ONGC, Shell Explore Tie-up to Bid for Global Oil & Gas Assets ; Cos seen keen on joint exploration, production and distribution

State-run Oil and Natural Gas Corp (ONGC) and energy major Shell are exploring the possibility of a strategic tie-up to jointly bid for global oil and gas assets, following up on their discussions for a partnership in India’s upstream and downstream sectors, company sources said.

ONGC has been actively looking for partnerships with international firms. Since last year, it has signed MoUs with ConocoPhillips for co-operation in shale gas and deepwater exploration in eastern India; and Inpex, Japan’s largest oil company, for strategic partnership in exploration of hydrocarbons in the KG Basin. Shell and ONGC had signed a MoU in 2006 “to examine significant opportunities for future co-operation, both in India and other regions across the world”. The MoU covered exploration and production, coal gasification, natural gas, oil products and refining and petrochemicals. However, this did not make progress as Shell wanted to invest in some of ONGC’s fields, which the state firm could not facilitate as it would require Cabinet approval, a former top official at ONGC said. Now, industry sources say both the companies are keen to align in exploration and production, distributing and marketing petroleum products and setting up a refinery. “Yes, now that ONGC and Shell are planning to come together locally, both companies are also exploring the possibility of forming a strategic alliance, which entails jointly bidding for global energy assets,” a senior company executive told ET. “There is a distinct possibility that ONGC and Shell could come together to acquire oil and gas assets abroad, it would be a logical extension to the domestic alliance that the two companies are keen to forge currently, but the talks are in a nascent stage now,” said another senior company executive. Last month, both Shell and ONGC had said they are keen to come together to explore both upstream and downstream opportunities domestically. This has not been finalised. Such an alliance would mark Shell’s return to the Indian E&P sector after selling its 50% stake in the prolific Barmer block in Rajasthan to Cairn India for $7.5 million. The block now produces 175,000 barrels per day and has helped Cairn Plc make billions of dollars from an IPO and then by selling the controlling stake to the Vedanta Group.

Shell already has 70 odd fuel retail outlets across the country while ONGC has the licence to operate 1,100 fuel retail outlets, but currently it only operates one in Mangalore.

 

Source: ET 14/05/13

Existing Power Cos may Get to Revise Supply Pacts

The government plans to put in place a framework for the revision of power tariffs for operational projects that are facing an additional cost burden due to Coal India’s (CIL) inability to supply fuel that was assured when the projects were set up.

The ministry of power has written to the Central Electricity Regulatory Commission (CERC), seeking its advice on how to tackle the fuel availability risk for operational projects where long-term supply pacts have been inked with distribution companies (discoms). Any positive gesture from CERC could benefit projects totalling 37,680 MW, owned by NTPC and private utilities.

“Over 37,000 MW of operational projects and 28,000 MW of upcoming projects have slowed as CIL has not been able to meet its supply obligations. Companies had invested in these projects because the government had assured fuel availability. But now CIL is unable to supply (coal), and we have to import expensive fuel to meet our power-supply obligations. It’s crucial to have a provision to pass on the additional cost to customers and keep power projects financially viable,” said Ashok Khurana, director general of Association of Power Producers (APP).

RACE FOR MOZAMBIQUE GAS FIELD STAKE

Shell, ONGC Team Emerge Front-runners

Anadarko Petroleum and Videocon are selling 10% each in Mozambique’s Rovuma-1 offshore block

Global energy major Shell and the Indian consortium led by state-run ONGC are the front-runners for the 20% stake in a giant gas field in the deep waters which may be fetch a value of up to $6 billion, sources familiar with the ongoing transaction said. Anadarko Petroleum and India’s Videocon Industries are selling 10% each in Mozambique’s Rovuma-1 offshore block, which has attracted global attention after the operator made the world’s biggest natural gas discovery in a decade.

ONGC sources said the company’s overseas arm, ONGC Videsh, considered a higher bid for the stake, but the oil ministry is more circumspect. The government is cautious because ONGC’s aggressive bid for Imperial Energy turned out to be an embarrassment as output from its field was significantly lower than what the company bargained for. The Comptroller and Auditor General criticised ONGC for that deal. Sources said Shell may have the edge over the consortium of ONGC and Oil India because of the international major’s financial muscle and domain expertise, particularly in liquefied natural gas (LNG) are decisively superior.

Power Bill Likely to Jump by 14p ; Central Electricity Authority asks Coal India to raise domestic coal prices, supply imported fuel to coastal power plants

The Central Electricity Authority has asked Coal India to raise domestic coal prices and supply imported fuel to coastal power plants, a move that would raise power tariffs by 10-14 paise per unit but would make power stations viable and prevent defaults on loans of . 4.6 lakh crore, a senior government official said.

 

Power tariffs vary widely from about . 1.50 per unit for old plants to about . 7 for new units. CEA’s proposal, which seeks to minimise transportation of coal over long distances by railway wagons, will need approval of the coal ministry and the cabinet. The proposal of pooling imported and domestic coal prices by CIL will help it sign fuel supply agreements with power plants as directed by the PMO after heads of power companies met Manmohan Singh last January.

 

As per the arrangement worked by CEA, CIL should supply domestic coal at 80% of the required level to projects closer to mines to avoid transportation through rail network.

 

Power projects at coastal locations should get 65% of domestic coal and 10% imported coal. Projects neither close to ports nor mines should receive 80% domestic coal supply and about 7% imported coal, the official said. CIL is likely to import about 15 million tonnes this fiscal and 20 million tonnes next financial year. “Optimising rail network and avoiding transportation of imported coal to projects near coal mines is expected to result in saving power plants from additional cost of . 1,015 crore this fiscal and . 1,250 crore next fiscal,” he said.

 

As per government estimates, public sector banks have an exposure of about . 3.48 lakh crore to power generation projects, while sectoral lenders Power Finance Corp and Rural Electrification Corp have lent another . 1.15 lakh crore to thermal power plants.

 

The developers had expressed concerns that under-utilisation of projects would affect them financially, leading to a cascading effect on financial institutions. The PMO had directed CIL to ensure fuel supplies for 20 years to power plants that have long and medium-term sale arrangements with states and trading companies. CIL was asked to import coal to meet the demand-supply gap.

 

Source: Economic Times

Australian Mine Acquisitions Put Indian Cos on Debt Row; GVK Power, Lanco Infratech and Adani Enterprises facing rising of debt

The acquisition of coal assets by Indian companies such as GVK Power, Lanco Infratech and Adani Enterprises last fiscal is now starting to bite with rising debt, inadequate cash flows and a sharp slide in their market capitalisation. Given the concerns over their rising debt and weak performance of their existing business, the market capitalisation of these companies has fallen by 60-80% in the last two years. The biggest challenge that these companies face now is the ability to achieve financial closure on their Australian projects, especially when their cash flows from existing businesses are insufficient and with the high debt to equity. In addition, low stock valuations render additional equity infusion imprudent. Selling stakes in coal mine will not be viable either since coal prices have corrected by close to 30% from their peak, thereby reducing the mark-tomarket worth of these assets. “When these companies acquired these assets, they expected coal demand to continue and did not foresee the various regulatory and economic risks involved. Now the coal prices have corrected and are on the downward trend. These companies will have to see one entire downcycle before these acquired assets are valued like earlier,” said a fund manager who spoke on the condition of anonymity. GVK Power has a stake of close to 10% in Hancock, its Australian mine, while 90% of the equity is controlled by a private company owned by the promoter. Together, they will need to invest around Rs 55,000 crore to develop the coal mine and related infrastructure. Its debt-equity ratio has hit an alarming level of 4 with a debt of around Rs 14,300 crore. Its cash flows have been weak due to the poor performance of its power business because of the lack of gas availability and cost overruns in its airport business. The company’s stock price has plunged 70% in the last two years. According to Deepika Mundra of JP Morgan, the company’s return-on-equity will remain negative due to near doubling of interest costs. Also its interest coverage, or EBIDTA relative to interest outgo, is low at 1.3 and may worsen if operating performance deteriorates further.

“We are considering raising funds through a stake sale and debt. However, we cannot reveal the exact structure,” said Isaac George, CFO of GVK Power. At about seven times, Lanco’s debt to equity is the highest among the three companies. It has a debt of . 32,000 crore and needs an investment of nearly . 25,000 crore to develop the mines. However, the company has already defaulted twice in the current year as it is facing huge losses in its power business which has resulted in an operating loss. The company is not earning enough to cover interest costs, leave alone repaying the loan. Improvement in the near term appears difficult considering falling commodity prices and the bleak demand scenario. Lanco’s officials were not available for comment.
jwalit.vyas@timesgroup.com

 

Source: Economic Times

Damodar Valley Signs Fuel Supply Agreement (FSA) with CIL - NTPC and Private Companies expected to follow suit

Damodar Valley may Power More FSAs

Yielding to pressure from power lobby, CIL changed the original format to include penalties for non-supply of coal in pact

 

The coal shortage faced by the power sector is likely to ease after key customers of Coal India signed fuel supply agreements (FSAs) that were delayed for more than a year. This will enable power companies to fire up capacities that were ready, but lying idle for want of coal. While Damodar Valley Corporation signed an agreement with CIL-subsidiary Mahanadi Coalfields last week, NTPC and private companies are expected to soon follow suit. Some 50-odd FSAs are likely to be signed.

 

DVC’s deal is important because it was among the companies that refused to sign an original agreement formulated by CIL. DVC, NTPC and other public sector power generators had entered into negotiations with CIL and the ministry to formulate a revised agreement.

 

“Last week, we signed the FSA with CILsubsidiary Mahanadi Coal Fields,” DVC chairman RN Sen told ET. “Another set will be signed with other CIL subsidiaries — Eastern Coalfields, Bharat Coking Coal and Central Coalfields.” He said the new agreements will be signed for units that have come up at Koderma Thermal Power Station, Durgapur Thermal Power Station, Mejia TPS, Chandrapura TPS and Bokaro TPS.

 

DVC, along with a host of other companies, suffered from low coal supplies and reduced generation at its new power units because it did not sign the original agreement, claiming that it was heavily biased in favour of the coal monopoly. “A number of units at DVC have not been able to start commercial production because of non-availability of coal,” said Sen. “Now that the FSAs are being signed, we hope to attain commercial production of these units (Koderma 1 & 2, Durgapur 2, and Raghunathpur Thermal) soon.”

 

Ashok Khurana, director general of the Association of Power Producers, said power producers will now start signing the FSA because most companies have no other option. “Small buyers have no choice, but to sign the FSA because we have been told that CIL will no more supply coal to power producers under the memorandum of understanding. This is for all power producers except NTPC, which is the largest buyer from CIL,” he said. Yielding to pressure from the power lobby, CIL changed the original format to include penalties for non-supply of coal under the agreement. Nevertheless, CIL will supply only 65% of the requirement under the agreement from domestic sources, while another 15% will be through imports.

 

“We are meeting CIL top bosses, including the chairman, on Monday to discuss the finer points of the FSA that will be signed,” NTPC chairman Arup Roy Choudhury said. At present, imported coal will be supplied by CIL on a cost-plus basis, meaning consumers will have to pay for the cost of coal plus any additional expenditure incurred by it for handling the material. The power sector, along with the coal ministry, is working on a price pooling mechanism that will take into account the cost of imported coal, and this is expected to increase the cost of coal.

Source: Economic Times

Monnet Ispat mulls setting up 660 MW plant in Odisha

New Delhi: Monnet Ispat and Energy is mulling setting up a 660 MW thermal power plant at Angul in Odisha at an investment of around Rs 4,000 crore.

 

Once set up, this facility will take the company's generation capacity to nearly 2,000 MW.

 

"We are implementing a 1,050 MW power project at Angul in Odisha. This should get up and running by June-September, 2013. We plan 660 MW at the same site. The idea is developing now. We are talking to Odisha government," Monnet Ispat and

 

Energy's Chairman and Managing Director Sandeep Jajodia said.

 

He further said the project entails an investment of Rs 4,000 crore, going by the calculation of Rs 6 crore per MW.

 

Jajodia, however, made it clear that the project is now at a conceptual stage and it has to get all the clearances for setting up the plant.

 

At the same time, he said the proposed power project would be financed with a debt-equity ratio of 70:30 and the company may dilute some "minimal" equity at the project level at an appropriate time.

 

"Yes, if we have to fund that project; some amount of equity dilution will happen; but it would be very minimal, because our 1,050 project will start generating cash," he said when asked if the company plans to raise some equity for the project.

 

The dilution, however, is unlikely to happen in a year's time, he added.

 

Jajodia said that the company has also to look for a coal mine to fire the project as coal from the Mandakini mine in Odisha would be consumed by the 1,050 MW plant.

 

Monnet Ispat and Energy generates 270 MW power now, but that is used mostly by its steel plant.

 

The company, he said, also plans to foray into renewable sector for generating power.

 

"It is only sensible and logical for us to generate power from renewable sources," he said without divulging much.

 Source: Financial Express

Afghanistan Expects Big India Play in Mines ; Country to soon invite global bids for 4 new mineral deposits, expects Indian cos to participate

Afghanistan will invite global bids to develop four new iron ore and copper deposits, including a greenfield iron ore mine at Fiyadara estimated to hold half a billion tonne in reserves in early 2013. It is also expected to invite companies to pitch for lucrative copper reserves at North Aynak that hold nearly 8-10 million tonne reserves. “Indian companies have good potential and they are competitive. We expect to attract both public and private companies from India to participate in the forthcoming bids in a big way,” mines minister Wahidullah Shahrani said on the sidelines of the Global Mining Summit 2012 being organised by the Confederation of Indian Industries (CII). The announcement comes days before the Afghan government is due to complete the process of evaluation of detailed bids for copper and gold assets at Shaida deposit. A clutch of public and private sector companies including, Steel Authority of India Limited (SAIL), Hindustan Copper, National Aluminium Company (Nalco), MECL, Monnet Ispat & Energy, Jindal Steel and Power Limited (JSPL) have been shortlisted along with Chinese, British and US firms. “I am not part of the evaluation committee and hence I cannot comment on it. All I can say is we will announce it soon,” he said, when asked about the prospects of Indian companies in that bid.

 

Last year, a consortium of six Indian companies had bagged the rights to mine some 2 billion tonnes of iron ore at Hajigak by committing to build a six million tone steel plant at an investment of over $10 billion, edging out competition from US, the UK and Canadian firms.“The Indian consortium will start work on the Hajigak project in January 2013,” Sharani said.

 

“The two countries share strong historical ties to which deep economic ties are now being added. Mining will be the foundation for efficient relations between the two countries which signed bilateral agreements for co-operation in steel, coal, fertilisers cement and oil & gas last month,” the Afghan minister said. Shahrani said Afghanistan is considered as the last frontier in mineral exploration especially for copper, gold, iron ore, lithium, molybdenum and rare earth minerals.

 

“India’s demand for minerals is being fuelled by its growing construction, infrastructrre and power generation sector. Our country can be a major source of raw materials for this, with the mining sector tipped to contribute nearly 40% to the country’s GDP by 2024,” he said.

Conventional Power Shortage may Force Govt to End Solar Bundling

Centre looks to provide budgetary support for activities in the phase II of solar mission

 

Due to limited availability of conventional power from unallocated central quota, the ministry of new and renewable energy (MNRE) plans to do away with power bundling in the second phase of the national solar mission starting June 2013.

 

“In phase-I, solar power project developers used to sell power to NTPC Vidyut Vyapar Nigam which bundled it with conventional power and sold it at an average rate decided by the Central Electricity Regulatory Commission (CERC) to the distribution companies. It is unlikely that after allocation of 1000 MW during Phase I, sufficient unallocated power would be available to support the entire capacity of Phase II of the Solar Mission,” said the draft document.

 

Government is looking at a combination of various schemes to support the solar projects in the second phase. It plans to provide budgetary support for the activities under the national solar mission; to support Viability Gap Funding (VGF) projects through the ‘National Clean Energy Fund’ and international funds under the UNFCCC (United nations framework convention on climate change).

 

750 MW of solar photo voltaic (SPV) projects will be funded via the VGF route in 2013-14 and 770 MW in 2014-15 of phase II. Solar thermal projects worth 1080 MW will be funded through VGF.

 

The first phase of the solar mission will reach completion in March 2013. The SPV projects sanctioned in the batch 2 of the phase I will start commissioning in January next year. “These projects are well ahead of their scheduled time and we hope to commission the total allocated capacity,” said Tarun Kapoor, joint secretary, Mnre. Out of the allotted capacity of 1142 MW in the first phase of the mission under several schemes, 268 MW has been commissioned as of September 2012. 90% of the SPV projects of batch 1 of the phase have been commissioned. The commissioning date of solar thermal projects will also is May 2013. The phase II of the solar mission would also target deployment of 1,000 MW of rooftop projects both at off-grid and grid connected levels. “Large scale solar projects are going to play a huge role in phase-II and for the same reason, it has kept as one of the thrust area under Phase-II. Phase-II is targeting to bring cumulative solar capacity to 10 gigawatt by 2017,” said the draft mission document.

 Source: Economic Times

Power cos may buy coal from sources other than CIL: Govt

 

Agencies: New Delhi, Nov 29 2012, 21:27 IST

 

New Delhi: Power companies may secure coal from alternative sources in the absence of sufficient supply of the fuel from state-run Coal India, Parliament was informed today.

 

"As per the new coal distribution policy of Ministry of Coal, in order to meet the domestic requirement of coal, Coal India may have to import coal as may be required from time to time," Power Minister Jyotiraditya Scindia said in a written reply in the Lok Sabha.

 

He added that developers may also obtain fuel from alternative sources in case of any shortage of assured supply of coal from Coal India.

 

Earlier this week Coal Ministry had said that Coal India had written letters to power companies seeking their consent for supply of imported coal on cost plus basis under the modified Fuel Supply Agreement (FSA).

 

Cost-plus basis means cost of importing coal by Coal India plus additional charges.

Meanwhile, 30 power plants have entered into pacts with the coal behemoth.

 

The state-owned firm is likely to enter into pacts with 48 power units.

 

Power companies waiting to sign the FSA with CIL would have to arrange for 17 per cent of coal on their own either through import or e-auction to run their plants at 85 per cent plant load factor.

 

CIL proposes to use MMTC or State Trading Company to import coal.

 

The Centre provides 90 per cent of the project cost as capital subsidy for establishing Rural Electricity Distribution Backbone (REDB) and Village Electrification Infrastructure (VEI) and provides free electricity single point connection to BPL households under RGGVY.

 

Scindia said the responsibility of implementing the scheme is with the state governments but several members, including some from the Treasury Benches, objected.

 

He stated that in 70-80 per cent of the cases the state electricity boards are implementing it.

 

"A monitoring matrix is being formed at the district level," Scindia said and accepted suggestion from Opposition benches that the local MP should be involved in this.

 

Source: Financial Express

Tata Steel to Commission Kalinganagar plant phase-I by August 2014

BS Reporter / Kolkata/ Bhubaneswar Nov 27, 2012, 00:39 IST

 

Tata Steel, which is developing a six million tonne greenfield steel plant at Kalinganagar in Jajpur district of Odisha, hopes to commission first phase of the project with a capacity of three million tonne, by August 2014.

 

“We are getting cooperation of the locals. Construction work on our Kalinganagar plant is going on in full swing. By August 2014, we hope to commission the first phase of the plant,” sad H M Nerurkar, managing director, Tata Steel. The first phase of the project would see an investment of Rs 25,000 crore. The greenfield steel plant at Kalinganagar will concentrate entirely on flat steel products, catering to the needs of the automotive industry and white goods.

 

Nerurkar and B.Muthuraman, vice chairman of Tata Steel called on chief minister Naveen Patnaik to apprise him on the status of Kalingangar steel plant and industrial park at Gopalpur where the steel maker is the anchor tenant.

 

Nerurkar hinted that Tata Steel was keen on taking up two new projects at Gopalpur in addition to the two existing projects. However, he refused to spell out the details, saying the projects were yet to be approved by the company’s board.

 

The steel maker had lined up two projects at the Gopalpur industrial park- a 50,000 tonne per annum ferroalloys plant and 4,00,000 tonne per annum bar mill.

 

Tata Steel would invest Rs 1,000 crore on these two projects which would initially create employment for 1,000 people.

 

While the ferroalloys plant will cost about Rs 200 to Rs 250 crore, the bar mill will be set up at an investment of Rs 750 to Rs 800 crore. This will be the third ferroalloys plant of Tata Steel in Odisha. The company is operating two ferroalloys plants at Bamanipal and Athgarh (through its subsidiary Rawmet) with capacities of 50,000 tonne per annum each.

 

Tata Steel had got the environment clearance for the Gopalpur industrial park. It was awaiting CRZ (coastal regulatory zone) nod for the project. The company has placed all major orders for its projects at Gopalpur industrial park being developed on around 3,500 acres of land.

Source: BS

Petroleum Regulator to Invite New Bids for Four Gas Pipeline Projects; Fresh bids expected for Kakinada - Haldia, Kakinada - Chennai, Chennai - Tuticorin and Chennai - Bangalore - Mangalore Pipeline Projects

The four projects were orginally authorised to Mukesh Ambani’s RGTIL

 

The downstream oil and gas regulator is preparing to invite fresh bids to build four gas pipeline projects originally authorised to Mukesh Ambani’s Reliance Gas Transportation Infrastructure.

 

Petroleum and Natural Gas Regulatory Board (PNGRB) chairman S Krishnan said fresh expressions of interest will be sought to build four trunk pipelines — Kakinada-Haldia, Kakinada-Chennai, Chennai-Tuticorin and Chennai-Bangalore-Mangalore. Relogistics Infrastructure, a subsidiary of Reliance Gas Transportation, had won government authorisation nearly five years ago to lay the four trunk pipelines with a length of 2,175 km.

 

But that was cancelled last month after the regulator determined that the company had made scant progress.

 

“We are waiting for the government’s approval,” Krishnan told ET in Hyderabad on Monday. Reliance Gas Transportation, privately owned by Mukesh Ambani, built the 1,300-km East-West pipeline, linking Kakinada in AP and Bharuch in Gujarat, is the largest greenfield pipeline development ever undertaken in the country, after the discovery of gas by Reliance Industries in the offshore KG D-6 block in 2002. Krishna said the four pipeline projects were authorised by the government prior to the notification of the act which created the regulatory body.

 

“As a result, we had two options before us — either to accept the authorisation or to refer it back to the government with our recommendation. Our understanding of the issue was that sufficient progress has not been made and recommended to the government to cancel them.” On the contention of the gas pipeline operator that there was no gas available in the first place to lay the pipelines, Krishnan said the Mukesh Ambani entity “could have procured the gas from outside and fed it through floating storage units” but it didn’t appear “keen on doing it”.

 

Krishnan said the regulator will now await voluntary expressions of interest and then consider seeking fresh bids for the pipelines. “We will ask the interested parties to tell us the economical size of these pipelines and the load factors for fresh bids. We will take a view whether there is feasibility for laying the pipelines, which is a very expensive business and involves getting rights of way through agricultural lands and forests.” Deferred gas supplies: On the proposal of Reliance Gas Transportation for deferred gas supplies to the power projects in view of the paucity of fuel, he said the regulator is in the process of conducting public consultations. “If you were to look at the plant load factors which make it economical to run a power plant, the gas is not available as we thought. Power plants have come up hoping that rampup of KG-D6 will take place in a certain fashion.”

 

cr.sukumar@timesgroup

 

Exploring Options

 

• Four trunk pipelines include Kakinada-Haldia, Kakinada-Chennai, Chennai-Tuticorin and Chennai-Bangalore-Mangalore

 

• Relogistics Infrastructure, a subsidiary of Reliance Gas Transportation, had won government authorisation nearly five years ago

 

• Krishna said the 4 pipeline projects were authorised by the government prior to the notification of the act which created the regulatory body

Source: ET

Coal Blocks may be Offered to Power Cos at a Discount

NEW DELHI

The government has decided to give a discount on price of coal blocks being offered to power companies in the auction set to begin in a few months, coal secretary SK Srivastava said.

 

The coal ministry is, however, yet to decide the rate at which discounts will be offered and is holding consultations with state governments that will get the entire auction money. Srivastava said the decision has been taken to ensure low electricity tariffs and all stakeholders, including state governments, have agreed to it.

 

 

“It has been decided to give a discount to power sector companies or else the auction will result in higher electricity tariffs,” he said. “The question is how much discount should be offered. State governments have also been involved in the exercise since there should be a balance between state revenues and power tariffs,” Srivastava added.

 

 

Blocks earmarked for power sector will be given to states, which will award the mines to companies that quote the lowest tariff for electricity supply. Power companies will pay a ‘reserve price’ for each block on which the coal ministry plans to give a discount.

 

 

The decision to give discount to power firms follows a recommendation made by Crisil Infrastructure Advisory, a consulting firm, appointed to assist the ministry in fixing prices of captive coal mines.

 

The consultant has recommended that price for each block be determined by estimating future cash flow projections of a project. It has suggested that the estimated cash flow should be adjusted against the estimated capital cost to mine the block over a 30-year life period to arrive at its value.

 

“India’s power needs are rapidly rising,” Crisil had said in its draft report on the methodology for calculation of price tags of coal blocks. “In 2011-12, the peak load demand-supply deficit stood at 10.6%. As any increase in electricity prices may have a cascading inflationary impact on India’s economy, the government has to keep prices at an affordable level,” it said.

 

Source: Economic Times

Government revives plan to pool the price of imported coal

Electricity tariffs may spiral, as the union government has revived its plan to pool the price of imported coal with the domestic fuel. The new proposal, if implemented, is set to bypass the resistance from State government-owned utilities as well as the board of directors of Coal India Limited against subsidizing imported fuel, to be used largely by the privately run coastal capacities.

India suffers over 11 percent power generation loss in 2011-12: CEA

NEW DELHI: India suffered a power generation loss of over 11 per cent, in 2011-12, on account of fuel shortage, transmission bottlenecks and equipment problems, a Central Electricity Authority review has said.

 

"The loss of generation due to non-availability of thermal units due to forced outages during 2011-12 increased to 11.46 per cent," Central Electricity Authority (CEA) said.

 

All India electricity generation in the country during 2011-12 has been 876.89 BU, the report of the highlights of this review that was released by CEA recently, said.

 

"The increased forced outages was due to increased forced shutdown of units due to coal supply problem and transmission constraints and equipment problems of some new units," the CEA report said.

 

The report said 59.87 per cent of the total forced shut downs were of duration of up to 24 hours. Around 39 per cent outages were of duration varying from 1 to 25 days and only 1.45 per cent of shut downs were for more than 25 days.

NCL Industries to invest Rs 150 cr in captive power plant

Mumbai : Hyderabad-based cement maker NCL Industries Ltd is planning to set up a 30-MW captive power plant with Rs 150-crore investment.The plant would be set up at its Mattapalli cement manufacturing unit in Nalgonda district of Andhra Pradesh.

"We are setting up 30 MW captive power plant with an investment of Rs 150-crore at Nalgonda district of Andhra Pradesh," NCL Industries managing director K Ravi said in a statement here.The objective behind planning our own power plant is to ensure a regular power supply for cement manufacturing activity as power supply had become very uncertain in the state of Andhra Pradesh, Ravi said.In addition, the Hyderabad-based company eyes to sell the surplus power that will add to its revenue. Its total power-requirement is around 23 MW.