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Friday, 23 October 09
CIL PRICE HIKE LIKELY TO PUSH POWER RATES UP
 Business-Standard reported that, May squeeze cement companies’ margins, but the steel sector is unlikely to be affected much.
The upward revision of coal prices by government-owned Coal India Limited (CIL), which took place last week, is likely to have a divergent impact on the fossil fuel’s primary consumers such as cement, power and steel sectors. While cement makers’ margins will be under pressure, power producers will make a move to pass on the increased burden to consumers.The three sectors account for about 72 per cent of the total coal demand in the country.
On October 16, CIL increased the price of coal from Eastern Coalfields (ECL) and Bharat Coking Coal (BCCL) by 15 per cent, while all other subsidiary companies were permitted a hike of 10 per cent. This price increase is expected to swell CIL’s net profit by approximately Rs 2,000 crore this financial year and by about Rs 4,100 crore in the following year.
However, for the consuming sectors, especially the cement industry, the increase in coal prices will squeeze profit margins at a time when prices are already low due to rapid capacity augmentation.
Despite the fact that coal accounted for around two-thirds of the power and fuel cost, and 20 per cent of the total cost for cement manufacturers, firms would be unable to pass on the hike in coal prices to end users due to the current business environment, a report by Crisil Research suggested.
“The recent coal price hike will increase the cost of cement by Rs 3-4 a bag. However, this has been absorbed by manufacturers in the short-term. In the long run, though, if conditions are right, we could pass on the cost,” Cement Manufacturers Association President and Shree Cement Managing Director HM Bangur said. For the power sector, though, the impact of the upward revision of coal prices would be neutral, as the rise in cost of fuel would be passed on by the generators.
On an average, tariffs of power plants using domestic coal as fuel are expected to increase by 3-4 per cent. In rupee terms, the tariffs are expected to increase on an average by Rs 0.06 a unit. The rise is expected to increase the tariffs for final power consumers as the price hike will be passed on, the Crisil report further stated.
With the respective regulatory authorities of each state overseeing power tariffs, generators would first have to ascertain the increase in input costs and then approach the regulator for approval.
However, with the coal mixture of each generator differing, the choice being between CIL coal and that of the imported variety, it would take sometime before power utilities decide on the actual magnitude of the increase in tariff. “But 100 per cent, we will have to pass on the cost,” an official from the RPG’s power utility CESC said.
As for the steel industry, the Crisil report indicated that the coal price hike by CIL was not expected to have a significant impact on the steel industry as non-coking coal, which was primarily used by the sector, did not account for a significant portion of the total cost of steel manufacturing, except for steel made through the sponge iron route. Moreover, the dependence of domestic steel producers on CIL is only 25-35 per cent of their total requirement due to the availability of captive mines and imports. But Visa Steel Chairman and President of the Indian Chamber of Commerce Vishambhar Saran said the ex-pit head prices of CIL were already comparable to international prices, barring the freight factor cost. “The cost of setting-up a plant is higher if one is to use domestically available coal as compared to imported coal. This is because the former is of inferior quality and consequently extra costs such as ash disposal must be counted into the total project cost,” he added.
Source: Business-Standard
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Saturday, 24 October 09
NTPC SEEKS ALTERNATE COAL SUPPLY FOR KAHALGAON
State-run NTPC is looking at alternate sources of coal to fire its Kahalgaon (Bihar) and Farakka (West Bengal) and power stations, which are facing ...
Saturday, 24 October 09
ADANI, MMTC IN RACE TO SUPPLY COAL TO GSECL
Business-Standard reported that, as many as five companies are in fray to supply 15 lakh (1.5 million) metric tonnes of non-coking steam (ther ...
Saturday, 24 October 09
INDONESIA STATE POWER FIRM PLANS TO DELAY COAL SUPPLIES
Indonesia's state-controlled electricity company is negotiating with two coal producing firms to delay plans to supply coal to a power plant in Wes ...
Friday, 23 October 09
MONGOLIA LISTS 8 POTENTIAL BIDDERS FOR COAL PROJECT
Reuters reported that, Mongolia has shortlisted eight potential partners for its huge Tavan Tolgoi coking coal project, according to Temuulen Ganzor ...
Friday, 23 October 09
2010 WILL BE 'BRIDGE YEAR' FOR COAL - CONSOL CHIEF
Mining Weekly reported that, After a difficult 2009, 2010 will likely be a “bridge” year for the US coal industry, followed by improved ...
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- TNB Fuel Sdn Bhd - Malaysia
- Xindia Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Maheswari Brothers Coal Limited - India
- Bangladesh Power Developement Board
- Salva Resources Pvt Ltd - India
- Meralco Power Generation, Philippines
- Attock Cement Pakistan Limited
- Jaiprakash Power Ventures ltd
- Essar Steel Hazira Ltd - India
- Bayan Resources Tbk. - Indonesia
- Independent Power Producers Association of India
- Coalindo Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- ASAPP Information Group - India
- Latin American Coal - Colombia
- Chamber of Mines of South Africa
- Ministry of Finance - Indonesia
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- Global Green Power PLC Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kaltim Prima Coal - Indonesia
- Cement Manufacturers Association - India
- Bahari Cakrawala Sebuku - Indonesia
- Power Finance Corporation Ltd., India
- ICICI Bank Limited - India
- Kumho Petrochemical, South Korea
- Oldendorff Carriers - Singapore
- New Zealand Coal & Carbon
- SN Aboitiz Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Formosa Plastics Group - Taiwan
- Edison Trading Spa - Italy
- The State Trading Corporation of India Ltd
- Therma Luzon, Inc, Philippines
- Merrill Lynch Commodities Europe
- Billiton Holdings Pty Ltd - Australia
- Krishnapatnam Port Company Ltd. - India
- Pendopo Energi Batubara - Indonesia
- VISA Power Limited - India
- Videocon Industries ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Thiess Contractors Indonesia
- Globalindo Alam Lestari - Indonesia
- Georgia Ports Authority, United States
- Lanco Infratech Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Aboitiz Power Corporation - Philippines
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Standard Chartered Bank - UAE
- Borneo Indobara - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- MS Steel International - UAE
- Bukit Baiduri Energy - Indonesia
- Riau Bara Harum - Indonesia
- Alfred C Toepfer International GmbH - Germany
- GVK Power & Infra Limited - India
- Sree Jayajothi Cements Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Rio Tinto Coal - Australia
- Global Coal Blending Company Limited - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Antam Resourcindo - Indonesia
- Price Waterhouse Coopers - Russia
- Eastern Coal Council - USA
- OPG Power Generation Pvt Ltd - India
- Sical Logistics Limited - India
- Indika Energy - Indonesia
- Orica Australia Pty. Ltd.
- Renaissance Capital - South Africa
- Vizag Seaport Private Limited - India
- Singapore Mercantile Exchange
- Intertek Mineral Services - Indonesia
- Semirara Mining Corp, Philippines
- Bharathi Cement Corporation - India
- Indian Energy Exchange, India
- Iligan Light & Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Mjunction Services Limited - India
- London Commodity Brokers - England
- Tamil Nadu electricity Board
- Posco Energy - South Korea
- Sindya Power Generating Company Private Ltd
- Global Business Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- LBH Netherlands Bv - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cigading International Bulk Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Indogreen Group - Indonesia
- Coal and Oil Company - UAE
- IEA Clean Coal Centre - UK
- India Bulls Power Limited - India
- Ministry of Mines - Canada
- Carbofer General Trading SA - India
- European Bulk Services B.V. - Netherlands
- Directorate Of Revenue Intelligence - India
- Minerals Council of Australia
- Kideco Jaya Agung - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Port Waratah Coal Services - Australia
- Timah Investasi Mineral - Indoneisa
- GMR Energy Limited - India
- Baramulti Group, Indonesia
- Commonwealth Bank - Australia
- Mintek Dendrill Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Star Paper Mills Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Kepco SPC Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- San Jose City I Power Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Barasentosa Lestari - Indonesia
- Aditya Birla Group - India
- Gujarat Sidhee Cement - India
- Anglo American - United Kingdom
- Indian Oil Corporation Limited
- Banpu Public Company Limited - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Goldman Sachs - Singapore
- Indo Tambangraya Megah - Indonesia
- Uttam Galva Steels Limited - India
- Vedanta Resources Plc - India
- Coastal Gujarat Power Limited - India
- Sojitz Corporation - Japan
- Makarim & Taira - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Central Electricity Authority - India
- Planning Commission, India
- The University of Queensland
- Petron Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- Manunggal Multi Energi - Indonesia
- PowerSource Philippines DevCo
- Wilmar Investment Holdings
- Bulk Trading Sa - Switzerland
- Ceylon Electricity Board - Sri Lanka
- CNBM International Corporation - China
- Australian Commodity Traders Exchange
- Electricity Authority, New Zealand
- Ministry of Transport, Egypt
- Holcim Trading Pte Ltd - Singapore
- Bukit Makmur.PT - Indonesia
- Altura Mining Limited, Indonesia
- Romanian Commodities Exchange
- Economic Council, Georgia
- Ind-Barath Power Infra Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Binh Thuan Hamico - Vietnam
- Meenaskhi Energy Private Limited - India
- Agrawal Coal Company - India
- GN Power Mariveles Coal Plant, Philippines
- Interocean Group of Companies - India
- Leighton Contractors Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Trasteel International SA, Italy
- Mercuria Energy - Indonesia
- Parliament of New Zealand
- GAC Shipping (India) Pvt Ltd
- Bhatia International Limited - India
- Siam City Cement PLC, Thailand
- Thai Mozambique Logistica
- Orica Mining Services - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Deloitte Consulting - India
- Energy Development Corp, Philippines
- Larsen & Toubro Limited - India
- McConnell Dowell - Australia
- Heidelberg Cement - Germany
- Samtan Co., Ltd - South Korea
- Eastern Energy - Thailand
- Tata Chemicals Ltd - India
- Grasim Industreis Ltd - India
- Karaikal Port Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Australian Coal Association
- Medco Energi Mining Internasional
- Savvy Resources Ltd - HongKong
- Mercator Lines Limited - India
- Gujarat Electricity Regulatory Commission - India
- Marubeni Corporation - India
- Dalmia Cement Bharat India
- TeaM Sual Corporation - Philippines
- Electricity Generating Authority of Thailand
- Africa Commodities Group - South Africa
- The Treasury - Australian Government
- Karbindo Abesyapradhi - Indoneisa
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- Metalloyd Limited - United Kingdom
- Central Java Power - Indonesia
- SMG Consultants - Indonesia
- Kartika Selabumi Mining - Indonesia
- Siam City Cement - Thailand
- CIMB Investment Bank - Malaysia
- Malabar Cements Ltd - India
- Kobexindo Tractors - Indoneisa
- Ambuja Cements Ltd - India
- Bhushan Steel Limited - India
- Toyota Tsusho Corporation, Japan
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- White Energy Company Limited
- Simpson Spence & Young - Indonesia
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