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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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Sunday, 27 May 12
THE FREIGHT MARKET FROM INDONESIA TO INDIA WAS WEAK - VISTAAR
COALspot.com - The BDI continued to fall for the fourth straight week and the BDI fell by 9.38 pct this week closing at 1,034 points.
The Cape Si ...
Sunday, 27 May 12
INDONESIAN SUB-BITUMINOUS COAL SWAPS HEADING TO SOUTH DIRECTION
COALspot.com - Indonesian sub-bituminous coal swaps and CFR South China coal contracts for July deliveries have dropped this week by 5.43 percent an ...
Saturday, 26 May 12
DRY BULK SHIP OWNERS LOOKING TO CUT BACK ON TONNAGE SUPPLY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The oversupply of dry bulk carriers has been the most prominent problem in the market today, pushing down rates and ‘strangling’ profita ...
Thursday, 24 May 12
DRY BULK MARKET RETREATS ON LACK OF CHINA DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market retreated yesterday on the back of lower Chinese demand for commodities such as coal and iron ore, typically hauled by dry bulk ...
Tuesday, 22 May 12
NEW ONE-YEAR TIME CHARTERS FOR TWO VESSELS OF EXCEL MARITIME CARRIERS LTD.
Excel Maritime Carriers Ltd. (NYSE: EXM), an owner and operator of dry bulk carriers and an international provider of worldwide seaborne transportat ...
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- Cigading International Bulk Terminal - Indonesia
- GAC Shipping (India) Pvt Ltd
- Grasim Industreis Ltd - India
- Kartika Selabumi Mining - Indonesia
- Oldendorff Carriers - Singapore
- Australian Coal Association
- TeaM Sual Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Petron Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Toyota Tsusho Corporation, Japan
- Xindia Steels Limited - India
- Mjunction Services Limited - India
- Ceylon Electricity Board - Sri Lanka
- SN Aboitiz Power Inc, Philippines
- Global Business Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Goldman Sachs - Singapore
- Gujarat Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Straits Asia Resources Limited - Singapore
- Manunggal Multi Energi - Indonesia
- Madhucon Powers Ltd - India
- Chamber of Mines of South Africa
- Attock Cement Pakistan Limited
- GVK Power & Infra Limited - India
- Coastal Gujarat Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Orica Mining Services - Indonesia
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- Commonwealth Bank - Australia
- Australian Commodity Traders Exchange
- Electricity Authority, New Zealand
- Singapore Mercantile Exchange
- Timah Investasi Mineral - Indoneisa
- Metalloyd Limited - United Kingdom
- Posco Energy - South Korea
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- Samtan Co., Ltd - South Korea
- The Treasury - Australian Government
- Kapuas Tunggal Persada - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Gujarat Sidhee Cement - India
- Thiess Contractors Indonesia
- GMR Energy Limited - India
- Videocon Industries ltd - India
- India Bulls Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Star Paper Mills Limited - India
- Lanco Infratech Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Ambuja Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Makarim & Taira - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sree Jayajothi Cements Limited - India
- The State Trading Corporation of India Ltd
- Bhoruka Overseas - Indonesia
- OPG Power Generation Pvt Ltd - India
- Carbofer General Trading SA - India
- Directorate General of MIneral and Coal - Indonesia
- Siam City Cement - Thailand
- Minerals Council of Australia
- PTC India Limited - India
- Kobexindo Tractors - Indoneisa
- Vizag Seaport Private Limited - India
- Rio Tinto Coal - Australia
- Coalindo Energy - Indonesia
- Edison Trading Spa - Italy
- Tamil Nadu electricity Board
- Ministry of Finance - Indonesia
- Larsen & Toubro Limited - India
- White Energy Company Limited
- San Jose City I Power Corp, Philippines
- Energy Link Ltd, New Zealand
- Kohat Cement Company Ltd. - Pakistan
- Meenaskhi Energy Private Limited - India
- Electricity Generating Authority of Thailand
- Parliament of New Zealand
- Wood Mackenzie - Singapore
- GN Power Mariveles Coal Plant, Philippines
- SMC Global Power, Philippines
- Medco Energi Mining Internasional
- Chettinad Cement Corporation Ltd - India
- South Luzon Thermal Energy Corporation
- PNOC Exploration Corporation - Philippines
- Vedanta Resources Plc - India
- Billiton Holdings Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Simpson Spence & Young - Indonesia
- Pendopo Energi Batubara - Indonesia
- Riau Bara Harum - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Agrawal Coal Company - India
- Bharathi Cement Corporation - India
- Altura Mining Limited, Indonesia
- Cement Manufacturers Association - India
- PowerSource Philippines DevCo
- Indonesian Coal Mining Association
- Thai Mozambique Logistica
- Mintek Dendrill Indonesia
- Intertek Mineral Services - Indonesia
- ICICI Bank Limited - India
- Central Java Power - Indonesia
- Meralco Power Generation, Philippines
- Mercuria Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Bukit Makmur.PT - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Kepco SPC Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Salva Resources Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Wilmar Investment Holdings
- Sarangani Energy Corporation, Philippines
- Mercator Lines Limited - India
- Indian Oil Corporation Limited
- ASAPP Information Group - India
- Bhushan Steel Limited - India
- Global Green Power PLC Corporation, Philippines
- Indogreen Group - Indonesia
- Marubeni Corporation - India
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- SMG Consultants - Indonesia
- MS Steel International - UAE
- Maharashtra Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- Renaissance Capital - South Africa
- Parry Sugars Refinery, India
- Indo Tambangraya Megah - Indonesia
- Central Electricity Authority - India
- McConnell Dowell - Australia
- Africa Commodities Group - South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Standard Chartered Bank - UAE
- Eastern Energy - Thailand
- Planning Commission, India
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Malabar Cements Ltd - India
- Eastern Coal Council - USA
- Interocean Group of Companies - India
- Essar Steel Hazira Ltd - India
- Sojitz Corporation - Japan
- Sakthi Sugars Limited - India
- Economic Council, Georgia
- Dalmia Cement Bharat India
- Kideco Jaya Agung - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Aboitiz Power Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Port Waratah Coal Services - Australia
- Banpu Public Company Limited - Thailand
- Indian Energy Exchange, India
- Semirara Mining Corp, Philippines
- Latin American Coal - Colombia
- VISA Power Limited - India
- Ind-Barath Power Infra Limited - India
- Trasteel International SA, Italy
- Independent Power Producers Association of India
- London Commodity Brokers - England
- Krishnapatnam Port Company Ltd. - India
- Bayan Resources Tbk. - Indonesia
- New Zealand Coal & Carbon
- Ministry of Mines - Canada
- Romanian Commodities Exchange
- Sindya Power Generating Company Private Ltd
- Jaiprakash Power Ventures ltd
- Gujarat Mineral Development Corp Ltd - India
- Sical Logistics Limited - India
- European Bulk Services B.V. - Netherlands
- Bangladesh Power Developement Board
- Directorate Of Revenue Intelligence - India
- CIMB Investment Bank - Malaysia
- Merrill Lynch Commodities Europe
- Bulk Trading Sa - Switzerland
- Karaikal Port Pvt Ltd - India
- Indika Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
- Antam Resourcindo - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Bhatia International Limited - India
- Uttam Galva Steels Limited - India
- IEA Clean Coal Centre - UK
- Kumho Petrochemical, South Korea
- Aditya Birla Group - India
- LBH Netherlands Bv - Netherlands
- Globalindo Alam Lestari - Indonesia
- Borneo Indobara - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Binh Thuan Hamico - Vietnam
- Georgia Ports Authority, United States
- Baramulti Group, Indonesia
- Ministry of Transport, Egypt
- Global Coal Blending Company Limited - Australia
- Energy Development Corp, Philippines
- Coal and Oil Company - UAE
- Heidelberg Cement - Germany
- Alfred C Toepfer International GmbH - Germany
- CNBM International Corporation - China
- Kaltim Prima Coal - Indonesia
- Anglo American - United Kingdom
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