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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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Saturday, 17 March 12
THE FREIGHT RATES FOR INDONESIA TO INDIA REMAINED FIRM - VISTAAR SINGAPORE
COALspot.com - The market continued to be firm and all segments were up except for Cape Index which was down by 2.46 pct closing at 1,466 points.
...
Saturday, 17 March 12
INDIAN GOVT FINALIZES DRAFT BILL FOR COAL REGULATOR - PTI
The coal sector would soon get a regulator as the government has finalised a draft bill for the purpose, Coal Minister Sriprakash Jaiswal said Wedne ...
Friday, 16 March 12
THE PACIFIC MARKET IS FIRMING UP - FEARNLEYS AS
Handy
A slightly positive trend was seen last week in the Atlantic. Skaw-Passero deliveries fixed around USD 3k to US Gulf, while US Gulf deliveres ...
Thursday, 15 March 12
RAINS AVERAGE SELLING PRICE OF COAL WENT UP BY 22 % IN 2011
COALspot.com - PT. Resource Alam Indonesia Tbk, an Indonesian CCoW (3rd Generation) holder reported Wednesday a 171 percent increase in net profits ...
Thursday, 15 March 12
RESOURCE ALAM FY11 PROFIT UP 171% - INSIDER STORIES
Insider Stories reported that, coal mining company PT Resource Alam Indonesia Tbk (KKGI) reported a 171.16% jump in net profit last year on the back ...
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- MS Steel International - UAE
- Ind-Barath Power Infra Limited - India
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- Maharashtra Electricity Regulatory Commission - India
- Port Waratah Coal Services - Australia
- Bhoruka Overseas - Indonesia
- Vizag Seaport Private Limited - India
- Orica Australia Pty. Ltd.
- Independent Power Producers Association of India
- New Zealand Coal & Carbon
- Bukit Makmur.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Bayan Resources Tbk. - Indonesia
- Rio Tinto Coal - Australia
- Makarim & Taira - Indonesia
- Krishnapatnam Port Company Ltd. - India
- European Bulk Services B.V. - Netherlands
- Global Green Power PLC Corporation, Philippines
- Romanian Commodities Exchange
- Billiton Holdings Pty Ltd - Australia
- Carbofer General Trading SA - India
- Vijayanagar Sugar Pvt Ltd - India
- Planning Commission, India
- Sindya Power Generating Company Private Ltd
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- Gujarat Sidhee Cement - India
- Singapore Mercantile Exchange
- Indonesian Coal Mining Association
- Essar Steel Hazira Ltd - India
- McConnell Dowell - Australia
- Bangladesh Power Developement Board
- Mercator Lines Limited - India
- South Luzon Thermal Energy Corporation
- Bhushan Steel Limited - India
- Manunggal Multi Energi - Indonesia
- Electricity Authority, New Zealand
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- Cigading International Bulk Terminal - Indonesia
- Energy Link Ltd, New Zealand
- Medco Energi Mining Internasional
- Mercuria Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Ministry of Finance - Indonesia
- Global Business Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- India Bulls Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Pipit Mutiara Jaya. PT, Indonesia
- Indika Energy - Indonesia
- Anglo American - United Kingdom
- Global Coal Blending Company Limited - Australia
- Standard Chartered Bank - UAE
- Timah Investasi Mineral - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- GVK Power & Infra Limited - India
- GMR Energy Limited - India
- Altura Mining Limited, Indonesia
- Jindal Steel & Power Ltd - India
- San Jose City I Power Corp, Philippines
- Latin American Coal - Colombia
- Coastal Gujarat Power Limited - India
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Posco Energy - South Korea
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- Central Java Power - Indonesia
- Directorate Of Revenue Intelligence - India
- Dalmia Cement Bharat India
- Ministry of Mines - Canada
- Baramulti Group, Indonesia
- Star Paper Mills Limited - India
- Power Finance Corporation Ltd., India
- Semirara Mining Corp, Philippines
- Intertek Mineral Services - Indonesia
- London Commodity Brokers - England
- The State Trading Corporation of India Ltd
- PowerSource Philippines DevCo
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
- Uttam Galva Steels Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Pendopo Energi Batubara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Interocean Group of Companies - India
- ICICI Bank Limited - India
- Thai Mozambique Logistica
- Indian Oil Corporation Limited
- Marubeni Corporation - India
- Banpu Public Company Limited - Thailand
- SMC Global Power, Philippines
- Siam City Cement - Thailand
- CNBM International Corporation - China
- Karbindo Abesyapradhi - Indoneisa
- Chamber of Mines of South Africa
- Petrochimia International Co. Ltd.- Taiwan
- Aboitiz Power Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Oldendorff Carriers - Singapore
- Merrill Lynch Commodities Europe
- Petron Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Australian Coal Association
- Kideco Jaya Agung - Indonesia
- Globalindo Alam Lestari - Indonesia
- PNOC Exploration Corporation - Philippines
- VISA Power Limited - India
- Sakthi Sugars Limited - India
- Videocon Industries ltd - India
- AsiaOL BioFuels Corp., Philippines
- Jaiprakash Power Ventures ltd
- Price Waterhouse Coopers - Russia
- Minerals Council of Australia
- Larsen & Toubro Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Grasim Industreis Ltd - India
- International Coal Ventures Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Central Electricity Authority - India
- LBH Netherlands Bv - Netherlands
- Deloitte Consulting - India
- Aditya Birla Group - India
- Edison Trading Spa - Italy
- Kartika Selabumi Mining - Indonesia
- Meralco Power Generation, Philippines
- Antam Resourcindo - Indonesia
- Africa Commodities Group - South Africa
- Sojitz Corporation - Japan
- Jorong Barutama Greston.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Riau Bara Harum - Indonesia
- SMG Consultants - Indonesia
- Meenaskhi Energy Private Limited - India
- Ambuja Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Alfred C Toepfer International GmbH - Germany
- Electricity Generating Authority of Thailand
- Parry Sugars Refinery, India
- SN Aboitiz Power Inc, Philippines
- ASAPP Information Group - India
- Barasentosa Lestari - Indonesia
- Thiess Contractors Indonesia
- GAC Shipping (India) Pvt Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chettinad Cement Corporation Ltd - India
- Bhatia International Limited - India
- Kobexindo Tractors - Indoneisa
- PTC India Limited - India
- OPG Power Generation Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- TeaM Sual Corporation - Philippines
- Madhucon Powers Ltd - India
- Commonwealth Bank - Australia
- Vedanta Resources Plc - India
- PetroVietnam Power Coal Import and Supply Company
- Lanco Infratech Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- Therma Luzon, Inc, Philippines
- Bharathi Cement Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Borneo Indobara - Indonesia
- Trasteel International SA, Italy
- Bahari Cakrawala Sebuku - Indonesia
- Tamil Nadu electricity Board
- Coal and Oil Company - UAE
- Tata Chemicals Ltd - India
- The University of Queensland
- Parliament of New Zealand
- Attock Cement Pakistan Limited
- IEA Clean Coal Centre - UK
- Indian Energy Exchange, India
- Australian Commodity Traders Exchange
- Kumho Petrochemical, South Korea
- CIMB Investment Bank - Malaysia
- Cement Manufacturers Association - India
- Metalloyd Limited - United Kingdom
- Karaikal Port Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wood Mackenzie - Singapore
- Energy Development Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Miang Besar Coal Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- IHS Mccloskey Coal Group - USA
- White Energy Company Limited
- Georgia Ports Authority, United States
- Eastern Energy - Thailand
- Ministry of Transport, Egypt
- Bukit Baiduri Energy - Indonesia
- The Treasury - Australian Government
- Goldman Sachs - Singapore
- Sical Logistics Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Malabar Cements Ltd - India
- Orica Mining Services - Indonesia
- Indo Tambangraya Megah - Indonesia
- Economic Council, Georgia
- Kapuas Tunggal Persada - Indonesia
- Iligan Light & Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Bulk Trading Sa - Switzerland
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