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Thursday, 10 May 18
PRIVATE POWER PRODUCERS NEED A 'POWERFUL PUSH' - PRADEEP MITTAL
 - PLF of the Private Sector in the country (Coal and Lignite based) for FY 2017-18 (till Dec 2017) is 56%.
- 51 GW of stressed assets (Thermal & gas) and around 23 GW of capacity under construction projects are likely to be stressed due to non-availability of Coal and lack of PPA’s.
- Of total 495 MT of coal supplied by CIL and its Subsidiary, Private sector received around 133 MT of coal for FY 2017-18 (Till Feb 2018).
- Post-GST private power producers witnessed an increase of nearly Rs 135/tonne on Imported Coal.
- Private players have to bear an increase of 12-15 paisa/Kwh post GST implementation in July 2017 and revised coal price notification by CIL (domestic coal) in Jan 2018.
- Non-availability of Long term fuel security (coal linkage or coal blocks), adequate long term PPA tenders by Discoms continues to hamper private power producers.
- Additional Capex requirement for meeting the revised environmental norms issued by MoEF
India is a power surplus country, really? Isn’t it an illusion? The poor health of State discoms compels them to buy less electricity. And ofcourse, load-shedding continues to torment the discoms. Nearly, 300 million people are expected to get electricity under the government’s ambitious
`Power for All’ initiative. Inadequate infrastructure for power transmission is believed to be the primary reason for the aforementioned number is deprived of electricity. The tag of Power Surplus Country — is it something really to cherish?
Imbalanced coal supply: Public Vs private power producers
Insufficient coal supply to thermal power plants is taking a huge toll on electricity generation. According to Coal Ministry data, of total 495 million tonne (MT), Coal India Ltd (CIL) has supplied 362 MT (accounting for 73%) to public sector thermal power plants from April 2017 to February 2018. On the other hand, private thermal power plants received 133 MT during these ten months, which accounts for 27% of total coal supplied to IPP’s. The supply of thermal grade coal (G11 to G12) is likely to remain in the same proportion in coming years. Moreover, the recent coal price hike will translate to 12-15 paisa/kWh and is a major setback to the IPP’s as most of the Case-1 competitive bidding PPAs do not allow pass through of increase in coal price to producers, whereas for public power plants the PPA’s are signed under Section-62 which allows the pass through of increased coal cost. As the IPP’s are already hit by increasing operating costs, private power producers badly need optimum coal supply with a slash in current coal prices. Further, Inadequate coal supply forces the private power plants to opt for imported coal where the current duty structure puts them on a receiving end.
Duty structure for Imported Thermal coal -a dampener
In the wake of the insufficient coal availability, imported thermal coal remains the only way out to meet the rising fuel demand for power generation. However, the duty structure for thermal coal only adds to increase in imported thermal coal prices. Pre-GST private power producers were paying Rs 515/tones on an assessable value of Rs 5000/tone, which includes CVD of 2% of assessable value; a green energy cess of Rs 400/tonne, and education cess of 3% on total duty component. Post-GST, power producers have to pay IGST of 5% of assessable value and GST compensation cess to the tune of Rs 400 /tonne, which makes the total payment to Rs. 650/tonne. us, power producers face an increase of Rs.135/tonne which is translated to approximately 9 paisa/ kWh. is additional amount is claimed under Change of Law, but regulatory delays force power producers to bear the brunt of duty structure.
In the case of thermal coal imported from other countries like South Africa, Australia, Columbia, etc. only basic duty has been abolished from 2.5% in pre-GST era, while other components such as CVD, green energy cess and education cess are combined under IGST of 5% of total assessable value. us, private power producers have to pay extra Rs. 131/tones on thermal coal imported from abovementioned countries, which is translated to —9 paisa/kWh.
It is also pertinent to note that the green cess has increased to Rs. 400/tonne from Rs. 50/tonne over the years. Unfortunately, power tariffs have not come across the same trend.
Coal price hike adding to private power producers’ woes
The private power plant operators are already facing acute problem of coal supply and an increase of nearly 11% in thermal grade coal (G-11) has further marred the operating cost. Between May-2016 and January-2018, price of G-11 grade thermal coal has gone up by 11% to Rs 1,849/tones, which is likely to translate to 12-15 paisa/kWh in power cost.
The nature of signed PPAs under competitive bidding with state discoms does not allow the private power producers to claim any change in coal prices by CIL under Change in Law. And eventually, power generators have to bear the extra burden. On the contrary, power PSUs have a cost plus PPA with discoms and they enjoy the benefit of passing on the impact of coal price hike to discoms and thereafter to consumers.
Sluggish coal supply and absence of linkages likely to lead to more NPAs
According to estimates, NPAs in the power sector is anticipated to be around Rs. 4 lakh crore. Due to non-availability of coal and linkages many power plants were forced to shut and turned into stressed assets. Further, the lenders have also stopped funding which were already taken at higher interest rates. Government’s initiatives for providing adequate coal and long term fuel linkages have not fetched positive results which led the private power producers surrendering prices. e government aims to add 47 GW of coal-fired capacity by 2022. However, at this juncture, no private power producer will come up with fresh investment unless and until the current issues are resolved. If the private power producers receive a substantial capital push along with revised framework for coal supply and coal linkages, at least unfinished power projects can see the light of day.
Article by Mr. Pradeep Mittal Executive Vice Chairman, Essar Power Ltd.
Source : Electrical & Power Info, April-May 2018
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Monday, 28 May 18
KOMIPO ISSUED ANOTHER TENDER FOR 130K MT OF 5700 NAR COAL
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued a tender for 130,000 mt of min. 5700 NAR coal of Australian origi ...
Thursday, 24 May 18
SUPRAS FIXING AROUND USD 15000 FOR INDO TO CHINA COAL TRIPS - FEARNLEYS
Capesize
Both the physical and the paper market have dropped sharply the last couple of days on the back of a lack of fresh cargoes and a growing ...
Thursday, 24 May 18
FITCH: FALLING COAL INVESTMENT TO SUPPORT ASIAN PRICES
Press Release: The long-term outlook for the Asian thermal coal prices is improving, amid rising regional demand and falling mining investment, whi ...
Thursday, 24 May 18
BEIJING ORDERS UTILITIES, MINERS TO HELP COOL RED-HOT COAL MARKET: SOURCES - REUTERS
China’s state planner ordered utilities this week to stop stockpiling thermal coal and told miners to slash prices, two sources familiar with ...
Wednesday, 23 May 18
TANKER MARKET INSIGHT - TIMOS PAPADIMITRIOU
In the last six months we have seen more than 110 reported tanker transactions involving tonnage larger than 32k dwt and younger than 18 years old. ...
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Showing 1716 to 1720 news of total 6871 |
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- TeaM Sual Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- The Treasury - Australian Government
- Chamber of Mines of South Africa
- Bhoruka Overseas - Indonesia
- European Bulk Services B.V. - Netherlands
- Deloitte Consulting - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cigading International Bulk Terminal - Indonesia
- CIMB Investment Bank - Malaysia
- South Luzon Thermal Energy Corporation
- New Zealand Coal & Carbon
- Essar Steel Hazira Ltd - India
- Jindal Steel & Power Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- Sakthi Sugars Limited - India
- PowerSource Philippines DevCo
- Indonesian Coal Mining Association
- Bayan Resources Tbk. - Indonesia
- Coalindo Energy - Indonesia
- Orica Mining Services - Indonesia
- Larsen & Toubro Limited - India
- Sindya Power Generating Company Private Ltd
- Trasteel International SA, Italy
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- VISA Power Limited - India
- Vedanta Resources Plc - India
- IEA Clean Coal Centre - UK
- Semirara Mining and Power Corporation, Philippines
- Petron Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Edison Trading Spa - Italy
- Electricity Generating Authority of Thailand
- Central Java Power - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Riau Bara Harum - Indonesia
- Kobexindo Tractors - Indoneisa
- Directorate Of Revenue Intelligence - India
- Simpson Spence & Young - Indonesia
- Indika Energy - Indonesia
- Agrawal Coal Company - India
- Binh Thuan Hamico - Vietnam
- Timah Investasi Mineral - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Dalmia Cement Bharat India
- McConnell Dowell - Australia
- Indian Oil Corporation Limited
- Goldman Sachs - Singapore
- Pendopo Energi Batubara - Indonesia
- Attock Cement Pakistan Limited
- Eastern Energy - Thailand
- India Bulls Power Limited - India
- Kideco Jaya Agung - Indonesia
- Marubeni Corporation - India
- Altura Mining Limited, Indonesia
- Maheswari Brothers Coal Limited - India
- Intertek Mineral Services - Indonesia
- IHS Mccloskey Coal Group - USA
- Independent Power Producers Association of India
- Bhushan Steel Limited - India
- Semirara Mining Corp, Philippines
- Indogreen Group - Indonesia
- Baramulti Group, Indonesia
- Mintek Dendrill Indonesia
- Lanco Infratech Ltd - India
- Bhatia International Limited - India
- GAC Shipping (India) Pvt Ltd
- Globalindo Alam Lestari - Indonesia
- Salva Resources Pvt Ltd - India
- The University of Queensland
- Videocon Industries ltd - India
- Sical Logistics Limited - India
- Rio Tinto Coal - Australia
- Rashtriya Ispat Nigam Limited - India
- Electricity Authority, New Zealand
- Miang Besar Coal Terminal - Indonesia
- London Commodity Brokers - England
- SMC Global Power, Philippines
- Cement Manufacturers Association - India
- Thiess Contractors Indonesia
- Borneo Indobara - Indonesia
- Parry Sugars Refinery, India
- Ceylon Electricity Board - Sri Lanka
- Wood Mackenzie - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Savvy Resources Ltd - HongKong
- Kaltim Prima Coal - Indonesia
- ICICI Bank Limited - India
- Xindia Steels Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Chettinad Cement Corporation Ltd - India
- Mjunction Services Limited - India
- Australian Coal Association
- Ambuja Cements Ltd - India
- Kepco SPC Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Australian Commodity Traders Exchange
- PetroVietnam Power Coal Import and Supply Company
- Alfred C Toepfer International GmbH - Germany
- OPG Power Generation Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Central Electricity Authority - India
- Oldendorff Carriers - Singapore
- MS Steel International - UAE
- CNBM International Corporation - China
- Pipit Mutiara Jaya. PT, Indonesia
- Uttam Galva Steels Limited - India
- Bharathi Cement Corporation - India
- Siam City Cement - Thailand
- Global Green Power PLC Corporation, Philippines
- Africa Commodities Group - South Africa
- Malabar Cements Ltd - India
- Banpu Public Company Limited - Thailand
- Samtan Co., Ltd - South Korea
- Bukit Asam (Persero) Tbk - Indonesia
- Carbofer General Trading SA - India
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Finance - Indonesia
- Ministry of Mines - Canada
- Vijayanagar Sugar Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- PNOC Exploration Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Therma Luzon, Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Tamil Nadu electricity Board
- Meralco Power Generation, Philippines
- Karaikal Port Pvt Ltd - India
- Wilmar Investment Holdings
- Thai Mozambique Logistica
- Formosa Plastics Group - Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
- Jaiprakash Power Ventures ltd
- Economic Council, Georgia
- Kumho Petrochemical, South Korea
- Merrill Lynch Commodities Europe
- Port Waratah Coal Services - Australia
- Mercator Lines Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- GVK Power & Infra Limited - India
- Coastal Gujarat Power Limited - India
- Meenaskhi Energy Private Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Transport, Egypt
- LBH Netherlands Bv - Netherlands
- PTC India Limited - India
- Parliament of New Zealand
- Barasentosa Lestari - Indonesia
- Antam Resourcindo - Indonesia
- Medco Energi Mining Internasional
- GMR Energy Limited - India
- Global Business Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Planning Commission, India
- Aditya Birla Group - India
- Kapuas Tunggal Persada - Indonesia
- Star Paper Mills Limited - India
- Gujarat Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- GN Power Mariveles Coal Plant, Philippines
- ASAPP Information Group - India
- TNB Fuel Sdn Bhd - Malaysia
- Posco Energy - South Korea
- Global Coal Blending Company Limited - Australia
- Power Finance Corporation Ltd., India
- Ind-Barath Power Infra Limited - India
- Georgia Ports Authority, United States
- Renaissance Capital - South Africa
- White Energy Company Limited
- Makarim & Taira - Indonesia
- Singapore Mercantile Exchange
- Latin American Coal - Colombia
- Indo Tambangraya Megah - Indonesia
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- Orica Australia Pty. Ltd.
- Asmin Koalindo Tuhup - Indonesia
- Manunggal Multi Energi - Indonesia
- Aboitiz Power Corporation - Philippines
- The State Trading Corporation of India Ltd
- Heidelberg Cement - Germany
- SMG Consultants - Indonesia
- Mercuria Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Standard Chartered Bank - UAE
- Tata Chemicals Ltd - India
- Gujarat Sidhee Cement - India
- Holcim Trading Pte Ltd - Singapore
- Coal and Oil Company - UAE
- Sojitz Corporation - Japan
- Toyota Tsusho Corporation, Japan
- Bangladesh Power Developement Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Commonwealth Bank - Australia
- Sree Jayajothi Cements Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Grasim Industreis Ltd - India
- Sarangani Energy Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Bukit Makmur.PT - Indonesia
- Metalloyd Limited - United Kingdom
- Indian Energy Exchange, India
- Madhucon Powers Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Eastern Coal Council - USA
- Anglo American - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- SN Aboitiz Power Inc, Philippines
- Minerals Council of Australia
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