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Thursday, 06 August 09
NTPC LOOKS TO BYPASS STATE TRADING FIRMS ON COAL IMPORT
 A reduced coal import bill for NTPC could lead to lower power tariffs
Live mint.com reported that, India’s largest power generation utility, NTPC Ltd, may directly import the coal it needs, instead of asking state-owned trading firms such as MMTC Ltd and State Trading Corp. of India Ltd (STC) to import the fuel for it.
The move, which could affect revenue from coal imports at these trading firms, is a fallout of a controversy surrounding MMTC’s execution of an order to import a record 12.5 million tonnes (mt) of coal valued at Rs6,000 crore for NTPC. That order is now stuck.
One of the bidders for the tender, Knowledge Infrastructure Systems Pvt. Ltd (KISPL), has alleged foul play in the way this order was executed, and has demanded an investigation into the procurement process and an intervention by the Prime Minister’s Office.
NTPC could reduce its coal import bill through direct imports that do not involve paying a commission to the trader. This could mean proportionately lower power generation costs and, consequently, lower tariffs.
“We plan to operationalize this sourcing mechanism by the end of this year and we are in talks with overseas coal mining firms in Indonesia and Australia for the same,” said a top NTPC executive who did not want to be identified. “We are aware about the controversy surrounding our 12.5mt coal contract with MMTC over which questions have been raised from some quarters.”
NTPC has a coal import policy in place and can only import coal through state trading firms such as MMTC and STC. This policy will need to be changed should NTPC want to import coal directly.
In an email communication, KISPL’s spokesperson voiced two concerns about the controversial 12.5mt contract. The first is NTPC’s use of an intermediary because this will lead to a mark-up in the imported cost of coal. “Since fuel cost is a pass-through, this additional cost is passed on to citizens in the form of increased power tariff and, hence, the process should be discouraged,” wrote the spokesperson.
The second has to do with the conditions of the import tender which the spokesperson claims are “against Central Vigilance Commission (CVC) guidelines and standard public sector tenders.” “The tender neither provides level playing ground for all the bidders nor does it seem to promote competition, which is the main basis behind public tenders.”
CVC is a government entity that serves as a sort of conscience keeper for state-owned companies.
Other bidders for the 12.5mt contract are Adani Enterprises Ltd and two consortia, Agarwal Coal Corp. Pvt. Ltd and Kowa Co. Ltd of Japan; and Dubai-based Coal and Oil Group (C&O), Coastal Energy Pvt. Ltd and Seapol Pvt. Ltd.
“The controversy has been raised as there is a conflict between various competitors. There is a divergent view on the qualification criteria between CVC and NTPC. We are stuck there. We have communicated to NTPC that either you get these qualification criteria cleared by the CVC or we get an approval from our board,” said a senior MMTC executive who did not want to be identified.
The same MMTC official maintained that NTPC’s decision to bypass a trading firm will only have a minimal impact on its turnover. “We are not regularly importing coal for NTPC. The last time we imported coal for them was in 2005-06—2.1 mt. I will not say that it is a loss of business as it is an additional business we are looking for. It is NTPC’s prerogative whether they want to do it through a trading company such as ours or themselves,” he said.
MMTC posted a net profit of Rs1,654.42 core on a turnover of Rs36,904.62 crore in 2008-09. Of this, revenue of Rs2,724 crore came from the coal business. The firm imported 3.7mt of coal in the last fiscal for state utilities. Mint could not immediately ascertain the share of NTPC in the state trading firm’s coal import business in previous years.
The size of the market for imported coal that goes into power generation in India is around 20mt a year, and is expected to double by 2012 as more thermal power projects come up.
Coal is critical for NTPC as at least 80% of its installed capacity of 30,644MW is coal-based. However, a majority of its coal-based projects don’t have sufficient stock of coal. NTPC used 125 million tonnes per annum (mtpa) of domestic coal in 2008-09 and 6.41 mtpa of imported coal. Indian coal has a high-ash content, one reason why some domestic coal-based power plants mix it with higher quality coal that is imported.
An Adani Group spokesperson could not be reached for comment and questions mailed to his email address bounced back. Questions emailed to the firm remained unanswered.
A consultant said that intermediaries usually add to the cost unless they can aggregate demand and get better bargains in the international market. “That, however, may not be the case with some of the larger utilities in India,” said Dipesh Dipu, principal consultant, mining, at audit and consulting firm PricewaterhouseCoopers,
India has known coal reserves of 255 billion tonnes, the fourth largest in the world. Coal accounts for at least 50% of India’s commercial energy consumption and around 78% of domestic coal production is dedicated to power generation.
Source: Live Mint
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Friday, 14 August 09
GUACOLDA STARTS THIRD COAL-FIRED UNIT
Macorship reported that, Chile’s Empresa Electrica Guacolda said that the third unit at its Guacolda coal-fired power plant began supplying po ...
Thursday, 13 August 09
RIO PREPARES COAL IPO AFTER FAILING TO FIND BUYER
Bloomberg reported that, Rio Tinto Group, the world’s third- largest mining company, is preparing an initial public offering for its U.S. ...
Thursday, 13 August 09
NOBLE'S PROFIT DOUBLES ON GLOUCESTER COAL ACQUISITION
Bloomberg reported that, Noble Group Ltd., a Hong Kong-based supplier of raw materials from soybeans to coal, said second- quarter profit more than ...
Thursday, 13 August 09
CHINA COAL-PRICES UNCHANGED, BUT LIKELY TO MOVE HIGHER
Alibaba reported that, Spot coal prices in China's top coal port Qinhuangdao were unchanged from a week earlier, but are still looking bullish in t ...
Thursday, 13 August 09
INDONESIA'S BERAU COAL SEES 2010 OUTPUT UP 16 PCT
Reuters reported that, Indonesia's fifth-largest coal miner, PT Berau Coal, expects 2010 production to be nearly 16 percent higher than this year, ...
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- Cement Manufacturers Association - India
- Marubeni Corporation - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Makmur.PT - Indonesia
- Metalloyd Limited - United Kingdom
- IEA Clean Coal Centre - UK
- Global Coal Blending Company Limited - Australia
- Simpson Spence & Young - Indonesia
- Bayan Resources Tbk. - Indonesia
- Samtan Co., Ltd - South Korea
- Australian Coal Association
- Latin American Coal - Colombia
- Sakthi Sugars Limited - India
- Meralco Power Generation, Philippines
- Kobexindo Tractors - Indoneisa
- Indian Energy Exchange, India
- Xindia Steels Limited - India
- Sindya Power Generating Company Private Ltd
- Global Business Power Corporation, Philippines
- Chamber of Mines of South Africa
- Economic Council, Georgia
- Goldman Sachs - Singapore
- Bhatia International Limited - India
- Heidelberg Cement - Germany
- Agrawal Coal Company - India
- Billiton Holdings Pty Ltd - Australia
- Electricity Authority, New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Sical Logistics Limited - India
- Intertek Mineral Services - Indonesia
- Energy Development Corp, Philippines
- Indian Oil Corporation Limited
- Standard Chartered Bank - UAE
- TeaM Sual Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Tata Chemicals Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Sojitz Corporation - Japan
- Coastal Gujarat Power Limited - India
- OPG Power Generation Pvt Ltd - India
- White Energy Company Limited
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- Central Electricity Authority - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Merrill Lynch Commodities Europe
- Miang Besar Coal Terminal - Indonesia
- India Bulls Power Limited - India
- Iligan Light & Power Inc, Philippines
- Minerals Council of Australia
- AsiaOL BioFuels Corp., Philippines
- Savvy Resources Ltd - HongKong
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Ministry of Finance - Indonesia
- Mintek Dendrill Indonesia
- Star Paper Mills Limited - India
- Mercuria Energy - Indonesia
- Singapore Mercantile Exchange
- Banpu Public Company Limited - Thailand
- Trasteel International SA, Italy
- Port Waratah Coal Services - Australia
- Thiess Contractors Indonesia
- Semirara Mining Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Maheswari Brothers Coal Limited - India
- Toyota Tsusho Corporation, Japan
- Independent Power Producers Association of India
- Coalindo Energy - Indonesia
- Siam City Cement PLC, Thailand
- Grasim Industreis Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Vedanta Resources Plc - India
- Ministry of Transport, Egypt
- Wilmar Investment Holdings
- London Commodity Brokers - England
- Kapuas Tunggal Persada - Indonesia
- PowerSource Philippines DevCo
- South Luzon Thermal Energy Corporation
- Posco Energy - South Korea
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- European Bulk Services B.V. - Netherlands
- Kartika Selabumi Mining - Indonesia
- Wood Mackenzie - Singapore
- Therma Luzon, Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Antam Resourcindo - Indonesia
- Karaikal Port Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pendopo Energi Batubara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Sidhee Cement - India
- Rashtriya Ispat Nigam Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- Kaltim Prima Coal - Indonesia
- Parliament of New Zealand
- Aditya Birla Group - India
- Semirara Mining and Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Dalmia Cement Bharat India
- Uttam Galva Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- ASAPP Information Group - India
- Kideco Jaya Agung - Indonesia
- Indika Energy - Indonesia
- Salva Resources Pvt Ltd - India
- The State Trading Corporation of India Ltd
- McConnell Dowell - Australia
- Global Green Power PLC Corporation, Philippines
- Bulk Trading Sa - Switzerland
- San Jose City I Power Corp, Philippines
- Medco Energi Mining Internasional
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate Of Revenue Intelligence - India
- Petrochimia International Co. Ltd.- Taiwan
- Bhoruka Overseas - Indonesia
- Australian Commodity Traders Exchange
- Anglo American - United Kingdom
- Malabar Cements Ltd - India
- Coal and Oil Company - UAE
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Mjunction Services Limited - India
- Bangladesh Power Developement Board
- Madhucon Powers Ltd - India
- Bharathi Cement Corporation - India
- Georgia Ports Authority, United States
- Kepco SPC Power Corporation, Philippines
- Thai Mozambique Logistica
- Riau Bara Harum - Indonesia
- The University of Queensland
- The Treasury - Australian Government
- LBH Netherlands Bv - Netherlands
- Electricity Generating Authority of Thailand
- Rio Tinto Coal - Australia
- Central Java Power - Indonesia
- Kumho Petrochemical, South Korea
- Directorate General of MIneral and Coal - Indonesia
- Baramulti Group, Indonesia
- Ministry of Mines - Canada
- Bukit Baiduri Energy - Indonesia
- Binh Thuan Hamico - Vietnam
- Lanco Infratech Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bhushan Steel Limited - India
- Timah Investasi Mineral - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Meenaskhi Energy Private Limited - India
- GMR Energy Limited - India
- Jindal Steel & Power Ltd - India
- Price Waterhouse Coopers - Russia
- Jorong Barutama Greston.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- Tamil Nadu electricity Board
- Energy Link Ltd, New Zealand
- Planning Commission, India
- Sarangani Energy Corporation, Philippines
- Carbofer General Trading SA - India
- New Zealand Coal & Carbon
- Jaiprakash Power Ventures ltd
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Siam City Cement - Thailand
- SMG Consultants - Indonesia
- Eastern Energy - Thailand
- Alfred C Toepfer International GmbH - Germany
- Indonesian Coal Mining Association
- Renaissance Capital - South Africa
- International Coal Ventures Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Indogreen Group - Indonesia
- Ambuja Cements Ltd - India
- Africa Commodities Group - South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Karbindo Abesyapradhi - Indoneisa
- Makarim & Taira - Indonesia
- VISA Power Limited - India
- Power Finance Corporation Ltd., India
- Formosa Plastics Group - Taiwan
- SMC Global Power, Philippines
- Indo Tambangraya Megah - Indonesia
- GVK Power & Infra Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Orica Australia Pty. Ltd.
- Oldendorff Carriers - Singapore
- Holcim Trading Pte Ltd - Singapore
- MS Steel International - UAE
- Interocean Group of Companies - India
- ICICI Bank Limited - India
- Eastern Coal Council - USA
- Manunggal Multi Energi - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- PTC India Limited - India
- Petron Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Bank of Tokyo Mitsubishi UFJ Ltd
- Commonwealth Bank - Australia
- SN Aboitiz Power Inc, Philippines
- Mercator Lines Limited - India
- Vizag Seaport Private Limited - India
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