Fri, 09 Mar 2012
ET reported that TATA Power, Reliance Power, ArcelorMittal, Jindal Steel and Power and Monnet Ispat & Energy are among 60 companies that face risk of cancellation of mining licenses for being slow in exploration of coal blocks.
A review committee headed by coal ministry's additional secretary Ms Zohra Chatterjee has recommended issuing 'show-cause notices' for 58 blocks asking for reasons why mining licenses should not be revoked. A coal ministry official said appropriate action would be initiated against companies that are not able to justify the delay.
The official said that "We are reviewing allotment to non-serious companies that are simply sitting on the blocks. Some allottees are yet to start any activities on the site. Some blocks are delayed due to problems in land acquisition, delayed regulatory clearances, local agitation and law and order issues.”
The companies include Hindalco Industries, TATA Sponge, Electro Steel Casting, MMTC, National Aluminium Co Ltd and power and mining utilities of Jharkhand, Orissa, Andhra Pradesh, Chhattisgarh, Madhya Pradesh and Tamil Nadu.
Coal ministry's latest review found that only 29 of 195 allotted coal blocks have started production while progress at 90 blocks was found dissatisfactory as critical milestones like acquisition of land, forest clearances and execution of mining lease were not achieved for various reasons.
Captive mines are expected to generate just about 36 million tonnes by this fiscal against targeted 81 million tonnes, scaled down from 104 million tonnes after mid-term review by the Planning Commission.
Caution notices will be issued to about 28 companies, including National Thermal Power Corporation, Steel Authority of India, Jai Prakash Associates, Jindal Steel & Power and GVK Power, for slow progress at 32 blocks.
The committee has also advised owners of another 58 blocks to follow up aggressively with the environment ministry for securing clearances. The committee also recommended de-allocation of two lignite blocks.
The government has till date revoked mining licenses for 23 captive coal blocks that were later allotted to Coal India Ltd.
Source - Economic Times
Showing posts with label TATA Power. Show all posts
Showing posts with label TATA Power. Show all posts
Friday, March 9, 2012
Friday, January 27, 2012
Government asked to divert E auction coal to power sector
Friday, 27 Jan 2012
Faced with acute fuel scarcity, private power producers, including Reliance, Adanis and TATAs have suggested to Prime Minister, Dr Manmohan Singh that the coal set side for e auction be diverted for power sector at notified prices.
The Association of Power Producers came up with detailed suggestions to address multiple woes plaguing the sector, just days after chiefs of private power companies met the Prime Minister on January 18.
APP in a communication to the Prime Minister’s Office said that “To meet the current (fuel) deficit situation, e auction coal should be diverted for the power sector at notified prices (to avoid tariff shocks).”
APP members that include Adanis, Reliance, TATAs, Essar, Lanco and GMR, account for over 95% of the power capacity in the private sector.
The communication said that “Available coal should be equally distributed to all the plants against FSA/Letter of Assurance/MoU instead of old plants with less efficient operation getting 100% coal and newer, more efficient and higher sized power critical units getting deprived of coal.”
As per the communication, the private power producers have also suggested that domestic coal should be reserved for regulated sectors such as power and fertiliser.
In August last year, a parliamentary panel had said that coal availability for power plants designed to run on indigenous coal would be only 417.5 MT in the current fiscal, as against the requirement of 480 MT.
(Sourced from BL)
Faced with acute fuel scarcity, private power producers, including Reliance, Adanis and TATAs have suggested to Prime Minister, Dr Manmohan Singh that the coal set side for e auction be diverted for power sector at notified prices.
The Association of Power Producers came up with detailed suggestions to address multiple woes plaguing the sector, just days after chiefs of private power companies met the Prime Minister on January 18.
APP in a communication to the Prime Minister’s Office said that “To meet the current (fuel) deficit situation, e auction coal should be diverted for the power sector at notified prices (to avoid tariff shocks).”
APP members that include Adanis, Reliance, TATAs, Essar, Lanco and GMR, account for over 95% of the power capacity in the private sector.
The communication said that “Available coal should be equally distributed to all the plants against FSA/Letter of Assurance/MoU instead of old plants with less efficient operation getting 100% coal and newer, more efficient and higher sized power critical units getting deprived of coal.”
As per the communication, the private power producers have also suggested that domestic coal should be reserved for regulated sectors such as power and fertiliser.
In August last year, a parliamentary panel had said that coal availability for power plants designed to run on indigenous coal would be only 417.5 MT in the current fiscal, as against the requirement of 480 MT.
(Sourced from BL)
Monday, December 12, 2011
Indonesia coal pricing norm affects Indian power companies
Monday, 12 Dec 2011
About 14,000 MW of capacity addition in the pipeline, based on Indonesian coal, appears to have hit a roadblock after Indonesia made it mandatory for coal exports to be benchmarked to international prices from September 23.
TATA Power, Reliance Power, Adani Power, JSW Energy and Lanco Infratech had aggressively bid in the tariff based competitive bidding process for power projects, based on their agreements/ arrangements they had made for fuel stock from Indonesia.
It is learnt that the developers had worked the financials of their projects factoring in the coal price they had entered into in Indonesia for long term supply, which in some cases are about USD 26 to USD 30 a tonne, almost half the benchmark prices.
TATA Power has commissioned the first of its 830 MW unit at Mundra. Reliance Power has slowed down work at its 4,000 MW Krishnapatnam project till a decision is taken as no substantial investments had been made and lenders too were reluctant to release funds citing fuel price cost.
Mr Ashok Khurana director general of Association of Power Producers the apex body of power developers in the country said that “The issue concerns about 20,000 MW of stranded capacity.”
He said that the association is only asking the Government for a forum or mechanism where the voices of the developers would be heard. A decision needs to be taken. It is not only about imported coal even domestic producers are impacted as Coal India is not able to address their requirements.
Mr Khurana said it must be understood that the ultra mega power project format was put up by the Government and assurances were given. It is not the developers' fault. Today bankers and investor were spurning them. Asking developers to speak to procurers is just passing the buck.
A few months back, Mr Alok Kanagat, Chief Executive Officer, Coastal Gujarat Power, wrote to the Power Minister stating that while initial calculations based on the Central Electricity Regulatory Commission norms provided for 14% return on equity would be around INR 600 crore per annum, but with the coal cost increase the impact could be up to INR 1,800 crore and nullify returns. Further, the impact on tariff could be up to INR 1 per unit.
To tide over the crisis, TATA Power has provisioned INR 823 crore for impairment in Coastal Gujarat Power Ltd this quarter. This has been worked out on the projected fuel cost that could impact future cash flows. Further, to address coal price volatility, Tata Power said it would also consider transferring 75% ownership of investments in coal companies to CGPL.
(Sourced from BL)
About 14,000 MW of capacity addition in the pipeline, based on Indonesian coal, appears to have hit a roadblock after Indonesia made it mandatory for coal exports to be benchmarked to international prices from September 23.
TATA Power, Reliance Power, Adani Power, JSW Energy and Lanco Infratech had aggressively bid in the tariff based competitive bidding process for power projects, based on their agreements/ arrangements they had made for fuel stock from Indonesia.
It is learnt that the developers had worked the financials of their projects factoring in the coal price they had entered into in Indonesia for long term supply, which in some cases are about USD 26 to USD 30 a tonne, almost half the benchmark prices.
TATA Power has commissioned the first of its 830 MW unit at Mundra. Reliance Power has slowed down work at its 4,000 MW Krishnapatnam project till a decision is taken as no substantial investments had been made and lenders too were reluctant to release funds citing fuel price cost.
Mr Ashok Khurana director general of Association of Power Producers the apex body of power developers in the country said that “The issue concerns about 20,000 MW of stranded capacity.”
He said that the association is only asking the Government for a forum or mechanism where the voices of the developers would be heard. A decision needs to be taken. It is not only about imported coal even domestic producers are impacted as Coal India is not able to address their requirements.
Mr Khurana said it must be understood that the ultra mega power project format was put up by the Government and assurances were given. It is not the developers' fault. Today bankers and investor were spurning them. Asking developers to speak to procurers is just passing the buck.
A few months back, Mr Alok Kanagat, Chief Executive Officer, Coastal Gujarat Power, wrote to the Power Minister stating that while initial calculations based on the Central Electricity Regulatory Commission norms provided for 14% return on equity would be around INR 600 crore per annum, but with the coal cost increase the impact could be up to INR 1,800 crore and nullify returns. Further, the impact on tariff could be up to INR 1 per unit.
To tide over the crisis, TATA Power has provisioned INR 823 crore for impairment in Coastal Gujarat Power Ltd this quarter. This has been worked out on the projected fuel cost that could impact future cash flows. Further, to address coal price volatility, Tata Power said it would also consider transferring 75% ownership of investments in coal companies to CGPL.
(Sourced from BL)
Tuesday, November 29, 2011
MPSEZ rises on delivering record amount of coal a day
Tuesday, Nov 29, 2011
Mundra Port and Special Economic Zone rose 2.77% at Rs. 129.75 at 11:06 IST after the company said that its West Basin bulk coal handling terminal has delivered a record 62,718 tonnes a day coal to Adani Power's plant located adjacent to the port.
The announcement was made after market hours on Monday, 28 November 2011.
Meanwhile, the BSE Sensex was down 46.46 points, or 0.29%, to 16,120.67.
On BSE, 1.13 lakh shares were traded in the counter as against an average daily volume of 2.12 lakh shares in the past one quarter.
The stock hit a high of Rs. 130.55 and a low of Rs. 125.30 so far during the day. The stock had hit a 52-week low of Rs. 115.25 on 25 November 2011. The stock had hit a 52-week high of Rs. 169.75 on 28 October 2011.
The stock had underperformed the market over the past one month until 28 November 2011, sliding 22.50% compared with the Sensex's 9.20% decline. The scrip had also underperformed the market in past one quarter, falling 9.95% as against 2.01% rise in the Sensex.
The large-cap private port and special economic zone has an equity capital of Rs. 400.68 crore. Face value per share is Rs. 2.
This large tranche of coal was delivered through a world class high speed conveyor belt at a speed of 6,000 tonnes per hour. The belt runs across 20 kilometre from the port to the power plant, a statement by Mundra Port and Special Economic Zone (MPSEZ) said.
Adani Power, one of the country's largest private thermal power producers, is setting up a 4,620 megawatts (MW) power plant in Mundra, Gujarat while Tata Power is constructing a 4,000 MW ultra mega power project at the same location.
“The accomplishment of import and time-bound delivery of first such large tranche of coal establishes MPSEZ's prowess in developing world-class port infrastructure in India and abroad. The feat could be achieved by better planning skills, state-of-the-art Mundra Port and Special Economic Zone Limited mechanization and dedication of the port operator, displaying its leadership position in the port infrastructure sector,” said Dr. Malay Mahadevia, Whole Time Director at MPSEZ.
The West Basin is Asia's largest coal import terminal and has been set up to primarily cater to supply imported coal to the power plants in the region. It can handle capsize vessels up to 250,000 deadweight tonnes (DWT) and will have draft of 19.5 meters when fully developed.
Mundra Port is expanding the West Basin terminal and construction for the fourth berth is going on in full swing. The company is also investing heavily in augmentation of the material handling system to cater to additional volumes of imported coal for power plants in the vast North West Indian hinterland.
Last month, Mundra Port also commenced double stack container trains to help control transportation costs. The trains are running from Mundra Port to Patli near Gurgaon, Haryana, thus connected Northern India to the west.
Net profit of MPSEZ rose 29.17% to Rs. 273.42 crore on 44.20% rise in net sales to Rs. 587.76 crore in Q2 September 2011 over Q2 September 2010.
Mundra Port provides cargo handling and other value-added port services. Mundra SEZ is India's first port-based multi-product special economic zone.
Sourced IIFL
Mundra Port and Special Economic Zone rose 2.77% at Rs. 129.75 at 11:06 IST after the company said that its West Basin bulk coal handling terminal has delivered a record 62,718 tonnes a day coal to Adani Power's plant located adjacent to the port.
The announcement was made after market hours on Monday, 28 November 2011.
Meanwhile, the BSE Sensex was down 46.46 points, or 0.29%, to 16,120.67.
On BSE, 1.13 lakh shares were traded in the counter as against an average daily volume of 2.12 lakh shares in the past one quarter.
The stock hit a high of Rs. 130.55 and a low of Rs. 125.30 so far during the day. The stock had hit a 52-week low of Rs. 115.25 on 25 November 2011. The stock had hit a 52-week high of Rs. 169.75 on 28 October 2011.
The stock had underperformed the market over the past one month until 28 November 2011, sliding 22.50% compared with the Sensex's 9.20% decline. The scrip had also underperformed the market in past one quarter, falling 9.95% as against 2.01% rise in the Sensex.
The large-cap private port and special economic zone has an equity capital of Rs. 400.68 crore. Face value per share is Rs. 2.
This large tranche of coal was delivered through a world class high speed conveyor belt at a speed of 6,000 tonnes per hour. The belt runs across 20 kilometre from the port to the power plant, a statement by Mundra Port and Special Economic Zone (MPSEZ) said.
Adani Power, one of the country's largest private thermal power producers, is setting up a 4,620 megawatts (MW) power plant in Mundra, Gujarat while Tata Power is constructing a 4,000 MW ultra mega power project at the same location.
“The accomplishment of import and time-bound delivery of first such large tranche of coal establishes MPSEZ's prowess in developing world-class port infrastructure in India and abroad. The feat could be achieved by better planning skills, state-of-the-art Mundra Port and Special Economic Zone Limited mechanization and dedication of the port operator, displaying its leadership position in the port infrastructure sector,” said Dr. Malay Mahadevia, Whole Time Director at MPSEZ.
The West Basin is Asia's largest coal import terminal and has been set up to primarily cater to supply imported coal to the power plants in the region. It can handle capsize vessels up to 250,000 deadweight tonnes (DWT) and will have draft of 19.5 meters when fully developed.
Mundra Port is expanding the West Basin terminal and construction for the fourth berth is going on in full swing. The company is also investing heavily in augmentation of the material handling system to cater to additional volumes of imported coal for power plants in the vast North West Indian hinterland.
Last month, Mundra Port also commenced double stack container trains to help control transportation costs. The trains are running from Mundra Port to Patli near Gurgaon, Haryana, thus connected Northern India to the west.
Net profit of MPSEZ rose 29.17% to Rs. 273.42 crore on 44.20% rise in net sales to Rs. 587.76 crore in Q2 September 2011 over Q2 September 2010.
Mundra Port provides cargo handling and other value-added port services. Mundra SEZ is India's first port-based multi-product special economic zone.
Sourced IIFL
Monday, November 21, 2011
Diplomacy for coal's sake
Monday, Nov21, 2011
The Government can take up the issue of coal pricing with Indonesia, the way China backs its businesses.
In August 2009, China arrested four employees of Rio Tinto on charges of stealing trade secrets and taking bribes. The arrests of the Anglo-Australian mining firm's Shanghai-based employees, which included an Australian citizen, were widely seen as action by China in retaliation to the collapse of Rio's proposed deal with Chinese state-owned firm Chinalco a couple of months earlier.
Rio had scrapped Chinalco's $19.5-billion investment in June that year in favour of a tie-up with fellow Anglo-Australian miner BHP Billiton. Despite the prospect of a diplomatic nightmare with one of its largest trading partners, China went ahead with the arrests. Subsequently, just before the trial, the Chinese state dropped the more serious charges of theft of trade secrets, while during the trial the defendants admitted to receiving bribes.
The events that led up to the trial, though, prompted analysts to conclude that the political relationship between Beijing and Canberra had touched “a generational nadir”.
Though the Chinese action was widely seen as an overreaction by the country to an international commercial deal that had gone awry, it is by no means an isolated case. Western powers, especially the US, are known to go to the extreme of orchestrating regime changes in countries if commercial interests of their companies are at stake.
Impact on infrastructure
India has been somewhat passive in its diplomatic overtures and generally indifferent to the fate of its companies abroad. A case in point is the quandary that Indian utilities and trading firms are facing in Indonesia, where a policy change in that country's coal pricing late last year has been applied retrospectively on contracts signed by Indian companies there.
This has created a big question mark for the country's infrastructure sectors, which had been banking heavily on Indonesian coal to tide over a widening domestic production deficit.
Tata Power, Reliance Power, GVK, Lanco and the Adani Group are among utilities that have struck deals in Indonesia during the last couple of years to either buy stakes in coal assets or for long-term supplies. The policy shocker came in September 2010, when the Indonesian Government ratified a new regulation that mandatorily benchmarked all coal offtake deals to international market rates.
The new rule, which was to apply to contracts retrospectively, immediately led to a sudden, unexpected surge in the price of coal. Indian developers had bid for specific domestic projects, based on their agreements with fuel suppliers in Indonesia.
Case for intervention
In light of the big hit on players across the infrastructure sector and the fact that there was such a large exposure of Indian commercial interest in Indonesia, private sector players feel that there perhaps was a case for the Indian Government to intervene through broader diplomatic channels. This is all the more because India is projected to overtake Japan as the biggest buyer of Indonesian coal in 2011, and is widely tipped to stay ahead of China in the competition for coal supplies from Indonesia. A big customer is generally assumed to have a certain clout and advantage.
However, as things stand, New Delhi has decided to mostly stay clear of direct intervention in the matter. That is, with the exception of a letter reportedly written by the Indian Embassy at Jakarta to the Directorate-General of Coal in the Ministry of Energy and Mineral Resources of the Government of Indonesia, seeking certain clarifications on the new regulations. This was at the behest of the Union Power Ministry and the Association of Power Producers, an industry body representing Tata Power, Reliance Power, Lanco and GMR, among others. However, the industry says the intervention is just “too little, too late”.
The clamour for a bit of Government-to-Government lobbying, it is felt, may be effective, especially as efforts are currently on to double bilateral trade between the two nations over the next four years through a comprehensive free trade pact. Also, the bilateral trade between India and Indonesia stood at $13.2 billion in 2010, but it is highly skewed in favour of the latter.
While it goes without saying that it is the sovereign right of a country to decide on how, or on what terms, it will let outsiders exploit its resources, there appear to be some loopholes in the Indonesian Government's stipulation. A diplomatic intervention in the matter, industry players say, could have sent home the message that the Government of India is willing to back up its firms.
Coal imports
In India, of the 43,000 MW of power projects awarded through competitive bidding so far, about 13,000 MW of generation capacity is dependent on imported coal. During the next five years (Twelfth Plan), about 74,000 MW of coal-fired capacity is slated to come up, of which most projects would be forced to run on imported coal.
Back-of-the envelope calculations show that against a projected requirement of 742 million tonnes of thermal coal for fuelling coal-fired stations by the end of the Twelfth Plan, only 527 million tonnes of domestic coal is likely to be available. This translates into a shortfall of 215 million tonnes by 2017. Currently, about 50 per cent of India's imported coal comes from Indonesia and around 5 per cent from Australia. Mozambique and South Africa make up for much of the rest.
The view is that if India is going to be a big importer of natural resources, it should leverage the best commercial terms for itself and its firms — be it State-owned or private. Something that China has been able to master.
Keywords: Anglo-Australian miner, Coal, natural resources, China, trade secrets
The Government can take up the issue of coal pricing with Indonesia, the way China backs its businesses.
In August 2009, China arrested four employees of Rio Tinto on charges of stealing trade secrets and taking bribes. The arrests of the Anglo-Australian mining firm's Shanghai-based employees, which included an Australian citizen, were widely seen as action by China in retaliation to the collapse of Rio's proposed deal with Chinese state-owned firm Chinalco a couple of months earlier.
Rio had scrapped Chinalco's $19.5-billion investment in June that year in favour of a tie-up with fellow Anglo-Australian miner BHP Billiton. Despite the prospect of a diplomatic nightmare with one of its largest trading partners, China went ahead with the arrests. Subsequently, just before the trial, the Chinese state dropped the more serious charges of theft of trade secrets, while during the trial the defendants admitted to receiving bribes.
The events that led up to the trial, though, prompted analysts to conclude that the political relationship between Beijing and Canberra had touched “a generational nadir”.
Though the Chinese action was widely seen as an overreaction by the country to an international commercial deal that had gone awry, it is by no means an isolated case. Western powers, especially the US, are known to go to the extreme of orchestrating regime changes in countries if commercial interests of their companies are at stake.
Impact on infrastructure
India has been somewhat passive in its diplomatic overtures and generally indifferent to the fate of its companies abroad. A case in point is the quandary that Indian utilities and trading firms are facing in Indonesia, where a policy change in that country's coal pricing late last year has been applied retrospectively on contracts signed by Indian companies there.
This has created a big question mark for the country's infrastructure sectors, which had been banking heavily on Indonesian coal to tide over a widening domestic production deficit.
Tata Power, Reliance Power, GVK, Lanco and the Adani Group are among utilities that have struck deals in Indonesia during the last couple of years to either buy stakes in coal assets or for long-term supplies. The policy shocker came in September 2010, when the Indonesian Government ratified a new regulation that mandatorily benchmarked all coal offtake deals to international market rates.
The new rule, which was to apply to contracts retrospectively, immediately led to a sudden, unexpected surge in the price of coal. Indian developers had bid for specific domestic projects, based on their agreements with fuel suppliers in Indonesia.
Case for intervention
In light of the big hit on players across the infrastructure sector and the fact that there was such a large exposure of Indian commercial interest in Indonesia, private sector players feel that there perhaps was a case for the Indian Government to intervene through broader diplomatic channels. This is all the more because India is projected to overtake Japan as the biggest buyer of Indonesian coal in 2011, and is widely tipped to stay ahead of China in the competition for coal supplies from Indonesia. A big customer is generally assumed to have a certain clout and advantage.
However, as things stand, New Delhi has decided to mostly stay clear of direct intervention in the matter. That is, with the exception of a letter reportedly written by the Indian Embassy at Jakarta to the Directorate-General of Coal in the Ministry of Energy and Mineral Resources of the Government of Indonesia, seeking certain clarifications on the new regulations. This was at the behest of the Union Power Ministry and the Association of Power Producers, an industry body representing Tata Power, Reliance Power, Lanco and GMR, among others. However, the industry says the intervention is just “too little, too late”.
The clamour for a bit of Government-to-Government lobbying, it is felt, may be effective, especially as efforts are currently on to double bilateral trade between the two nations over the next four years through a comprehensive free trade pact. Also, the bilateral trade between India and Indonesia stood at $13.2 billion in 2010, but it is highly skewed in favour of the latter.
While it goes without saying that it is the sovereign right of a country to decide on how, or on what terms, it will let outsiders exploit its resources, there appear to be some loopholes in the Indonesian Government's stipulation. A diplomatic intervention in the matter, industry players say, could have sent home the message that the Government of India is willing to back up its firms.
Coal imports
In India, of the 43,000 MW of power projects awarded through competitive bidding so far, about 13,000 MW of generation capacity is dependent on imported coal. During the next five years (Twelfth Plan), about 74,000 MW of coal-fired capacity is slated to come up, of which most projects would be forced to run on imported coal.
Back-of-the envelope calculations show that against a projected requirement of 742 million tonnes of thermal coal for fuelling coal-fired stations by the end of the Twelfth Plan, only 527 million tonnes of domestic coal is likely to be available. This translates into a shortfall of 215 million tonnes by 2017. Currently, about 50 per cent of India's imported coal comes from Indonesia and around 5 per cent from Australia. Mozambique and South Africa make up for much of the rest.
The view is that if India is going to be a big importer of natural resources, it should leverage the best commercial terms for itself and its firms — be it State-owned or private. Something that China has been able to master.
Keywords: Anglo-Australian miner, Coal, natural resources, China, trade secrets
Tuesday, November 15, 2011
Tata Power posts Rs 1,219-cr loss on forex loss, fuel cost
Tuesday, Nov'15, 2011
Mumbai: Tata Power, on a consolidated basis, posted a loss of Rs 1,219 crore for the quarter-ended September 30, against a profit of Rs 673 crore logged in the same period last year.
During the quarter, the company incurred a forex loss of Rs 737 crore as against a gain of Rs 220 crore registered in the comparable period last year.
Revenue was up 30 per cent at Rs 6,248 crore (Rs 4,798 crore).
Tata Power said net profit was not comparable due to the provision made for impairment of Rs 823 crore and forex loss of Rs 639 crore incurred by its wholly-owned subsidiary, Coastal Gujarat Power Ltd (CGPL).
Coal processing charges were higher by Rs 188 crore, fuel cost by Rs 390 crore and power purchased by Rs 480 crore.
Royalty for coal mining rose to Rs 267 crore from Rs 175 crore.
Coastal Gujarat Power
Mr Anil Sardana, Managing Director, Tata Power, said, “One of the key highlights this quarter is the provision made for impairment of Rs 823 crore in Coastal Gujarat Power Ltd (CGPL). This has been done primarily on the projected fuel cost that has an impact on future cash flows.
“Further, to provide protection from the risk of price volatility on coal to be used in power generation at CGPL, and to support its cash flows the company will be undertaking a restructuring and will look at the option of transferring at least 75 per cent of the ownership of investments in the coal companies to CGPL or else evaluate alternative options to effect to the above objective of protection.”
Keywords: net profit, quarterly results,
(sourced BL)
Mumbai: Tata Power, on a consolidated basis, posted a loss of Rs 1,219 crore for the quarter-ended September 30, against a profit of Rs 673 crore logged in the same period last year.
During the quarter, the company incurred a forex loss of Rs 737 crore as against a gain of Rs 220 crore registered in the comparable period last year.
Revenue was up 30 per cent at Rs 6,248 crore (Rs 4,798 crore).
Tata Power said net profit was not comparable due to the provision made for impairment of Rs 823 crore and forex loss of Rs 639 crore incurred by its wholly-owned subsidiary, Coastal Gujarat Power Ltd (CGPL).
Coal processing charges were higher by Rs 188 crore, fuel cost by Rs 390 crore and power purchased by Rs 480 crore.
Royalty for coal mining rose to Rs 267 crore from Rs 175 crore.
Coastal Gujarat Power
Mr Anil Sardana, Managing Director, Tata Power, said, “One of the key highlights this quarter is the provision made for impairment of Rs 823 crore in Coastal Gujarat Power Ltd (CGPL). This has been done primarily on the projected fuel cost that has an impact on future cash flows.
“Further, to provide protection from the risk of price volatility on coal to be used in power generation at CGPL, and to support its cash flows the company will be undertaking a restructuring and will look at the option of transferring at least 75 per cent of the ownership of investments in the coal companies to CGPL or else evaluate alternative options to effect to the above objective of protection.”
Keywords: net profit, quarterly results,
(sourced BL)
Wednesday, September 28, 2011
New Indonesian coal law adds to power company woes in India
Wednesday, 28 Sep 2011
Power projects that had planned to get coal from Indonesia are yet to find a solution to the new law there that increased their costs and upset their viability calculations, even as the regulation that did all this took effect on Monday.
The new regulation says coal sold from the country is to be indexed to the international price and revised annually.
Among the high profile projects facing uncertainty is TATA Power ultra mega power project in Mundra, which is to commission its first unit of 800 MW this month. Reliance Power UMPP at Krishnapatnam where site work is yet to begin is also awaiting clarity on what to do. Both companies have made representations to the power ministry. Adani Power 4,000 Mw project at Mundra would also see cost escalation on the fuel side.
Estimates say projects of this size will lose INR 2,000 crore annually due to fuel price fluctuations. The ministry of power has yet to come up with a decision on a request made by the Association of Power Producers to allow them to pass on increased fuel prices to buyers. Senior electricity authorities say a decision on this matter now rests with individual power procurers mostly state-owned power utilities.
Mr Pramod Deo chairman of the Central Electricity Regulatory Commission said “If they feel they need the power contracted to them, they can make the decision.”
Experts note there is now provision in the law which allows a company to pass on escalation of fuel costs after a contract has been signed. The imported coal-based projects of both TATA Power and Reliance Power were awarded after competitive bidding. The winning companies were to shoulder the responsibility to arrange coal from an international location and made bids based on these. Both had acquired coal assets in Indonesia.
Mr Anil Razdan an energy consultant said concessions should be offered to these projects to facilitate timely implementation.
(sourced from Business Standard)
Power projects that had planned to get coal from Indonesia are yet to find a solution to the new law there that increased their costs and upset their viability calculations, even as the regulation that did all this took effect on Monday.
The new regulation says coal sold from the country is to be indexed to the international price and revised annually.
Among the high profile projects facing uncertainty is TATA Power ultra mega power project in Mundra, which is to commission its first unit of 800 MW this month. Reliance Power UMPP at Krishnapatnam where site work is yet to begin is also awaiting clarity on what to do. Both companies have made representations to the power ministry. Adani Power 4,000 Mw project at Mundra would also see cost escalation on the fuel side.
Estimates say projects of this size will lose INR 2,000 crore annually due to fuel price fluctuations. The ministry of power has yet to come up with a decision on a request made by the Association of Power Producers to allow them to pass on increased fuel prices to buyers. Senior electricity authorities say a decision on this matter now rests with individual power procurers mostly state-owned power utilities.
Mr Pramod Deo chairman of the Central Electricity Regulatory Commission said “If they feel they need the power contracted to them, they can make the decision.”
Experts note there is now provision in the law which allows a company to pass on escalation of fuel costs after a contract has been signed. The imported coal-based projects of both TATA Power and Reliance Power were awarded after competitive bidding. The winning companies were to shoulder the responsibility to arrange coal from an international location and made bids based on these. Both had acquired coal assets in Indonesia.
Mr Anil Razdan an energy consultant said concessions should be offered to these projects to facilitate timely implementation.
(sourced from Business Standard)
Thursday, August 25, 2011
High coal prices in Indonesia to hit India’s power projects: Tata
Aug 24 2011 ,
By Vikas Srivastav
Mumbai:Tata group chairman Ratan Tata said the current Indonesian coal pricing
situation is acute and the company has approached the Indian government and the Indonesian government for a solution to keep the cost of power under control and make the upcoming ultra-mega power project in Mundra viable.
Addressing the 92 AGM of Tata Power, Tata said the higher price of coal from Indonesia is bound to impact the profitability of the firm’s projects. “I believe the blending of coal can offset the higher cost to some extent, but the situation is acute and we cannot blame the Indonesian government for being concerned about their country. I think Indian government will have to review the tariff structure. I think, the impact will be more on the power producers.”
“Although we have couple of mines in Indonesia and higher price of coal from these mines, in terms of operations, would mitigate the cost of power from Mundra project, but we need to reiterate to the government on tariff restructuring,” he said. Anil Sardana, MD of Tata Power, elaborated on the issue. He said the company plans to use low grade coal as an alternative to the higher priced Indonesian coal for its upcoming ultra-mega power project in Mundra. The company is already using the lower grade coal for its Trombay power plant. “We will source the low grade coal from Indonesia, Africa and our other existing mines and do the trial runs to find if they would be capable of reducing the cost of power from Mundra too as they have done at Trombay.”
In response to a question if they will be able to maintain the efficiency of their plants, he said, “these mines have sufficient amount of coal at their disposal and are willing to supply to us.”
As per the new formula notified by Indonesia’s directorate general of minerals, coal and geothermal, Indonesian coal producers will have to sell at prices notified by their government benchmarked against the international index. The benchmark price is to be based on a formula that refers to the average coal index price in accordance with international market mechanism.
According to market experts, due to the new pricing formula, price of Indonesian coal will go up by $30 a tonne and lead to a Rs 0.70 per unit increase in cost of electricity generation. Until recently, Indonesian coal producers had the freedom to sell their coal at their own price. All existing coal supply agreements with Indonesian coal mining companies will have to be modified to comply with new coal pricing regulations before September 23, 2011.
(sourced MyDigitalFC)
By Vikas Srivastav
Mumbai:Tata group chairman Ratan Tata said the current Indonesian coal pricing
situation is acute and the company has approached the Indian government and the Indonesian government for a solution to keep the cost of power under control and make the upcoming ultra-mega power project in Mundra viable.
Addressing the 92 AGM of Tata Power, Tata said the higher price of coal from Indonesia is bound to impact the profitability of the firm’s projects. “I believe the blending of coal can offset the higher cost to some extent, but the situation is acute and we cannot blame the Indonesian government for being concerned about their country. I think Indian government will have to review the tariff structure. I think, the impact will be more on the power producers.”
“Although we have couple of mines in Indonesia and higher price of coal from these mines, in terms of operations, would mitigate the cost of power from Mundra project, but we need to reiterate to the government on tariff restructuring,” he said. Anil Sardana, MD of Tata Power, elaborated on the issue. He said the company plans to use low grade coal as an alternative to the higher priced Indonesian coal for its upcoming ultra-mega power project in Mundra. The company is already using the lower grade coal for its Trombay power plant. “We will source the low grade coal from Indonesia, Africa and our other existing mines and do the trial runs to find if they would be capable of reducing the cost of power from Mundra too as they have done at Trombay.”
In response to a question if they will be able to maintain the efficiency of their plants, he said, “these mines have sufficient amount of coal at their disposal and are willing to supply to us.”
As per the new formula notified by Indonesia’s directorate general of minerals, coal and geothermal, Indonesian coal producers will have to sell at prices notified by their government benchmarked against the international index. The benchmark price is to be based on a formula that refers to the average coal index price in accordance with international market mechanism.
According to market experts, due to the new pricing formula, price of Indonesian coal will go up by $30 a tonne and lead to a Rs 0.70 per unit increase in cost of electricity generation. Until recently, Indonesian coal producers had the freedom to sell their coal at their own price. All existing coal supply agreements with Indonesian coal mining companies will have to be modified to comply with new coal pricing regulations before September 23, 2011.
(sourced MyDigitalFC)
Friday, August 5, 2011
The World's largest Coal Miner to invest in Indo mines
Friday, 05 August 11
Golden Energy Mines (GEMS) might go for initial public offering (IPO) by the end of September 2011. The company is planning to off load 15-20 percent of its share to the public by next month.
However, PT Dian Swastatika Sentosa Tbk (DSSA), a holding company for GEMS, is also planning to accommodate "the strategic investors" by offering 30 percent share prior to IPO or simultaneously with IPO.
According to industry, the world's largest coal producer, coal India limited, one of the Indian largest power producer, Tata power and Indian based largest infrastructure company GMR Infrastructure Limited are among the other potential investors who are currently negotiating with Golden Energy Mines.
Tata power and GMR are already had invested coal mines in Indonesia. Tata brought 30 percent share in Bumi Resources, Indonesia’s largest coal producer, which is controlling Kaltim Prima Coal and Arutmin. Meantime, GMR has brought a coal mine in Sumatra Island.
When we contacted PT Dian Swastatika Sentosa for confirmation about their potential investors, they refused to disclose the identity of the companies those are, negotiating with them. "We can’t to disclose the identity of companies that have been discussing with us to buy 30% share" said corporate Secretary of PT Dian Swastatika Sentosa Tbk (DSSA) Hermawan Tarjono.
“We will announce once we finalize the deal most probably by next month" Hermawan Tarjono said. "We are targeting to issue 15-20 percent shares to issue to public via IPO by the end of next month”, he added.
Coal India is the India's state owned coal miner was looking for government approval to invest in GEM.
According to a media, India's federal secretary C Balakrishnan was quoted by news wires as saying that the government may clear Coal India's proposal to invest in overseas assets by the end of August.The matter has been forwarded to the finance ministry for approval.
If coal India obtains the approval from government of India to invest in GEM, then the competition will be high as Coal India is keen on invest in overseas to secure coal for Indian market. According to a media, the deal would be around $ 750 million to $ 1 billion for 30 percent share of GEM mines, which is holding around 10 coal concession.
Dian Swastatika has extended the deadline for submitting bids to August 2011, from June possibly to accommodate coal India's bid.
However, an another Indian paper quoted that, Sinar Mas has extended its deadline because one of the short listed bidders, Tata Power Co, decided to withdraw from the race because of increasingly competitive bidding.
Golden Energy is targeting to produce 6-8 million tons of coal this year jumped around 3 - 5 million compared to last year production. GEMS is mainly producing coal with calorific value 4200 kcal/kg (GAR), 4800 kcal/kg (GAR), and 5300 kcal/kg (GAR) from its mines from Sumatra and South Kalimantan. GEMS coal supplies used to be done through Bunati Sungai Danau in South Kalimantan and Teluk Bayur Padang in Sumatra. South Kalimantan mine is producing around 5 million and 3 million tons come from its Sumatra mine.
According the company's website, production is expected to be ramped up to 15 million tons by 2014.
If you believe an article violates your rights or the rights of others, please contact us.
(By coalspot)
Golden Energy Mines (GEMS) might go for initial public offering (IPO) by the end of September 2011. The company is planning to off load 15-20 percent of its share to the public by next month.
However, PT Dian Swastatika Sentosa Tbk (DSSA), a holding company for GEMS, is also planning to accommodate "the strategic investors" by offering 30 percent share prior to IPO or simultaneously with IPO.
According to industry, the world's largest coal producer, coal India limited, one of the Indian largest power producer, Tata power and Indian based largest infrastructure company GMR Infrastructure Limited are among the other potential investors who are currently negotiating with Golden Energy Mines.
Tata power and GMR are already had invested coal mines in Indonesia. Tata brought 30 percent share in Bumi Resources, Indonesia’s largest coal producer, which is controlling Kaltim Prima Coal and Arutmin. Meantime, GMR has brought a coal mine in Sumatra Island.
When we contacted PT Dian Swastatika Sentosa for confirmation about their potential investors, they refused to disclose the identity of the companies those are, negotiating with them. "We can’t to disclose the identity of companies that have been discussing with us to buy 30% share" said corporate Secretary of PT Dian Swastatika Sentosa Tbk (DSSA) Hermawan Tarjono.
“We will announce once we finalize the deal most probably by next month" Hermawan Tarjono said. "We are targeting to issue 15-20 percent shares to issue to public via IPO by the end of next month”, he added.
Coal India is the India's state owned coal miner was looking for government approval to invest in GEM.
According to a media, India's federal secretary C Balakrishnan was quoted by news wires as saying that the government may clear Coal India's proposal to invest in overseas assets by the end of August.The matter has been forwarded to the finance ministry for approval.
If coal India obtains the approval from government of India to invest in GEM, then the competition will be high as Coal India is keen on invest in overseas to secure coal for Indian market. According to a media, the deal would be around $ 750 million to $ 1 billion for 30 percent share of GEM mines, which is holding around 10 coal concession.
Dian Swastatika has extended the deadline for submitting bids to August 2011, from June possibly to accommodate coal India's bid.
However, an another Indian paper quoted that, Sinar Mas has extended its deadline because one of the short listed bidders, Tata Power Co, decided to withdraw from the race because of increasingly competitive bidding.
Golden Energy is targeting to produce 6-8 million tons of coal this year jumped around 3 - 5 million compared to last year production. GEMS is mainly producing coal with calorific value 4200 kcal/kg (GAR), 4800 kcal/kg (GAR), and 5300 kcal/kg (GAR) from its mines from Sumatra and South Kalimantan. GEMS coal supplies used to be done through Bunati Sungai Danau in South Kalimantan and Teluk Bayur Padang in Sumatra. South Kalimantan mine is producing around 5 million and 3 million tons come from its Sumatra mine.
According the company's website, production is expected to be ramped up to 15 million tons by 2014.
If you believe an article violates your rights or the rights of others, please contact us.
(By coalspot)
Monday, March 14, 2011
NTPC to form JVs for foreign plants in 3 months
Monday, 14 Mar 2011 | Reuters
India's top power utility NTPC plans joint ventures in three months to build USD 3.5 billion power plants in Bangladesh and Sri Lanka.
In August, NTPC agreed with Bangladesh Power Development Board to set up two coal fired power plants of 1320 MW capacity each in an equal partnership venture. NTPC has also agreed to set up a 500 MW plant in Sri Lanka at a cost of about USD 500 million.
Mr Arup Roy Choudhury told Reuters in an interview that NTPC, whose 85% of current 33.2 GW capacity is coal based, has no plans to acquire overseas coal mines for at least two years as supplies for existing plants have been locked in.
I He said that "We plan to sign agreements on these two projects in 2 to 3 months with local joint venture partners.”
He said that NTPC which generates about 30% of the country's power, plans to add 25,000 MWs of electricity by 2017. Mr Roy Choudhury said that "Every third bulb in the country is lit by NTPC.”
While India has the world's fourth largest coal reserves, its coal imports have grown rapidly as Asia's third largest power producer seeks to step up capacities to end blackouts.
Power firms, including Reliance Power, TATA Power Co and Adani Enterprises have acquired coal assets overseas besides importing coal from Russia to power world's second fastest growing major economy.
But NTPC has no such plans at least for next two years.
He said that "We already have order for next two years in hand. I don't expect any overseas coal mine acquisition in at least two years. That might happen after two years, but definitely not now. We are not in a hurry to acquire overseas coal mines at least in two years."
India's coal imports in the current fiscal is estimated at 137 million tonne, junior coal minister Mr Pratik Prakashbapu Patil told lawmakers on Wednesday.
Sunday, February 20, 2011
New power plant equipment makers fear losing out to Chinese suppliers
Sunday, 20 Feb 2011
ET reported that Larsen & Toubro, Gammon-Ansaldo and other equipment makers, who hope to rival BHEL in India's power equipment market, fear they would lose out heavily to Chinese rivals as private power firms are willing to place orders only with tough conditions that add costs to their supplies.
Industry officials said that private power firms such as TATA Power, Reliance Power, Patel Engineering, Visa Power and Moser Baer Projects are asking equipment suppliers to give an undertaking that their foreign technology suppliers will ensure proper functioning of the equipment after delivery.
Technology providers, mostly in Europe, US and Japan, are not reluctant to provide such assurances, certification particularly to developing countries like India, and they would give such an assurance, called joint deed of undertaking, only if they also get royalty payment, equipment makers say. This would make it uncompetitive against Chinese equipment.
Industry experts said private power firms are demanding such undertakings, following the trend set by state-run companies like NTPC, Damodar Valley Corporation and state generation companies.
Mr Ravi Uppal MD and CEO of L&T Power told the ET that "Deed of joint undertaking is a double-edged sword. On one side it protects interest of the customer. The flip side is that outside partner also has a major say in which jobs and which terms to participate.”
He said that "When local players have established their credentials this kind of thing should not be insisted upon. The undertaking is being asked from local Indian companies for a joint venture, which they form with technology suppliers. In case of Chinese companies this doesn't apply. Suppliers charge a cost for making domestic suppliers uncompetitive.”
The problem is typical to private equipment companies' dealing in supercritical technology while state-run monopoly Bharat Heavy Electricals Ltd said it was in a position to ask for an exemption from the liability clause.
The energy efficient, supercritical technology is a forte of players in China, Korea and Russia but a relatively new area for Indian manufacturers. Cost of initial supercritical units in the country as it is more due to higher import content and low volumes.
Private power producers feel that fixing responsibility of foreign collaborators is a logical move as power equipment market in India is at a nascent stage. They said most lending institutions also compel generating companies to ask for equipment guarantees.
An Ansaldo Caldaie India spokesperson said that "As a matter of fact no foreign technology leader is prepared to sign a deed of undertaking covering total equipment. Technology providers are willing to sign back-to-back liability clauses. But besides loading to cost for the risk coverage, it is one of the serious bottleneck in up bringing power sector with world class technology at the speed it is required to meet national expectations.”
M S Unnikrishnan MD of Thermax India said that NTPC historically had the principle of taking joint deed of undertaking from technology suppliers. "But it is unfair on private companies' part to ask for it. We have been trying to negotiate with the private companies and inform them about our abilities."
(Sourced from ET)
ET reported that Larsen & Toubro, Gammon-Ansaldo and other equipment makers, who hope to rival BHEL in India's power equipment market, fear they would lose out heavily to Chinese rivals as private power firms are willing to place orders only with tough conditions that add costs to their supplies.
Industry officials said that private power firms such as TATA Power, Reliance Power, Patel Engineering, Visa Power and Moser Baer Projects are asking equipment suppliers to give an undertaking that their foreign technology suppliers will ensure proper functioning of the equipment after delivery.
Technology providers, mostly in Europe, US and Japan, are not reluctant to provide such assurances, certification particularly to developing countries like India, and they would give such an assurance, called joint deed of undertaking, only if they also get royalty payment, equipment makers say. This would make it uncompetitive against Chinese equipment.
Industry experts said private power firms are demanding such undertakings, following the trend set by state-run companies like NTPC, Damodar Valley Corporation and state generation companies.
Mr Ravi Uppal MD and CEO of L&T Power told the ET that "Deed of joint undertaking is a double-edged sword. On one side it protects interest of the customer. The flip side is that outside partner also has a major say in which jobs and which terms to participate.”
He said that "When local players have established their credentials this kind of thing should not be insisted upon. The undertaking is being asked from local Indian companies for a joint venture, which they form with technology suppliers. In case of Chinese companies this doesn't apply. Suppliers charge a cost for making domestic suppliers uncompetitive.”
The problem is typical to private equipment companies' dealing in supercritical technology while state-run monopoly Bharat Heavy Electricals Ltd said it was in a position to ask for an exemption from the liability clause.
The energy efficient, supercritical technology is a forte of players in China, Korea and Russia but a relatively new area for Indian manufacturers. Cost of initial supercritical units in the country as it is more due to higher import content and low volumes.
Private power producers feel that fixing responsibility of foreign collaborators is a logical move as power equipment market in India is at a nascent stage. They said most lending institutions also compel generating companies to ask for equipment guarantees.
An Ansaldo Caldaie India spokesperson said that "As a matter of fact no foreign technology leader is prepared to sign a deed of undertaking covering total equipment. Technology providers are willing to sign back-to-back liability clauses. But besides loading to cost for the risk coverage, it is one of the serious bottleneck in up bringing power sector with world class technology at the speed it is required to meet national expectations.”
M S Unnikrishnan MD of Thermax India said that NTPC historically had the principle of taking joint deed of undertaking from technology suppliers. "But it is unfair on private companies' part to ask for it. We have been trying to negotiate with the private companies and inform them about our abilities."
(Sourced from ET)
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