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)
Showing posts with label power firms. Show all posts
Showing posts with label power firms. Show all posts
Tuesday, February 7, 2012
Saturday, October 15, 2011
Coal Ministry steps up coal supply to power firms
15 Oct, 2011
NEW DELHI: Amid coal shortages hitting power generation in the country, the government today said it has stepped up the supplies to power firms to overcome the crisis of load-shedding.
The ministry swung into action after electricity supply was badly hit in some parts, including North India.
"The coal dispatch has now increased to 180 rakes... out of which 149 rakes have been supplied to power sector," the coal ministry said in a statement.
The ministry had said yesterday that coal dispatches have increased to 169 rakes (as on Thursday), out of which 148 rakes had been supplied to the power sector
Coal Minister Sriprakash Jaiswal had said on Wednesday that normalcy in coal supply to power firms would be restored within 48 hours.
The total dispatches are likely to be increased further over the next few days, the statement said.
In order to meet the requirements of the power stations in north, the ministry said that it was targeting to increase the supply of rakes to 53 per day. The ministry had dispatched on an average 40 rakes per day of coal in the current month.
"The power plants in the northern region were supplied 140 rakes during the last three days, which includes 16 rakes to Badarpur TPS (Thermal Power Station) and 20 rakes to Dadri TPS," the statement said.
The ministry also said that the coal stock in the power houses, particularly north, was being monitored very closely and wherever required the supply of the fossil fuel was being increased.
"The coal companies have been advised to ensure priority movement of coal to the power stations," the statement said.
The power situation in the country is grim as many plants of the country's largest power generator NTPC are running below capacity levels due to paucity of coal.
Many states including Delhi, Maharashtra, Karnataka and West Bengal, have seen power cuts for long hours in the past few days.
A slew of factors, including floods in Orissa and Telangana agitation, have hit coal supplies to power units.
At present, over 40 thermal power stations have coal stocks sufficient to meet demand for less than a week. As many as 29 projects have less than four days of coal reserves.
(sourced ET)
NEW DELHI: Amid coal shortages hitting power generation in the country, the government today said it has stepped up the supplies to power firms to overcome the crisis of load-shedding.
The ministry swung into action after electricity supply was badly hit in some parts, including North India.
"The coal dispatch has now increased to 180 rakes... out of which 149 rakes have been supplied to power sector," the coal ministry said in a statement.
The ministry had said yesterday that coal dispatches have increased to 169 rakes (as on Thursday), out of which 148 rakes had been supplied to the power sector
Coal Minister Sriprakash Jaiswal had said on Wednesday that normalcy in coal supply to power firms would be restored within 48 hours.
The total dispatches are likely to be increased further over the next few days, the statement said.
In order to meet the requirements of the power stations in north, the ministry said that it was targeting to increase the supply of rakes to 53 per day. The ministry had dispatched on an average 40 rakes per day of coal in the current month.
"The power plants in the northern region were supplied 140 rakes during the last three days, which includes 16 rakes to Badarpur TPS (Thermal Power Station) and 20 rakes to Dadri TPS," the statement said.
The ministry also said that the coal stock in the power houses, particularly north, was being monitored very closely and wherever required the supply of the fossil fuel was being increased.
"The coal companies have been advised to ensure priority movement of coal to the power stations," the statement said.
The power situation in the country is grim as many plants of the country's largest power generator NTPC are running below capacity levels due to paucity of coal.
Many states including Delhi, Maharashtra, Karnataka and West Bengal, have seen power cuts for long hours in the past few days.
A slew of factors, including floods in Orissa and Telangana agitation, have hit coal supplies to power units.
At present, over 40 thermal power stations have coal stocks sufficient to meet demand for less than a week. As many as 29 projects have less than four days of coal reserves.
(sourced ET)
Monday, March 28, 2011
China approves plan for state emergency coal reserve
March 28, 2011 By He Shan
The State Council, China's cabinet, has approved a program for an emergency national coal reserve, which will build up five million tons of coal this year, according to a source from the China Coal Industry Association.
The coal reserve will ensure the supply for power firms in case a major natural disaster or accident disrupts the coal supply.
Ten major coal mining companies, including Shenhua Group Corp. Ltd. and China National Coal Group Corp., have been selected to build storage facilities for coal across the country, while eight major coal shipping ports, including Qinhuangdao Port, Zhoushan Port, Guangzhou Port, Wuhan Port and Zhuhai Port will also be involved in the program.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy. ( sourced:China.org.cn)
The coal reserve will ensure the supply for power firms in case a major natural disaster or accident disrupts the coal supply.
Ten major coal mining companies, including Shenhua Group Corp. Ltd. and China National Coal Group Corp., have been selected to build storage facilities for coal across the country, while eight major coal shipping ports, including Qinhuangdao Port, Zhoushan Port, Guangzhou Port, Wuhan Port and Zhuhai Port will also be involved in the program.
China's business press carried the story above on Monday. China.org.cn has not checked the stories and does not vouch for their accuracy. ( sourced:China.org.cn)
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