Posts tagged ‘supply’

July 1, 2011

Russia to supply nuclear submarine to India: Report

Russia will deliver a nuclear submarine to India by the end of the year, Russia’s navy chief was quoted as saying on Friday by state news agency RIA. PHOTO: FILE

MOSCOW: Russia will deliver a nuclear submarine to India by the end of the year, Russia’s navy chief was quoted as saying on Friday by state news agency RIA.

India sees Russia as a strategic counterweight to China but New Delhi has been upset by repeated delays to major weapons orders from Moscow, including the Admiral Gorshkov heavy aircraft carrier.

The date for delivering the Nerpa submarine to India, Russia’s close economic and political partner since Soviet days, has repeatedly been put back.

“We shall definitely supply this vessel to the customer by the end of this year,” RIA quoted navy commander Admiral Vladimir Vysotsky as saying.

Vysotsky said a fully trained Indian navy crew was ready to receive the submarine, which some Russian media reported last year had already been handed over to India.

The Nerpa, an attack submarine codenamed “Akula” – or “Shark”, by NATO, is usually armed with torpedoes and cruise missiles. It can go down to depths of 600 metres (2000 ft) for about 100 days. It can carry 73 people.

Construction of the Nerpa began in 1991, the year the Soviet Union collapsed, but funding was frozen in the chaotic 1990s and the submarine was only launched and started sea trials in 2008, according to Russian media.

Twenty people died on the Nerpa after inhaling the toxic gas used as a fire suppressant when its fire extinguishing system switched on unexpectedly at sea trials in November 2008.

The accident was the deadliest to hit Russia’s navy since August 2000, when the Kursk nuclear submarine sank beneath the Barents Sea, killing all 118 sailors on board.

India agreed to buy the Gorshkov aircraft carrier and have it upgraded in 2004. But Moscow has repeatedly asked for more money and the latest price tag reported for the ship is $2.3 billion. It has still not been delivered to India.

June 30, 2011

Looming power shortage: PSO threatens cut in oil supply

Rs131b are the receivables of PSO against different companies. DESIGN: MOHSIN ALAM


A dispute between oil marketing giant, Pakistan State Oil (PSO) and power generation companies has emerged once again due to delay in payment of dues as PSO threatened reduction in furnace oil supply, which may aggravate power situation in the country.

On Tuesday, PSO told Kot Addu Power Company (Kapco) and Hub Power Company (Hubco) that it was compelled to curtail furnace oil supply due to rising outstanding bills. Sources told The Express Tribune that PSO might default on Letters of Credit (LCs) opened for import of oil because of delay in clearance of dues by power-producing companies. “PSO’s import bill continues to increase and it is not in a position to retire LCs due to rising receivables against power sector,” a source said while quoting letters sent by PSO to Hubco and Kapco.

PSO, whose receivables have surged to Rs131 billion, has already requested the government to intervene in the matter as it immediately requires Rs69 billion to pay for maturing LCs for oil imports.

Earlier this month, the country faced a petrol shortage due to suspension of supplies from Attock Refinery Limited (ARL), National Refinery Limited (NRL) and Bosicor, prompting the need for heavy imports to meet demand.

According to sources, PSO was supplying 24,000 to 25,000 tons of furnace oil per day to power-producing companies amounting to around Rs40 billion per month. However, they said power companies were paying Rs15 billion per month to PSO and the low receipt of payments was piling pressure on the energy sector and increasing circular debt.

Sources said PSO had been demanding Rs25 billion per month on account of fuel supply but the power sector never responded to the demand.

On June 28, total receivables of PSO from different clients stood at Rs130.8 billion, including Rs30 billion from Water and Power Development Authority (Wapda), Rs54 billion from Hubco, Rs28 billion from Kapco and the remaining from Oil and Gas Development Company, KESC and Pakistan Railways.

Earlier, PSO had suspended furnace oil supply to Wapda, Kapco and Hubco in February due to non-payment of dues, but it was later restored after the government’s intervention.