India In-Focus — Coal mines allowed to hike output; Ola chief says e-scooter fires are ‘rare’ but ‘might’ happen

The Indian government is forcing utilities to step up imports and Coal India to ramp up production (Shutterstock)
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Updated 11 May 2022
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India In-Focus — Coal mines allowed to hike output; Ola chief says e-scooter fires are ‘rare’ but ‘might’ happen

MUMBAI: India’s environment ministry has allowed coalmines with clearances to step up production by up to 50 percent, without seeking feedback from locals, it said in a memo reviewed by Reuters.

The decision was taken after a request from the coal ministry which pointed to “huge pressure on domestic coal supply in the country,” the ministry said, in a memo dated May 7, adding that the “special dispensation” will be valid for six months.

India is also planning to reopen more than 100 coalmines previously considered financially unsustainable, as the worst power crisis in over six years driven by a scorching heatwave forces the world’s third-biggest greenhouse gas emitter to double down on the fuel, after months of low consumption.

The projects “shall be granted expansion environmental clearance to increase their production capacity to 50 percent of original capacity within the same mine lease area, without requiring revised environmental impact assessment report for additional capacity and public consultation,” the memo read.

Demand for coal has risen due to post-pandemic economic recovery and an unrelenting heatwave. The government is forcing utilities to step up imports and Coal India to ramp up production to address supply shortages.

India’s Ola Electric chief says e-scooter fires rare but can happen

There may be more fires in electric scooters in the future, but such incidents are very rare, the chief executive of India’s Ola Electric said at a private company event, after safety concerns were heightened by a fire in one of its scooters in March.

“Will there be occurrences in the future, there might be,” CEO Bhavish Aggarwal replied, when asked a question about the fires at a private event on Sunday.

“But our commitment is that we will make sure we analyze every issue, and if there are fixes to be done we will fix them,” he said, according to a recording from the event reviewed by Reuters.

He described the fires as being “very rare and isolated” in a recording from the event, at which the company previewed a new operating system for its e-scooters.

Ola’s e-scooter fire was among a spate of similar recent incidents that triggered an uproar on social media and an investigation by the Indian government.

The company, backed by Japan’s SoftBank Group, has recalled more than 1,400 e-scooters and appointed external experts to investigate the cause.

 

(With inputs from Reuters) 


ACWA Power completes refinancing of Rabigh 3 Independent Water Project

Updated 16 sec ago
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ACWA Power completes refinancing of Rabigh 3 Independent Water Project

RIYADH: Saudi utility giant ACWA Power has completed the refinancing of the Rabigh 3 Independent Water Project, located in the western region of the Kingdom. 

Rabigh 3 is a seawater desalination plant with a capacity of 600,000 cubic meters of potable water per day, using reverse osmosis technology.

In a press statement, the Tadawul-listed company said the refinancing was executed through a capital-markets-led approach, anchored by the issuance of a long-term senior secured project bond. 

The refinancing was anchored by investment firm KKR as the largest lender, with participation from other investors including Barings, Hong Kong Mortgage Corp., and Clifford Capital, as well as Sumitomo Mitsui Trust Bank, and SBI Shinsei Bank. There was also regional support from Riyadh Bank and Abu Dhabi Commercial Bank. 

“The transaction highlights ACWA Power’s continued innovation in infrastructure financing, combining capital-markets instruments with strong project-level credit and global institutional participation,” said Marco Arcelli, the company’s CEO.

He added: “By meeting international rating agencies’ and debt investors’ expectations, ACWA Power has reinforced the bankability of large-scale desalination projects and expanded access to long-term funding for essential infrastructure.” 

Arcelli also said the refinancing supports the company’s ambition to continue providing more than half of Saudi Arabia’s desalinated water capacity. 

The new transaction replaces the project’s previous debt facility with a diversified financing structure that broadens the investor base and enhances long-term funding resilience. 

The statement added that the refinancing underscores ACWA Power’s ability to structure complex financings that meet the requirements of global institutional investors while aligning with international sustainability standards. 

“Rabigh 3 IWP is a cornerstone asset for water security in the Kingdom, and the strong participation from international investors reflects its quality, reliability, and long-term value,” said Abdulhameed Al-Muhaidib, chief financial officer at ACWA Power. 

He added: “This transaction demonstrates ACWA Power’s commitment to responsible finance, sustainable water infrastructure, and long-term environmental stewardship. We’re very proud to issue our first-ever blue bond that attracts new international investors to our Saudi fleet.” 

The refinancing marks ACWA Power’s first alignment with the International Finance Corporation’s Blue Finance Guidelines, reinforcing the plant’s strong operational performance while supporting Saudi Arabia’s Vision 2030 infrastructure goals.