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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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Friday, 09 November 12
SHIP OWNERS TURN TO SECOND HAND VESSELS, WHICH COME AT ATTRACTIVE PRICES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The attractiveness of modern second hand vessels, which are often priced aggressively can't be ignored by cash-rich ship owners, who are taking adv ...
Thursday, 08 November 12
LARGE ECO SUPRA : INDO - INDIA NOW FIXED AT USD 11K FOR DELIVERY SINGAPORE - FEARNLEYS
Handy
The Atlantic market continues to remain weak with rates further softening on FH. Rates from USG to Feast were around USD 14k and Black Sea to ...
Thursday, 08 November 12
DRY BULK MARKET RETREATS AGAIN ON HIGHER SHIP SUPPLY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
In further evidence of a latest round of dry bulk shipping misery, the industry's benchmark fell for the 11th straight session yesterday, as the in ...
Thursday, 08 November 12
JOIN CHINA STEAM COAL SUPPLY - DEMAND FORUM
Join China Steam Coal Supply-Demand Forum & Visit Shenhua Yudean Zhuhai Port Coal Terminal
Press Release - Organized by CBI BIZ and suppo ...
Wednesday, 07 November 12
NEWBUILDING ORDERING ACTIVITY ON A STEADY PACE PRIOR TO THE END OF THE YEAR - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Newbuilding orders, which to many involved in the shipping industry, are the main reason of today's low freight rates and subsequent financial prob ...
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Showing 4511 to 4515 news of total 6871 |
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- Bhoruka Overseas - Indonesia
- Barasentosa Lestari - Indonesia
- Wood Mackenzie - Singapore
- Kobexindo Tractors - Indoneisa
- Dalmia Cement Bharat India
- TeaM Sual Corporation - Philippines
- IEA Clean Coal Centre - UK
- Coalindo Energy - Indonesia
- Xindia Steels Limited - India
- SMG Consultants - Indonesia
- Romanian Commodities Exchange
- Meenaskhi Energy Private Limited - India
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- Standard Chartered Bank - UAE
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Posco Energy - South Korea
- Africa Commodities Group - South Africa
- Global Green Power PLC Corporation, Philippines
- Tata Chemicals Ltd - India
- Altura Mining Limited, Indonesia
- Globalindo Alam Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Essar Steel Hazira Ltd - India
- Tamil Nadu electricity Board
- Global Business Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Vedanta Resources Plc - India
- Planning Commission, India
- Asmin Koalindo Tuhup - Indonesia
- Australian Coal Association
- Anglo American - United Kingdom
- Manunggal Multi Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Cement Manufacturers Association - India
- Parliament of New Zealand
- Medco Energi Mining Internasional
- Electricity Authority, New Zealand
- Salva Resources Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Antam Resourcindo - Indonesia
- VISA Power Limited - India
- Central Java Power - Indonesia
- Ind-Barath Power Infra Limited - India
- Larsen & Toubro Limited - India
- Ministry of Mines - Canada
- Global Coal Blending Company Limited - Australia
- Indo Tambangraya Megah - Indonesia
- Bhushan Steel Limited - India
- Aditya Birla Group - India
- Rashtriya Ispat Nigam Limited - India
- Baramulti Group, Indonesia
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- Australian Commodity Traders Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meralco Power Generation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Bulk Trading Sa - Switzerland
- Carbofer General Trading SA - India
- Iligan Light & Power Inc, Philippines
- Savvy Resources Ltd - HongKong
- Merrill Lynch Commodities Europe
- Indonesian Coal Mining Association
- Karbindo Abesyapradhi - Indoneisa
- PNOC Exploration Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Star Paper Mills Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GMR Energy Limited - India
- AsiaOL BioFuels Corp., Philippines
- Neyveli Lignite Corporation Ltd, - India
- McConnell Dowell - Australia
- Metalloyd Limited - United Kingdom
- Commonwealth Bank - Australia
- Sinarmas Energy and Mining - Indonesia
- Minerals Council of Australia
- Edison Trading Spa - Italy
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- Eastern Coal Council - USA
- International Coal Ventures Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Trasteel International SA, Italy
- Kumho Petrochemical, South Korea
- Vizag Seaport Private Limited - India
- Chamber of Mines of South Africa
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- PowerSource Philippines DevCo
- Indian Oil Corporation Limited
- London Commodity Brokers - England
- Interocean Group of Companies - India
- Jorong Barutama Greston.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Riau Bara Harum - Indonesia
- Bukit Makmur.PT - Indonesia
- Videocon Industries ltd - India
- Sical Logistics Limited - India
- Simpson Spence & Young - Indonesia
- San Jose City I Power Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Bangladesh Power Developement Board
- Binh Thuan Hamico - Vietnam
- PetroVietnam Power Coal Import and Supply Company
- Sarangani Energy Corporation, Philippines
- Ministry of Transport, Egypt
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Renaissance Capital - South Africa
- Krishnapatnam Port Company Ltd. - India
- Orica Mining Services - Indonesia
- Jaiprakash Power Ventures ltd
- Maheswari Brothers Coal Limited - India
- Economic Council, Georgia
- White Energy Company Limited
- Malabar Cements Ltd - India
- Lanco Infratech Ltd - India
- Bhatia International Limited - India
- Agrawal Coal Company - India
- Directorate General of MIneral and Coal - Indonesia
- Price Waterhouse Coopers - Russia
- Formosa Plastics Group - Taiwan
- Mintek Dendrill Indonesia
- The University of Queensland
- Coastal Gujarat Power Limited - India
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Sojitz Corporation - Japan
- Karaikal Port Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Indogreen Group - Indonesia
- Thiess Contractors Indonesia
- Leighton Contractors Pty Ltd - Australia
- Banpu Public Company Limited - Thailand
- Makarim & Taira - Indonesia
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Kepco SPC Power Corporation, Philippines
- Petron Corporation, Philippines
- Thai Mozambique Logistica
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement - Thailand
- MS Steel International - UAE
- Uttam Galva Steels Limited - India
- Oldendorff Carriers - Singapore
- Cigading International Bulk Terminal - Indonesia
- New Zealand Coal & Carbon
- Gujarat Sidhee Cement - India
- Bukit Baiduri Energy - Indonesia
- Siam City Cement PLC, Thailand
- Therma Luzon, Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Intertek Mineral Services - Indonesia
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Aboitiz Power Corporation - Philippines
- Port Waratah Coal Services - Australia
- Attock Cement Pakistan Limited
- CNBM International Corporation - China
- The State Trading Corporation of India Ltd
- Wilmar Investment Holdings
- SMC Global Power, Philippines
- Billiton Holdings Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Coal and Oil Company - UAE
- Chettinad Cement Corporation Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- OPG Power Generation Pvt Ltd - India
- GVK Power & Infra Limited - India
- Ambuja Cements Ltd - India
- Indian Energy Exchange, India
- Kartika Selabumi Mining - Indonesia
- ASAPP Information Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indika Energy - Indonesia
- Rio Tinto Coal - Australia
- GAC Shipping (India) Pvt Ltd
- PTC India Limited - India
- Independent Power Producers Association of India
- ICICI Bank Limited - India
- Mercator Lines Limited - India
- Heidelberg Cement - Germany
- GN Power Mariveles Coal Plant, Philippines
- Deloitte Consulting - India
- India Bulls Power Limited - India
- Electricity Generating Authority of Thailand
- Orica Australia Pty. Ltd.
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mjunction Services Limited - India
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Latin American Coal - Colombia
- Energy Development Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Semirara Mining Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- The Treasury - Australian Government
- Directorate Of Revenue Intelligence - India
- Eastern Energy - Thailand
- Grasim Industreis Ltd - India
- Goldman Sachs - Singapore
- Central Electricity Authority - India
- Timah Investasi Mineral - Indoneisa
- Sakthi Sugars Limited - India
- Borneo Indobara - Indonesia
- Sindya Power Generating Company Private Ltd
- Sree Jayajothi Cements Limited - India
- Bharathi Cement Corporation - India
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