New Delhi, Nov 20: City gas distribution (CGD) companies in India are projected to clock an operating profit of Rs 7.2–7.5 per standard cubic metre (scm) this fiscal — up 8-12 per cent compared with the second half of last fiscal when margins dropped because of a sudden and steep decline in gas allocation under the administered price mechanism (APM) for the compressed natural gas (CNG) segment, a report said on Thursday.

Consequently, distributors had to take recourse to the spot gas market for supply, which exerted upward pressure on cost. The companies have, thereafter, transitioned to contracted supplies, which is expected to burnish margins.

“Healthy earnings will keep leverage in check despite the proposed capital expenditure (capex) by companies. Our assessment of seven CGD companies, with 70 per cent share of total sales volume last fiscal, indicates as much,” Crisil Ratings said in its report.

CGD companies get gas on priority at lower prices under the APM from legacy gas fields to serve the domestic CNG and piped natural gas-domestic (PNG-D) segments.

Beyond APM, they procure high-pressure, high-temperature (HPHT) gas and imported regasified liquefied natural gas (R-LNG) under contracted and spot purchase mechanisms.

According to the report, in the second half of the last fiscal, APM gas allocated to the CNG segment was reduced to less than 40 per cent of the total CNG requirement, compared with 70 per cent in the first half of the last fiscal.

This led to a substantial increase in gas procurement costs as companies relied on spot purchases, which were 80-100 per cent more expensive than those under APM prices, to protect against supply disruptions.

As a result, spot purchases by volume rose to more than 15 per cent of total supplies from 5 per cent in the first half of the last fiscal.

“Against the 30 per cent reduction in APM allocation for the CNG segment, CGD companies got 15-20 per cent long-term allocations from domestic new well gas, mainly towards the end of last fiscal or early this fiscal. For the balance, they have signed additional medium- and long-term contracts, mainly for HPHT gas and R-LNG,” said Ankit Hakhu, Director, Crisil Ratings.

This will not only improve gas security but also reduce exposure to the spot market, where prices are 25-30 per cent higher on average, he added.

The report noted that realisations are steady this fiscal, following some increase in the second half of last fiscal when companies implemented price hikes to pass on increased costs to consumers, albeit partially and gradually.

However, some of the benefits of reduced gas procurement costs in the current fiscal year will be offset by an increase in other operating costs. These costs will rise as players continue to incur capex to expand gas infrastructure in existing and new geographical areas (GAs) to support volume growth.

Jammu, Nov 20: The State Investigation Agency (SIA) of J&K Police on Thursday carried out a raid at the office of the ‘Kashmir Times’ in Jammu, alleging that the newspaper has been involved in anti-national activities and spreading disaffection against the country.

Official sources said the SIA has filed a First Information Report (FIR) naming Anuradha Bhasin, Editor of Kashmir Times, in connection with these charges.

“The investigation aims to examine her alleged links and activities that threaten the sovereignty of India. The operation underscores the ongoing crackdown on terror networks in Kashmir, with SIA asserting that there must be no misuse to propagate seditious or separatist ideologies,” sources added.

The Counter-Intelligence wing and the SIA of J&K Police have been carrying out raids at multiple locations in the union territory since November 10, when a local doctor, Umar Nabi, exploded a car next to the Red Fort in Delhi, killing 13 innocent civilians and injuring many others. The terrorist, Dr Umar Nabi, who died in the explosion, had evaded arrest after J&K Police, in coordination with Haryana Police, busted a white collar terror module in the Faridabad area.

Police have arrested two terror associates of Dr Umar Nabi, namely Dr Adil Rather of Kulgam district and Dr Muzammil Ganaie of Pulwama district, following which Dr Umar Nabi had gone underground.

While one AK-47 rifle was recovered from the locker of Dr Adil Rather in the Government Medical College, Anantnag, 360 kg of explosive material was recovered from Dr Muzammil Rather.

The Counter-Intelligence wing also raided the high-profile Kot Bhalwal district jail in Jammu on Wednesday, where hardcore Pakistani and local terrorists are lodged.

Another local doctor, Umar Farooq and his wife, Shahzada Akhtar, were arrested two days back in Srinagar for using their position in the society, allegedly for anti-national activities.

Shahzada Akhtar was arrested for trying to revive the women’s terrorist outfit, Dukhtaran-e-Millat. It is alleged that Shahzada was working to recruit a fresh cadre for the outfit that had become defunct after the arrest of its chief, Asiya Andrabi, in 2018.

Hyderabad, Nov 20: Former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy on Thursday appeared before the Special CBI court in Hyderabad in the disproportionate assets case.

Amid tight security, the president of YSR Congress Party (YSRCP) appeared before the court at Nampally Criminal Court complex.

A large number of YSRCP cadres and supporters had gathered near the court premises to show solidarity with their leader.

The court recorded Jagan Mohan Reddy’s attendance and closed the hearing on his petition. After spending a few minutes in the court premises, he returned to Lotus Pond residence.

Outside the court premises, he greeted his supporters with folded hands before leaving in his car.

Earlier, the former chief minister reached Begumpet Airport in the city by a special aircraft from Gannavaram Airport in Vijayawada. Hundreds of supporters accorded him a warm welcome. They were carrying placards and raising slogans in support of the YSRCP chief.

Jagan Mohan Reddy drove to his Lotus Pond residence and, after spending some time there, reached the court complex.

Police had imposed traffic restrictions around the court complex located in the heart of the city.

This was Jagan’s first physical appearance in the court in nearly six years. He had last appeared before the court on January 10, 2020, when he was the Chief Minister.

The YSRCP leader had been seeking exemption from personal appearance, citing his responsibilities as the Chief Minister.

Even after losing power last year, he continued seeking an exemption from personal appearance. While giving permission for him to visit Europe last month, the court had directed him to personally appear after his return.

He was directed to appear by November 14 to provide details of his travel and ensure adherence to his bail conditions.

When the former Chief Minister filed a petition seeking exemption from personal appearance, the Central Bureau of Investigation (CBI) had objected and sought court direction to him to personally appear.

The court had directed him to ensure his personal appearance on or before November 21. He decided to appear a day before the deadline.

Jagan Mohan Reddy has been on bail since September 2013 in the long-pending case, which stems from allegations of quid pro quo arrangements during the tenure of his late father, Y.S. Rajasekhara Reddy, as Chief Minister of undivided Andhra Pradesh between 2004 and 2009.

The CBI and the Enforcement Directorate (ED) allege that various companies and individuals made massive investments, often at high premiums, into Jagan Mohan Reddy’s businesses, including Jagathi Publications and Bharathi Cements, in exchange for undue favours like land allotments, mining leases, and other clearances from the state government.

In the 11 charge sheets filed by the CBI in the case, Jagan Mohan Reddy has been named as the accused number one.