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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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Monday, 04 June 12
MITRABAHTERA SUBSIDIARY SECURES CONTRACT FROM BERAU COAL - INSIDER STORIES
Insider Stories reported that, PT Mitra Alam Segara Sejati, a subsidiary that is 60% owned by PT Mitrabahtera Segara Sejati Tbk (MBSS), has secur ...
Sunday, 03 June 12
TTI ESTABLISHES COAL TRADING & MARKETING OFFICE
COALspot.com - TTI has officially established its coal trading, marketing-office in Jakarta, Indonesia. PT. Gunung Tinggi Coal is the TTI’s fi ...
Sunday, 03 June 12
FREIGHT MARKET CONTINUING ITS DECLINE
COALspot.com - The BDI continued to fall for the fifth straight week and the BDI fell by 2.57 pct this week closing at 904 points.
The Cape Size ...
Friday, 01 June 12
TNPL HAS SECURED 300K MT OF 6000 GAD COAL AT US$ 81 CNF TUTICORIN
COALspot.com - An India based coal trader Adani has offered the lowest price of US$ 81.00 per metric ton for calorific value of 6000 GAD and 15 perc ...
Friday, 01 June 12
COKAL ACCEPTED ON THE CLEAN AND CLEAR LIST FOR ITS BORNEO BARA PRIMA AND BUMI BARITO MINERAL PROJECTS
- Borneo Bara Prima (BBP) Project confirmed on the Clean and Clear List 9th May 2012
- Bumi Barito Mineral (BBM) Project confirmed on the Clean and ...
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- Altura Mining Limited, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Bhatia International Limited - India
- Kumho Petrochemical, South Korea
- Africa Commodities Group - South Africa
- Romanian Commodities Exchange
- GVK Power & Infra Limited - India
- Binh Thuan Hamico - Vietnam
- Indo Tambangraya Megah - Indonesia
- Kepco SPC Power Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Siam City Cement - Thailand
- Tamil Nadu electricity Board
- ICICI Bank Limited - India
- Anglo American - United Kingdom
- Global Coal Blending Company Limited - Australia
- Indika Energy - Indonesia
- Mercator Lines Limited - India
- European Bulk Services B.V. - Netherlands
- Formosa Plastics Group - Taiwan
- VISA Power Limited - India
- Riau Bara Harum - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Karaikal Port Pvt Ltd - India
- Ministry of Transport, Egypt
- Rio Tinto Coal - Australia
- Bulk Trading Sa - Switzerland
- PowerSource Philippines DevCo
- Semirara Mining Corp, Philippines
- Standard Chartered Bank - UAE
- Bhushan Steel Limited - India
- Salva Resources Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Energy Development Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Meenaskhi Energy Private Limited - India
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- Australian Coal Association
- Neyveli Lignite Corporation Ltd, - India
- Indian Oil Corporation Limited
- Pendopo Energi Batubara - Indonesia
- Electricity Generating Authority of Thailand
- Vedanta Resources Plc - India
- Port Waratah Coal Services - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Borneo Indobara - Indonesia
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- Bangladesh Power Developement Board
- OPG Power Generation Pvt Ltd - India
- Tata Chemicals Ltd - India
- Ministry of Mines - Canada
- Kideco Jaya Agung - Indonesia
- Georgia Ports Authority, United States
- Singapore Mercantile Exchange
- Indian Energy Exchange, India
- Maharashtra Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Carbofer General Trading SA - India
- Marubeni Corporation - India
- Kobexindo Tractors - Indoneisa
- Vizag Seaport Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- Agrawal Coal Company - India
- Medco Energi Mining Internasional
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Toyota Tsusho Corporation, Japan
- Sakthi Sugars Limited - India
- Gujarat Electricity Regulatory Commission - India
- Global Green Power PLC Corporation, Philippines
- Meralco Power Generation, Philippines
- Grasim Industreis Ltd - India
- PNOC Exploration Corporation - Philippines
- Aditya Birla Group - India
- Jorong Barutama Greston.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Sarangani Energy Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- New Zealand Coal & Carbon
- Eastern Energy - Thailand
- Intertek Mineral Services - Indonesia
- Parry Sugars Refinery, India
- Alfred C Toepfer International GmbH - Germany
- CNBM International Corporation - China
- Bukit Asam (Persero) Tbk - Indonesia
- Minerals Council of Australia
- Sojitz Corporation - Japan
- Energy Link Ltd, New Zealand
- Dalmia Cement Bharat India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Eastern Coal Council - USA
- Offshore Bulk Terminal Pte Ltd, Singapore
- Uttam Galva Steels Limited - India
- Savvy Resources Ltd - HongKong
- Timah Investasi Mineral - Indoneisa
- Mjunction Services Limited - India
- Semirara Mining and Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Leighton Contractors Pty Ltd - Australia
- Orica Mining Services - Indonesia
- Antam Resourcindo - Indonesia
- London Commodity Brokers - England
- India Bulls Power Limited - India
- Deloitte Consulting - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kohat Cement Company Ltd. - Pakistan
- Metalloyd Limited - United Kingdom
- Xindia Steels Limited - India
- South Luzon Thermal Energy Corporation
- Manunggal Multi Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Sical Logistics Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Australian Commodity Traders Exchange
- Edison Trading Spa - Italy
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vijayanagar Sugar Pvt Ltd - India
- PTC India Limited - India
- Iligan Light & Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- Star Paper Mills Limited - India
- Orica Australia Pty. Ltd.
- Jindal Steel & Power Ltd - India
- Baramulti Group, Indonesia
- SN Aboitiz Power Inc, Philippines
- ASAPP Information Group - India
- Banpu Public Company Limited - Thailand
- Petron Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Coalindo Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Mercuria Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Trasteel International SA, Italy
- Bukit Makmur.PT - Indonesia
- Bhoruka Overseas - Indonesia
- AsiaOL BioFuels Corp., Philippines
- The University of Queensland
- Chamber of Mines of South Africa
- Lanco Infratech Ltd - India
- Interocean Group of Companies - India
- Thai Mozambique Logistica
- Sree Jayajothi Cements Limited - India
- TeaM Sual Corporation - Philippines
- Indogreen Group - Indonesia
- SMC Global Power, Philippines
- Globalindo Alam Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- GMR Energy Limited - India
- Latin American Coal - Colombia
- Gujarat Mineral Development Corp Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Gujarat Sidhee Cement - India
- Videocon Industries ltd - India
- Coal and Oil Company - UAE
- San Jose City I Power Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Coastal Gujarat Power Limited - India
- Central Java Power - Indonesia
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Sindya Power Generating Company Private Ltd
- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- The Treasury - Australian Government
- Ind-Barath Power Infra Limited - India
- Wilmar Investment Holdings
- Malabar Cements Ltd - India
- Posco Energy - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Attock Cement Pakistan Limited
- Oldendorff Carriers - Singapore
- Merrill Lynch Commodities Europe
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jaiprakash Power Ventures ltd
- Holcim Trading Pte Ltd - Singapore
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- LBH Netherlands Bv - Netherlands
- Chettinad Cement Corporation Ltd - India
- Maheswari Brothers Coal Limited - India
- Makarim & Taira - Indonesia
- Bayan Resources Tbk. - Indonesia
- Independent Power Producers Association of India
- Goldman Sachs - Singapore
- MS Steel International - UAE
- Ministry of Finance - Indonesia
- SMG Consultants - Indonesia
- McConnell Dowell - Australia
- Central Electricity Authority - India
- Kartika Selabumi Mining - Indonesia
- Thiess Contractors Indonesia
- Heidelberg Cement - Germany
- Indonesian Coal Mining Association
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- Billiton Holdings Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- Planning Commission, India
- Larsen & Toubro Limited - India
- Economic Council, Georgia
- Essar Steel Hazira Ltd - India
- Kaltim Prima Coal - Indonesia
- Cement Manufacturers Association - India
- Wood Mackenzie - Singapore
- Price Waterhouse Coopers - Russia
- International Coal Ventures Pvt Ltd - India
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