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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, 07 May 18
SOUTH KOREA STATE-OWNED UTILITY KOREA MIDLAND POWER ISSUED A TENDER FOR 1 MILLION TONS OF BITUMINOUS COAL
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued a tender for 520,000 mt of min. 5700 NAR coal of Australian origi ...
Monday, 07 May 18
GLOBAL COAL DEMAND ROSE ABOUT 1% IN 2017; ASIA ACCOUNTED FOR THE LARGEST INCREASE IN COAL DEMAND, UP 35 MTOE RELATIVE TO 2016 - IEA
Global coal demand rose about 1% in 2017, reversing the declining trend seen over the last two years. This growth was mainly due to demand in Asia, ...
Friday, 04 May 18
ELECTRICITY GENERATION FROM RENEWABLES WAS SECOND ONLY TO COAL IN 2017 - IEA
World electricity demand increased by 3.1 %, significantly higher than the overall increase in energy demand. Together, China and India accounted f ...
Thursday, 03 May 18
SUPRAMAX: INDO - CHINA COAL ROUNDS ARE PAYING IN THE LOW-MID $12000 BSS SINGAPORE DELIVERY - FEARNLEYS
Supramax
As expected a slow and uneventful start to the week with holidays in many countries, however by mid-week some fresh requirements and pos ...
Tuesday, 01 May 18
SUPRAMAX: COAL RUNS, A 61,000-DWT WAS FIXED BASIS DELIVERY SURABAYA, FOR A TRIP VIA INDONESIA, RE-DELIVERY INDIA AT $15,000 - BALTIC BRIEFING
Capesize
Rates eased in the East, as the week closed out with the momentum slowing. Levels on the key West Australia/China run dropped to $7.25 ...
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Showing 1726 to 1730 news of total 6871 |
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Africa Commodities Group - South Africa
- Ind-Barath Power Infra Limited - India
- Global Coal Blending Company Limited - Australia
- ASAPP Information Group - India
- Orica Mining Services - Indonesia
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- Banpu Public Company Limited - Thailand
- Bhoruka Overseas - Indonesia
- Bhatia International Limited - India
- Jindal Steel & Power Ltd - India
- Romanian Commodities Exchange
- Energy Link Ltd, New Zealand
- Kobexindo Tractors - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Bhushan Steel Limited - India
- India Bulls Power Limited - India
- PNOC Exploration Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Planning Commission, India
- Siam City Cement - Thailand
- Simpson Spence & Young - Indonesia
- Indo Tambangraya Megah - Indonesia
- South Luzon Thermal Energy Corporation
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- Baramulti Group, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Power Finance Corporation Ltd., India
- ICICI Bank Limited - India
- Ceylon Electricity Board - Sri Lanka
- PowerSource Philippines DevCo
- Indian Oil Corporation Limited
- Iligan Light & Power Inc, Philippines
- Independent Power Producers Association of India
- Aboitiz Power Corporation - Philippines
- GVK Power & Infra Limited - India
- SN Aboitiz Power Inc, Philippines
- Attock Cement Pakistan Limited
- Georgia Ports Authority, United States
- Indian Energy Exchange, India
- Australian Commodity Traders Exchange
- Renaissance Capital - South Africa
- Kaltim Prima Coal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- MS Steel International - UAE
- Electricity Authority, New Zealand
- Kideco Jaya Agung - Indonesia
- CNBM International Corporation - China
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- Binh Thuan Hamico - Vietnam
- Mintek Dendrill Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Straits Asia Resources Limited - Singapore
- Mjunction Services Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Agrawal Coal Company - India
- Semirara Mining Corp, Philippines
- Sindya Power Generating Company Private Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining and Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Trasteel International SA, Italy
- Bharathi Cement Corporation - India
- Sree Jayajothi Cements Limited - India
- Bukit Makmur.PT - Indonesia
- Merrill Lynch Commodities Europe
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- Global Business Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Economic Council, Georgia
- Rio Tinto Coal - Australia
- New Zealand Coal & Carbon
- Latin American Coal - Colombia
- Makarim & Taira - Indonesia
- Central Java Power - Indonesia
- Mercuria Energy - Indonesia
- Eastern Coal Council - USA
- Ministry of Mines - Canada
- Edison Trading Spa - Italy
- Oldendorff Carriers - Singapore
- Borneo Indobara - Indonesia
- Thiess Contractors Indonesia
- Malabar Cements Ltd - India
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kumho Petrochemical, South Korea
- Singapore Mercantile Exchange
- Bayan Resources Tbk. - Indonesia
- Barasentosa Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- Interocean Group of Companies - India
- TeaM Sual Corporation - Philippines
- McConnell Dowell - Australia
- Holcim Trading Pte Ltd - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Timah Investasi Mineral - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Port Waratah Coal Services - Australia
- Petron Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Vedanta Resources Plc - India
- VISA Power Limited - India
- Indogreen Group - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Gujarat Mineral Development Corp Ltd - India
- Posco Energy - South Korea
- Maheswari Brothers Coal Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- White Energy Company Limited
- Wood Mackenzie - Singapore
- Meenaskhi Energy Private Limited - India
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- The State Trading Corporation of India Ltd
- Orica Australia Pty. Ltd.
- Metalloyd Limited - United Kingdom
- Xindia Steels Limited - India
- Toyota Tsusho Corporation, Japan
- Standard Chartered Bank - UAE
- SMG Consultants - Indonesia
- Directorate Of Revenue Intelligence - India
- Mercator Lines Limited - India
- Riau Bara Harum - Indonesia
- London Commodity Brokers - England
- Gujarat Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Videocon Industries ltd - India
- Carbofer General Trading SA - India
- Tamil Nadu electricity Board
- Formosa Plastics Group - Taiwan
- Energy Development Corp, Philippines
- Bangladesh Power Developement Board
- Directorate General of MIneral and Coal - Indonesia
- CIMB Investment Bank - Malaysia
- Grasim Industreis Ltd - India
- Global Green Power PLC Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sojitz Corporation - Japan
- Commonwealth Bank - Australia
- Sical Logistics Limited - India
- Kapuas Tunggal Persada - Indonesia
- Ministry of Transport, Egypt
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- Indonesian Coal Mining Association
- Meralco Power Generation, Philippines
- Coal and Oil Company - UAE
- Thai Mozambique Logistica
- Chamber of Mines of South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Madhucon Powers Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Pendopo Energi Batubara - Indonesia
- Bulk Trading Sa - Switzerland
- Therma Luzon, Inc, Philippines
- Ambuja Cements Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Dalmia Cement Bharat India
- Krishnapatnam Port Company Ltd. - India
- Neyveli Lignite Corporation Ltd, - India
- Karaikal Port Pvt Ltd - India
- SMC Global Power, Philippines
- Deloitte Consulting - India
- The University of Queensland
- AsiaOL BioFuels Corp., Philippines
- IEA Clean Coal Centre - UK
- GAC Shipping (India) Pvt Ltd
- Larsen & Toubro Limited - India
- The Treasury - Australian Government
- Essar Steel Hazira Ltd - India
- Wilmar Investment Holdings
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sakthi Sugars Limited - India
- Gujarat Sidhee Cement - India
- Ministry of Finance - Indonesia
- Marubeni Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Central Electricity Authority - India
- Cement Manufacturers Association - India
- Kalimantan Lumbung Energi - Indonesia
- Altura Mining Limited, Indonesia
- Aditya Birla Group - India
- Sarangani Energy Corporation, Philippines
- Vizag Seaport Private Limited - India
- Medco Energi Mining Internasional
- San Jose City I Power Corp, Philippines
- Anglo American - United Kingdom
- Lanco Infratech Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Kartika Selabumi Mining - Indonesia
- Heidelberg Cement - Germany
- Manunggal Multi Energi - Indonesia
- Goldman Sachs - Singapore
- PTC India Limited - India
- Eastern Energy - Thailand
- Coastal Gujarat Power Limited - India
- Tata Chemicals Ltd - India
- Jaiprakash Power Ventures ltd
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