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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, 10 August 09
POLICY HURDLES DELAY NALCO'S U$$ 4.166 BILLION OVERSEAS PROJECTS
National Aluminium Company Ltd's (NALCO) greenfield projects in overseas markets like Indonesia and Iran are in limbo because of political
...
Monday, 10 August 09
SAIL, TATA STEEL TO REDUCE COAL IMPORTS BY PARADIP PORT
World Shipping News reported that, Steel Authority of India Ltd (SAIL) and Tata Steel have scaled down coal imports through Paradip Port, hit by pre ...
Monday, 10 August 09
NTPC LIKELY TO SET UP POWER PLANTS IN NIGERIA AND SRILANKA
Economic time reported that, National Thermal Power Corporation Limited (NTPC), country's largest power utility, is likely to set up power plants i ...
Monday, 10 August 09
VINACOMIN TO SELL COAL AT MARKET PRICES TO DOMESTIC USERS
VNBusinessNews.com - Reuters reported that Vietnamese government has agreed to let coal monopoly Vinacomin sell coal at market oriented prices to do ...
Sunday, 09 August 09
TNEB ENNORE PORT CALLS TO TRIPLE COAL OUTPUT
World Shipping News reported that, the Tamil Nadu Electricity Board (TNEB) has asked Ennore Port Ltd (EPL) to increase the port’s installed ca ...
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- VISA Power Limited - India
- Port Waratah Coal Services - Australia
- London Commodity Brokers - England
- Bahari Cakrawala Sebuku - Indonesia
- Merrill Lynch Commodities Europe
- Wood Mackenzie - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Central Java Power - Indonesia
- Bukit Baiduri Energy - Indonesia
- Attock Cement Pakistan Limited
- Rashtriya Ispat Nigam Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Power Finance Corporation Ltd., India
- TeaM Sual Corporation - Philippines
- Chamber of Mines of South Africa
- SMG Consultants - Indonesia
- Barasentosa Lestari - Indonesia
- MS Steel International - UAE
- Trasteel International SA, Italy
- CIMB Investment Bank - Malaysia
- The University of Queensland
- Karaikal Port Pvt Ltd - India
- Ministry of Finance - Indonesia
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Iligan Light & Power Inc, Philippines
- Interocean Group of Companies - India
- Parry Sugars Refinery, India
- Tamil Nadu electricity Board
- Alfred C Toepfer International GmbH - Germany
- Baramulti Group, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Eastern Energy - Thailand
- Orica Mining Services - Indonesia
- Commonwealth Bank - Australia
- AsiaOL BioFuels Corp., Philippines
- Manunggal Multi Energi - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Bukit Makmur.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Edison Trading Spa - Italy
- SMC Global Power, Philippines
- Mercuria Energy - Indonesia
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- Singapore Mercantile Exchange
- Therma Luzon, Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Sarangani Energy Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Bharathi Cement Corporation - India
- Mjunction Services Limited - India
- Banpu Public Company Limited - Thailand
- Kalimantan Lumbung Energi - Indonesia
- India Bulls Power Limited - India
- Toyota Tsusho Corporation, Japan
- Energy Link Ltd, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement PLC, Thailand
- Posco Energy - South Korea
- Electricity Generating Authority of Thailand
- Jindal Steel & Power Ltd - India
- Global Coal Blending Company Limited - Australia
- Mintek Dendrill Indonesia
- Chettinad Cement Corporation Ltd - India
- Vedanta Resources Plc - India
- Xindia Steels Limited - India
- Sojitz Corporation - Japan
- Mercator Lines Limited - India
- Gujarat Electricity Regulatory Commission - India
- IEA Clean Coal Centre - UK
- Gujarat Mineral Development Corp Ltd - India
- Indonesian Coal Mining Association
- Price Waterhouse Coopers - Russia
- Standard Chartered Bank - UAE
- Videocon Industries ltd - India
- Kaltim Prima Coal - Indonesia
- Goldman Sachs - Singapore
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- Thai Mozambique Logistica
- PowerSource Philippines DevCo
- Antam Resourcindo - Indonesia
- Africa Commodities Group - South Africa
- CNBM International Corporation - China
- Ceylon Electricity Board - Sri Lanka
- Indian Energy Exchange, India
- Meralco Power Generation, Philippines
- Globalindo Alam Lestari - Indonesia
- Rio Tinto Coal - Australia
- European Bulk Services B.V. - Netherlands
- Jorong Barutama Greston.PT - Indonesia
- Central Electricity Authority - India
- Sical Logistics Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Petron Corporation, Philippines
- Borneo Indobara - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Kumho Petrochemical, South Korea
- Samtan Co., Ltd - South Korea
- GAC Shipping (India) Pvt Ltd
- San Jose City I Power Corp, Philippines
- Formosa Plastics Group - Taiwan
- Makarim & Taira - Indonesia
- White Energy Company Limited
- Savvy Resources Ltd - HongKong
- Metalloyd Limited - United Kingdom
- Renaissance Capital - South Africa
- Madhucon Powers Ltd - India
- Energy Development Corp, Philippines
- Coal and Oil Company - UAE
- Intertek Mineral Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Siam City Cement - Thailand
- Marubeni Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Bhoruka Overseas - Indonesia
- Electricity Authority, New Zealand
- Miang Besar Coal Terminal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bangladesh Power Developement Board
- Riau Bara Harum - Indonesia
- Kartika Selabumi Mining - Indonesia
- Tata Chemicals Ltd - India
- Binh Thuan Hamico - Vietnam
- Australian Commodity Traders Exchange
- Directorate General of MIneral and Coal - Indonesia
- Parliament of New Zealand
- Indian Oil Corporation Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhatia International Limited - India
- Krishnapatnam Port Company Ltd. - India
- Oldendorff Carriers - Singapore
- Ministry of Mines - Canada
- Cement Manufacturers Association - India
- Coastal Gujarat Power Limited - India
- Semirara Mining Corp, Philippines
- Georgia Ports Authority, United States
- Sree Jayajothi Cements Limited - India
- GMR Energy Limited - India
- Gujarat Sidhee Cement - India
- Simpson Spence & Young - Indonesia
- Uttam Galva Steels Limited - India
- McConnell Dowell - Australia
- Thiess Contractors Indonesia
- Leighton Contractors Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Independent Power Producers Association of India
- Kobexindo Tractors - Indoneisa
- ASAPP Information Group - India
- Latin American Coal - Colombia
- Aditya Birla Group - India
- Bayan Resources Tbk. - Indonesia
- OPG Power Generation Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Sakthi Sugars Limited - India
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- Essar Steel Hazira Ltd - India
- Directorate Of Revenue Intelligence - India
- Kohat Cement Company Ltd. - Pakistan
- GVK Power & Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Orica Australia Pty. Ltd.
- Altura Mining Limited, Indonesia
- Bulk Trading Sa - Switzerland
- New Zealand Coal & Carbon
- Wilmar Investment Holdings
- Romanian Commodities Exchange
- Planning Commission, India
- Medco Energi Mining Internasional
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining and Power Corporation, Philippines
- PTC India Limited - India
- Meenaskhi Energy Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Larsen & Toubro Limited - India
- Kideco Jaya Agung - Indonesia
- The Treasury - Australian Government
- Holcim Trading Pte Ltd - Singapore
- LBH Netherlands Bv - Netherlands
- Agrawal Coal Company - India
- Australian Coal Association
- Pipit Mutiara Jaya. PT, Indonesia
- Indika Energy - Indonesia
- Malabar Cements Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Global Business Power Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- South Luzon Thermal Energy Corporation
- Heidelberg Cement - Germany
- Eastern Coal Council - USA
- Salva Resources Pvt Ltd - India
- Minerals Council of Australia
- IHS Mccloskey Coal Group - USA
- Maheswari Brothers Coal Limited - India
- Star Paper Mills Limited - India
- Vizag Seaport Private Limited - India
- Bhushan Steel Limited - India
- Anglo American - United Kingdom
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- SN Aboitiz Power Inc, Philippines
- ICICI Bank Limited - India
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ambuja Cements Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Green Power PLC Corporation, Philippines
- Indogreen Group - Indonesia
- The State Trading Corporation of India Ltd
- Ind-Barath Power Infra Limited - India
- Cigading International Bulk Terminal - Indonesia
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