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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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Monday, 28 September 09
TATA POWER SCOUTS FOR COAL BLOCKS ABROAD
Business Standard reported that, private power producer Tata Power is scouting for coal mines abroad, including Australia and Mozambique, to meet de ...
Saturday, 26 September 09
THE INDIA / FAR EAST SEEMS WILL BE FIRM NEXT WEEK - VISTAAR
COALspot.com (Singapore): The dry bulk market was soft this week and the BDI dropped by almost 7 pct to 2,183 points. The cape size index dropped by ...
Saturday, 26 September 09
GSECL PLANS TO PROCURE 15 LAKH (1.5 MILLION) MT OF IMPORTED COAL
Business Standard reported that, State-run power generation company, Gujarat State Electricity Corporation Ltd (GSECL) intends to procure 15 lakh (1 ...
Saturday, 26 September 09
SAIL TO SET UP TWO SLAG-BASED CEMENT MANUFACTURING UNITS
Rediff Business reported that, Government-owned Steel Authority of India Ltd, the country's largest steel producer, is looking to set up two greenf ...
Friday, 25 September 09
INDONESIA STOCK EXCHANGE EXAMINES BUMI DEAL WITH CHINESE SOVEREIGN WEALTH FUND
The Jakarta globe reported that, The Indonesia Stock Exchange is looking into the $1.9 billion financing deal between PT Bumi Resources, the country ...
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- ICICI Bank Limited - India
- Jaiprakash Power Ventures ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Samtan Co., Ltd - South Korea
- European Bulk Services B.V. - Netherlands
- Chamber of Mines of South Africa
- Indika Energy - Indonesia
- Marubeni Corporation - India
- Trasteel International SA, Italy
- TeaM Sual Corporation - Philippines
- Siam City Cement PLC, Thailand
- Straits Asia Resources Limited - Singapore
- McConnell Dowell - Australia
- Sical Logistics Limited - India
- Semirara Mining Corp, Philippines
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- Manunggal Multi Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- OPG Power Generation Pvt Ltd - India
- Thai Mozambique Logistica
- Bahari Cakrawala Sebuku - Indonesia
- Merrill Lynch Commodities Europe
- Toyota Tsusho Corporation, Japan
- Georgia Ports Authority, United States
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Siam City Cement - Thailand
- Kobexindo Tractors - Indoneisa
- Orica Australia Pty. Ltd.
- India Bulls Power Limited - India
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Tata Chemicals Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Iligan Light & Power Inc, Philippines
- Electricity Authority, New Zealand
- Bhatia International Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- PTC India Limited - India
- Mercator Lines Limited - India
- Sojitz Corporation - Japan
- Tamil Nadu electricity Board
- Malabar Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Sakthi Sugars Limited - India
- Cigading International Bulk Terminal - Indonesia
- Thiess Contractors Indonesia
- Kartika Selabumi Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Anglo American - United Kingdom
- VISA Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Uttam Galva Steels Limited - India
- Meenaskhi Energy Private Limited - India
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- Coal and Oil Company - UAE
- Indogreen Group - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- GMR Energy Limited - India
- GAC Shipping (India) Pvt Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Wilmar Investment Holdings
- Posco Energy - South Korea
- Chettinad Cement Corporation Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Port Waratah Coal Services - Australia
- Karbindo Abesyapradhi - Indoneisa
- SMC Global Power, Philippines
- Africa Commodities Group - South Africa
- Wood Mackenzie - Singapore
- Ind-Barath Power Infra Limited - India
- White Energy Company Limited
- Gujarat Mineral Development Corp Ltd - India
- Riau Bara Harum - Indonesia
- Bangladesh Power Developement Board
- Deloitte Consulting - India
- Intertek Mineral Services - Indonesia
- Power Finance Corporation Ltd., India
- SMG Consultants - Indonesia
- San Jose City I Power Corp, Philippines
- Ambuja Cements Ltd - India
- Edison Trading Spa - Italy
- Planning Commission, India
- Indo Tambangraya Megah - Indonesia
- Singapore Mercantile Exchange
- MS Steel International - UAE
- Baramulti Group, Indonesia
- ASAPP Information Group - India
- Grasim Industreis Ltd - India
- IEA Clean Coal Centre - UK
- Energy Development Corp, Philippines
- Barasentosa Lestari - Indonesia
- Altura Mining Limited, Indonesia
- Vedanta Resources Plc - India
- Larsen & Toubro Limited - India
- Oldendorff Carriers - Singapore
- Gujarat Sidhee Cement - India
- Timah Investasi Mineral - Indoneisa
- Medco Energi Mining Internasional
- Pendopo Energi Batubara - Indonesia
- Kumho Petrochemical, South Korea
- Star Paper Mills Limited - India
- Makarim & Taira - Indonesia
- Global Coal Blending Company Limited - Australia
- PetroVietnam Power Coal Import and Supply Company
- Videocon Industries ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Commonwealth Bank - Australia
- Coalindo Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Petron Corporation, Philippines
- Mercuria Energy - Indonesia
- Rio Tinto Coal - Australia
- Antam Resourcindo - Indonesia
- Central Java Power - Indonesia
- Metalloyd Limited - United Kingdom
- Romanian Commodities Exchange
- Savvy Resources Ltd - HongKong
- Bukit Makmur.PT - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Indonesian Coal Mining Association
- Globalindo Alam Lestari - Indonesia
- Australian Commodity Traders Exchange
- PNOC Exploration Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Heidelberg Cement - Germany
- Latin American Coal - Colombia
- GN Power Mariveles Coal Plant, Philippines
- Indian Energy Exchange, India
- Attock Cement Pakistan Limited
- Coastal Gujarat Power Limited - India
- Parry Sugars Refinery, India
- Neyveli Lignite Corporation Ltd, - India
- New Zealand Coal & Carbon
- The Treasury - Australian Government
- Xindia Steels Limited - India
- Global Business Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Bhoruka Overseas - Indonesia
- LBH Netherlands Bv - Netherlands
- Essar Steel Hazira Ltd - India
- Central Electricity Authority - India
- Orica Mining Services - Indonesia
- The University of Queensland
- Semirara Mining and Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- Rashtriya Ispat Nigam Limited - India
- Indian Oil Corporation Limited
- Australian Coal Association
- Global Green Power PLC Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- London Commodity Brokers - England
- AsiaOL BioFuels Corp., Philippines
- Holcim Trading Pte Ltd - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Energy - Thailand
- Renaissance Capital - South Africa
- Binh Thuan Hamico - Vietnam
- Bulk Trading Sa - Switzerland
- Bharathi Cement Corporation - India
- Banpu Public Company Limited - Thailand
- Bhushan Steel Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Therma Luzon, Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Eastern Coal Council - USA
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Salva Resources Pvt Ltd - India
- Parliament of New Zealand
- Standard Chartered Bank - UAE
- Karaikal Port Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Cement Manufacturers Association - India
- Borneo Indobara - Indonesia
- Madhucon Powers Ltd - India
- Price Waterhouse Coopers - Russia
- Mjunction Services Limited - India
- Gujarat Electricity Regulatory Commission - India
- Independent Power Producers Association of India
- The State Trading Corporation of India Ltd
- Sree Jayajothi Cements Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Agrawal Coal Company - India
- Lanco Infratech Ltd - India
- GVK Power & Infra Limited - India
- Carbofer General Trading SA - India
- Aboitiz Power Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Sarangani Energy Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Mintek Dendrill Indonesia
- Economic Council, Georgia
- Meralco Power Generation, Philippines
- Kaltim Prima Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Leighton Contractors Pty Ltd - Australia
- PowerSource Philippines DevCo
- Aditya Birla Group - India
- Directorate General of MIneral and Coal - Indonesia
- Goldman Sachs - Singapore
- Bukit Baiduri Energy - Indonesia
- Electricity Generating Authority of Thailand
- CNBM International Corporation - China
- Interocean Group of Companies - India
- Bayan Resources Tbk. - Indonesia
- Ministry of Finance - Indonesia
- Miang Besar Coal Terminal - Indonesia
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