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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, 30 July 09
PNOC FORGES JOINT VENTURES AS STEPS UP COAL OPERATIONS
The Philippine National Oil Co.-Exploration Corp. has entered joint venture agreements with food and beverage conglomerate San Miguel and Filipinas ...
Thursday, 30 July 09
NAMANE OF SOUTH AFRICA IN SUDAN COAL DEAL, BUSINESS REPORT SAYS
Namane of South Africa in Sudan Coal Deal, Business Report Says
Namane Resources Ltd. of South Africa signed a coal-supply agreement with the Nat ...
Wednesday, 29 July 09
RP COAL DEMAND TO SURGE BY 2014 - PHILIPPINES UPDATE
CEBU, Philippines - With the entry of new coal-fired power generation plants in the Philippines, the Department of Energy (DOE) projected an increas ...
Wednesday, 29 July 09
INDIA HUNGRY FOR OUR COKING COAL ASSETS
The Australian reported that, INDIA is about to embark on a program of rapid coal sector acquisitions in Australia as it looks to plug a huge annual ...
Tuesday, 28 July 09
SHENZHEN ENERGY INKS COAL PURCHASE CONTRACT WITH CHINA SHENHUA
China Knowledge reported that, Shenzhen Energy Group Co Ltd has signed a five-year contract with China Shenhua Energy Co Ltd, which is engaged in th ...
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- Ambuja Cements Ltd - India
- Minerals Council of Australia
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- Sical Logistics Limited - India
- Salva Resources Pvt Ltd - India
- Sakthi Sugars Limited - India
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- Meenaskhi Energy Private Limited - India
- Indonesian Coal Mining Association
- Xindia Steels Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Semirara Mining Corp, Philippines
- Directorate Of Revenue Intelligence - India
- Thai Mozambique Logistica
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- Sree Jayajothi Cements Limited - India
- Bhatia International Limited - India
- Sarangani Energy Corporation, Philippines
- Simpson Spence & Young - Indonesia
- GAC Shipping (India) Pvt Ltd
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- Billiton Holdings Pty Ltd - Australia
- Lanco Infratech Ltd - India
- India Bulls Power Limited - India
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- Ministry of Mines - Canada
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- Semirara Mining and Power Corporation, Philippines
- Cement Manufacturers Association - India
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- Indika Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Georgia Ports Authority, United States
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- Maheswari Brothers Coal Limited - India
- Parliament of New Zealand
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- OPG Power Generation Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Coastal Gujarat Power Limited - India
- TeaM Sual Corporation - Philippines
- Alfred C Toepfer International GmbH - Germany
- Maharashtra Electricity Regulatory Commission - India
- Bulk Trading Sa - Switzerland
- AsiaOL BioFuels Corp., Philippines
- Orica Australia Pty. Ltd.
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bukit Baiduri Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Makarim & Taira - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Finance - Indonesia
- Oldendorff Carriers - Singapore
- Holcim Trading Pte Ltd - Singapore
- Singapore Mercantile Exchange
- Bangladesh Power Developement Board
- Ceylon Electricity Board - Sri Lanka
- Central Java Power - Indonesia
- Australian Commodity Traders Exchange
- Kalimantan Lumbung Energi - Indonesia
- Straits Asia Resources Limited - Singapore
- Tata Chemicals Ltd - India
- Karaikal Port Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Mintek Dendrill Indonesia
- Marubeni Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- PNOC Exploration Corporation - Philippines
- Power Finance Corporation Ltd., India
- Standard Chartered Bank - UAE
- The Treasury - Australian Government
- Globalindo Alam Lestari - Indonesia
- Ind-Barath Power Infra Limited - India
- Coal and Oil Company - UAE
- Parry Sugars Refinery, India
- Bharathi Cement Corporation - India
- Heidelberg Cement - Germany
- Therma Luzon, Inc, Philippines
- Baramulti Group, Indonesia
- Jaiprakash Power Ventures ltd
- Iligan Light & Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Cigading International Bulk Terminal - Indonesia
- IEA Clean Coal Centre - UK
- Borneo Indobara - Indonesia
- Vizag Seaport Private Limited - India
- Carbofer General Trading SA - India
- Commonwealth Bank - Australia
- Toyota Tsusho Corporation, Japan
- Kideco Jaya Agung - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Bhoruka Overseas - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Aboitiz Power Corporation - Philippines
- Altura Mining Limited, Indonesia
- CIMB Investment Bank - Malaysia
- Africa Commodities Group - South Africa
- Sinarmas Energy and Mining - Indonesia
- MS Steel International - UAE
- Rio Tinto Coal - Australia
- European Bulk Services B.V. - Netherlands
- SMG Consultants - Indonesia
- New Zealand Coal & Carbon
- Larsen & Toubro Limited - India
- Intertek Mineral Services - Indonesia
- Gujarat Sidhee Cement - India
- Petron Corporation, Philippines
- Dalmia Cement Bharat India
- Samtan Co., Ltd - South Korea
- Manunggal Multi Energi - Indonesia
- Goldman Sachs - Singapore
- Aditya Birla Group - India
- Eastern Coal Council - USA
- Australian Coal Association
- Indian Oil Corporation Limited
- Port Waratah Coal Services - Australia
- Thiess Contractors Indonesia
- Metalloyd Limited - United Kingdom
- The University of Queensland
- Global Green Power PLC Corporation, Philippines
- Wood Mackenzie - Singapore
- Bukit Makmur.PT - Indonesia
- Siam City Cement PLC, Thailand
- Madhucon Powers Ltd - India
- Pendopo Energi Batubara - Indonesia
- Chamber of Mines of South Africa
- Economic Council, Georgia
- Leighton Contractors Pty Ltd - Australia
- Indo Tambangraya Megah - Indonesia
- GVK Power & Infra Limited - India
- Jindal Steel & Power Ltd - India
- Edison Trading Spa - Italy
- PTC India Limited - India
- Krishnapatnam Port Company Ltd. - India
- Kepco SPC Power Corporation, Philippines
- Indogreen Group - Indonesia
- Attock Cement Pakistan Limited
- Orica Mining Services - Indonesia
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Latin American Coal - Colombia
- Trasteel International SA, Italy
- Agrawal Coal Company - India
- GN Power Mariveles Coal Plant, Philippines
- CNBM International Corporation - China
- Barasentosa Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Renaissance Capital - South Africa
- Planning Commission, India
- Tamil Nadu electricity Board
- White Energy Company Limited
- Jorong Barutama Greston.PT - Indonesia
- McConnell Dowell - Australia
- Timah Investasi Mineral - Indoneisa
- Antam Resourcindo - Indonesia
- ICICI Bank Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Malabar Cements Ltd - India
- Romanian Commodities Exchange
- Bhushan Steel Limited - India
- International Coal Ventures Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Interocean Group of Companies - India
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Deloitte Consulting - India
- Sindya Power Generating Company Private Ltd
- Global Coal Blending Company Limited - Australia
- Posco Energy - South Korea
- Formosa Plastics Group - Taiwan
- Essar Steel Hazira Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Eastern Energy - Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kohat Cement Company Ltd. - Pakistan
- Videocon Industries ltd - India
- Kumho Petrochemical, South Korea
- Independent Power Producers Association of India
- Rashtriya Ispat Nigam Limited - India
- London Commodity Brokers - England
- Star Paper Mills Limited - India
- Coalindo Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- GMR Energy Limited - India
- Meralco Power Generation, Philippines
- Savvy Resources Ltd - HongKong
- Mercuria Energy - Indonesia
- Mjunction Services Limited - India
- Indian Energy Exchange, India
- San Jose City I Power Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- Ministry of Transport, Egypt
- Asmin Koalindo Tuhup - Indonesia
- Electricity Authority, New Zealand
- Electricity Generating Authority of Thailand
- Sojitz Corporation - Japan
- Anglo American - United Kingdom
- South Luzon Thermal Energy Corporation
- TNB Fuel Sdn Bhd - Malaysia
- Merrill Lynch Commodities Europe
- VISA Power Limited - India
- PowerSource Philippines DevCo
- Wilmar Investment Holdings
- LBH Netherlands Bv - Netherlands
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