipes.

All other costs remain nearly the same.

Thus compared to a 48-42-36 Pipe Line a Pipe line of 12 Inches transporting Half a Billion cubic Feet per Day of Natural Gas will be “ruinously” uneconomical.

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
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`<b>India produces 5300 MW of energy through wind power</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Chennai, June 03: Claiming that the country`s capacity in wind power was much more than nuclear capacity, a senior government official has said India produces about 5300 MW of energy through wind power.

<b>"Nuclear fuel is just a fashionable term," V Subramanian, Secretary, Ministry of Non-conventional Energy Sources said</b>.  <!--emo&:thumbdown--><img src='style_emoticons/<#EMO_DIR#>/thumbsdownsmileyanim.gif' border='0' style='vertical-align:middle' alt='thumbsdownsmileyanim.gif' /><!--endemo-->

Delivering the inaugural address of the fifth two-day national level training programme on renewable energy for mediapersons here on Friday, Subramanian said, "our capacity (wind power) is much more than nuclear capacity."

India is the fourth largest country in wind power generation in the world, behind Germany, US and Spain, he said.

He expressed hope that India would jump to the third place next year. "Last year we had set a target of adding 1,000 MW. We crossed the target," he said.

On renewable sources of energy, he said, "there are a large number of sugar mills, chemical, petrochemical industries producing a large amount of waste, that can be used to derive energy." <!--QuoteEnd--><!--QuoteEEnd-->
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<b>Harnai-Sibi train track blown up again</b>

<b>QUETTA: The Harnai-Sibi railway track was once again blown up on Wednesday by unknown armed men who used high-power explosive material. However, no loss of life was reported.</b>

<img src='http://www.thenews.com.pk/top_story_pics/6-8-2006_1286_l.gif' border='0' alt='user posted image' />

Provincial officials told The News that some unknown saboteurs had planted powerful explosive material in Sundhari area, some 25 kms away from Harnai. The explosive device went off with a big bang and damaged a big portion of the train track. Officials and Levies force have launched a probe.

Due to successive blasts on the railway track, the train service is already suspended for the last four months on the Sibi-Harnai section. Railway authorities in Sibi said due to security concerns, they could not start the repair work on the track so far.

Meanwhile, Balochistan Chief Minister Jam Muhammad Yousuf in a meeting on Wednesday directed the police, Levies force and other law-enforcement agencies to devise a comprehensive strategy within three days for maintaining law and order, as the attacks on national installations, railway tracks, highway robberies and kidnapping of children has assumed an alarming proportion in the province.

Jam Yousuf took serious notice of kidnapping of children in various localities of the provincial capital, and directed the Capital City Police Officer (CCPO) to take effective and immediate steps to recover the kidnapped children and arrest the kidnappers.

The meeting also took some important decisions about maintaining law and order in the province. Balochistan Home Minister Shoaib Nausherwani, Finance Minister Syed Ahsan Shah, Chief Secretary KB Rind and other senior officials of the police, Levies and other LEAs attended the meeting.

Agencies add: Unidentified miscreants fired at least eight rockets at the FC check post in Sangsela area of Khohlu distirct and Kahan area of Dera Bugti district on Wednesday. The rockets missed the target and landed outside the Check post, causing no loss of life or property.

Meanwhile, around 50 per cent repair work on the gas pipeline damaged by the explosion near Sui on Tuesday has been completed, while the remaining work would be completed in the next 15 hours and gas supply to Sindh and Punjab has been restored.

Unidentified men had blown up a 20-inch diameter gas pipeline with explosive material on Tuesday, suspending gas supply to Sindh and Punjab. Officials had assured that the damaged pipeline would be repaired in three days. However, due to untiring efforts of the PPL, half of the repair work has been completed.

A roughly three-foot section of the pipeline was ruptured in the explosion on Tuesday near Sui, DCO Dera Bugti Abdul Samad Lasi, said. Lasi blamed militant tribesmen for the blast. Lasi said supply from the well to the pumping plant had been restored. He denied a local news report that the explosion had disrupted the supply of gas to local consumers.

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
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<b>India cannot rely on IPI gas pipeline</b>

<i>Seeks alternate energy sources</i>

KARACHI: India is seeking alternate sources of energy in the wake of petroleum and natural gas shortage as it has enough capital and resources to buy energy supplies.

This was stated by M N Chinai, Member Reliance Group of India and President Maharaj Economic Council, an apex think-thank of India, in an interview to The News.

“After failure of efforts and series of talks with Pakistan and Iran, India has decided to produce thermal, coal and bio-energy in order to meet domestic demand,” he said, adding “India cannot rely further on the Iran-Pakistan-India gas pipeline project.”

He said India was interested in cooperating with Pakistani industrialists and businessmen, but it would not focus on one specific sector. “We (Indian businessmen) come to Pakistan and do business but we cannot disclose our deals to Pakistani government.”

India eyed Pakistani textile sector and would soon send a delegation in order to study the industry, he said. “Indian textile sector is also very strong and has the capability to compete with Pakistan.”

Regarding investment opportunities in Pakistan, Chinai said it would take a long time to build trust, but joint ventures could be possible.

He was of the view the World Trade Organisation’s rules did not provide a boost to the trade of developing countries, instead it bolstered the trade of big powers and developed countries of the world.

“WTO has discriminatory policies for the Third World countries, which create more problems instead of helping them.”

President Maharaj Economic Council said India lacked skilled professionals in industries. “It is generating graduates and qualified people with zero professional skills and lack of confidence.”

He expressed dissatisfaction over efforts to reopen Indian and Pakistani consulates in Karachi and Mumbai, saying though measures were being taken, these would be difficult to bear fruits soon.

“We (businessmen)Ö can only make demands to the government and state departments but do nothing else and the absence of consulates is the major hurdle in the way of improving trade ties between Pakistan and India.”

The representative of Reliance Group highlighted the importance of Pakistan as a corridor for trade with Middle Eastern countries, saying India could use Pakistan as a bridge for trade with landlocked countries. However, “it is too difficult to materialise.”

About small-scale industries of India, he said China gave a tough time to India after the implementation of WTO regime as many small-scale industries went bankrupt due to cheap Chinese products, adding “now India is competing with its neighbour but it needs a lot of progress in this regard.”

Likewise many Asian countries, Indian investors shifted their industries to China, but Chinai disagreed the move would affect local industries, saying other investors appeared in local markets if some investors went to foreign countries.

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
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<b>Saran to visit Myanmar for energy cooperation on Sunday</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->India has initiated a move to acquire gas from Myanmar, particularly from two offshore blocks. As per an initial plan, the gas had to be supplied through a pipeline to be laid between the two countries through Bangladesh.

However, Bangladesh maintained a "negative" attitude with regard to the proposed pipeline passing through its territory, delaying implementation of the proposal for a year.

In the wake of this attitude, India has decided to by-pass Bangladesh and started the process for making alternate arrangements for receiving the hydrocarbon.

State-owned Gas Authority of India Limited (GAIL) had asked a private company to conduct feasibility studies to transport gas from Myanmar to be received at Patna.

Another study had been commissioned to assess feasibility of transporting the gas in the form of Compressed Natural Gas (CNG) bypassing Bangladesh.

Other issues to be discussed will be Kaladan Multi-Modal transport project and Tamu-Kalewa-Kalemyo road project
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Nareshji ,
Finally, they have started saying what you were saying for last 3 years, bypass Bangladesh and Pakistan.
Its a good idea to bypass Islamic nations. <!--emo&Big Grin--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->

I hope new inventions in energy sector will change whole Islamic world.
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