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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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Thursday, 13 August 09
JAYPEE GROUP. L&T INK RS 4,000-CRORE (US$ 824,818,084) DEAL
Second order bagged by L&T in the supercritical segment.
Jaiprakash Power Ventures Ltd (JPVL), promoted by the $7-billion Jaypee group, has s ...
Wednesday, 12 August 09
COAL INDIA TO IMPORT 4 MLN T 2009/10 - MEDIA
State-run Coal India Ltd plans to directly import 4 million tonnes of coal in the current fiscal year to March 2010, Chairman Partha Bhattacharyya s ...
Wednesday, 12 August 09
CHINA'S LARGEST COAL PRODUCER TO SET UP COAL RESERVES
China's National Development and Reform Commission has commissioned China Shenhua Energy Co., the nation's largest coal producer, to build 10 stor ...
Wednesday, 12 August 09
NALCO SMELTER CONSTRUCTION MAY FACE DELAY
The Jakarta Post reported that, India’s state-run National Aluminum Company (Nalco) may postpone the construction of an aluminum smelter in In ...
Wednesday, 12 August 09
COAL MINE PLAN SHOT DOWN OVER GREEN CONCERNS
The Times of India reported that, In a major setback to Adani Powers, the principal chief conservator of forests (PCCF) has rejected its proposal fo ...
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- Makarim & Taira - Indonesia
- SMC Global Power, Philippines
- GVK Power & Infra Limited - India
- New Zealand Coal & Carbon
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- Asmin Koalindo Tuhup - Indonesia
- Aboitiz Power Corporation - Philippines
- Standard Chartered Bank - UAE
- The University of Queensland
- TeaM Sual Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Electricity Authority, New Zealand
- Energy Link Ltd, New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- PTC India Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- Savvy Resources Ltd - HongKong
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bayan Resources Tbk. - Indonesia
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- Videocon Industries ltd - India
- Central Electricity Authority - India
- Kartika Selabumi Mining - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Port Waratah Coal Services - Australia
- Formosa Plastics Group - Taiwan
- Salva Resources Pvt Ltd - India
- Agrawal Coal Company - India
- Timah Investasi Mineral - Indoneisa
- Tata Chemicals Ltd - India
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Directorate General of MIneral and Coal - Indonesia
- Mercator Lines Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Sarangani Energy Corporation, Philippines
- Larsen & Toubro Limited - India
- South Luzon Thermal Energy Corporation
- Gujarat Sidhee Cement - India
- Bangladesh Power Developement Board
- Bukit Asam (Persero) Tbk - Indonesia
- Lanco Infratech Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Siam City Cement - Thailand
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- Merrill Lynch Commodities Europe
- Mjunction Services Limited - India
- The Treasury - Australian Government
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- Sical Logistics Limited - India
- Chettinad Cement Corporation Ltd - India
- Parry Sugars Refinery, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- CIMB Investment Bank - Malaysia
- Pipit Mutiara Jaya. PT, Indonesia
- SN Aboitiz Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- Central Java Power - Indonesia
- Posco Energy - South Korea
- Wilmar Investment Holdings
- Planning Commission, India
- Miang Besar Coal Terminal - Indonesia
- Global Coal Blending Company Limited - Australia
- Australian Coal Association
- International Coal Ventures Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Sindya Power Generating Company Private Ltd
- Therma Luzon, Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Baramulti Group, Indonesia
- Leighton Contractors Pty Ltd - Australia
- Binh Thuan Hamico - Vietnam
- Global Business Power Corporation, Philippines
- Trasteel International SA, Italy
- Malabar Cements Ltd - India
- Orica Mining Services - Indonesia
- GAC Shipping (India) Pvt Ltd
- Vedanta Resources Plc - India
- White Energy Company Limited
- AsiaOL BioFuels Corp., Philippines
- Global Green Power PLC Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Kideco Jaya Agung - Indonesia
- San Jose City I Power Corp, Philippines
- Altura Mining Limited, Indonesia
- Indian Oil Corporation Limited
- Jaiprakash Power Ventures ltd
- Thiess Contractors Indonesia
- Bukit Makmur.PT - Indonesia
- ICICI Bank Limited - India
- India Bulls Power Limited - India
- VISA Power Limited - India
- Sree Jayajothi Cements Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bukit Baiduri Energy - Indonesia
- Chamber of Mines of South Africa
- Australian Commodity Traders Exchange
- Directorate Of Revenue Intelligence - India
- Rio Tinto Coal - Australia
- Xindia Steels Limited - India
- Toyota Tsusho Corporation, Japan
- Antam Resourcindo - Indonesia
- Sakthi Sugars Limited - India
- London Commodity Brokers - England
- Ind-Barath Power Infra Limited - India
- Economic Council, Georgia
- Globalindo Alam Lestari - Indonesia
- Wood Mackenzie - Singapore
- Meenaskhi Energy Private Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- TNB Fuel Sdn Bhd - Malaysia
- Simpson Spence & Young - Indonesia
- Indian Energy Exchange, India
- OPG Power Generation Pvt Ltd - India
- Ambuja Cements Ltd - India
- Meralco Power Generation, Philippines
- Deloitte Consulting - India
- Kaltim Prima Coal - Indonesia
- Indonesian Coal Mining Association
- IEA Clean Coal Centre - UK
- Pendopo Energi Batubara - Indonesia
- Commonwealth Bank - Australia
- Energy Development Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Interocean Group of Companies - India
- Iligan Light & Power Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Kohat Cement Company Ltd. - Pakistan
- Dalmia Cement Bharat India
- Marubeni Corporation - India
- Bulk Trading Sa - Switzerland
- Vijayanagar Sugar Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Metalloyd Limited - United Kingdom
- Oldendorff Carriers - Singapore
- Star Paper Mills Limited - India
- Karaikal Port Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Finance - Indonesia
- Heidelberg Cement - Germany
- Krishnapatnam Port Company Ltd. - India
- Bhushan Steel Limited - India
- Kapuas Tunggal Persada - Indonesia
- Bharathi Cement Corporation - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Renaissance Capital - South Africa
- Jindal Steel & Power Ltd - India
- Anglo American - United Kingdom
- Rashtriya Ispat Nigam Limited - India
- Singapore Mercantile Exchange
- IHS Mccloskey Coal Group - USA
- Grasim Industreis Ltd - India
- Independent Power Producers Association of India
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Romanian Commodities Exchange
- CNBM International Corporation - China
- Kalimantan Lumbung Energi - Indonesia
- Mintek Dendrill Indonesia
- Thai Mozambique Logistica
- Cement Manufacturers Association - India
- Africa Commodities Group - South Africa
- Indo Tambangraya Megah - Indonesia
- Borneo Indobara - Indonesia
- MS Steel International - UAE
- Carbofer General Trading SA - India
- Latin American Coal - Colombia
- Bhatia International Limited - India
- Alfred C Toepfer International GmbH - Germany
- Power Finance Corporation Ltd., India
- Siam City Cement PLC, Thailand
- Parliament of New Zealand
- Bhoruka Overseas - Indonesia
- ASAPP Information Group - India
- Vizag Seaport Private Limited - India
- Cigading International Bulk Terminal - Indonesia
- Ministry of Mines - Canada
- Ministry of Transport, Egypt
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
- Orica Australia Pty. Ltd.
- Aditya Birla Group - India
- Jorong Barutama Greston.PT - Indonesia
- Manunggal Multi Energi - Indonesia
- Minerals Council of Australia
- Petron Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Eastern Coal Council - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Price Waterhouse Coopers - Russia
- Coal and Oil Company - UAE
- PowerSource Philippines DevCo
- Tamil Nadu electricity Board
- Attock Cement Pakistan Limited
- Electricity Generating Authority of Thailand
- Eastern Energy - Thailand
- McConnell Dowell - Australia
- GMR Energy Limited - India
- Coalindo Energy - Indonesia
- Uttam Galva Steels Limited - India
- Indogreen Group - Indonesia
- Georgia Ports Authority, United States
- Edison Trading Spa - Italy
- SMG Consultants - Indonesia
- Madhucon Powers Ltd - India
- Mercuria Energy - Indonesia
- Semirara Mining Corp, Philippines
- Essar Steel Hazira Ltd - India
- Kobexindo Tractors - Indoneisa
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