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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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Tuesday, 30 November 99
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Showing 6871 to 6871 news of total 6871 |
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Baramulti Group, Indonesia
- Jaiprakash Power Ventures ltd
- Sarangani Energy Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Bhushan Steel Limited - India
- San Jose City I Power Corp, Philippines
- Kobexindo Tractors - Indoneisa
- Sical Logistics Limited - India
- Indika Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Kartika Selabumi Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Karbindo Abesyapradhi - Indoneisa
- Rio Tinto Coal - Australia
- Riau Bara Harum - Indonesia
- Global Green Power PLC Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Karaikal Port Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Medco Energi Mining Internasional
- AsiaOL BioFuels Corp., Philippines
- Vedanta Resources Plc - India
- Iligan Light & Power Inc, Philippines
- Kumho Petrochemical, South Korea
- India Bulls Power Limited - India
- Videocon Industries ltd - India
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- Sakthi Sugars Limited - India
- Lanco Infratech Ltd - India
- Malabar Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Parry Sugars Refinery, India
- International Coal Ventures Pvt Ltd - India
- Bangladesh Power Developement Board
- Ind-Barath Power Infra Limited - India
- Edison Trading Spa - Italy
- Antam Resourcindo - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Posco Energy - South Korea
- Indian Energy Exchange, India
- ASAPP Information Group - India
- Essar Steel Hazira Ltd - India
- Jindal Steel & Power Ltd - India
- Energy Development Corp, Philippines
- Chamber of Mines of South Africa
- PNOC Exploration Corporation - Philippines
- Ambuja Cements Ltd - India
- Eastern Energy - Thailand
- Power Finance Corporation Ltd., India
- Deloitte Consulting - India
- Vijayanagar Sugar Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Agrawal Coal Company - India
- Coal and Oil Company - UAE
- Xindia Steels Limited - India
- Siam City Cement PLC, Thailand
- Commonwealth Bank - Australia
- Therma Luzon, Inc, Philippines
- The Treasury - Australian Government
- Bank of Tokyo Mitsubishi UFJ Ltd
- Trasteel International SA, Italy
- Bukit Baiduri Energy - Indonesia
- Tata Chemicals Ltd - India
- Independent Power Producers Association of India
- Anglo American - United Kingdom
- Electricity Authority, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Parliament of New Zealand
- Georgia Ports Authority, United States
- Metalloyd Limited - United Kingdom
- Central Java Power - Indonesia
- Aditya Birla Group - India
- Thiess Contractors Indonesia
- Electricity Generating Authority of Thailand
- Economic Council, Georgia
- VISA Power Limited - India
- Merrill Lynch Commodities Europe
- Mjunction Services Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Formosa Plastics Group - Taiwan
- McConnell Dowell - Australia
- Vizag Seaport Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Indian Oil Corporation Limited
- Simpson Spence & Young - Indonesia
- Aboitiz Power Corporation - Philippines
- Ministry of Transport, Egypt
- Uttam Galva Steels Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coalindo Energy - Indonesia
- Standard Chartered Bank - UAE
- Carbofer General Trading SA - India
- Larsen & Toubro Limited - India
- OPG Power Generation Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Indonesian Coal Mining Association
- Sojitz Corporation - Japan
- Bukit Makmur.PT - Indonesia
- Orica Mining Services - Indonesia
- Indogreen Group - Indonesia
- Australian Coal Association
- Cement Manufacturers Association - India
- The University of Queensland
- Intertek Mineral Services - Indonesia
- Maheswari Brothers Coal Limited - India
- Goldman Sachs - Singapore
- Globalindo Alam Lestari - Indonesia
- Thai Mozambique Logistica
- Ministry of Finance - Indonesia
- European Bulk Services B.V. - Netherlands
- IEA Clean Coal Centre - UK
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- Singapore Mercantile Exchange
- Oldendorff Carriers - Singapore
- Salva Resources Pvt Ltd - India
- MS Steel International - UAE
- Miang Besar Coal Terminal - Indonesia
- Bharathi Cement Corporation - India
- Kaltim Prima Coal - Indonesia
- Central Electricity Authority - India
- Siam City Cement - Thailand
- SMC Global Power, Philippines
- Meenaskhi Energy Private Limited - India
- Orica Australia Pty. Ltd.
- Price Waterhouse Coopers - Russia
- Dalmia Cement Bharat India
- Ministry of Mines - Canada
- Attock Cement Pakistan Limited
- Chettinad Cement Corporation Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Grasim Industreis Ltd - India
- Eastern Coal Council - USA
- The State Trading Corporation of India Ltd
- GVK Power & Infra Limited - India
- Pendopo Energi Batubara - Indonesia
- Africa Commodities Group - South Africa
- Gujarat Sidhee Cement - India
- PTC India Limited - India
- New Zealand Coal & Carbon
- South Luzon Thermal Energy Corporation
- Bahari Cakrawala Sebuku - Indonesia
- White Energy Company Limited
- Borneo Indobara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Energy Link Ltd, New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Directorate Of Revenue Intelligence - India
- Planning Commission, India
- Romanian Commodities Exchange
- PetroVietnam Power Coal Import and Supply Company
- Toyota Tsusho Corporation, Japan
- Cigading International Bulk Terminal - Indonesia
- ICICI Bank Limited - India
- Renaissance Capital - South Africa
- Banpu Public Company Limited - Thailand
- Mercuria Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petron Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- GAC Shipping (India) Pvt Ltd
- Directorate General of MIneral and Coal - Indonesia
- Tamil Nadu electricity Board
- Alfred C Toepfer International GmbH - Germany
- Latin American Coal - Colombia
- Heidelberg Cement - Germany
- Timah Investasi Mineral - Indoneisa
- Madhucon Powers Ltd - India
- Mercator Lines Limited - India
- Ceylon Electricity Board - Sri Lanka
- CIMB Investment Bank - Malaysia
- Savvy Resources Ltd - HongKong
- Krishnapatnam Port Company Ltd. - India
- Star Paper Mills Limited - India
- Interocean Group of Companies - India
- Bhatia International Limited - India
- LBH Netherlands Bv - Netherlands
- Bulk Trading Sa - Switzerland
- Samtan Co., Ltd - South Korea
- Gujarat Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Straits Asia Resources Limited - Singapore
- IHS Mccloskey Coal Group - USA
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Global Coal Blending Company Limited - Australia
- London Commodity Brokers - England
- PowerSource Philippines DevCo
- Bayan Resources Tbk. - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Australian Commodity Traders Exchange
- Jorong Barutama Greston.PT - Indonesia
- Makarim & Taira - Indonesia
- Mintek Dendrill Indonesia
- Manunggal Multi Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- SMG Consultants - Indonesia
- Marubeni Corporation - India
- Wood Mackenzie - Singapore
- GMR Energy Limited - India
- Minerals Council of Australia
- TeaM Sual Corporation - Philippines
- Global Business Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meralco Power Generation, Philippines
- Semirara Mining Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
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