Monday, 19 Mar 2012
Seeking to address the coal shortage affecting the power and steel sectors, government has announced a slew of measures for enhancing its availability in the Budget, a development welcomed by Coal India Ltd.
Mr Zohra Chatterji CMD of CIL said that "We welcome the removal of import duty on coal.”
The Coal Ministry is of the view that development would lead to an increase in import of fossil fuel to the country.
While presenting the Budget for 2012-13, Finance Minister Pranab Mukherjee said that "I propose to ease the situation by providing full exemption from basic customs duty and a concessional CVD (Countervailing Duty) of 1% to steam coal for a period of two years till March 31, 2014."
On the proposals, Coal Secretary Mr Alok Perti said that "The exemption will result in increase in import of non-coking coal by around one million tonnes as the prices of the dry fuel would come down.”
The coal ministry had pitched for the reduction in the duty and had even written to the Finance Ministry on the same prior to the budget announcement.
Singareni Collieries Company Ltd CMD S Narsing Rao, however, said the duty exemption would not have much impact on the domestic coal industry.
The government has proposed to remove 5% customs duty on non-coking coal.
According to an official in the state-owned firm, the duty exemption will also result in reducing the demand-supply gap of fossil fuel.
Power sector is one of the main consumers of non coking coal and nearly two third of the electricity generation in the country is coal based.
The power sector is likely to miss the non-coking coal import target of 55 million tonnes for the current fiscal as companies have imported only 30 million tonnes till December.
Source - www.indianexpress.com
Showing posts with label Coal India Limited. Show all posts
Showing posts with label Coal India Limited. Show all posts
Monday, March 19, 2012
Sunday, March 4, 2012
Maharashtra seeks Centre intervention for adequate coal supply
Sunday, 04 Mar 2012
Business Standard reported that the Maharashtra government has sought the central government’s intervention to get adequate coal supply from Coal India subsidiaries and Singareni Collieries.
What state run Maharashtra State Power Generation Company (Mahagenco) gets since November last year is 18 to 20 rakes a day as against the daily domestic coal requirement of 24 rakes. The deficit from Western Coalfields is affecting the generation of the thermal generation plant with a capacity of 6,480 MW. Mahagenco is losing daily generation of 1,000 MW for want of coal.
Further, the government said the shortfall of coal would force Mahagenco to procure imported coal or domestic coal available with traders at very high prices, which would lead to rise in cost of power substantially.
Mahagenco imports nearly 3.35 million tonnes per annum and annually procures 35 million tonnes from domestic sources. According to the state government, non assurance of fuel from coal company would create issues of further loan disbursement from financial institutions to Mahagenco.
A senior government official said the domestic coal for the state’s power plants come from Western Coalfields, South Eastern Coalfields, Mahanadi Coalfields and Singareni Collieries Company.
He told BS that “Mahagenco has signed coal supply agreements with Western Coalfields on November 21st 2009, for 20 years. It will be reviewed every five years. However, at present, power plants are faced with critically low coal stocks due to the shortage of coal rakes and inadequate coal rake movement.”
The official said Mahagenco has been consistently raising this issue with coal companies, the Central Electricity Authority and the Railway Board.
The official said that “Since the last 10 months, raw coal materialization of Mahanadi Coalfields (April 2011-January 2012) to Mahagenco was only at 53.28%. This was affecting the power generation of Parli, Paras and Khaparkheda plants with total generation capacity above 1,800 MW. Also, less receipt of coal from coal companies has seriously affected the stock of Mahagenco thermal power stations as on January 31.”
Source - Business Standard
Business Standard reported that the Maharashtra government has sought the central government’s intervention to get adequate coal supply from Coal India subsidiaries and Singareni Collieries.
What state run Maharashtra State Power Generation Company (Mahagenco) gets since November last year is 18 to 20 rakes a day as against the daily domestic coal requirement of 24 rakes. The deficit from Western Coalfields is affecting the generation of the thermal generation plant with a capacity of 6,480 MW. Mahagenco is losing daily generation of 1,000 MW for want of coal.
Further, the government said the shortfall of coal would force Mahagenco to procure imported coal or domestic coal available with traders at very high prices, which would lead to rise in cost of power substantially.
Mahagenco imports nearly 3.35 million tonnes per annum and annually procures 35 million tonnes from domestic sources. According to the state government, non assurance of fuel from coal company would create issues of further loan disbursement from financial institutions to Mahagenco.
A senior government official said the domestic coal for the state’s power plants come from Western Coalfields, South Eastern Coalfields, Mahanadi Coalfields and Singareni Collieries Company.
He told BS that “Mahagenco has signed coal supply agreements with Western Coalfields on November 21st 2009, for 20 years. It will be reviewed every five years. However, at present, power plants are faced with critically low coal stocks due to the shortage of coal rakes and inadequate coal rake movement.”
The official said Mahagenco has been consistently raising this issue with coal companies, the Central Electricity Authority and the Railway Board.
The official said that “Since the last 10 months, raw coal materialization of Mahanadi Coalfields (April 2011-January 2012) to Mahagenco was only at 53.28%. This was affecting the power generation of Parli, Paras and Khaparkheda plants with total generation capacity above 1,800 MW. Also, less receipt of coal from coal companies has seriously affected the stock of Mahagenco thermal power stations as on January 31.”
Source - Business Standard
Wednesday, February 29, 2012
CIL needs to produce 220 million tonne more to meet PMO directive
Wednesday, 29 Feb 2012
BS reported that Coal India Ltd is in a spot of bother. In order to meet the directive from the Prime Minister’s Office to ensure supply for 20 years to power plants of 50,000 MW that would be commissioned by March 2015, the firm has to produce an additional 220 million tonnes of coal by then considering the fact that it is shying away from imports.
According to experts, this is close to impossible for a firm reeling from environment hurdles.
Mr HK Vaidya chief general manager (sales and marketing) of CIL said that “In 2009-10, we had supplied 298 million tonne to the power sector. In 2010-11, it increased to 304 million tonne and this financial year we expect to supply 310 million tonne, though our target was 347 million tonne. During the financial year 2012-13, we are keeping the same target and is anticipated to meet it. However, if we have to supply an additional 50,000 MW, we need another 220 million tonne of coal.”
According to experts, 4.4 million tonne of coal is needed for every 1,000 MW of power generated. This comes a week after the firm’s acting chairman and managing director Ms Zohra Chatterji said the firm is not in the business of imports. Besides, its effort to strike a long-term offtake deal did not work out as it failed to find any back to back takers in India. CIL’s effort to acquire mines in South Africa, the United States and Australia, too is also moving at a snail’s pace.
A top CIL official said this addition of 220 million tonne is difficult, due to the environment issues. As per the figures available, at least 131 proposals are awaiting stage-I forestry clearance in the state and the Ministry of Environment and Forests and 49 projects are waiting for stage-II of forestry clearance. On the other hand, 74 projects are stuck at different levels of environment clearances.
According to Mr NC Jha former chairman and managing director of the firm, who retired last month, these environmental and forestry issues are the biggest hindrances for CIL’s growth, the government has to strike a balance and give these clearances in a swift pace. The firm’s demand supply gap this financial year is supposed to be above 130 MT. While it produced 431 MT of coal last fiscal, Chatterji had said it is likely to be around the same level.
(Sourced from BS)
BS reported that Coal India Ltd is in a spot of bother. In order to meet the directive from the Prime Minister’s Office to ensure supply for 20 years to power plants of 50,000 MW that would be commissioned by March 2015, the firm has to produce an additional 220 million tonnes of coal by then considering the fact that it is shying away from imports.
According to experts, this is close to impossible for a firm reeling from environment hurdles.
Mr HK Vaidya chief general manager (sales and marketing) of CIL said that “In 2009-10, we had supplied 298 million tonne to the power sector. In 2010-11, it increased to 304 million tonne and this financial year we expect to supply 310 million tonne, though our target was 347 million tonne. During the financial year 2012-13, we are keeping the same target and is anticipated to meet it. However, if we have to supply an additional 50,000 MW, we need another 220 million tonne of coal.”
According to experts, 4.4 million tonne of coal is needed for every 1,000 MW of power generated. This comes a week after the firm’s acting chairman and managing director Ms Zohra Chatterji said the firm is not in the business of imports. Besides, its effort to strike a long-term offtake deal did not work out as it failed to find any back to back takers in India. CIL’s effort to acquire mines in South Africa, the United States and Australia, too is also moving at a snail’s pace.
A top CIL official said this addition of 220 million tonne is difficult, due to the environment issues. As per the figures available, at least 131 proposals are awaiting stage-I forestry clearance in the state and the Ministry of Environment and Forests and 49 projects are waiting for stage-II of forestry clearance. On the other hand, 74 projects are stuck at different levels of environment clearances.
According to Mr NC Jha former chairman and managing director of the firm, who retired last month, these environmental and forestry issues are the biggest hindrances for CIL’s growth, the government has to strike a balance and give these clearances in a swift pace. The firm’s demand supply gap this financial year is supposed to be above 130 MT. While it produced 431 MT of coal last fiscal, Chatterji had said it is likely to be around the same level.
(Sourced from BS)
Sunday, February 26, 2012
CIL to float tender from Mozambique
Sunday, 26 Feb 2012
ET reported that having cancelled bids submitted for exploration of its Mozambique coal block twice, Coal India has decided to invite expression of interest from Mozambique which will now be handled by Coal India Africana Limitada.
CIAL, a 100% subsidiary of Coal India, was floated in Mozambique when Coal India acquired a coal block in the country. Earlier the bidding process was being handled by another Coal India subsidiary Central Mine Planning & Design Institute Ltd which is based out of Ranchi in Jharkhand.
Cancellation of bids comes at a time when the government has asked CIL to sign fuel supply agreements with all new power units that have come up between 2009 and 2012. It has also been asked to sign FSAs for units that will come up between 2012 and 2015.
The Mozambique block was acquired to import the coal to meet domestic demand from customers in Western India. If the first round of bidding had yield results, the company could have produced by 2014, as originally planned.
During the first time in 2010, biddings were cancelled because of issues with the bank guarantees submitted by the bidders.
The second round of bidding, during 2011, was also cancelled after the lowest bidder imposed new conditions on exploring the coal block which were not part of the notice inviting tenders.
During both the tendering processes three companies had submitted their bids. They were Mining Associates, Indu-CBS Joint Venture and Kartikeyan.
(Sourced from ET)
ET reported that having cancelled bids submitted for exploration of its Mozambique coal block twice, Coal India has decided to invite expression of interest from Mozambique which will now be handled by Coal India Africana Limitada.
CIAL, a 100% subsidiary of Coal India, was floated in Mozambique when Coal India acquired a coal block in the country. Earlier the bidding process was being handled by another Coal India subsidiary Central Mine Planning & Design Institute Ltd which is based out of Ranchi in Jharkhand.
Cancellation of bids comes at a time when the government has asked CIL to sign fuel supply agreements with all new power units that have come up between 2009 and 2012. It has also been asked to sign FSAs for units that will come up between 2012 and 2015.
The Mozambique block was acquired to import the coal to meet domestic demand from customers in Western India. If the first round of bidding had yield results, the company could have produced by 2014, as originally planned.
During the first time in 2010, biddings were cancelled because of issues with the bank guarantees submitted by the bidders.
The second round of bidding, during 2011, was also cancelled after the lowest bidder imposed new conditions on exploring the coal block which were not part of the notice inviting tenders.
During both the tendering processes three companies had submitted their bids. They were Mining Associates, Indu-CBS Joint Venture and Kartikeyan.
(Sourced from ET)
Saturday, February 25, 2012
Coal shortage to hit power capacity plans in India
Saturday, 25 Feb 2012
Business Line reported that the Indian power ministry, in its report to the Planning Commission, has informed that coal availability and capacity addition during the XII Plan paints a very very bleak scenario raising questions about achieving 9% growth during 2012-17.
With Coal India Limited production projected to be around 615 million tonnes against the XII Plan requirement of 842 million tonnes, the situation is likely to be very bad.
A note submitted to the Planning Commission states that “It may be noted that the availability of coal, as indicated by CIL, would support only about 19,000 MW of CIL linked new capacity during the XII Plan, as against 38,000 MW required. Accordingly, the XII Plan target of 76,000 MW would need to be scaled down to about 57,000 MW.”
To sustain capacity addition of 76,000 MW proposed in the XII Plan, fuel availability and related concerns need to be ensured. By the end of the XII Plan, the coal requirement would be around 842 million tonnes against the availability through linkage of around 450 million tonnes, coal blocks 100 million tonnes and imported coal 54 million tonnes. In addition to this, power utilities are likely to import 159 million tonnes to bridge the shortfall of 238 million tonnes.
The note states that credit exposure limit of banks and IFCs to the power sector is almost close to the breaching limit. It also points to mismatch in debt tenor (15 years) and cash flows (over 25 years). This issue is further complicated by the absence of uniform land acquisition policy that has held up a large number of projects coupled with delays in according environmental clearances to power projects/captive coal blocks. There is also the issue of poor financial health of distribution companies.
The total capacity addition during the XII Plan has been proposed at around 76,000 MW which will roughly comprise 62,695 MW based on coal fed projects, 2,800 MW of nuclear power, 9,200 MW of hydro power and 1,086 MW of gas based power.
(Sourced from BL)
Business Line reported that the Indian power ministry, in its report to the Planning Commission, has informed that coal availability and capacity addition during the XII Plan paints a very very bleak scenario raising questions about achieving 9% growth during 2012-17.
With Coal India Limited production projected to be around 615 million tonnes against the XII Plan requirement of 842 million tonnes, the situation is likely to be very bad.
A note submitted to the Planning Commission states that “It may be noted that the availability of coal, as indicated by CIL, would support only about 19,000 MW of CIL linked new capacity during the XII Plan, as against 38,000 MW required. Accordingly, the XII Plan target of 76,000 MW would need to be scaled down to about 57,000 MW.”
To sustain capacity addition of 76,000 MW proposed in the XII Plan, fuel availability and related concerns need to be ensured. By the end of the XII Plan, the coal requirement would be around 842 million tonnes against the availability through linkage of around 450 million tonnes, coal blocks 100 million tonnes and imported coal 54 million tonnes. In addition to this, power utilities are likely to import 159 million tonnes to bridge the shortfall of 238 million tonnes.
The note states that credit exposure limit of banks and IFCs to the power sector is almost close to the breaching limit. It also points to mismatch in debt tenor (15 years) and cash flows (over 25 years). This issue is further complicated by the absence of uniform land acquisition policy that has held up a large number of projects coupled with delays in according environmental clearances to power projects/captive coal blocks. There is also the issue of poor financial health of distribution companies.
The total capacity addition during the XII Plan has been proposed at around 76,000 MW which will roughly comprise 62,695 MW based on coal fed projects, 2,800 MW of nuclear power, 9,200 MW of hydro power and 1,086 MW of gas based power.
(Sourced from BL)
Wednesday, February 22, 2012
Coal India in a spot over supply to power plants
Wed, Feb22, 2012
Kolkata: Later this month, when Mr Sriprakash Jaiswal will be meeting top officials from the Ministry as well as Coal India to work out the coal supply modalities for next fiscal, following the recent directive of the Prime Minister's Office (PMO), he may find himself in an unenviable situation.
First, he has to ask CIL to make additional supplies of approximately 50 million tonnes of coal in 2012-13 and, reach them to power stations ignoring concerns on the logistics front.
Jigsaw Puzzle
CIL is currently agreement-bound to supply 90 per cent (trigger level) of the 306 million tonnes requirement to 75 power stations in the country which were commissioned before April 2009.
If the company is now forced to sign fuel supply agreements (FSA) with the projects commissioned during the last two years, the total supply commitment will reach approximately 350 mt during the next fiscal.
Assuming that CIL will achieve a modest 5-6 per cent production growth next fiscal, there will still be a shortfall of 25-30 million tonnes.
Theoretically, the shortfall can be managed by restricting supplies to the existing customers to 90 per cent of requirement. Available estimates suggest many in this category are now enjoying 100 per cent or more supplies.
Pithead stock
Shortfall in production can be mitigated by diluting the pit-head stock. CIL ended last fiscal with an inventory of 70 mt and an insider suggests that irrespective of the recent rise in off-take, there may not be any significant dilution in stock by the end of this fiscal.
However, evacuation of this stock, dispersed across mines in five states is not easy, courtesy poor evacuation logistics on the part of Railways. Moreover, there are seasonal impediments - such as restricted working hours in summer and poor road conditions in rainy season – in moving coal from mine to railway sidings.
Poor logistics may also prove to be a huge bottleneck in evacuating the augmented production. Sources suggest, criticised from all corners, CIL has launched a hunt to locate assets which can be brought on stream with immediate effect. However, many such assets (as in Rajmahal) do not enjoy adequate evacuation logistics.
The theoretical possibility of meeting shortfall through imports is also difficult to achieve. Even if power producers now agree to pay CIL for imported coal (which they opposed in the past), CIL is not in a position to solve logistics tangle involved in moving the coal from ports to power plants.
Passing the buck
With logistics set to emerge as spoilsport in moving coal to customers, inviting penalties on CIL; the coal major may plead for keeping safety options open with regard to future FSAs. One logical step in this direction could be making power sector partly or fully responsible for lifting the available coal especially from areas which do not have adequate rail logistics.
(sourced BusinessLine.com)
Keywords: coal supply, Sriprakash Jaiswal, fuel supply agreements, power projects
Kolkata: Later this month, when Mr Sriprakash Jaiswal will be meeting top officials from the Ministry as well as Coal India to work out the coal supply modalities for next fiscal, following the recent directive of the Prime Minister's Office (PMO), he may find himself in an unenviable situation.
First, he has to ask CIL to make additional supplies of approximately 50 million tonnes of coal in 2012-13 and, reach them to power stations ignoring concerns on the logistics front.
Jigsaw Puzzle
CIL is currently agreement-bound to supply 90 per cent (trigger level) of the 306 million tonnes requirement to 75 power stations in the country which were commissioned before April 2009.
If the company is now forced to sign fuel supply agreements (FSA) with the projects commissioned during the last two years, the total supply commitment will reach approximately 350 mt during the next fiscal.
Assuming that CIL will achieve a modest 5-6 per cent production growth next fiscal, there will still be a shortfall of 25-30 million tonnes.
Theoretically, the shortfall can be managed by restricting supplies to the existing customers to 90 per cent of requirement. Available estimates suggest many in this category are now enjoying 100 per cent or more supplies.
Pithead stock
Shortfall in production can be mitigated by diluting the pit-head stock. CIL ended last fiscal with an inventory of 70 mt and an insider suggests that irrespective of the recent rise in off-take, there may not be any significant dilution in stock by the end of this fiscal.
However, evacuation of this stock, dispersed across mines in five states is not easy, courtesy poor evacuation logistics on the part of Railways. Moreover, there are seasonal impediments - such as restricted working hours in summer and poor road conditions in rainy season – in moving coal from mine to railway sidings.
Poor logistics may also prove to be a huge bottleneck in evacuating the augmented production. Sources suggest, criticised from all corners, CIL has launched a hunt to locate assets which can be brought on stream with immediate effect. However, many such assets (as in Rajmahal) do not enjoy adequate evacuation logistics.
The theoretical possibility of meeting shortfall through imports is also difficult to achieve. Even if power producers now agree to pay CIL for imported coal (which they opposed in the past), CIL is not in a position to solve logistics tangle involved in moving the coal from ports to power plants.
Passing the buck
With logistics set to emerge as spoilsport in moving coal to customers, inviting penalties on CIL; the coal major may plead for keeping safety options open with regard to future FSAs. One logical step in this direction could be making power sector partly or fully responsible for lifting the available coal especially from areas which do not have adequate rail logistics.
(sourced BusinessLine.com)
Keywords: coal supply, Sriprakash Jaiswal, fuel supply agreements, power projects
Tuesday, February 21, 2012
NTPC and DVC to maximize coal production to help power plants
Tuesday, 21 Feb 2012
ET reported that the Indian government will prod state run firms such as NTPC and Damodar Valley to maximize production from their mines so that up to 150 million tonnes of additional coal could be produced annually.
The ministry official said interested PSUs with coal blocks may be asked to submit their revised mine plan documents for excess production of coal that can be sold to Coal India. Coal India may also be asked to assist other state run companies in appointing mine developers and operators for expediting coal block development.
The official said that “The PSUs have already been communicated about the proposal during recent review meetings. No formal or individual communications have, however, been sent so far. A few policy hurdles may obstruct the plan but the ministry feels it is better than depending on coal imports.”
The rise in production would facilitate setting up of power plants of 60,000 MW in the next three years.
(Sourced from ET)
ET reported that the Indian government will prod state run firms such as NTPC and Damodar Valley to maximize production from their mines so that up to 150 million tonnes of additional coal could be produced annually.
The ministry official said interested PSUs with coal blocks may be asked to submit their revised mine plan documents for excess production of coal that can be sold to Coal India. Coal India may also be asked to assist other state run companies in appointing mine developers and operators for expediting coal block development.
The official said that “The PSUs have already been communicated about the proposal during recent review meetings. No formal or individual communications have, however, been sent so far. A few policy hurdles may obstruct the plan but the ministry feels it is better than depending on coal imports.”
The rise in production would facilitate setting up of power plants of 60,000 MW in the next three years.
(Sourced from ET)
CIL to reduce steam coal E auction to 7pct - Report
Tuesday, 21 Feb 2012
ET, citing government officials, reported that Coal India Limited will gradually reduce spot market sales, called E auction, to 7% of its output by 2015 from the current 10% to make more coal available at cheaper rates to the power sector.
(Sourced from ET)
ET, citing government officials, reported that Coal India Limited will gradually reduce spot market sales, called E auction, to 7% of its output by 2015 from the current 10% to make more coal available at cheaper rates to the power sector.
(Sourced from ET)
Saturday, February 18, 2012
Global steam coal prices may zoom if CIL pushes imports
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)
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)
Friday, February 17, 2012
CIL plunges on penalties for failing to supply coal to power plants
Friday, 17 Feb 2012
Bloomberg reported that Coal India Ltd, facing a decline in production, fell the most in seven months after the government ordered it to increase sales to power utilities and said it will face penalties for failing to meet the obligations.
CIL declined by 5.8% to INR 320.05 at BSE, the biggest loss since July 8.
The stock has climbed 6.5% this year, compared with a 17% increase in the benchmark Sensitive Index.
The government ordered Coal India yesterday to sign agreements to supply projects due to be completed by March 2015, and import the fuel to overcome local production bottlenecks.
Coal India will pay a fine if supplies fall short of commitments.
(Sourced from Bloomberg)
Bloomberg reported that Coal India Ltd, facing a decline in production, fell the most in seven months after the government ordered it to increase sales to power utilities and said it will face penalties for failing to meet the obligations.
CIL declined by 5.8% to INR 320.05 at BSE, the biggest loss since July 8.
The stock has climbed 6.5% this year, compared with a 17% increase in the benchmark Sensitive Index.
The government ordered Coal India yesterday to sign agreements to supply projects due to be completed by March 2015, and import the fuel to overcome local production bottlenecks.
Coal India will pay a fine if supplies fall short of commitments.
(Sourced from Bloomberg)
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)
Tuesday, February 14, 2012
Coal India Q3 net rises 54% at Rs 4,038 crore
Tue, 14 Feb, 2012
NEW DELHI: State-run Coal India Ltd registered a 54% rise in net profit for the third quarter at Rs 4,038 crore on high coal prices. The company reported Rs 2,626 crore net profit during same period last fiscal. Coal India's total income increased 21% to Rs 15,349 crore for the quarter from Rs 12,686 crore for the same period a year ago, a company statement said on Monday.
The company had raised coal prices in February last year. It produced 114.62 million tonnes of coal in the third quarter as against 113.77 million tonnes in the same period last year. Coal India said it made an additional provision in third-quarter results for new wage agreement that it signed with on January 31. It plans to make the rest of the provision in the March quarter, the statement said.
The company signed an agreement with its five recognised trade unions to increase wages by 25%. The agreement until June 2016 is expected to add about Rs 4,000 crore the company's annual wage bill ofRs 20,000 crore. Coal India employee benefit expenses in December quarter rose 20% toRs 5,622 crore.
The company's stand-alone net profit grew over 10-fold for the third quarter at Rs 1,219.33 crore. It reported a stand-alone profit of Rs 115.37 crore during corresponding year last fiscal. Coal India's total income increased nearly four times toRs 1,566.23 crore for the quarter from Rs 400.56 crore for the quarter-ended December 31, 2010.
(sourced ET)
NEW DELHI: State-run Coal India Ltd registered a 54% rise in net profit for the third quarter at Rs 4,038 crore on high coal prices. The company reported Rs 2,626 crore net profit during same period last fiscal. Coal India's total income increased 21% to Rs 15,349 crore for the quarter from Rs 12,686 crore for the same period a year ago, a company statement said on Monday.
The company had raised coal prices in February last year. It produced 114.62 million tonnes of coal in the third quarter as against 113.77 million tonnes in the same period last year. Coal India said it made an additional provision in third-quarter results for new wage agreement that it signed with on January 31. It plans to make the rest of the provision in the March quarter, the statement said.
The company signed an agreement with its five recognised trade unions to increase wages by 25%. The agreement until June 2016 is expected to add about Rs 4,000 crore the company's annual wage bill ofRs 20,000 crore. Coal India employee benefit expenses in December quarter rose 20% toRs 5,622 crore.
The company's stand-alone net profit grew over 10-fold for the third quarter at Rs 1,219.33 crore. It reported a stand-alone profit of Rs 115.37 crore during corresponding year last fiscal. Coal India's total income increased nearly four times toRs 1,566.23 crore for the quarter from Rs 400.56 crore for the quarter-ended December 31, 2010.
(sourced ET)
Sunday, February 12, 2012
The curious case of coal crisis
Experts say captive coal reserves' output minimal private players call no-go policy biggest dampener
Sun,Feb 12, 2012
New Delhi : With Prime Minister Manmohan Singh’s office working on urgent measures to address the ‘coal crisis’, the private power industry’s hue and cry over the issue seems to have subsided for now. Experts, however, say private developers have no right to complain, as they have failed to develop their own captive coal reserves over the past two decades.
Currently, India requires 690 million tonnes (mt) of coal a year to fire plants, largely in the infrastructure sectors of power and steel. Domestic production was originally expected to touch 680 mt by the end of the current Plan period in March. This was scaled down to 630 mt in the mid-term appraisal and again to 554 mt at present, creating a 136 mt gap between demand and supply.
Interestingly, apart from the slowdown in production from state-owned Coal India (CIL), the private sector accounts for a bulk of the dip in production. Of the 208 captive coal blocks allotted since 1993, with a whopping 49 billion tonnes (bt) of reserves and a production potential of 657 mt per year (a notch less than India’s annual coal demand), the estimated production is a dismal 37 mt per year from only 27 captive blocks the private sector has been able to commission so far.
“While there is no denying CIL’s production has come down, the private sector has also failed to increase production to expected levels. This might be related to delayed clearances in some cases. But the private sector’s tendency to grab blocks and continue to sit over them for long is also to be blamed,” said Amrit Pandurangi, senior director at accounting and consultancy firm Deloitte Touche Tohmatsu Ltd.
The lack of captive output has led to the government's coal production plan going completely awry, as projected production from captive blocks had to be brought down from the initial 104 mt to 81 mt in the mid-term assessment, and again to 56 mt, in line with the overall shortage. CIL’s expected production, too, had to be brought down from the 486 mt projected in the mid-term assessment to 447 mt now.
“In a number of cases, captive block holders have been slow in exploiting the block. Their problems have been primarily that of environment, forest clearances and land acquisition,” the Planning Commission said in its recent review of the coal sector’s performance during the current Plan period.
Taking note of the dismal progress in the development of captive blocks, the coal ministry had conducted a review last year. Threatening cancellation of their captive coal blocks, the ministry had issued showcause notices to 84 companies, including Tata Steel, Reliance Energy, Vedanta Subsidiary Sterlite Energy, GMR Energy, Lanco Group, Jindal Steel and Power and the world’s largest steel maker, ArcelorMittal. Blocks held by several firms, including NTPC and Damodar Valley Corporation, were cancelled.
Last month, an 18-member delegation of power company chiefs, including Tata Power chairman Ratan Tata, Lanco Infratech chairman L Madhusudan Rao, Reliance Power chairman Anil Ambani and Naveen Jindal, a Congress member of Parliament and chairman of Jindal Power Ltd, approached the prime minister and other key ministers, alleging their investments were hit. This followed the severe coal crunch for power stations in November.
The private sector does not agree that delays in developing captive blocks have played a major role in augmenting the shortages, and attributes the slump to unavailability of linkage coal. “Captive blocks have been delayed because of land and environment clearance issues. The nation lost over two years because of the ‘no-go’ policy. CIL’s production has stagnated,” said Ashok Khurana, director general of the Association of Power Producers.
The power sector’s requirement of coal in the current financial year is estimated at 470 mt. The sector is likely to suffer an overall shortage of 70 mt.
, with CIL supplying 343 mt, Singareni Collieries 33 mt and an additional 22 mt from captive mines. However, according to the Planning Commission, the shortfall can be easily met with 50 mt of imports, which is equivalent to 70 mt of domestic coal.
“Even otherwise, the 70 mt of pithead coal stocks with Coal India can be liquidated to meet the entire shortfall. So, where is the crisis?” asked a senior CIL official. The company has seen a 1.6 per cent decline in production between April and January 2011-12. The company’s output remained flat at 431 mt in the financial year ended March 2011.
(sourced BS)
Sun,Feb 12, 2012
New Delhi : With Prime Minister Manmohan Singh’s office working on urgent measures to address the ‘coal crisis’, the private power industry’s hue and cry over the issue seems to have subsided for now. Experts, however, say private developers have no right to complain, as they have failed to develop their own captive coal reserves over the past two decades.
Currently, India requires 690 million tonnes (mt) of coal a year to fire plants, largely in the infrastructure sectors of power and steel. Domestic production was originally expected to touch 680 mt by the end of the current Plan period in March. This was scaled down to 630 mt in the mid-term appraisal and again to 554 mt at present, creating a 136 mt gap between demand and supply.
Interestingly, apart from the slowdown in production from state-owned Coal India (CIL), the private sector accounts for a bulk of the dip in production. Of the 208 captive coal blocks allotted since 1993, with a whopping 49 billion tonnes (bt) of reserves and a production potential of 657 mt per year (a notch less than India’s annual coal demand), the estimated production is a dismal 37 mt per year from only 27 captive blocks the private sector has been able to commission so far.
“While there is no denying CIL’s production has come down, the private sector has also failed to increase production to expected levels. This might be related to delayed clearances in some cases. But the private sector’s tendency to grab blocks and continue to sit over them for long is also to be blamed,” said Amrit Pandurangi, senior director at accounting and consultancy firm Deloitte Touche Tohmatsu Ltd.
The lack of captive output has led to the government's coal production plan going completely awry, as projected production from captive blocks had to be brought down from the initial 104 mt to 81 mt in the mid-term assessment, and again to 56 mt, in line with the overall shortage. CIL’s expected production, too, had to be brought down from the 486 mt projected in the mid-term assessment to 447 mt now.
“In a number of cases, captive block holders have been slow in exploiting the block. Their problems have been primarily that of environment, forest clearances and land acquisition,” the Planning Commission said in its recent review of the coal sector’s performance during the current Plan period.
Taking note of the dismal progress in the development of captive blocks, the coal ministry had conducted a review last year. Threatening cancellation of their captive coal blocks, the ministry had issued showcause notices to 84 companies, including Tata Steel, Reliance Energy, Vedanta Subsidiary Sterlite Energy, GMR Energy, Lanco Group, Jindal Steel and Power and the world’s largest steel maker, ArcelorMittal. Blocks held by several firms, including NTPC and Damodar Valley Corporation, were cancelled.
Last month, an 18-member delegation of power company chiefs, including Tata Power chairman Ratan Tata, Lanco Infratech chairman L Madhusudan Rao, Reliance Power chairman Anil Ambani and Naveen Jindal, a Congress member of Parliament and chairman of Jindal Power Ltd, approached the prime minister and other key ministers, alleging their investments were hit. This followed the severe coal crunch for power stations in November.
The private sector does not agree that delays in developing captive blocks have played a major role in augmenting the shortages, and attributes the slump to unavailability of linkage coal. “Captive blocks have been delayed because of land and environment clearance issues. The nation lost over two years because of the ‘no-go’ policy. CIL’s production has stagnated,” said Ashok Khurana, director general of the Association of Power Producers.
The power sector’s requirement of coal in the current financial year is estimated at 470 mt. The sector is likely to suffer an overall shortage of 70 mt.
, with CIL supplying 343 mt, Singareni Collieries 33 mt and an additional 22 mt from captive mines. However, according to the Planning Commission, the shortfall can be easily met with 50 mt of imports, which is equivalent to 70 mt of domestic coal.
“Even otherwise, the 70 mt of pithead coal stocks with Coal India can be liquidated to meet the entire shortfall. So, where is the crisis?” asked a senior CIL official. The company has seen a 1.6 per cent decline in production between April and January 2011-12. The company’s output remained flat at 431 mt in the financial year ended March 2011.
(sourced BS)
Tuesday, February 7, 2012
New wage pact sees 88% hike in CIL basic
Tue,Feb07, 2012
Kolkata: The new wage pact signed by the state-run Coal India Ltd (CIL) last week has seen an 88 per cent increase in minimum basic of its employees to Rs 15,712 per month, as against Rs 8,360 during the previous deal.
The National Coal Wage Agreement (NCWA) IX covers the two public sector coal firms — CIL and Singareni Collieries Company Ltd (SCCL). The pact signed with trade Unions last week also saw a 25 per cent rise in wages, which put an additional burden of Rs 6,500 crore on the firm.
The hike, covering 3.63 lakh non-executive work force, would be effective retrospectively from 1 July 2011 is for a five-year period. “The minimum basic in NCWA IX now will be Rs. 15,712 per month, an increase of 88 per cent from Rs 8,360 of NCWA VIII. The other important highlights of the agreement are a special allowance of 4 per cent of revised basic; HRA of 2 per cent of the basic pay for those who have not been provided with residential accommodation in other than urban area; post retirement medicare scheme for retired non-executives and their spouses to be finalized within 3 months,” a CIL statement said.
The agreement was inked in Delhi between central trade unions — like the Congress-backed Indian National Trade Union Congress (INTUC), Left backed-CITU and AITUC, Hind Mazdoor Sabha, BJP-backed Bharatiya Mazdoor Sangh — and the Kolkata-based firm’s management. “ As per the NCWA VIII, which came into effect from July 1, 2006 workers got a raise of 24 per cent in the wages, which had an impact of around Rs 2,500 crore, so this was more than what they had expected,” , R Mohandas, director (personnel) of Coal India Ltd (CIL) had said.
While CIL offered a hike of 10 per cent when the talks started, the workers unions were demanding a 50 per cent hike. (sourced BS)
Kolkata: The new wage pact signed by the state-run Coal India Ltd (CIL) last week has seen an 88 per cent increase in minimum basic of its employees to Rs 15,712 per month, as against Rs 8,360 during the previous deal.
The National Coal Wage Agreement (NCWA) IX covers the two public sector coal firms — CIL and Singareni Collieries Company Ltd (SCCL). The pact signed with trade Unions last week also saw a 25 per cent rise in wages, which put an additional burden of Rs 6,500 crore on the firm.
The hike, covering 3.63 lakh non-executive work force, would be effective retrospectively from 1 July 2011 is for a five-year period. “The minimum basic in NCWA IX now will be Rs. 15,712 per month, an increase of 88 per cent from Rs 8,360 of NCWA VIII. The other important highlights of the agreement are a special allowance of 4 per cent of revised basic; HRA of 2 per cent of the basic pay for those who have not been provided with residential accommodation in other than urban area; post retirement medicare scheme for retired non-executives and their spouses to be finalized within 3 months,” a CIL statement said.
The agreement was inked in Delhi between central trade unions — like the Congress-backed Indian National Trade Union Congress (INTUC), Left backed-CITU and AITUC, Hind Mazdoor Sabha, BJP-backed Bharatiya Mazdoor Sangh — and the Kolkata-based firm’s management. “ As per the NCWA VIII, which came into effect from July 1, 2006 workers got a raise of 24 per cent in the wages, which had an impact of around Rs 2,500 crore, so this was more than what they had expected,” , R Mohandas, director (personnel) of Coal India Ltd (CIL) had said.
While CIL offered a hike of 10 per cent when the talks started, the workers unions were demanding a 50 per cent hike. (sourced BS)
Forward e-auction coal may be reserved for power firms
Additional 6-7 mt to be available for the sector if proposal implemented
Tue, Feb 07, 2012
New Delhi:The government is considering reserving forward e-auction of coal, exclusively for the power sector. The proposal could be part of the detailed road map being finalised by the Prime Minister's Office (PMO) for the smooth sailing of power companies amid a severe coal crunch that is hurting investments worth thousands of crore.
The proposal is part of the discussions currently being held by the PMO with representatives of infrastructure sectors, including coal and power, for easing coal availability, according to sources. If implemented, it could make an additional six-seven million tonne (mt) coal available for the power sector. Forward contracts account for 15 per cent of the 45 mt Coal India (CIL) sells through e-auction every year.
The status report and a blueprint for action would be prepared within two weeks to solve the ongoing coal crisis. This could also include asking CIL to supply coal to power companies at a negotiated 85 per cent of the contracted quantity.
The move comes after month-long discussions of a committee of secretaries (CoS) headed by the PM’s principal secretary Pulok Chatterjee. The PMO is currently evaluating a road map to ramp up supply on the basis of the data on expected production received from the coal ministry and discussed in the first meeting of the CoS last Wednesday.
The meeting came a day after the government forced CIL to roll back a 12.5 per cent rise in coal prices due to a new grading system based on gross calorific value. Earlier, power companies had raised the issue with the government.
The PM has emphatically expressed the need to resolve the crisis after taking on board concerns raised by a delegation of power companies’ heads earlier this month, sources said. “At Wednesday’s meeting, the PMO asked the coal ministry the extent of supply of contracted quantity that can be met by CIL so that Fuel Supply Agreements (FSAs) can be signed. The PMO would firm-up a final decision on the matter soon,” a source close to the development said.
Normally, CIL first signs Letters of Assurance (LoAs) with consumers, which get converted to FSAs after the consumer meets certain obligations of project development within a time frame. The LoAs specify the terms and conditions of supply on the basis of a mutually agreed variation in annual contracted quantity (ACQ).
Historically, LoAs have been signed by CIL at 90 per cent of ACQ, meaning CIL would face penalty for a shortfall below 90 per cent and incentivised for excess supply over 90 per cent.
However, the world’s largest coal miner has, off late, started insisting on signing FSAs at only 50 per cent of ASQ, fearing penalty at the back of a severe dip in production. In fact, it has only signed three FSAs since March 2009 as delayed environment clearances took a toll on production.
Around 18,500 Mw capacity power projects commissioned since then – requiring 90 MT coal annually — are likely to operate at 55 per cent of their capacity.
CIL’s output remained flat at 431 mt last financial year. Production during six months ended September this year was down 11 per cent, declining for the first time in the company’s foreseeable history. The company’s share price at the Bombay Stock Exchange on Monday closed at Rs 321.8, up 1.4 per cent as compared to previous close.
(sourced Business Standard)
Tue, Feb 07, 2012
New Delhi:The government is considering reserving forward e-auction of coal, exclusively for the power sector. The proposal could be part of the detailed road map being finalised by the Prime Minister's Office (PMO) for the smooth sailing of power companies amid a severe coal crunch that is hurting investments worth thousands of crore.
The proposal is part of the discussions currently being held by the PMO with representatives of infrastructure sectors, including coal and power, for easing coal availability, according to sources. If implemented, it could make an additional six-seven million tonne (mt) coal available for the power sector. Forward contracts account for 15 per cent of the 45 mt Coal India (CIL) sells through e-auction every year.
The status report and a blueprint for action would be prepared within two weeks to solve the ongoing coal crisis. This could also include asking CIL to supply coal to power companies at a negotiated 85 per cent of the contracted quantity.
The move comes after month-long discussions of a committee of secretaries (CoS) headed by the PM’s principal secretary Pulok Chatterjee. The PMO is currently evaluating a road map to ramp up supply on the basis of the data on expected production received from the coal ministry and discussed in the first meeting of the CoS last Wednesday.
The meeting came a day after the government forced CIL to roll back a 12.5 per cent rise in coal prices due to a new grading system based on gross calorific value. Earlier, power companies had raised the issue with the government.
The PM has emphatically expressed the need to resolve the crisis after taking on board concerns raised by a delegation of power companies’ heads earlier this month, sources said. “At Wednesday’s meeting, the PMO asked the coal ministry the extent of supply of contracted quantity that can be met by CIL so that Fuel Supply Agreements (FSAs) can be signed. The PMO would firm-up a final decision on the matter soon,” a source close to the development said.
Normally, CIL first signs Letters of Assurance (LoAs) with consumers, which get converted to FSAs after the consumer meets certain obligations of project development within a time frame. The LoAs specify the terms and conditions of supply on the basis of a mutually agreed variation in annual contracted quantity (ACQ).
Historically, LoAs have been signed by CIL at 90 per cent of ACQ, meaning CIL would face penalty for a shortfall below 90 per cent and incentivised for excess supply over 90 per cent.
However, the world’s largest coal miner has, off late, started insisting on signing FSAs at only 50 per cent of ASQ, fearing penalty at the back of a severe dip in production. In fact, it has only signed three FSAs since March 2009 as delayed environment clearances took a toll on production.
Around 18,500 Mw capacity power projects commissioned since then – requiring 90 MT coal annually — are likely to operate at 55 per cent of their capacity.
CIL’s output remained flat at 431 mt last financial year. Production during six months ended September this year was down 11 per cent, declining for the first time in the company’s foreseeable history. The company’s share price at the Bombay Stock Exchange on Monday closed at Rs 321.8, up 1.4 per cent as compared to previous close.
(sourced Business Standard)
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 29, 2012
CIL set to reduce coal prices this month
Sunday, 29 Jan 2012
Coal India Ltd the biggest coal miner in the world, will announce the new set of coal prices this month, before the acting chairman Mr NC Jha retires on January 31st 2012. The decision comes after the ministry formally asked CIL to relook its January 1 pricing.
Mr Jha in an informal interaction said that "We were planning to revisit the pricing in March. But the coal ministry had formally sent a letter on January 25 asking us to relook the prices now to prevent any major impact from the previous prices regime. But, GCV (Gross Calorific Value) mechanism will not be rolled back.”
Mr Jha added that "The revised GCV pricing will be done in consultation with coal ministry officials within end of the month adding that January 1 pricing was also done with the ministry's consultation. As switchover from Useful Heat Value concept to GCV had happened under me, so I'll address the price issue before I retire.”
He added that the revised pricing that CIL is working on would benefit or reduce the price shock mainly in C, D, and upper E grades of coal under UHV category.
Mr Jha accepted that the January 1 pricing benefited CIL by close to 12.5% in additional revenue and the new pricing will eliminate most of it. Besides, he said, the new wage agreement will have additional burden of at least INR 4,000 crore annually at a time when CIL production is slipping from the target.
The revised GCV pricing of the coal will deviate from the Coal ministry's and Planning Commission's long term roadmap to link Indian coal with international coal. Mr Jha said that "The January 1 pricing was based on discount on import price but now the pricing would be done on what the consumers were paying in UHV regime.”
CIL had attempted to reduce the gap of landed international coal price with domestic coal which was as high as close to 75 per cent in certain coal varieties like C, D and part of E grades. However, Jha conceded that gradually, the new concept will achieve its goal gradually in future.
Asked about large number of complaints about high ash and moisture content and inconsistent quality in CIL coal compared to international coal, Mr Jha said "for that we have kept band of 300 kcal for each band of grades, while, price for international coal changes in narrow band of 50 kcals".
sourced Profit.ndtv.com
Coal India Ltd the biggest coal miner in the world, will announce the new set of coal prices this month, before the acting chairman Mr NC Jha retires on January 31st 2012. The decision comes after the ministry formally asked CIL to relook its January 1 pricing.
Mr Jha in an informal interaction said that "We were planning to revisit the pricing in March. But the coal ministry had formally sent a letter on January 25 asking us to relook the prices now to prevent any major impact from the previous prices regime. But, GCV (Gross Calorific Value) mechanism will not be rolled back.”
Mr Jha added that "The revised GCV pricing will be done in consultation with coal ministry officials within end of the month adding that January 1 pricing was also done with the ministry's consultation. As switchover from Useful Heat Value concept to GCV had happened under me, so I'll address the price issue before I retire.”
He added that the revised pricing that CIL is working on would benefit or reduce the price shock mainly in C, D, and upper E grades of coal under UHV category.
Mr Jha accepted that the January 1 pricing benefited CIL by close to 12.5% in additional revenue and the new pricing will eliminate most of it. Besides, he said, the new wage agreement will have additional burden of at least INR 4,000 crore annually at a time when CIL production is slipping from the target.
The revised GCV pricing of the coal will deviate from the Coal ministry's and Planning Commission's long term roadmap to link Indian coal with international coal. Mr Jha said that "The January 1 pricing was based on discount on import price but now the pricing would be done on what the consumers were paying in UHV regime.”
CIL had attempted to reduce the gap of landed international coal price with domestic coal which was as high as close to 75 per cent in certain coal varieties like C, D and part of E grades. However, Jha conceded that gradually, the new concept will achieve its goal gradually in future.
Asked about large number of complaints about high ash and moisture content and inconsistent quality in CIL coal compared to international coal, Mr Jha said "for that we have kept band of 300 kcal for each band of grades, while, price for international coal changes in narrow band of 50 kcals".
sourced Profit.ndtv.com
Wednesday, January 25, 2012
Privatise Coal India to improve production, suggests Ficci
Wed, 25 Jan, 2012,
NEW DELHI: Industry body Ficci has suggested privatisation of CIL to improve coal production at a time when power plants are facing an acute fuel shortage.
"Either you privatise or break it up (Coal India) into several independent units, not keep it centralised... You have to do something drastic," Ficci's new President Rajya Vardhan Kanoria said.
His comments come at a time when most power projects are grappling with a severe coal shortage, mainly on account of lower domestic production.
"... I think that why don't they (government) strategically divest Coal India to make it private. It will serve two purposes: one is that it will make sure revenue for the government and second, (change in) culture. The culture has to change," Kanoria said.
"The coal problem is becoming serious. One is pricing and the other is availability," he noted.
Even though fuel linkages have been assured for many projects, Coal India has been unable to meet demand. As a result, entities are importing coal at higher prices from overseas.
"The government is lacking in their approach in the coal sector. Some serious decisions have to be taken (with regard to coal issue)... There is coal. India has one of the largest reserves," he said.
State-run Coal India had missed its April-September production target of 196 MT, recording an output of just 176 MT. The entity had blamed adverse weather, including heavy rains in August-September, for the fall in production.
The PSU missed its revised production target last fiscal as well, recording an output of just 431 MT against the commitment of 460.5 MT.
As per the Central Electricity Authority (CEA), as many as 40 thermal power stations had coal stocks for less than seven days as of January 23.
Last week, the head honchos of private power producers met Prime Minister Manmohan Singh to apprise him of various problems faced by the sector, including fuel shortages.
(sourced ET)
NEW DELHI: Industry body Ficci has suggested privatisation of CIL to improve coal production at a time when power plants are facing an acute fuel shortage.
"Either you privatise or break it up (Coal India) into several independent units, not keep it centralised... You have to do something drastic," Ficci's new President Rajya Vardhan Kanoria said.
His comments come at a time when most power projects are grappling with a severe coal shortage, mainly on account of lower domestic production.
"... I think that why don't they (government) strategically divest Coal India to make it private. It will serve two purposes: one is that it will make sure revenue for the government and second, (change in) culture. The culture has to change," Kanoria said.
"The coal problem is becoming serious. One is pricing and the other is availability," he noted.
Even though fuel linkages have been assured for many projects, Coal India has been unable to meet demand. As a result, entities are importing coal at higher prices from overseas.
"The government is lacking in their approach in the coal sector. Some serious decisions have to be taken (with regard to coal issue)... There is coal. India has one of the largest reserves," he said.
State-run Coal India had missed its April-September production target of 196 MT, recording an output of just 176 MT. The entity had blamed adverse weather, including heavy rains in August-September, for the fall in production.
The PSU missed its revised production target last fiscal as well, recording an output of just 431 MT against the commitment of 460.5 MT.
As per the Central Electricity Authority (CEA), as many as 40 thermal power stations had coal stocks for less than seven days as of January 23.
Last week, the head honchos of private power producers met Prime Minister Manmohan Singh to apprise him of various problems faced by the sector, including fuel shortages.
(sourced ET)
Orissa seeks info on land requirement for coal blocks
Wednesday, 25 Jan 2012
BS reported that in a bid to expedite the development of coal blocks in the state, the steel and mines department has asked the Industrial Investment Promotion Corporation of Orissa Limited to submit a report on the total land requirement of non Coal India limited companies.
A letter from the steel and mines department said that “As the matter is urgent, it is requested that the required information in respect of the 19 coal blocks may kindly be furnished, without further delay.”
Out of allocated 32 coal blocks in Orissa, IPICOL, in November last year, had furnished the data on land requirement of 13 coal blocks allotted to 29 public sector undertakings and private firms. The IPICOL is yet to provide the information on land requirement of the remaining 19 blocks allocated to various non CIL companies.
The step from the state government comes barely a day after the Union ministry of Coal drafted guidelines for timely development of allotted coal blocks to expedite the process of coal production. The ministry has advised the allocatees to adhere to the timeline in the development of the blocks or else face de allocation.
It may be noted, the Ministry of Coal has allocated 32 coal blocks to 56 companies, both PSUs and private firms in Orissa. These coal blocks have a total reserve of 15,212 million tonnes. Of the 56 firms which have been allocated the coal blocks, there are 16 PSUs including public sector companies from Orissa and other states. However, of the 32 coal blocks, only one block (Talabira I) coal block has gone into production.
The combined area required for operation of all the 32 coal blocks, is about 325 sq km and the implementation of these projects would involve displacement of around two lakh people.
(Sourced from BS)
BS reported that in a bid to expedite the development of coal blocks in the state, the steel and mines department has asked the Industrial Investment Promotion Corporation of Orissa Limited to submit a report on the total land requirement of non Coal India limited companies.
A letter from the steel and mines department said that “As the matter is urgent, it is requested that the required information in respect of the 19 coal blocks may kindly be furnished, without further delay.”
Out of allocated 32 coal blocks in Orissa, IPICOL, in November last year, had furnished the data on land requirement of 13 coal blocks allotted to 29 public sector undertakings and private firms. The IPICOL is yet to provide the information on land requirement of the remaining 19 blocks allocated to various non CIL companies.
The step from the state government comes barely a day after the Union ministry of Coal drafted guidelines for timely development of allotted coal blocks to expedite the process of coal production. The ministry has advised the allocatees to adhere to the timeline in the development of the blocks or else face de allocation.
It may be noted, the Ministry of Coal has allocated 32 coal blocks to 56 companies, both PSUs and private firms in Orissa. These coal blocks have a total reserve of 15,212 million tonnes. Of the 56 firms which have been allocated the coal blocks, there are 16 PSUs including public sector companies from Orissa and other states. However, of the 32 coal blocks, only one block (Talabira I) coal block has gone into production.
The combined area required for operation of all the 32 coal blocks, is about 325 sq km and the implementation of these projects would involve displacement of around two lakh people.
(Sourced from BS)
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)
Subscribe to:
Posts (Atom)
Posts
