Saturday, 18 Feb 2012
ET reported that International coal prices are likely to move up further as the world's largest producer CIL needs to go on global shopping for the dry fuel to meet the increased demand of the power sector.
A Committee of Secretaries, set up by Prime Minister Manmohan Singh to sort out issues relating to the power sector, has asked CIL to sign Fuel Supply Agreements with power plants that have already been commissioned or would go on stream on or before March 31st 2015 for 20 years.
The analysts said that "It will be a Herculean task for Coal India Ltd to meet the additional obligations since its entire production now gets exhausted to feed the power sector. In the current situation, CIL's only way out is to go for procuring the raw material in countries like Indonesia, Mozambique, Australia and South Africa.”
Analyst said that "The international prices of coal are likely to go up as India's state run miner Coal India looks for procuring in the global market. The demand for coal in India is likely to go up manifold as projects go on stream.”
The international price of coal is now hovering a little over USD 100 per tonne.
(Sourced from ET)
Showing posts with label CIL. Show all posts
Showing posts with label CIL. Show all posts
Saturday, February 18, 2012
Friday, February 17, 2012
Indian government orders CIL to ink FSA to end power shortages
Friday, 17 Feb 2012
Finally, Indian government has acted to alleviate chronic power shortages that hinder its economic growth, ordering its monopoly coal miner Coal India Limited to guarantee long term supplies or face penalties.
It asked CIL to sign 20 year Fuel Supply Agreements with power projects that are due to be commissioned by 2015 and have an agreement with distribution utilities to sell power. This would help power plants with an estimated capacity of more than 50,000 MW.
Until now, Coal India's long term contracts were for a five year period and the last one it signed was in 2009.
A government statement said that the government decision followed intensive lobbying by top executives from India's power companies, who had sought the help of prime minister Dr Manmohan Singh to boost supplies of coal.
Domestic coal supply has fallen short of targets, largely due to regulatory hurdles faced by miners, while poor infrastructure hinders the transport of imported coal, leaving many power plants running below capacity.
(Sourced from Reuters and CNBC TV 18)
Finally, Indian government has acted to alleviate chronic power shortages that hinder its economic growth, ordering its monopoly coal miner Coal India Limited to guarantee long term supplies or face penalties.
It asked CIL to sign 20 year Fuel Supply Agreements with power projects that are due to be commissioned by 2015 and have an agreement with distribution utilities to sell power. This would help power plants with an estimated capacity of more than 50,000 MW.
Until now, Coal India's long term contracts were for a five year period and the last one it signed was in 2009.
A government statement said that the government decision followed intensive lobbying by top executives from India's power companies, who had sought the help of prime minister Dr Manmohan Singh to boost supplies of coal.
Domestic coal supply has fallen short of targets, largely due to regulatory hurdles faced by miners, while poor infrastructure hinders the transport of imported coal, leaving many power plants running below capacity.
(Sourced from Reuters and CNBC TV 18)
Monday, February 6, 2012
CIL workers to strike on February 13 on wage pact
Monday, 06 Feb 2012
TNN reported that the Rashtriya Colliery Mazdoor Sangh, one of the biggest unions of the Coal India Ltd, has called a daylong strike on February 13 to protest the poor hike in wages of workers.
Over 108,000 workers of the CIL and its nine subsidiary companies are member of the RCMS.
RCMS president and former MLA Mr Israil Ansari alleged that the company and the Union coal ministry had cheated the workers by not keeping their promises.
He said “We feel cheated and have decided to go on a day's token strike on February 13. If the management does not amend the agreement, which is against the interest of the workers, we will call a three day strike in the second phase.”
The date for the three-day strike in yet to be decided
He threatened that if the CIL management and the ministry failed to make amendments at the earliest, the workers might even go for an indefinite strike.
There are around 360,000 workers in the CIL and its subsidiary companies.
(sourced timesofindia.indiatimes.com)
TNN reported that the Rashtriya Colliery Mazdoor Sangh, one of the biggest unions of the Coal India Ltd, has called a daylong strike on February 13 to protest the poor hike in wages of workers.
Over 108,000 workers of the CIL and its nine subsidiary companies are member of the RCMS.
RCMS president and former MLA Mr Israil Ansari alleged that the company and the Union coal ministry had cheated the workers by not keeping their promises.
He said “We feel cheated and have decided to go on a day's token strike on February 13. If the management does not amend the agreement, which is against the interest of the workers, we will call a three day strike in the second phase.”
The date for the three-day strike in yet to be decided
He threatened that if the CIL management and the ministry failed to make amendments at the earliest, the workers might even go for an indefinite strike.
There are around 360,000 workers in the CIL and its subsidiary companies.
(sourced timesofindia.indiatimes.com)
Sunday, January 22, 2012
Coal India production target likely at 464 MT for FY13
Sunday, Jan 22, 2012
The production target for world's largest coal producer Coal India (CIL) is likely to be fixed at 464 million tonnes (MT) for 2012-13.
"In the preliminary meeting held last week, the Planning Commission has set a production target of 464 million tonnes (MT) for CIL for 2012-13," a government official said.
However, the Planning Commission, in a meeting to be headed by Planning Commission Member (Energy) B K Chaturvedi, is likely to take the final decision on the production target by the month-end, the official said.
Representatives from different ministries, including coal, steel and power are likely to participate in the meeting, he said.
Last month, CIL had lowered its production target for the ongoing financial year to 440 MT from the estimate of 452 MT in its annual plan.
The company had cited various reasons like heavy rainfall, strike and delays in the grant of forestry and environmental clearances to coal projects for the downward revision in the production target.
Earlier, CIL had asked the government to scale down its production target for the 2011-12 to 448 MT, fearing it will not be able to make up for the slippage in output in the first half of the fiscal.
The public sector company had missed its April-September target by about 20 MT, recording an output of 176 MT against the target of 196 MT.
The PSU had also missed its revised production target last fiscal too, recording an output of just 431 MT.
CIL had a production target of 460.5 MT for 2010-11, which was revised down to 440.2 MT.
(sourced BS)
The production target for world's largest coal producer Coal India (CIL) is likely to be fixed at 464 million tonnes (MT) for 2012-13.
"In the preliminary meeting held last week, the Planning Commission has set a production target of 464 million tonnes (MT) for CIL for 2012-13," a government official said.
However, the Planning Commission, in a meeting to be headed by Planning Commission Member (Energy) B K Chaturvedi, is likely to take the final decision on the production target by the month-end, the official said.
Representatives from different ministries, including coal, steel and power are likely to participate in the meeting, he said.
Last month, CIL had lowered its production target for the ongoing financial year to 440 MT from the estimate of 452 MT in its annual plan.
The company had cited various reasons like heavy rainfall, strike and delays in the grant of forestry and environmental clearances to coal projects for the downward revision in the production target.
Earlier, CIL had asked the government to scale down its production target for the 2011-12 to 448 MT, fearing it will not be able to make up for the slippage in output in the first half of the fiscal.
The public sector company had missed its April-September target by about 20 MT, recording an output of 176 MT against the target of 196 MT.
The PSU had also missed its revised production target last fiscal too, recording an output of just 431 MT.
CIL had a production target of 460.5 MT for 2010-11, which was revised down to 440.2 MT.
(sourced BS)
Thursday, January 19, 2012
Coal India says GCV prices at a discount, not premium
Thursday, Jan 19, 2012
Want to know how Coal India’s new pricing methodology — based on the gross calorific value (GCV) of coal as against the useful heat value taken into account earlier — has impacted India Inc? Here’s a definitive response from Coal India.
The state-owned company has told Kolkata High Court that following the implementation of the new pricing norm, its coal is selling at a discount ranging from 25% for higher grades to 63% for lower grades compared with the international prices.
“An additional discount in the range of 14-38% in coal of less than 5800 Kcal/kg GCV has also been offered for power and other regulated sectors,” Snehatosh Majumder, general manager (legal) and constituted attorney of Coal India has said in an affidavit recently filed in the court, a copy of which is available with DNA.
The submission has been made to oppose an affidavit filed by Subhas Datta, a green crusader, who has filed a public interest litigation against the coal major’s recent price increases and shift to a new pricing norm.
Coal India says GCV prices are at a discount, not premium
Coal India has also told the court that it is difficult to find out the exact impact of the new pricing norm on its revenues, which can be reasonably ascertained only in the next 2-3 months. Also, Coal India’s board would be reviewing the whole system after that. “The prices of coal as per earlier pricing mechanism cannot be directly compared to the price as per the new GCV regime. It will take some time to ascertain the actual impact on revenue of such switching over.
Keeping this in mind, the CIL Board while according approval to this new pricing regime has kept a provision to review the same after three months... the correct picture for the change in price would emerge in coming two to three months, only after the new GCV based grading system is stabilised across the coal companies,” Coal India has told the court. Arguing against the petitioner’s contention that the introduction of the GCV-based pricing would lead to an increase in prices, Coal India has argued that the claim hasn’t been substantiated.
“With reference to the allegations contained in para 3, I state that petitioners themselves have admitted that they could not compare between the erstwhile and the revised price under GCV system. Therefore, comments made hereunder to the effect that the price increase may be more than 100% through recent notification is unsubstantiated,” Majumder has said in the affidavit.
Coal India’s woes multiplied on Wednesday with the court fixing the next hearing on February 15 maintaining that its January 6 order will continue. The high court had on January 6 requested Coal India not to give effect to its December 30 notification for shifting to the GCV system.
“The good news is we are now at a liberty to raise bills against our supplies to the power companies. The bad news is we can only bill under the system prevailing before the introduction of the GCV pricing. Things are in a complete mess and we urgently need to resolve this,” a Coal India official said after conclusion of Wednesday’s hearing.
sourced: DNA
Want to know how Coal India’s new pricing methodology — based on the gross calorific value (GCV) of coal as against the useful heat value taken into account earlier — has impacted India Inc? Here’s a definitive response from Coal India.
The state-owned company has told Kolkata High Court that following the implementation of the new pricing norm, its coal is selling at a discount ranging from 25% for higher grades to 63% for lower grades compared with the international prices.
“An additional discount in the range of 14-38% in coal of less than 5800 Kcal/kg GCV has also been offered for power and other regulated sectors,” Snehatosh Majumder, general manager (legal) and constituted attorney of Coal India has said in an affidavit recently filed in the court, a copy of which is available with DNA.
The submission has been made to oppose an affidavit filed by Subhas Datta, a green crusader, who has filed a public interest litigation against the coal major’s recent price increases and shift to a new pricing norm.
Coal India says GCV prices are at a discount, not premium
Coal India has also told the court that it is difficult to find out the exact impact of the new pricing norm on its revenues, which can be reasonably ascertained only in the next 2-3 months. Also, Coal India’s board would be reviewing the whole system after that. “The prices of coal as per earlier pricing mechanism cannot be directly compared to the price as per the new GCV regime. It will take some time to ascertain the actual impact on revenue of such switching over.
Keeping this in mind, the CIL Board while according approval to this new pricing regime has kept a provision to review the same after three months... the correct picture for the change in price would emerge in coming two to three months, only after the new GCV based grading system is stabilised across the coal companies,” Coal India has told the court. Arguing against the petitioner’s contention that the introduction of the GCV-based pricing would lead to an increase in prices, Coal India has argued that the claim hasn’t been substantiated.
“With reference to the allegations contained in para 3, I state that petitioners themselves have admitted that they could not compare between the erstwhile and the revised price under GCV system. Therefore, comments made hereunder to the effect that the price increase may be more than 100% through recent notification is unsubstantiated,” Majumder has said in the affidavit.
Coal India’s woes multiplied on Wednesday with the court fixing the next hearing on February 15 maintaining that its January 6 order will continue. The high court had on January 6 requested Coal India not to give effect to its December 30 notification for shifting to the GCV system.
“The good news is we are now at a liberty to raise bills against our supplies to the power companies. The bad news is we can only bill under the system prevailing before the introduction of the GCV pricing. Things are in a complete mess and we urgently need to resolve this,” a Coal India official said after conclusion of Wednesday’s hearing.
sourced: DNA
Rethink on GCV-based coal price
Thursday, Jan 19, 2012
The Ministry of Coal has decided to review the controversial gross calorific value (GCV) mechanism for pricing coal in the country, raising hopes of power companies.
Coal India implemented the GCV mechanism from January 1, which calculates the price of coal on the basis of heat produced by burning it. Earlier, prices were fixed on the basis of moisture and ash content present in coal.
Prices of coal have risen due to this yardstick, and industry is finding it difficult to pass on the cost of the expensive fuel to end-consumers. Indeed, power companies say they have seen their fuel costs go up 40% under the new pricing mechanism.
“We were told by power and other companies about the increase in fuel cost due to this new pricing mechanism. There is some issue with the prices of coal under different categories. We will look into the issue on January 28 with an experts’ group,” said Sri Prakash Jaiswal, Union minister for Coal, said on Wednesday.
Earlier, industry representatives from Chhattisgarh, Andhra Pradesh, Karnataka, Jharkhand, Orissa and West Bengal met coal secretary Alok Perti last week to take up the issue.
While most of the country uses the GCV mechanism to price the black fuel across the industry, Coal India did so only after recommendations by the T L Shankar Committee and also the Integrated Energy Policy document of the Planning Commission.
A non-profit organisation, Howrah Ganatantrik Nagarik Samity, had also filed a PIL in the Calcutta High Court accusing the company of making abnormal profits by repeatedly raising prices.
(sourced: DNA)
The Ministry of Coal has decided to review the controversial gross calorific value (GCV) mechanism for pricing coal in the country, raising hopes of power companies.
Coal India implemented the GCV mechanism from January 1, which calculates the price of coal on the basis of heat produced by burning it. Earlier, prices were fixed on the basis of moisture and ash content present in coal.
Prices of coal have risen due to this yardstick, and industry is finding it difficult to pass on the cost of the expensive fuel to end-consumers. Indeed, power companies say they have seen their fuel costs go up 40% under the new pricing mechanism.
“We were told by power and other companies about the increase in fuel cost due to this new pricing mechanism. There is some issue with the prices of coal under different categories. We will look into the issue on January 28 with an experts’ group,” said Sri Prakash Jaiswal, Union minister for Coal, said on Wednesday.
Earlier, industry representatives from Chhattisgarh, Andhra Pradesh, Karnataka, Jharkhand, Orissa and West Bengal met coal secretary Alok Perti last week to take up the issue.
While most of the country uses the GCV mechanism to price the black fuel across the industry, Coal India did so only after recommendations by the T L Shankar Committee and also the Integrated Energy Policy document of the Planning Commission.
A non-profit organisation, Howrah Ganatantrik Nagarik Samity, had also filed a PIL in the Calcutta High Court accusing the company of making abnormal profits by repeatedly raising prices.
(sourced: DNA)
Coal minister assure more coal for power sector
Thursday, 19 Jan 2012
The Indian government is making all efforts to increase coal production. Target of Coal India Limited of 440 million tones for current financial year will be achieved.
Production from other coal blocks is also being monitored and measures will be taken to achieve increases production from these blocks also. This was stated by coal minister, Mr Sripraksh Jaisawal during a meeting with a group of industrial representing Association of Power Producers.
The minister said the coal linkages are being rationalized, bidding of coal blocks will start soon. He said efforts are also being taken to modernize CIL so that production can be increased significantly.
Mr Jaiswal added that the government is aware of requirements of power sector and is trying its best to sort out issues.
The Indian government is making all efforts to increase coal production. Target of Coal India Limited of 440 million tones for current financial year will be achieved.
Production from other coal blocks is also being monitored and measures will be taken to achieve increases production from these blocks also. This was stated by coal minister, Mr Sripraksh Jaisawal during a meeting with a group of industrial representing Association of Power Producers.
The minister said the coal linkages are being rationalized, bidding of coal blocks will start soon. He said efforts are also being taken to modernize CIL so that production can be increased significantly.
Mr Jaiswal added that the government is aware of requirements of power sector and is trying its best to sort out issues.
CIL not likely to hike prices after wage increase
Thursday, 19 Jan 2012
Reuters cited Mr Sriprakash Jaiswal coal minister as saying that State-run Coal India Limited is not expected to raise prices after it finalises a wage increase agreement with its workers later this month.
Coal India last week said it will sign a five-year agreement with workers unions to increase wages by 25%, adding about INR 40 billion to its annual wage bill.
(Sourced from Reuters)
Reuters cited Mr Sriprakash Jaiswal coal minister as saying that State-run Coal India Limited is not expected to raise prices after it finalises a wage increase agreement with its workers later this month.
Coal India last week said it will sign a five-year agreement with workers unions to increase wages by 25%, adding about INR 40 billion to its annual wage bill.
(Sourced from Reuters)
Wednesday, January 18, 2012
CIL to invite fresh bids for Mozambique blocks
Wednesday, 18 Jan 2012
ET reported that state run CIL will call for fresh bids for exploration of its two blocks in Mozambique that houses about one billion tonnes of reserves of coal.
A top company official told PTI that “Coal India will float fresh tenders for exploration of Mozambique blocks as the firm shortlisted during the second tender in June had put some additional conditions. As a result the tender became invalid.”
The production from the twin mines is scheduled from 2015 but analysts said it may get delayed as Coal India is yet to to zero in on a company for exploration.
CIL had invited tenders twice first in 2010, which was cancelled due to shortcomings and the second in June, 2011 for exploratory drillings of its blocks.
The two coal blocks A1 and A2 are spread over an area of 200 sq km and their exploration may take over two years, as per CIL. The company had planned production from blocks from 2015.
Coal India Africana Limitada a wholly owned subsidiary of CIL, had won a five year licence for exploration and development of the blocks in Mozambique in August, 2009.
CIL, which accounts for over 80% of the domestic production, is scouting for coal properties abroad to bridge the widening demand supply gap estimated at 142 million tonnes in the current fiscal.
(Sourced from ET)
ET reported that state run CIL will call for fresh bids for exploration of its two blocks in Mozambique that houses about one billion tonnes of reserves of coal.
A top company official told PTI that “Coal India will float fresh tenders for exploration of Mozambique blocks as the firm shortlisted during the second tender in June had put some additional conditions. As a result the tender became invalid.”
The production from the twin mines is scheduled from 2015 but analysts said it may get delayed as Coal India is yet to to zero in on a company for exploration.
CIL had invited tenders twice first in 2010, which was cancelled due to shortcomings and the second in June, 2011 for exploratory drillings of its blocks.
The two coal blocks A1 and A2 are spread over an area of 200 sq km and their exploration may take over two years, as per CIL. The company had planned production from blocks from 2015.
Coal India Africana Limitada a wholly owned subsidiary of CIL, had won a five year licence for exploration and development of the blocks in Mozambique in August, 2009.
CIL, which accounts for over 80% of the domestic production, is scouting for coal properties abroad to bridge the widening demand supply gap estimated at 142 million tonnes in the current fiscal.
(Sourced from ET)
Tuesday, January 10, 2012
CIL buying coal rights in Limpopo province of SA
Tuesday, 10 Jan 2012
Later this month Coal India Ltd will sign an agreement with the Limpopo government in terms of which it will receive mining rights on various coal blocks in that province.
CIL will not acquire mines that are already operational, but rather promising coal blocks where mines will be developed.
Sake24 source said that “CIL had received the blocks entirely free of charge after the Mozambican government asked permission to develop mines there. But they paid us several hundred millions.”
These mines will be developed in partnership with the government of Limpopo which, through a state controlled corporation, will retain a 26% interest in the mines, probably to devolve it to black empowerment partners for CIL to comply with the requirements of the mining charter.
The Sake24 source said that “The Limpopo government has already handed CIL a draft agreement which took many months of negotiation. This will be discussed at CIL’s next board meeting to be held in two weeks’ time. If the CIL board accepts it, a CIL delegation will visit the country during the week of January 21, during which the agreement will be signed and formally announced.”
A senior official in the Limpopo government told Sake24 that the provincial government was acting more as a broker in this transaction worth many hundreds of millions.
Limpopo Premier Cassel Mathale a confidant and friend of suspended ANC Youth League leader, Julius Malema, apparently last year invited CIL to participate in developing the province’s coal industry.
Last week in New Delhi Mr NC Jha chairman of CIL had said that the board would within the coming weeks consider a proposal in terms of which CIL would receive interests in coal mines in the province. together with the Limpopo government.
(Sourced from Sake24)
Later this month Coal India Ltd will sign an agreement with the Limpopo government in terms of which it will receive mining rights on various coal blocks in that province.
CIL will not acquire mines that are already operational, but rather promising coal blocks where mines will be developed.
Sake24 source said that “CIL had received the blocks entirely free of charge after the Mozambican government asked permission to develop mines there. But they paid us several hundred millions.”
These mines will be developed in partnership with the government of Limpopo which, through a state controlled corporation, will retain a 26% interest in the mines, probably to devolve it to black empowerment partners for CIL to comply with the requirements of the mining charter.
The Sake24 source said that “The Limpopo government has already handed CIL a draft agreement which took many months of negotiation. This will be discussed at CIL’s next board meeting to be held in two weeks’ time. If the CIL board accepts it, a CIL delegation will visit the country during the week of January 21, during which the agreement will be signed and formally announced.”
A senior official in the Limpopo government told Sake24 that the provincial government was acting more as a broker in this transaction worth many hundreds of millions.
Limpopo Premier Cassel Mathale a confidant and friend of suspended ANC Youth League leader, Julius Malema, apparently last year invited CIL to participate in developing the province’s coal industry.
Last week in New Delhi Mr NC Jha chairman of CIL had said that the board would within the coming weeks consider a proposal in terms of which CIL would receive interests in coal mines in the province. together with the Limpopo government.
(Sourced from Sake24)
Sunday, January 8, 2012
Cement companies may firm up on new coal pricing
Sunday, 08 Jan 2012
The cement industry, which witnessed a round of price cuts last month, is now facing additional cost pressure from Coal India’s new pricing mechanism. CIL shifted to a pricing based on gross calorific value in line with global norms, from its earlier grading on useful heat value. The result has been a rise in prices.
Cement companies are expecting the increase in fuel cost to be around INR 8 to INR 10 a bag (50 kg), though analysts say it should be around INR 3 to INR 4 a bag.
Mr HM Bangur MD of Shree Cement said that “Things will be clear next week, when the new bills come from Coal India. We expect a rise of INR 8 to INR 10 a bag. We will then determine how much we need to pass on.”
The sector consumes about seven to eight million tonnes of coal annually. Mr HK Vaidya chief general manager sales and marketing of CIL said that “Normally, the sector uses higher grades of coal, like C and D. With the GCV regime in place, our average price rise is 10-15 per cent. For the cement sector, I think the impact may be a bit higher.”
A senior official of the Cement Stockists and Dealers Association in Mumbai said that “Manufacturers have not communicated any rise in prices, but we are expecting these to rise from January 15. The impact of the change in pricing method (of CIL) would differ for companies, but as much we have gathered, it will be a substantial increase in cost prices.”
Mr Shailendra Chouksey whole time director of JK Lakshmi Cement said that “The impact on pricing would be anywhere between INR 8 and INR 10 a bag. One will pay much higher; in fact, it will double our expense, as the pricing would increase by 20 to 30% and in some cases by 50%.”
The cement industry, which witnessed a round of price cuts last month, is now facing additional cost pressure from Coal India’s new pricing mechanism. CIL shifted to a pricing based on gross calorific value in line with global norms, from its earlier grading on useful heat value. The result has been a rise in prices.
Cement companies are expecting the increase in fuel cost to be around INR 8 to INR 10 a bag (50 kg), though analysts say it should be around INR 3 to INR 4 a bag.
Mr HM Bangur MD of Shree Cement said that “Things will be clear next week, when the new bills come from Coal India. We expect a rise of INR 8 to INR 10 a bag. We will then determine how much we need to pass on.”
The sector consumes about seven to eight million tonnes of coal annually. Mr HK Vaidya chief general manager sales and marketing of CIL said that “Normally, the sector uses higher grades of coal, like C and D. With the GCV regime in place, our average price rise is 10-15 per cent. For the cement sector, I think the impact may be a bit higher.”
A senior official of the Cement Stockists and Dealers Association in Mumbai said that “Manufacturers have not communicated any rise in prices, but we are expecting these to rise from January 15. The impact of the change in pricing method (of CIL) would differ for companies, but as much we have gathered, it will be a substantial increase in cost prices.”
Mr Shailendra Chouksey whole time director of JK Lakshmi Cement said that “The impact on pricing would be anywhere between INR 8 and INR 10 a bag. One will pay much higher; in fact, it will double our expense, as the pricing would increase by 20 to 30% and in some cases by 50%.”
Tuesday, January 3, 2012
Coal price hike will hit power utilities hard in India
Tuesday, 03 Jan 2012
It is reported that the hike in coal prices from January 1 will hit the power utilities hard. The worst affected will be power units in the east as Coal India Ltd will levy 6% extra on coal from Eastern Coalfields Ltd as it is a sick subsidiary and listed with the Board for Industrial & Financial Restructuring. ECL supplies coal to both CESC and WBPDCL.
The restructuring followed an approval to the long-pending proposal by the board of directors at CIL recently. Though CIL chairman Mr NC Johan said the new mechanism would have a minimum impact on consumers, he said it would have a positive impact on company revenue.
Mr Johan said "We've ensured that no coal-producing company will lose in revenue due to the restructuring. However, if some company manages to increase the quality of coal produced, it will command a higher price for coal, adding that the new system does away with the anomalies in pricing of same grade coal produced by different collieries and subsidiaries.”
Mr Johan claimed that even after the revision, coal price would be 77% lower than the international prices for power, fertilizer and defence and 25% for others.
Power department officials expressed dismay over the decision
(sourced Timesofindia.indiatimes.com)
It is reported that the hike in coal prices from January 1 will hit the power utilities hard. The worst affected will be power units in the east as Coal India Ltd will levy 6% extra on coal from Eastern Coalfields Ltd as it is a sick subsidiary and listed with the Board for Industrial & Financial Restructuring. ECL supplies coal to both CESC and WBPDCL.
The restructuring followed an approval to the long-pending proposal by the board of directors at CIL recently. Though CIL chairman Mr NC Johan said the new mechanism would have a minimum impact on consumers, he said it would have a positive impact on company revenue.
Mr Johan said "We've ensured that no coal-producing company will lose in revenue due to the restructuring. However, if some company manages to increase the quality of coal produced, it will command a higher price for coal, adding that the new system does away with the anomalies in pricing of same grade coal produced by different collieries and subsidiaries.”
Mr Johan claimed that even after the revision, coal price would be 77% lower than the international prices for power, fertilizer and defence and 25% for others.
Power department officials expressed dismay over the decision
(sourced Timesofindia.indiatimes.com)
Wednesday, December 21, 2011
New capacity in coal sector in India during 12th plan
Wednesday, 21 Dec 2011
Mr Pratik Prakashbapu Patil minister of state in the ministry of coal informed the Lok Sabha that the government proposes to add new capacity by way of taking up of new projects as well as expansion of existing projects through Coal India Ltd and its subsidiaries, Neyveli Lignite Corporation Ltd and Singareni Collieries Company Ltd in Public Sector. Further, new capacity addition in production through coal block allocatees both Public and Private Sector is also envisaged.
It is envisaged that during the 12th plan period the annual production of coal will increase from 447 million tonne to 615 million tonne by CIL, from 51 million tonne to 57 million tonne by SCCL and for lignite it is envisaged to increase from 41.64 million tonne to 68.60 million tonne by NLC by way of capacity addition. The production from coal block allocatees is envisaged to increase from 36.15 million tonne to 100 million tonne during the above period.
The minister further added that as per the recommendations of the Working Group on coal for the 12th Five Year plan (2012-2017), the capital outlay for Coal and Lignite sector during the above period is envisaged as under:
Coal India Ltd INR 25400 crore
Singareni Collieries Company Ltd INR 10350 crore
Neyveli Lignite Corporation Ltd INR 3481 crore
Mr Pratik Prakashbapu Patil minister of state in the ministry of coal informed the Lok Sabha that the government proposes to add new capacity by way of taking up of new projects as well as expansion of existing projects through Coal India Ltd and its subsidiaries, Neyveli Lignite Corporation Ltd and Singareni Collieries Company Ltd in Public Sector. Further, new capacity addition in production through coal block allocatees both Public and Private Sector is also envisaged.
It is envisaged that during the 12th plan period the annual production of coal will increase from 447 million tonne to 615 million tonne by CIL, from 51 million tonne to 57 million tonne by SCCL and for lignite it is envisaged to increase from 41.64 million tonne to 68.60 million tonne by NLC by way of capacity addition. The production from coal block allocatees is envisaged to increase from 36.15 million tonne to 100 million tonne during the above period.
The minister further added that as per the recommendations of the Working Group on coal for the 12th Five Year plan (2012-2017), the capital outlay for Coal and Lignite sector during the above period is envisaged as under:
Coal India Ltd INR 25400 crore
Singareni Collieries Company Ltd INR 10350 crore
Neyveli Lignite Corporation Ltd INR 3481 crore
Sunday, December 11, 2011
CIL to install Rs 300-cr GPS tracking system in major mines
Sunday, December 11, 2011
Kolkata: World's largest miner Coal India (CIL), which is grappling with meeting production targets, plans to install GPS-based movement tracking system to increase output in its major mines.
CIL plans to cover all major projects (mines) under the GPS-based movement tracking system at an estimated cost of Rs 300 crore, after the Coal Ministry encouraged it for the same, sources said.
"We are almost finished with the first phase of the installation of GPS-based coal handling and mining vehicle tracking system. It has been done at a cost of nearly Rs 150 crore in 11 mines that produce 5 million tonne coal per year," a CIL official told media.
These projects are being implemented by software major Wipro and Leica Geosystems and they are supposed to complete the project by this month.
Recently, Wipro chief Azim Premji also met CIL Chairman N C Jha in Kolkata.
"The Coal Ministry is keen on Operator Independent Truck dispatch Systems. It will be expanded to 10-11 other major mines following a review of the same.
Meanwhile, CIL requires Rs 1,000 crore to cover all mines under the GPS system," the official said.
The project will ensure higher productivity and speedy coal evacuation, officials said.
Coal minister Sriprakash Jaiswal recently said coal companies have been slow in implementing mechanisation in the mines.
The Ministry had suggested the system for all mines to prevent theft of coal and increase productivity.
CIL has suggested that GPS system is one of the tools to achieve this which was appreciated by the Ministry.
A couple of years ago, an internal study done by CIL showed that losses could run over Rs 50,000 if a 170 tonne truck at any of CIL mines remained idle for half-an-hour.
This figure would be double if the truck was of larger capacity -- 240 tonnes.
CIL has around 400 mines and some 30,000 heavy-duty mining vehicles.
(sourced Zeenews)
Kolkata: World's largest miner Coal India (CIL), which is grappling with meeting production targets, plans to install GPS-based movement tracking system to increase output in its major mines.
CIL plans to cover all major projects (mines) under the GPS-based movement tracking system at an estimated cost of Rs 300 crore, after the Coal Ministry encouraged it for the same, sources said.
"We are almost finished with the first phase of the installation of GPS-based coal handling and mining vehicle tracking system. It has been done at a cost of nearly Rs 150 crore in 11 mines that produce 5 million tonne coal per year," a CIL official told media.
These projects are being implemented by software major Wipro and Leica Geosystems and they are supposed to complete the project by this month.
Recently, Wipro chief Azim Premji also met CIL Chairman N C Jha in Kolkata.
"The Coal Ministry is keen on Operator Independent Truck dispatch Systems. It will be expanded to 10-11 other major mines following a review of the same.
Meanwhile, CIL requires Rs 1,000 crore to cover all mines under the GPS system," the official said.
The project will ensure higher productivity and speedy coal evacuation, officials said.
Coal minister Sriprakash Jaiswal recently said coal companies have been slow in implementing mechanisation in the mines.
The Ministry had suggested the system for all mines to prevent theft of coal and increase productivity.
CIL has suggested that GPS system is one of the tools to achieve this which was appreciated by the Ministry.
A couple of years ago, an internal study done by CIL showed that losses could run over Rs 50,000 if a 170 tonne truck at any of CIL mines remained idle for half-an-hour.
This figure would be double if the truck was of larger capacity -- 240 tonnes.
CIL has around 400 mines and some 30,000 heavy-duty mining vehicles.
(sourced Zeenews)
India's JSW joins state firms in seeking coal imports
December11, 2011
* NTPC, MMTC seek coal for utilities
* Gujarat Electricity to tender shortly
* Port stockpiles fall to 8-10 mln T from 12 mln
LONDON, (Reuters) - India's JSW Steel, part of the Jindal Group which makes steel and sponge iron, has joined state firms National Thermal Power Corp. (NTPC) and MMTC in issuing a tender to buy imported thermal coal, suppliers participating in the tenders said.
India's state utilities are suffering an acute shortage of fuel as domestic coal supply has fallen short of targets and as logistical constraints have hindered the transport of imported coal to where it is most needed.
Coal producers and traders hope this need will translate into higher imports and spot buying of South African and Indonesian coal in 2012.
"There are several quite large tenders in the market now, seeking coal for the next fiscal year until March 2013, and everybody is waiting to see the result," one of India's major trade importers said.
"There's been very little spot buying, but there are some tenders, such as Jindal's," a South African exporter said.
Some state utilities that have so far never used imported fuel may do so in the next fiscal year, which means NTPC and MMTC may issue more tenders, Indian traders and overseas coal suppliers said.
Indian end-users in the cement and sponge iron sectors also are relying increasingly on imports, but at present they can buy at competitive prices because there are high stockpiles in traders' hands at many ports..
Stockpiles are now estimated at 8-10 million tonnes, down from 12 million last month, Indian traders said.
JSW is seeking one 75,000 tonne shipment of South African, Australian, Russian, Colombian or Indonesian coal for delivery in January, for use in its captive power plant.
The coal must be between 5,850-6,000 kc/kg net as received, but Indonesian coal of 5,500-6,200 kc/kg gross air dried can be offered with a complete specification.
NTPC's tender for 4 million tonnes of coal for import during 2012 has closed and will be awarded by Dec. 23, traders participating in the tender said.
MMTC, meanwhile, is seeking 1.35 million tonnes, also for 2012, and Gujarat Electricity Board (GEB) is expected to issue a similar-sized tender before the end of December.
(sourced Reuters)
* NTPC, MMTC seek coal for utilities
* Gujarat Electricity to tender shortly
* Port stockpiles fall to 8-10 mln T from 12 mln
LONDON, (Reuters) - India's JSW Steel, part of the Jindal Group which makes steel and sponge iron, has joined state firms National Thermal Power Corp. (NTPC) and MMTC in issuing a tender to buy imported thermal coal, suppliers participating in the tenders said.
India's state utilities are suffering an acute shortage of fuel as domestic coal supply has fallen short of targets and as logistical constraints have hindered the transport of imported coal to where it is most needed.
Coal producers and traders hope this need will translate into higher imports and spot buying of South African and Indonesian coal in 2012.
"There are several quite large tenders in the market now, seeking coal for the next fiscal year until March 2013, and everybody is waiting to see the result," one of India's major trade importers said.
"There's been very little spot buying, but there are some tenders, such as Jindal's," a South African exporter said.
Some state utilities that have so far never used imported fuel may do so in the next fiscal year, which means NTPC and MMTC may issue more tenders, Indian traders and overseas coal suppliers said.
Indian end-users in the cement and sponge iron sectors also are relying increasingly on imports, but at present they can buy at competitive prices because there are high stockpiles in traders' hands at many ports..
Stockpiles are now estimated at 8-10 million tonnes, down from 12 million last month, Indian traders said.
JSW is seeking one 75,000 tonne shipment of South African, Australian, Russian, Colombian or Indonesian coal for delivery in January, for use in its captive power plant.
The coal must be between 5,850-6,000 kc/kg net as received, but Indonesian coal of 5,500-6,200 kc/kg gross air dried can be offered with a complete specification.
NTPC's tender for 4 million tonnes of coal for import during 2012 has closed and will be awarded by Dec. 23, traders participating in the tender said.
MMTC, meanwhile, is seeking 1.35 million tonnes, also for 2012, and Gujarat Electricity Board (GEB) is expected to issue a similar-sized tender before the end of December.
(sourced Reuters)
Tuesday, December 6, 2011
India to seek ‘special status’ from Indonesia in allocation of coal blocks
Tue, Dec6, 2011
New Delhi : The Government has said that it will seek Indonesia’s cooperation for the accord of “special status” to Indian companies in the grant of coal blocks, a move aimed at bridging the widening demand-supply gap for the dry fuel at home.
The Ministry of Coal will “... impress upon the provisional government/regional government to allocate blocks under their special status (most favoured nation type) to Indian government coal companies...,” the Coal Ministry has said.
Seeking the allocation of coal blocks on a “nomination basis”, an official document of the Ministry has said it will be sending a team from the Coal Ministry and CIL to Indonesia to pursue the matter.
The decision to approach the Indonesian Government was taken at a meeting of an India-Indonesia Joint Working Group on Coal on November 24 and 25.
Seeking the allocation of large greenfield (new) coal concessions on a nomination basis, the Ministry will also impress upon the Indonesian Government the need for expeditious environmental and forest clearances, besides smooth land acquisition.
Coal India (CIL), which accounts for 81 per cent of domestic coal production, recently said that it has zeroed in on two overseas coal assets, including one in Indonesia, for acquisition and expects to begin a serious dialogue with the owners soon.
The PSU has put together a war-chest of Rs 6,000 crore for the acquisition of the mines.
At present, the country is faced with a coal demand-supply shortfall of 142 million tonnes, with domestic output likely to amount to 554 mt in the current fiscal.
Keywords: Special status, coal blocks, Indonesia, CIL, mines
Sourced Business Line
New Delhi : The Government has said that it will seek Indonesia’s cooperation for the accord of “special status” to Indian companies in the grant of coal blocks, a move aimed at bridging the widening demand-supply gap for the dry fuel at home.
The Ministry of Coal will “... impress upon the provisional government/regional government to allocate blocks under their special status (most favoured nation type) to Indian government coal companies...,” the Coal Ministry has said.
Seeking the allocation of coal blocks on a “nomination basis”, an official document of the Ministry has said it will be sending a team from the Coal Ministry and CIL to Indonesia to pursue the matter.
The decision to approach the Indonesian Government was taken at a meeting of an India-Indonesia Joint Working Group on Coal on November 24 and 25.
Seeking the allocation of large greenfield (new) coal concessions on a nomination basis, the Ministry will also impress upon the Indonesian Government the need for expeditious environmental and forest clearances, besides smooth land acquisition.
Coal India (CIL), which accounts for 81 per cent of domestic coal production, recently said that it has zeroed in on two overseas coal assets, including one in Indonesia, for acquisition and expects to begin a serious dialogue with the owners soon.
The PSU has put together a war-chest of Rs 6,000 crore for the acquisition of the mines.
At present, the country is faced with a coal demand-supply shortfall of 142 million tonnes, with domestic output likely to amount to 554 mt in the current fiscal.
Keywords: Special status, coal blocks, Indonesia, CIL, mines
Sourced Business Line
Indian coal ministry considering royalty share - Report
Tuesday, 06 Dec 2011
Live Mint reported that the Indian coal ministry is considering a change in a forthcoming legislation that could lead to an increase in the price of the fuel for end users.
The change relates to the way benefits are to be passed on to the local community by miners such as Coal India Ltd and Singareni Collieries Co Ltd, which sell the commodity in the open market.
The draft Mines and Minerals (Development and Regulation) Bill requires them to give the people affected by mining activities 26% of profit.
The ministry wants that to be changed to a share in royalties, according to two senior government officials with direct knowledge of the matter. Both spoke independently of each other and declined to be named. They said, however, that a final call had not been taken on the issue.
One of the two officials said that the coal ministry is of the opinion that a royalty share could be passed on to users, leaving profit intact. The official said that “If companies are asked to share 26% profit, it directly impacts their bottom line. Royalties, on the other hand, were pass through.”
Both officials said such a move was unlikely to alter the money that the communities would get.
The Union cabinet approved the draft Mines and Minerals (Development and Regulation) Bill on September 30th. While it stipulated a 26% profit share for coal mining companies, non-coal miners are required to share royalties.
A group of ministers approved the draft Bill in its current form on 7 July. The original version had sought a 26% profit share for non-coal miners as well.
Following this, in October, the coal ministry had written to the finance and mines ministries, suggesting that captive coal miners also be asked to share profit along the same lines as companies selling the fuel in the open market.
(sourced from Livemint.com)
Live Mint reported that the Indian coal ministry is considering a change in a forthcoming legislation that could lead to an increase in the price of the fuel for end users.
The change relates to the way benefits are to be passed on to the local community by miners such as Coal India Ltd and Singareni Collieries Co Ltd, which sell the commodity in the open market.
The draft Mines and Minerals (Development and Regulation) Bill requires them to give the people affected by mining activities 26% of profit.
The ministry wants that to be changed to a share in royalties, according to two senior government officials with direct knowledge of the matter. Both spoke independently of each other and declined to be named. They said, however, that a final call had not been taken on the issue.
One of the two officials said that the coal ministry is of the opinion that a royalty share could be passed on to users, leaving profit intact. The official said that “If companies are asked to share 26% profit, it directly impacts their bottom line. Royalties, on the other hand, were pass through.”
Both officials said such a move was unlikely to alter the money that the communities would get.
The Union cabinet approved the draft Mines and Minerals (Development and Regulation) Bill on September 30th. While it stipulated a 26% profit share for coal mining companies, non-coal miners are required to share royalties.
A group of ministers approved the draft Bill in its current form on 7 July. The original version had sought a 26% profit share for non-coal miners as well.
Following this, in October, the coal ministry had written to the finance and mines ministries, suggesting that captive coal miners also be asked to share profit along the same lines as companies selling the fuel in the open market.
(sourced from Livemint.com)
Friday, December 2, 2011
3 Indian companies in race for CIL Mozambique Exploration Project
Friday, 02 Dec 2011
Three Indian companies are in the race for a Coal India contract that called bids for exploration of its 200 odd square km block in Mozambique.
The world largest coal miner, which opened the price bids of Mining Associates, Indu-CBS Joint Venture and Kartikeyan Pvt Ltd last week, won the block two years ago. It is now expected to award the contract within 45 days.
Mr AK Singh CMD at the Central Mine Planning and Design Institute which is CIL's technical arm that finalizes and floats tenders said that "We have asked the parties concerned to justify the price bids following which we will scrutinize them and finalize the lowest bidder.”
Coal India Africana Limitad, a wholly owned subsidiary of CIL, won a 5 year licence for exploration and development of two coal blocks in Mozambique in August 2009.
In February, it invited exploration bids for A1 and A2 mining blocks in the northwestern province of Tete. During May, three parties submitted their financial bids. The final selection was to be completed by July. However, there were some issues with respect to the currency in which the bank guarantees were submitted by the bidders. This forced CIL to scrap the bids and call for fresh ones.
Nevertheless, Coal India hopes to start the first phase of production by 2013-14. With an initial estimated reserve of 1 billion tonnes, the coal will be imported to cater to domestic demand from customers in Western India. It is an exploratory block with an area of about 205 square km and preliminary estimates suggest that it could have a reserve of about 1 billion tonnes.
About 20% of the deposits are expected to be coking coal while the remaining is expected to be thermal coal that can be used as fuel in power plants. Exploration will be done in two phases. The first phase will include finding out the tentative concentration of reserves at various locations in the block. The second phase will include estimation of the exact quantum of coal in these probable areas with high reserves.
(Sourced from ET)
Three Indian companies are in the race for a Coal India contract that called bids for exploration of its 200 odd square km block in Mozambique.
The world largest coal miner, which opened the price bids of Mining Associates, Indu-CBS Joint Venture and Kartikeyan Pvt Ltd last week, won the block two years ago. It is now expected to award the contract within 45 days.
Mr AK Singh CMD at the Central Mine Planning and Design Institute which is CIL's technical arm that finalizes and floats tenders said that "We have asked the parties concerned to justify the price bids following which we will scrutinize them and finalize the lowest bidder.”
Coal India Africana Limitad, a wholly owned subsidiary of CIL, won a 5 year licence for exploration and development of two coal blocks in Mozambique in August 2009.
In February, it invited exploration bids for A1 and A2 mining blocks in the northwestern province of Tete. During May, three parties submitted their financial bids. The final selection was to be completed by July. However, there were some issues with respect to the currency in which the bank guarantees were submitted by the bidders. This forced CIL to scrap the bids and call for fresh ones.
Nevertheless, Coal India hopes to start the first phase of production by 2013-14. With an initial estimated reserve of 1 billion tonnes, the coal will be imported to cater to domestic demand from customers in Western India. It is an exploratory block with an area of about 205 square km and preliminary estimates suggest that it could have a reserve of about 1 billion tonnes.
About 20% of the deposits are expected to be coking coal while the remaining is expected to be thermal coal that can be used as fuel in power plants. Exploration will be done in two phases. The first phase will include finding out the tentative concentration of reserves at various locations in the block. The second phase will include estimation of the exact quantum of coal in these probable areas with high reserves.
(Sourced from ET)
Wednesday, November 30, 2011
Indian demand for imported coal in last 3 years
Wednesday, 30 Nov 2011
(Quantity in million tonnes & Value in INR million)
Under the present import policy of the Government, Coal is placed under Open General Licence and can be freely imported by anyone in the country on payment of applicable import duty. During the process of formulation of Annual Plan, Ministry of Coal/Planning Commission assesses the overall demand of the country and finalises the supply plan from indigenous sources, the details of which are as under:
| Particulars | 2008-09 | 2009-10 | 2010-11 | 2011-12 |
| All India Coal Demand | 550.00 | 597.98 | 656.31 | 696.03 |
(In Million Tonnes)
Supply Plan to meet Coal Demand
| Particulars | 2008-09 | 2009-10 | 2010-11 | 2011-12 |
| CIL | 405.00 | 437.40 | 460.50 | 452.00 |
| SCCL | 41.50 | 45.00 | 47.05 | 51.00 |
| Other Indigenous Sources | 50.79 | 52.83 | 65.87 | 56.00 |
| Gap to be met through Import | 52.71 | 62.75 | 82.89 | 137.03 |
| Total | 550.00 | 597.98 | 656.31 | 696.03 |
(In Million Tonnes)
The gap between indigenous availability of coal and estimated coal demand to be met through imported coal is increasing over the years from 52.71 million tonne in 2008-09 to 137.03 million tonne in 2011-12.
While the details of country-wise imports by various consumers are not available, as per available information, the coal imports during last three years were as under:
| Year | Coking coal Quantity | Value | Non Coking coal Quantity | Value | Total Quantity | Value |
| 2008-09 | 21.080 | 226140 | 37.923 | 187268 | 59.003 | 413408 |
| 2009-10 | 24.690 | 201311 | 48.565 | 190489 | 73.255 | 391800 |
| 2010-11 (Upto Nov '10) (Provisional) | 14.658 | 157161 | 33.700 | 140756 | 48.358 | 297919 |
(Quantity in million tonnes & Value in INR million)
Friday, November 18, 2011
MCL to go for 2nd price hike
Friday, Nov 18, 2011
BHUBANESWAR: As if the February hike was not enough, the Mahanadi Coalfields Limited (MCL) is seriously contemplating second hike in coal prices. And this is at a time when Odisha is passing through a power crisis triggered by acute shortage of coal.
Industries sources said MCL, a fully-owned subsidiary of Coal India Limited (CIL), is all set to go for it when the company has failed to meet the linkage coal supply as per the fuel supply agreement. MCL now proposes to increase the price of different grade of coal by about 20 per cent, the sources said.
At present, the average cost of the thermal grade linkage coal is ` 740 per tonne and the landing cost comes to about 1,200 per tonne.
While power tariff is decided by Odisha Electricity Regulatory Commission on cost plus basis as per the national electricity policy, another 20 per cent hike in the coal price will further jack up the cost of generation which will be ultimately passed on to the consumers. The domestic consumers will be the worst victim, sources in Gridco said.
‘’Unless the captive power plants (CPPs) are given adequate coal supply as per the fuel supply agreement, the CPPs will not be able to meet the� shortage scenario presently existing in the State,’’ said Sanjib Das, vice-president of the Confederation of Captive Power Plants.
MCL is able to meet 45 to 50 per cent of the guaranteed offtake of the CPPs. These plants have to meet their requirement by buying coal from MCL through e-auctioning. The price difference between linkage coal and coal provided through e-auction is huge.
The common complaint against MCL is that the coal supplied through e-auction route is much inferior quality despite the fact that the price of auction coal is more than double. Mostly coal coming from Hingula and Lingaraj mines go for e-auctioning and it contains high ash, a senior executive of an independent power producer said.
Even national PSUs like Nalco and NTPC are facing shortage of coal.
A senior executive of Nalco said power generation of the CPP at Angul suffers due to poor quality of coal.
(sourced IBNLive.in)
BHUBANESWAR: As if the February hike was not enough, the Mahanadi Coalfields Limited (MCL) is seriously contemplating second hike in coal prices. And this is at a time when Odisha is passing through a power crisis triggered by acute shortage of coal.
Industries sources said MCL, a fully-owned subsidiary of Coal India Limited (CIL), is all set to go for it when the company has failed to meet the linkage coal supply as per the fuel supply agreement. MCL now proposes to increase the price of different grade of coal by about 20 per cent, the sources said.
At present, the average cost of the thermal grade linkage coal is ` 740 per tonne and the landing cost comes to about 1,200 per tonne.
While power tariff is decided by Odisha Electricity Regulatory Commission on cost plus basis as per the national electricity policy, another 20 per cent hike in the coal price will further jack up the cost of generation which will be ultimately passed on to the consumers. The domestic consumers will be the worst victim, sources in Gridco said.
‘’Unless the captive power plants (CPPs) are given adequate coal supply as per the fuel supply agreement, the CPPs will not be able to meet the� shortage scenario presently existing in the State,’’ said Sanjib Das, vice-president of the Confederation of Captive Power Plants.
MCL is able to meet 45 to 50 per cent of the guaranteed offtake of the CPPs. These plants have to meet their requirement by buying coal from MCL through e-auctioning. The price difference between linkage coal and coal provided through e-auction is huge.
The common complaint against MCL is that the coal supplied through e-auction route is much inferior quality despite the fact that the price of auction coal is more than double. Mostly coal coming from Hingula and Lingaraj mines go for e-auctioning and it contains high ash, a senior executive of an independent power producer said.
Even national PSUs like Nalco and NTPC are facing shortage of coal.
A senior executive of Nalco said power generation of the CPP at Angul suffers due to poor quality of coal.
(sourced IBNLive.in)
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