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Showing posts with label power plant. Show all posts
Showing posts with label power plant. Show all posts

Wednesday, February 15, 2012

JSW Energy to set up power plant in South Africa

Wednesday, 15 Feb 2012

ET reported that Integrated power generator JSW Energy, looking for suitable acquisitions inside India is planning to set up a 450-600-MW coal-fired plant in South Africa where the power sector is opening up for investment.

Mr Navraj Singh senior vice president, business development, JSW Energy said "We are interested in acquiring power projects in India. The sector will now see only serious long-term players. Many of the new players have put on hold their projects or are going slow,"

He said the decision on target companies would depend on the total package, whether land acquisition has been done and the like.

Mr Singh said "South Africa's power sector is now opening up. We have a mine there and are looking at setting up a power plant with a capacity ranging between 450 MW and 600 MW. We are also looking at additional mines in South Africa."

He said the company was also setting up a 240-MW hydel power project at Kuther in Himachal Pradesh for which land acquisition is under progress and bids for civil works are being evaluated.

He added that the company new projects in India are progressing at a good pace.

Mr Singh said "Land acquisition process is on for our Chattisgarh power project (2x660 MW). We will need about 300 acres. The project has got environmental clearance and water allocation.”

He also said "In West Bengal, we are putting up a 300-MW captive power plant for our steel mill. In the second phase we will put up a 1,320-MW (2x660 MW) project which will be an independent power producer (IPP) project."

Sector analysts said many of the domestic power projects have hit the roadblock and only long term players can continue in this space.

An analyst not wanting to be named told IANS that "There are small power projects in the south facing issues of fuel linkage/supplies. For JSW Energy, the path for faster growth is through acquisitions. The kind of projects that would entice the company would be those having land on hand but not fuel linkage, or strong balance sheet to look for other options like imports or going in for own coal mine."

Meanwhile, JSW Energy, with a domestic generation capacity of 2,600 MW is planning to put up a pit head power plant in South Africa where it has a 0.5 million tonne coal mine.

(Sourced from ET)

Wednesday, November 23, 2011

Coal production can not keep pace with demand in India - Mr NC Jha

Wednesday, 23 Nov 2011

Disappointed at the pace at which Coal India Ltd is able to build infrastructure to move coal from mines and to scale up production, Mr NC Jha chairman and MD of CIL said that the state owned miner can only supply half the country’s thermal coal needs.

Q - How do you explain the decision to build your own power plant when you are unable to fulfil the country’s thermal coal needs?

A - There are so many power plants in India, and CIL building another one doesn’t make any sense unless you consider the specific problems of the coalfield where this power plant is proposed to be built. We have decided to set up a 1,600 MW power plant at the Ib-Vasundhara coalfield, which is run by our subsidiary Mahanadi Coalfields Ltd. There are four-five mines in this coalfield, and the potential to scale up production at these mines is huge.

Though we have initiated the process of laying a 54km railway track to connect the Ib-Vasundhara coalfield, moving coal from there will always be difficult. The plan is to ramp up production and burn the coal at the pithead. It is to optimally exploit the production potential of this coalfield that we have decided to set up a power plant in partnership with a power company, and have asked Power Finance Corp. to help us identify a suitable partner for the project.

We have similar problems in at least three other coalfields. Though we haven’t considered setting up power plants at these coalfields, logically speaking, this experiment could be extended to other areas as well where production is hobbled by infrastructure bottlenecks.

sourced: Livemint.com

Sunday, November 6, 2011

India heavy industries ministry to push for 14pct duty on power gear imports

Sunday, 06 Nov 2011

India heavy industries minister, Mr Praful Patel said that his ministry supports the demand of local power equipment makers for the imposition of a 14% duty on imported power gear.

Mr Patel told reporters that “There is a strong case for a tax on imported equipment… Besides tariff barriers, other options are also being looked at.”

Mr Patel had met top executives from domestic power equipment firms such as Bharat Heavy Electricals Ltd, Larsen & Toubro Ltd and Bharat Forge Ltd, as well as power generation major NTPC Ltd, on the demand by power equipment firms for a level playing field vis à vis imported gear. Apart from industry players, senior officials of the ministries of heavy industries, power and commerce attended the meeting.

There was, however, no decision on the proposal for levying 14% duty on imported power equipment. Other options on the table include action in the form of safeguards or anti dumping measures that could be examined by the domestic manufacturers affected by cheap Chinese imports, in consultation with the Commerce Ministry.

The issue comes up at a time when equipment contracts for around 37,626 MW of upcoming power capacity are estimated to have been placed with Chinese vendors. Currently, equipment imports attract zero levy under the centre's Mega Power Policy for thermal projects of 1,000 MW and above.

(Sourced from BL)


PGCIL plans INR 5000 crore for transmission network in Gujarat

Sunday, 06 Nov 2011

State run Power Grid Corporation has set aside around INR 5,000 crore for setting up transmission network in Gujarat by October next year.

A company official said that PGCIL's network would connect Bhachau, Morbi, Lalpar and Halvad at Gujarat's Kutch district.

The official said that the company has already commissioned transmission system for two units of the Mundra Ultra Mega Power Project in Gujarat. These are part of the transmission system associated with Mundra UMPP, being implemented by Power Grid at an estimated cost of about INR 5,000 crore.

The 4,000 MW Mundra project, being developed by TATA Power, will be the first UMPP to start power generation in the country.

The line is ready to evacuate power from two units of Mundra UMPP (2X800 MW) in normal condition and more than 1,200 MW in the contingency.

The system commissioned consists of high capacity Mundra-Bachau-Ranchodpura 400 kV Double circuit line along with 630 MVA Bachau 400/220 kV sub-station.

These are part of the transmission system associated with Mundra UMPP, being implemented by Power Grid at an estimated cost of about INR 5,000 core.

About 770 circuit kilometres transmission line has been commissioned in challenging conditions like passing through tough terrains in creek area of Arabian Sea, excessive water logging due to heavy rains, etc.

(Sourced from PTI)

Saturday, October 22, 2011

Mr Pratik Prakashbapu to probe low coal production at MCL

Saturday, 22 Oct 211

According to Mr Pratik Prakashbapu Patil Union Minister of state for coal, he would enquire into the reasons behind low coal production in the Mahanadi Coalfields Ltd.

Mr Patil said he was informed about low production of coal in MCL mines due to heavy rains and other difficulties in the area.

He said that "Therefore, I have specially come to see why the supply of coal has come down, adding that he would ascertain whether it was rain or some other reason.”

Official sources said Patil would visit some of the MCL mines of Talcher tomorrow and hold discussion with different stake holders.

Earlier, NTPC, NALCO and many other captive power plants and independent power producers had lodged complaint against the MCL over inadequate supply of coal for their consumption. Even, NALCO had been importing coal to run its CPP in order to supply power to its smelter at Angul.

sourced from moneycontrol

Friday, October 21, 2011

Chinese coal prices up by 2pct

Friday, 21 Oct 2011

China's raw coal prices edged up further last week, buoyed up by increased demand from coal consumers for winter use, the Ministry of Commerce was cited as saying.

The demand for the fuel has escalated as coal consumers try to stockpile ahead of a frosty winter. Power plants in South China also accelerated purchasing activity, which gave another push for the price hike. The price of lignite, soft coal and anthracite was up by 2.8%, 1.5% and 1.3% respectively.

Industry sources reported that the price of thermal coal produced in Shanxi province increased by 2.1% at Qinhuangdao port on October 14 compared with a week earlier.

Bohai-Rim Steam-Coal Price Index, or BSPI gained by CNY 10 to CNY 842 compared with the previous week. The weekly gauge tracks power-station coal prices at six major Chinese ports.

(source steelhome)

Tuesday, October 18, 2011

Coal shortfall hits steel production in Bengal


Tuesday 18 October 2011
ByMithun Dasgupta

Kolkata, Oct 18 (IANS) Production in the secondary steel sector of West Bengal has fallen as heavy rains have prevented the state-run Coal India Limited (CIL) from supplying enough of the vital raw material.

The sector expects to be further hit because there will be no e-auction of coal for it this month. It is on hold to divert the raw material to power stations. These auctions are a 'lifeline' to the secondary steel sector.

Coal supply to power and steel plants are badly affected as the coal giant was unable to meet its target in the first half of the current fiscal, the output falling short by around 20 million tonnes (MT) due to adverse weather conditions.

Against the target of 196 MT, largely due to heavy rains the Maharatna company could produce only about 176 MT of coal from April to September.

Steelmakers said the coal crisis for the steel sector will aggravate further with CIL's recent decision to offer four million tonnes of additional coal by e-auction to the power sector in October.

'Plants in West Bengal are on the verge of closing down due to acute coal shortage,' Kolkata-based Shyam Steel director Lalit Beriwala told IANS. 'We have been particularly facing severe shortage of coal for the last six months because of short supply from the CIL.'

Beriwala said the state was currently producing at half its installed capacity.

'No new coal linkage has been given for the last four years in the state,' he said.

He said prices of coal distributed through e-auction were very high; moreover, no trader should be allowed in the e-auction because they tend to jack up prices.

The coal distribution policy in the country has to be changed, he said.

On CIL's decision to put on hold the e-auction for the month of October, Beriwala said it will aggravate the coal crisis for steel producers as they purchased a bulk of coal through this medium.

'Now 70 percent of the steel plants will be closed down in West Bengal. I do not know what will be the fate of industry in the state if the government does not take any action,' he added.

Another major steelmaker in the state, Jai Balaji Group, said it had resorted to more coal import from abroad.

'For the last few months, we have been facing severe shortage of domestic coal supplied by CIL and its subsidiaries,' Jai Balaji Group chairman and managing director Aditya Jajodia said.

'Due to that our coal import has been increased by 25 percent. As a result cost of steel production has soared by about 40 percent,' he added.

Jajodia said CIL's decision on e-auction of coal was a 'negative development'. 'It will hurt steel sector as a whole,' he added.

Santosh Bajaj of the Merchants' Chamber of Commerce (MCC) said the steel sector in the state was facing supply as well as demand constraints.

'Bengal steel plants are facing a raw materials crisis, more in the recent times, because of the short supply in coal. Demand for steel is low because of low spending on infrastructure. If demand was high then the base price would have been higher. It would have ensured good profit for steel makers,' Bajaj said.

Moreover, according to him, steel producers are also facing a working capital crisis as interest rates are too high.

'Financially they are in a pathetic condition,' he added.

Xstrata’s thermal coal production up 13 percent in Q3

Tuesday, 18 October 2011

On October 18, Australian coal producer Xstrata announced its production results for the third quarter of 2011. Accordingly, Xstrata's total consolidated coal production in the given quarter rose by 1.7 million mt compared to the corresponding quarter of 2010 to 23.6 million mt, hitting a quarterly production record. The Australian company's thermal production in the third quarter this year, including semi-soft, was 13 percent or 1.6 million mt higher than the same period in 2010, mainly due to the successful commencement of operations at the Mangoola open-cut mine ahead of schedule in February 2011.

Xstrata posted a 26 percent increase in coking coal production in the third quarter of the year, primarily due to full production from the Tahmoor underground mine in New South Wales compared to the same period last year when industrial action significantly impacted production.

Meanwhile, Xstrata's total nickel production in the third quarter of 2011 increased to 26,738 mt, 15 percent higher than the same period last year. This increase was driven by the successful ramp-up of the Falcondo ferronickel complex in the Dominican Republic to exceed the planned annualized run-rate of 14,000 mt of nickel in ferronickel, 50 percentof its installed capacity. Falcondo contributed 3,708 mt in the third quarter, six percent above the planned run-rate and representing an annualized run-rate of close to 15,000 mt of nickel in ferronickel.

In response to weaker market conditions, scheduled maintenance programs at the furnaces during the high-electricity-tariff South African winter were extended, resulting in reduced operating capacity utilization of 52 percent. Consequently, ferrochrome production was 18 percent lower in the third quarter of 2011 compared to the same period in 2010.

According to the statement, Xstrata's base metal and coal operations remain on track to deliver a stronger second half performance compared to the first half of 2011.

Tags: coking coal , raw mat , Australia , Oceania , production , mining , Xstrata


Telangana: Coal production resumes, schools reopen

Indo Asian News Service,

Tuesday 18 October 2011

Hyderabad, Oct 18 (IANS) After over a month, coal production resumed in the state-run Singareni coal mines Tuesday while schools and colleges that were shut in support of a separate Telangana reopened in Andhra Pradesh.

Coal workers in 50 mines spread over four districts of Telangana returned to work after unions decided to 'temporarily' call off their strike around midnight Monday.

Telangana Joint Action Committee (JAC) convenor M. Kodandaram announced an end to the strike after talking to the management of the company on behalf of the unions.

The management agreed to treat the strike period as special leave, pay festival advance and promised to take back cases registered against the strikers.

The resumption of coal production in Singareni after 35 days has come as a huge relief to six states including Andhra Pradesh, Maharashtra and Karnataka which were reeling under electricity shortage.

Andhra Pradesh and other states had imposed electricity cuts on domestic, industrial and agricultural sectors as electricity generation at thermal power stations was badly affected by the strike.

Singareni officials said about 22,000 workers reported for duty against the workforce of 40,000 for the first shift.

As the information about withdrawal of strike has not reached many employees, officials expect normalcy to be restored only from Wednesday.

About 70,000 Singareni employees were on strike since Sep 13, paralyzing coal production.

With a section of workers in Khammam district later calling off the strike, production of 30,000 to 50,000 tonnes of coal was taking place. The normal daily coal production in the mines is 150,000 tonnes.

Singareni suffered a loss of Rs.600 crore due to the strike. It lost another Rs.120 crore towards payment of wages to the employees during the strike period.

Government and private educational institutions also reopened in Telangana after more than a month.

About 150,000 government teachers withdrew the strike after talks with Chief Minister N. Kiran Kumar Reddy Monday night.

The government agreed to all their demands except formation of Telangana state saying the issue does not come under its purview.

The development followed JAC's decision to exempt educational institutions from the strike.

Private schools, colleges, technical and professional education institutes also reopened across Telangana, comprising 10 districts including Hyderabad.

The managements of these institutions said they would run classes on Saturdays and other holidays to make up for the loss of school days during the strike.

The government had threatened to derecognise educational institutions which failed to reopen from Tuesday.

The development came as a big relief to parents. JAC was also under pressure to exempt educational institutions in view of concerns that students may lose the academic year.

The employees of the Andhra Pradesh State Road Transport Corp (APSRTC) withdrew their 28-day strike Saturday.

With this, only government employees in Telangana are continuing the strike. The government is hopeful of an early breakthrough in the talks with the employees' unions.

Monday, October 17, 2011

Xstrata's S.Africa ops disrupted by strike


Mon Oct 17, 2011

JOHANNESBURG (Reuters) - The South African operations of global miner Xstrata were disrupted on Monday after hundreds of workers joined a walk-out in protest over an employee share ownership programme, the company said.

Xstrata spokesman Songezo Zibi said the impact of the strike on its coal and alloys operations was yet to be determined.

"All Xstrata Coal South Africa's operations are affected and a number of Xstrata Alloys operations have also been impacted," he said in a statement.

Xstrata's South African operations produced 8.4 million tonnes of thermal coal and 581,000 tonnes of ferrochrome, used to make stainless steel, in the six months to the end of June.

The alloys operations also produce vanadium and platinum group metals.

The National Union of Mineworkers (NUM) said last week it wanted employees to be compensated equally under a proposed share ownership programme, regardless of rank, while the company's plan compensates employees based on their level.

Around 5,180 workers or 43 percent of Xstrata's total workforce in South Africa are members of the NUM.

The union said it expected all of the workers to participate in the strike, although it was still counting the numbers of those who have walked off the job. Spokesman Lesiba Seshoka said other unions, which represent additional workers at Xstrata, may join the strike.

"The strike is extensive and full-blown," Seshoka said.

He said the union expected the company to respond to its demands later on Monday, although no formal meetings had been scheduled.

Xstrata's Zibi said all discussions regarding the employee share ownership programme were suspended due to the strike.

The company employs just under 12,100 workers in South Africa, and three-quarters of them belong to unions.

Xstrata shares were down 0.64 percent in London at 1333 GMT, compared with a 0.13 percent fall in the FTSE 100 index.

Companies with operations in South Africa set up employee share programmes to increase worker ownership, particularly black ownership.

South Africa's black economic empowerment drive is aimed at rectifying the ownership and income disparities of white-minority apartheid rule.

(sourced Reuters)

US coal consumption up 3pct last week - Genscape

Monday, 17 Oct 2011

Reuters quoted according to power industry data monitor Genscape that US coal consumption rose 3% last week but was down 6% from the same week a year ago.

Coal use swings up and down seasonally, and varies from week to week and region to region depending on electricity demand to run air-conditioners or power heaters.

Economic activity also is a factor.

Coal plants produce slightly less than 50% of US electricity. Power generation accounts for more than 90% of US coal consumption.

Genscape regional indexes are calculated separately from the national index and do not always add up to the separately calculated US total.

(sourced from Reuters)

Raspadskaya coal output declines in first nine months

Monday, 17 Oct 2011

It is reported that in the January to September period of the current year, Russia second largest coking coal producer Raspadskaya coal output decreased by 21%YoY to 4.669 million tonnes.

During the period in question, Raspadskaya sales of coal concentrate went down by 38%YoY to 2.766 million tonnes while its sales of run-of-mine coal increased by 8.6 times to 802,000 tonnes.

In 2011, Raspadskaya will cut coal production by 20% from the scheduled level of 8.5 million tonnes.

(sourced steelorbis)

Sunday, October 16, 2011

S.Africa miners to begin Xstrata strike Sunday -union

Sun Oct 16, 2011

* Workers to strike from 1600 GMT Sunday
* Dispute is over employee share programme

JOHANNESBURG Oct 16 (Reuters) - South African miners will go on strike at Xstrata Plc later on Sunday over an employee share ownership programme, a union spokesman said.

"It begins at 1800 (1600 GMT) this evening," Lesiba Seshoka, a spokesman for the National Union of Mineworkers, said in a text message to Reuters.

The strike will affect all of the diversified miner's South African operations, Seshoka said. The Anglo-Swiss mining firm has both coal and alloy operations in South Africa.

More workers are likely to walk off the job at the start of Monday's morning shift.

No one was immediately available for comment at Xstrata.

The union wants employees to be compensated equally under the share ownership programme, regardless of rank, while the company's plan compensates employees based on their level.

Companies with operations in South Africa set up employee share programmes in a bid to increase worker ownership, and particularly black ownership.

South Africa's black economic empowerment drive is aimed at rectifying the ownership and income disparities of white apartheid rule.

(sourced Reuters)

Power situation may worsen as Coal India Ltd workers threaten strike

16 Oct, 2011, PTI

New Delhi: The government's efforts to improve the grim power situation due to coal shortage may come to a naught, with CIL workers threatening to go on a 72-hour strike demanding a hike in bonus and pay revision

"Over three lakh workers of CIL along with two lakh contract workers would proceed on a 72-hour strike immediately if the Coal Ministry fails to address their demands, including a hike in bonus and pay revision," All- India Coal Workers Federation General Secretary Jibon Roy told PTI.

State-run Coal India Ltd (CIL) is the world's biggest coal producer and accounts for over 80 per cent of the domestic production.

"The Coal Ministry has called a meeting with workers' unions of Coal India (CIL) on October 17 which will be chaired by Coal Minister Sriprakash Jaiswal," CIL Chairman and Managing Director N C Jha said.

The ministry will convince workers not to resort to strike which could further aggravate the shortage of coal supplies, as power companies are already battling with less supply, an official said.

The five workers' unions-- the Indian National Trade Union Congress (INTUC), the Centre of Indian Trade Unions (CITU), the All India Trade Union Congress (AITUC), the Hind Mazdoor Sabha (HMS) and the Bhartiya Mazdoor Sangh (BMS)-- have threatened to proceed on if their demands are not met.

Coal India has offered an annual bonus of Rs 17,000 per worker, while the unions are demanding for a minimum bonus of Rs 23,500 per employee.

The workers of the company had earlier gone on a one-day strike on October 10, which resulted in production loss of around one million tonnes for CIL, causing it a revenue loss of about Rs 140 crore.

The state-run miner has also missed its half yearly production target by around 20 million tonnes at a time when shortage of coal is causing problems in power generation in many parts of the country.

The threat to proceed on strike comes at a time when 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-- the key raw material for generating electricity.

Various 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 less production from CIL collieries due to heavy rains, floods in Orissa and Telangana agitation, have hit coal supplies to power units.

At present, over 40 thermal power stations have coal stocks that is barely sufficient to meet the demand for about a week. As many as 29 projects have less than four days of coal reserves

The government has already asked coal companies, including CIL, to step up supply to power stations facing shortage of the dry fuel to ensure that the power generation is not interrupted.

(sourced ET)

Saturday, October 15, 2011

Essar Energy revives power purchase pact with Gujarat utility

Sat, Oct15, 2011

London: Essar Energy has revived a 25-year contract to supply Gujarat with 800 MW of power that was terminated two months ago.

The long-term power purchase agreement with Gujarat State electricity utility, Gujarat Urja Vikas Nigam Ltd was terminated in August, just three months after it was signed.

GUVNL had failed to meet certain conditions of the agreement within the agreed timetable, London-listed Essar Energy said at the time, not specifying what they were. Now the contract was being revived after the conditions had been satisfied, it said.
Tariff

Essar Energy will supply GUVNL with power at a levelised tariff of Rs 2.80 per kWh net of transition costs, according to the same terms struck in May. The supplies will come from Salaya II, the 1,320 MW capacity power plant, run on imported coal, due to be commissioned in the first quarter of 2014.

The rate is below that agreed in a contract signed with the Bihar Electricity Board in August. Essar Energy will supply 300 MW of contracted capacity for 25 years from its Tori power station in Jharkand at a levelised tariff of Rs 3.28 per kWh, significantly higher than a previous contract with the same electricity board. The deal prompted hopes that the firm could achieve higher tariffs from deals in the future, according to analysts.

Essar Energy currently has 1,600 MW of capacity operational, and an additional 8,070 MW under construction, as it hopes to increase power generation's contribution to its overall revenues, currently dominated by its refinery business. Other projects under construction include Mahan 1 in Madhya Pradesh, with 1,200 MW capacity, Salaya I, and III in Gujarat, with 1,200 MW and 600 MW capacity respectively.

Keywords: Essar Energy, Gujarat Urja Vikas Nigam, power purchase agreement, coal imports

(sourced Business Line)

Karnataka state will buy 1 million tonnes of imported coal

Sat,Oct15,2011

BANGALORE: Finally, the state has come up with a contingency plan to overcome hurdles in power generation due to coal shortage. It has placed orders to buy 1 million tonnes of imported coal from domestic sources to run its two major thermal power stations in north Karnataka.

"Though we cannot run our thermal plants purely on imported coal, we have decided to blend imported and domestic coal (20:80 ratio)," Karnataka Power Corporation (KPC) managing director Yogendra Tripathi said. Tripathi said the state government is buying imported coal from an Indian company ( Gupta Coal India Ltd) at Rs 5,700 per tonne, that's approximately Rs 570 crore for 1 million tonnes.Officials said use of imported coal will raise generation cost by more than Re 1 per unit.

Energy minister Shobha Karandlaje said the government is also looking at importing coal from Australia or Indonesia. "Our officials are trying to obtain a coal mining lease if it's available,'' she said in New Delhi on Wednesday.

(sourced TOI)


Coal India forced to divert e-auction lot

Saturday, Oct 15, 2011

By Sumit Moitra,DNA

Kolkata: Failure to supply adequate coal to the power sector creating spectre of wide spread power outages across the country has forced.

The coal ministry has directed Coal India to offer 4 million tonne of coal earmarked for the lucrative e-auctions to state-owned power plants in a bid to tide over the fuel crisis.

Coal India said the diversion is only for October.

Diversion of coal from e-auction to power sector, to which coal is sold at the base or notified price, would surely impact its profitability.

Coal India is supplying 900,000 to 950,000 tonne of coal to power plants every day, chairman Nirmal Chandra Jha said on Friday, without elaborating.

“The power sector is facing acute shortage of coal. In order to make more coal available to them, this month’s e-auction quota is being offered to them to lift the coal from as-is-where is basis by making their own arrangement. And that will be within the overall FSA quantity,” Jha said.

The miner has contracts to sell 347 million tonne of coal to utilities this year, said IA Khan, a deputy adviser at India’s Planning Commission.

“Most of the problems caused by heavy rains have been resolved, but we are hearing that there could be more strikes,” Choudhury said. “The situation in Telangana is fluid, but we’re doing our best to get back to normal.”

Pinakin Parekh and Neha Manpuria, analysts with JP Morgan said in a note on Friday that e-auction coal sales contributed 26% of Coal India’s Ebidta or operating profit, based on the first-quarter figures, and 11-12% of volumes.

State-owned power producer NTPC is struggling to keep some of its units going as coal supplies hit an all-time low partly due to Coal India’s overall poor output and also due stoppage of mining at Singareni Collieries due to the Telengana agitation.

Thursday, October 13, 2011

Indonesia's coal rush - JOSEPH KIRSCHKE

Thu, 13 October 11

Last winter, the Chinese government mobilized thousands of soldiers and reservists of the People’s Liberation Army to the port of Qinhuangdao, the shipping point for more than half the country’s coal, in northeast China. Their collective mission: to help load and supply imported coal to avert massive power outages.

Amid a summer heat wave, China, which relies on half the world’s coal supply for 70 percent of its energy, is again in bad shape — even as it simultaneously mines coal and imports it at record levels. The Railway Ministry has deployed trains nationwide as 20 regions have instituted rations to cope with a power deficit far above that of Japan’s after the March tsunami.

All this is a plus for Indonesia, Southeast Asia’s biggest economy, which already exports more coal to China than any other nation. But Beijing’s increasing focus on innovation, economic sustainability and the environment means that thermal coal, or steam coal, will allow coal companies in Indonesia even more profits as China heaves further into the 21st century. Thermal coal is used for power generation, and Indonesia has more of it than any country in the world.

China is now the world’s leading consumer of coal — bringing in some 200 million tons of it at last year — since importing began four years ago, despite having the third-biggest reserves on the planet. But China’s domestic coal market faces serious hardships; each one drives up import demands, all contribute to a long-term drop in production.

Payloads from distant Inner Mongolia and Xinjiang, for example, face ramshackle highways: a 100-kilometer, two-week-long traffic jam filled with coal trucks just outside Beijing last year was nothing if not a reminder. Record mining fatalities — some 80 percent of the world’s total with 3,000 deaths annually — are also prompting authorities to shutter mines by the thousands. At the same time, according to Beijing’s China Coal Research Institute, four-fifths of all Chinese coal fails to meet national industrial standards.

But for a country building a new power plant weekly, with the world’s largest carbon footprint, the environment and energy efficiency are a priority. This is underscored in Beijing’s 12th Five-Year Guideline, a policy mandate dating back to foundation of the People’s Republic in 1949. In it, the Communist Party of China now emphasizes economic and environmental sustainability, including further use of thermal coal — both high-grade and low in sulfur.

This is excellent news for Indonesia. China, in fact, is predicted to more than double thermal coal imports to 200 million tons by 2015, up from 90 million tons this year, as 39 percent of the world’s increase will come from Indonesia. By 2030, global coal production is projected to reach seven billion tons — 5.2 billion of it being steam coal. Thermal coal, thus, is set to outstrip the value of all other Indonesian export commodities — well above other types of coal, minerals and natural gas.

Straddling the “Ring of Fire,” Indonesia is to geothermal power what the Persian Gulf is to oil — with 40 percent of the world’s thermal coal. This is an energy source used by 70 other countries and is considered highly sustainable. Indeed, thermal coal is already considered one of the most prized commodities on the planet.

China’s trend isn’t entirely new. In recognizing its value in reducing acid rain and greenhouse gases while increasing the efficiency of its coal-fired power plants, China has greatly surpassed the United States in its “clean coal” capacities. Developments include the 2008 establishment of a $73 million thermal coal research facility by the Chinese Academy of Sciences and British Petroleum. And Beijing has acquired 41 patents on thermal coal technology in the last 30 years.

Not only the European Union, Washington, too, has partnered with Beijing. It has done so in particular via China’s Thermal Power Research Institute, a leading research organization that has licensed technology to a US clean coal energy initiative. Previously scrapped due to high costs, the project was revived with $1 billion from the Obama administration in 2009.

This demand equals a win-win for Indonesia’s thermal coal companies — and, by extension, Indonesia, thanks to its low-cost work force and shipping industry. In May, President Susilo Bambang Yudhoyono officially announced a $468 billion economic master plan for 2011 to 2025 that some have called “ambitious.”

His wish may have already been granted.

About Joseph Kirschke
Joseph Kirschke is a Jakarta/Beijing-based Communications Consultant and Political Analyst who works with international investors, media and energy and trade companies.


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(sourced coalspot)

Wednesday, October 12, 2011

Coal ministry to pull up CIL for missing production targets in Q1

Wednesday, 12 Oct 2011

PTI reported that Coal India Limited has blamed its failure to keep to production targets in Q1 this fiscal on rains and delays in securing green clearances, but the Indian coal ministry is in no mood for excuses and has called a meeting this week on the issue, where it is likely to berate the Navratna PSU's top brass.

An official in the coal ministry said “Coal India will be pulled up for missing its output target in the production target review meeting to be held this week.”

The meeting, to be chaired by Indian coal minister Mr Sriprakash Jaiswal, will be attended by officials of the coal ministry, CIL CMD Mr NC Jha and the CMDs of all the subsidiaries of CIL.

CIL had blamed early rains and inclement weather in the eastern region for playing spoilsport in achieving its 98.7 million tonne coal production target for the first quarter. In addition, a plethora of problems like delays in the grant of green clearances for its projects hurt production by CIL, which missed the April-June target by 2.4 million tonnes.

(Sourced from PTI)

Power crisis continue across the country

By Shambhavi RaiShambhavi Rai, CNN-IBN

Wed, Oct 12, 2011

New Delhi: There has been a severe power shortage for the last few days across Maharashtra and Karnataka. The two state governments have assured that the situation will soon be back to normal. With the states hit by one of its worst power crisis in recent times, people have begun attacking power distribution offices across the state.

The reason for the crisis is shortage of coal supply to power plants that has crippled power generation.

And it's not just Maharashtra, the capital too has faced up to four hours of power cuts everyday. Delhi power minister Haroon Yousuf said things will back to normal in two days. Yousuf blames UP for withdrawing more than its fair share of power form the Northern Grid.

Even Karnataka is severely hit with upto eight hours of load shedding in rural areas. While the Telangana crisis in neighbouring Andhra is being blamed for disruption in coal supplies, the Chief Minister says all is well.

Karnataka Chief Minister DV Sadanananda Gowda said, "We will get 500 MHZ of power from UPCL. For the time being we are commissioning a second unit of power transmission. We are meeting the Centre on October 14 and we hope they'll cooperate with us. We will provide full power on Deepavali, you can all enjoy."

Across India states have promised better power supply - but with the festival of lights round the corner, will it be a dark Deepavali?

(sourced IBNLive)

key word: Power Crisis, Maharashtra, New Delhi, Mumbai, UP, Mumbai, Karnataka , Powerless, Electricity