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Friday, 03 August 12
INDIA - LIGHTS OUT! - SALVA
 The Indian power sector hit global headlines this week for all the wrong reasons. Firstly, on Monday, over 350 million people lost power across northern India, including Delhi. The following day, the lights went out again, but this time over 600 million people in 20 of India’s 28 states were affected, with the outages covering range of 3000 kilometers in the northern and eastern regions. The authorities’ response has ranged from blaming states for overdrawing from the grid, to appointing a committee to inquire into the causes of the blackout. However, these latest outages are merely symptomatic of much larger problems in India’s power sector, which has been short of power for years.
In Salva’s view, the problem does not lie within the generation sector – but with its upstream (coal supply and transportation) and downstream (transmission and distribution) counterparts. Since the generation sector was deregulated in FY03-04 to enable private participation, installed generation capacity has almost doubled, growing by 92GW or 85%, at a CAGR of 10.8%. The vast majority of this new capacity is coal-fired, which added another 18GW of new capacity in FY11-12 and a further 4.2GW in Q1’12.
However, this new power generation capacity is not being fully utilised, with plant load factors for coal declining from 79.2% in H1’11 to 75.8% in H1’12 and 72% most recently in June. Over 4.3TWh of coal-fired generation was lost in June alone due to low coal supply with a further 1.4TWh lost because of transmission constraints and unplanned outages. Given these figures, clearly thermal coal supply remains a problem. While domestic coal production has increased in 2012, it has languished in recent years, growing at around 1% (5Mt) between 2008-11, which pales in comparison against annual coal-fired power capacity growth of over 10%. Even when production is strong, which it has been in early 2012 (by Indian standards), transportation of coal remains highly problematic. Indian Railways has not been able to procure wagons in time to boost availability sufficiently. This has resulted in coal shortages at power plants and growth in coal mine stockpiles. Transport capacity remains severely constrained as capacity addition has languished at the altar of populism. Passenger traffic shares the same infrastructure as freight, causing freight such as coal to be given a lower priority.
The Electricity Act of 2003 freed up the generation sector, but the same reforms haven’t yet percolated to the transmission and distribution sectors, which are suffering from the same bottlenecks that existed prior to 2003. Transmission capacity is not being developed at the same pace as generation capacity, while distribution reforms remain a pipe dream. As domestic coal production has not kept pace with demand, power producers have used much costlier imported coal to generate electricity. However, India’s tariff framework is still lagging behind, so the State Electricity Boards require ever increasing financial support from state owned banks and financial institutions. Tariff reform is an immediate requirement. Only that will facilitate the sector’s much needed investment.
What are the implications if this is not done now?
Indian cities are accustomed to power cuts. However, increasing prosperity has increased electricity demand and, coupled with the weak monsoon this year, has caused power demand to spike. Agricultural states like Uttar Pradesh, Haryana and Punjab have increasingly overdrawn power from the grids to feed the agricultural sector (which ironically is not metered as power is free for farmers) and to meet residential demand. The agricultural sector is still dependent upon the monsoon as the irrigation network is not widespread, and the weak monsoon has resulted in farmers pumping groundwater onto their fields. Generally electricity demand is low during the monsoon months (June-September) as the rains reduce temperatures. However, the rains have been weak and hence residential power demand has remained strong. This has been further exacerbated with the additional demand from the agricultural sector. State power distribution companies have not planned in advance to buy additional electricity and have overdrawn power from the grid without additional generation being supplied. This has destabilised the grid and caused it to fail.
The impact of the electricity shortages have been felt by the public at large, with a few incidents of people protesting on the road. However, it hasn’t erupted into widespread unrest - thankfully.
The implications of not carrying out reforms in the transmission and distribution sector are now apparent. Lack of adequate investment in the transmission sector will hobble the impressive generation capacity that has been developed. Lack of commercial reforms in the power distribution sector will not provide the returns or even cover the basic cost of generation. The power sector is already sick and if reforms are not carried out with the seriousness required, India will suffer further setbacks.
Source: Salva
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Tuesday, 27 November 12
NEWCASTLE PORT HAS SHIPPED 1.79 MILLION TONS OF COAL W/E 26 NOVEMBER
COALspot.com - Newcastle port in Australia has loaded 1,793,841 MT of thermal and coking coal for week ended 0700 hours 26 November 2012, Newc ...
Sunday, 25 November 12
INDONESIA TO INDIA SUPRAMAX FREIGHT RATES ARE EXPECTED TO BE FIRM - VISTAAR
COALspot.com - The freight market was buoyant this week with all sectors up except for the Cape size index. The BDI was up by 5.21 pct closing at 10 ...
Sunday, 25 November 12
INDONESIAN SUB BITUMINOUS COAL SWAP CONTRACTS SLIDE
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for February 2013 delivery lost 0.76percent WoW but gained 0.16 percent DoD on Friday ...
Saturday, 24 November 12
DELTA DUNIA MAKMUR PRODUCES 3.2 MILLION TONS OF COAL IN OCTOBER
COALspot.com - PT Delta Dunia Makmur Tbk., has removed 31.1 million bcm* (-4.0% YoY) of Overburden in October 2012 totaled while coal production was ...
Friday, 23 November 12
CHOOSING THE RIGHT TIME TO INVEST IN NEW VESSELS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Shipping is all about timing, a process often rising to the height of artform, as ship owners are having to pick the exact moment of selling most of ...
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- Bukit Makmur.PT - Indonesia
- Bangladesh Power Developement Board
- Oldendorff Carriers - Singapore
- Bhoruka Overseas - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- PNOC Exploration Corporation - Philippines
- Mjunction Services Limited - India
- Latin American Coal - Colombia
- Minerals Council of Australia
- Vizag Seaport Private Limited - India
- Metalloyd Limited - United Kingdom
- Sakthi Sugars Limited - India
- Australian Coal Association
- Meenaskhi Energy Private Limited - India
- Power Finance Corporation Ltd., India
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The University of Queensland
- LBH Netherlands Bv - Netherlands
- Coalindo Energy - Indonesia
- Carbofer General Trading SA - India
- Global Coal Blending Company Limited - Australia
- Gujarat Mineral Development Corp Ltd - India
- Malabar Cements Ltd - India
- Standard Chartered Bank - UAE
- Orica Australia Pty. Ltd.
- Agrawal Coal Company - India
- Bukit Asam (Persero) Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- European Bulk Services B.V. - Netherlands
- Mercator Lines Limited - India
- Bhatia International Limited - India
- Aboitiz Power Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- The State Trading Corporation of India Ltd
- Petron Corporation, Philippines
- Ministry of Transport, Egypt
- Kalimantan Lumbung Energi - Indonesia
- Medco Energi Mining Internasional
- Tata Chemicals Ltd - India
- PTC India Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Kumho Petrochemical, South Korea
- Edison Trading Spa - Italy
- International Coal Ventures Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- Thiess Contractors Indonesia
- Central Java Power - Indonesia
- Mercuria Energy - Indonesia
- Posco Energy - South Korea
- Georgia Ports Authority, United States
- CIMB Investment Bank - Malaysia
- Bharathi Cement Corporation - India
- Riau Bara Harum - Indonesia
- Bulk Trading Sa - Switzerland
- Formosa Plastics Group - Taiwan
- Trasteel International SA, Italy
- Africa Commodities Group - South Africa
- SMG Consultants - Indonesia
- Videocon Industries ltd - India
- AsiaOL BioFuels Corp., Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indika Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Meralco Power Generation, Philippines
- Energy Link Ltd, New Zealand
- Ceylon Electricity Board - Sri Lanka
- Simpson Spence & Young - Indonesia
- Sree Jayajothi Cements Limited - India
- Banpu Public Company Limited - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parliament of New Zealand
- Borneo Indobara - Indonesia
- White Energy Company Limited
- Rashtriya Ispat Nigam Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Sidhee Cement - India
- Sojitz Corporation - Japan
- Wood Mackenzie - Singapore
- MS Steel International - UAE
- Globalindo Alam Lestari - Indonesia
- Port Waratah Coal Services - Australia
- Star Paper Mills Limited - India
- Siam City Cement PLC, Thailand
- Kapuas Tunggal Persada - Indonesia
- Commonwealth Bank - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- San Jose City I Power Corp, Philippines
- Energy Development Corp, Philippines
- Sical Logistics Limited - India
- Mintek Dendrill Indonesia
- Maheswari Brothers Coal Limited - India
- Semirara Mining and Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Indonesian Coal Mining Association
- Semirara Mining Corp, Philippines
- Thai Mozambique Logistica
- South Luzon Thermal Energy Corporation
- TeaM Sual Corporation - Philippines
- London Commodity Brokers - England
- Savvy Resources Ltd - HongKong
- Jindal Steel & Power Ltd - India
- McConnell Dowell - Australia
- Kartika Selabumi Mining - Indonesia
- Indian Energy Exchange, India
- Coal and Oil Company - UAE
- Pendopo Energi Batubara - Indonesia
- Cement Manufacturers Association - India
- Uttam Galva Steels Limited - India
- VISA Power Limited - India
- Ministry of Mines - Canada
- Deloitte Consulting - India
- Karaikal Port Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Anglo American - United Kingdom
- Vedanta Resources Plc - India
- Indo Tambangraya Megah - Indonesia
- Altura Mining Limited, Indonesia
- SMC Global Power, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Sarangani Energy Corporation, Philippines
- Orica Mining Services - Indonesia
- Bhushan Steel Limited - India
- Wilmar Investment Holdings
- Chamber of Mines of South Africa
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- OPG Power Generation Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- ASAPP Information Group - India
- Binh Thuan Hamico - Vietnam
- Siam City Cement - Thailand
- Timah Investasi Mineral - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Essar Steel Hazira Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Kideco Jaya Agung - Indonesia
- Sindya Power Generating Company Private Ltd
- Romanian Commodities Exchange
- Parry Sugars Refinery, India
- Singapore Mercantile Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Coastal Gujarat Power Limited - India
- Goldman Sachs - Singapore
- Indian Oil Corporation Limited
- Madhucon Powers Ltd - India
- Australian Commodity Traders Exchange
- Jorong Barutama Greston.PT - Indonesia
- Bukit Baiduri Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Merrill Lynch Commodities Europe
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Straits Asia Resources Limited - Singapore
- Aditya Birla Group - India
- Billiton Holdings Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Baramulti Group, Indonesia
- Central Electricity Authority - India
- GVK Power & Infra Limited - India
- Electricity Generating Authority of Thailand
- Toyota Tsusho Corporation, Japan
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Kepco SPC Power Corporation, Philippines
- ICICI Bank Limited - India
- Ambuja Cements Ltd - India
- Samtan Co., Ltd - South Korea
- Lanco Infratech Ltd - India
- Xindia Steels Limited - India
- Marubeni Corporation - India
- Rio Tinto Coal - Australia
- GMR Energy Limited - India
- India Bulls Power Limited - India
- Renaissance Capital - South Africa
- Cigading International Bulk Terminal - Indonesia
- New Zealand Coal & Carbon
- Iligan Light & Power Inc, Philippines
- Ministry of Finance - Indonesia
- Tamil Nadu electricity Board
- Salva Resources Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Price Waterhouse Coopers - Russia
- Electricity Authority, New Zealand
- Antam Resourcindo - Indonesia
- Makarim & Taira - Indonesia
- Planning Commission, India
- IEA Clean Coal Centre - UK
- SN Aboitiz Power Inc, Philippines
- Dalmia Cement Bharat India
- Eastern Coal Council - USA
- Jaiprakash Power Ventures ltd
- Manunggal Multi Energi - Indonesia
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- CNBM International Corporation - China
- Neyveli Lignite Corporation Ltd, - India
- Attock Cement Pakistan Limited
- Bayan Resources Tbk. - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Chettinad Cement Corporation Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Independent Power Producers Association of India
- Eastern Energy - Thailand
- Global Business Power Corporation, Philippines
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