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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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Thursday, 29 October 09
MMTC AWARDED 12.5 MILLION TONS TO THREE INDIAN TRADERS
COALspot.com (India): State-run trading firm MMTC awarded tenders for the import of 12.5 million tonnes of coal for NTPC to three Indian coal trader ...
Thursday, 29 October 09
COAL OF AFRICA SEES VELE OUTPUT BY APRIL 2010
* First coal from Mooiplaats mined and sold
* Talks with Transnet on rail PPP on track
Reuters reported that, Coal of Africa (CoAL) said on Mond ...
Thursday, 29 October 09
UAE FUND EYES INDIA POWER FOR INDONESIAN COAL
Reuters reported that, the UAE's Middle East Coal (MEC) is in talks to buy equity stakes in India's power plants in exchange for long-term coal su ...
Thursday, 29 October 09
CESC POSTS RS 126 CRORE (US$ 26,655,178) NET PROFIT IN QUARTER TWO
Economic Times reported that, Energy major CESC posted a marginal increase in net profit at Rs 126 crore (US$ 26,655,178) for the quarter ended Sep ...
Thursday, 29 October 09
INDIA MMTC TENDER SET TO BOOST S.AFRICA COAL
The South African coal market is set to be boosted further by India's state-owned trading firm MMTC Ltd's tender for 12.5 million tonnes, Indian t ...
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- Interocean Group of Companies - India
- Vedanta Resources Plc - India
- Ind-Barath Power Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Kideco Jaya Agung - Indonesia
- TeaM Sual Corporation - Philippines
- Eastern Coal Council - USA
- PTC India Limited - India
- Power Finance Corporation Ltd., India
- Bukit Makmur.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Latin American Coal - Colombia
- Siam City Cement - Thailand
- Mercator Lines Limited - India
- Meralco Power Generation, Philippines
- Global Green Power PLC Corporation, Philippines
- Commonwealth Bank - Australia
- Chamber of Mines of South Africa
- PowerSource Philippines DevCo
- Antam Resourcindo - Indonesia
- Metalloyd Limited - United Kingdom
- SMC Global Power, Philippines
- PNOC Exploration Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Anglo American - United Kingdom
- Carbofer General Trading SA - India
- Eastern Energy - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Deloitte Consulting - India
- Heidelberg Cement - Germany
- Mjunction Services Limited - India
- Energy Link Ltd, New Zealand
- Bulk Trading Sa - Switzerland
- Manunggal Multi Energi - Indonesia
- Directorate Of Revenue Intelligence - India
- Malabar Cements Ltd - India
- Xindia Steels Limited - India
- Aditya Birla Group - India
- Central Java Power - Indonesia
- Ambuja Cements Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Energy Development Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Sakthi Sugars Limited - India
- Billiton Holdings Pty Ltd - Australia
- Port Waratah Coal Services - Australia
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining Corp, Philippines
- Siam City Cement PLC, Thailand
- San Jose City I Power Corp, Philippines
- The State Trading Corporation of India Ltd
- Kartika Selabumi Mining - Indonesia
- Essar Steel Hazira Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Medco Energi Mining Internasional
- Kepco SPC Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Thiess Contractors Indonesia
- Sree Jayajothi Cements Limited - India
- Renaissance Capital - South Africa
- Jindal Steel & Power Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Romanian Commodities Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Jorong Barutama Greston.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- GMR Energy Limited - India
- Formosa Plastics Group - Taiwan
- Independent Power Producers Association of India
- Gujarat Electricity Regulatory Commission - India
- Salva Resources Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Electricity Generating Authority of Thailand
- Sindya Power Generating Company Private Ltd
- Krishnapatnam Port Company Ltd. - India
- Kalimantan Lumbung Energi - Indonesia
- Baramulti Group, Indonesia
- Iligan Light & Power Inc, Philippines
- Economic Council, Georgia
- GVK Power & Infra Limited - India
- Australian Commodity Traders Exchange
- Parliament of New Zealand
- Attock Cement Pakistan Limited
- Maharashtra Electricity Regulatory Commission - India
- Agrawal Coal Company - India
- Ministry of Mines - Canada
- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Altura Mining Limited, Indonesia
- SN Aboitiz Power Inc, Philippines
- Coastal Gujarat Power Limited - India
- Meenaskhi Energy Private Limited - India
- Bangladesh Power Developement Board
- Ministry of Transport, Egypt
- ICICI Bank Limited - India
- OPG Power Generation Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- Kapuas Tunggal Persada - Indonesia
- ASAPP Information Group - India
- Marubeni Corporation - India
- Bukit Baiduri Energy - Indonesia
- Lanco Infratech Ltd - India
- Jaiprakash Power Ventures ltd
- International Coal Ventures Pvt Ltd - India
- Indika Energy - Indonesia
- Mercuria Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Kobexindo Tractors - Indoneisa
- Mintek Dendrill Indonesia
- Ceylon Electricity Board - Sri Lanka
- Bharathi Cement Corporation - India
- Africa Commodities Group - South Africa
- Banpu Public Company Limited - Thailand
- Sinarmas Energy and Mining - Indonesia
- CIMB Investment Bank - Malaysia
- The University of Queensland
- IEA Clean Coal Centre - UK
- Sojitz Corporation - Japan
- VISA Power Limited - India
- White Energy Company Limited
- Tamil Nadu electricity Board
- Chettinad Cement Corporation Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Grasim Industreis Ltd - India
- Ministry of Finance - Indonesia
- Miang Besar Coal Terminal - Indonesia
- GAC Shipping (India) Pvt Ltd
- Merrill Lynch Commodities Europe
- Borneo Indobara - Indonesia
- Wilmar Investment Holdings
- Uttam Galva Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Gujarat Sidhee Cement - India
- Star Paper Mills Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Binh Thuan Hamico - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Madhucon Powers Ltd - India
- Parry Sugars Refinery, India
- India Bulls Power Limited - India
- Cement Manufacturers Association - India
- Price Waterhouse Coopers - Russia
- Barasentosa Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Indonesian Coal Mining Association
- Electricity Authority, New Zealand
- Edison Trading Spa - Italy
- IHS Mccloskey Coal Group - USA
- Rio Tinto Coal - Australia
- Posco Energy - South Korea
- Bhushan Steel Limited - India
- Coalindo Energy - Indonesia
- Trasteel International SA, Italy
- Goldman Sachs - Singapore
- Australian Coal Association
- Dalmia Cement Bharat India
- Indogreen Group - Indonesia
- Straits Asia Resources Limited - Singapore
- Alfred C Toepfer International GmbH - Germany
- Samtan Co., Ltd - South Korea
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sical Logistics Limited - India
- The Treasury - Australian Government
- Intertek Mineral Services - Indonesia
- Maheswari Brothers Coal Limited - India
- McConnell Dowell - Australia
- Thai Mozambique Logistica
- Holcim Trading Pte Ltd - Singapore
- Therma Luzon, Inc, Philippines
- Larsen & Toubro Limited - India
- CNBM International Corporation - China
- Asmin Koalindo Tuhup - Indonesia
- South Luzon Thermal Energy Corporation
- Bhoruka Overseas - Indonesia
- Petron Corporation, Philippines
- MS Steel International - UAE
- Coal and Oil Company - UAE
- New Zealand Coal & Carbon
- Oldendorff Carriers - Singapore
- Orica Australia Pty. Ltd.
- Simpson Spence & Young - Indonesia
- Standard Chartered Bank - UAE
- Videocon Industries ltd - India
- Indian Oil Corporation Limited
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
- AsiaOL BioFuels Corp., Philippines
- Gujarat Mineral Development Corp Ltd - India
- Kaltim Prima Coal - Indonesia
- Tata Chemicals Ltd - India
- Riau Bara Harum - Indonesia
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Orica Mining Services - Indonesia
- Planning Commission, India
- Global Business Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Energy Exchange, India
- Globalindo Alam Lestari - Indonesia
- Karaikal Port Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Georgia Ports Authority, United States
- GN Power Mariveles Coal Plant, Philippines
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