India Seeks Coal
India on a coal buying spree
India Seeks Coal | IBT Commodities & Futures
India is on a coal buying spree. The big Asian nation is scrambling to cover an expected shortfall in domestic supply.
While Indian cement maker Gujarat Ambuja is seeking 200,000 tonnes of South African coal for late Q4 shipment, Australian firms Rio Tinto and Gina Rinehart's Hancock Prospecting are looking to sell state-owned giant Coal India stakes in thermal coal mines.
Coal India, the world's biggest coal miner, aims to import 50 million tonnes of thermal coal a year from Australia, Indonesia and Mozambique from 2016-17 to cover a forecast increase in demand for power, chairman Partha Bhattacharya said.
India imports Australian coking coal for its steel mills, but it takes only a fraction of Australia's 130 million tonnes a year of thermal coal exports.
Hancock, which is in the early stages of studies to build two large-scale Queensland thermal coalmines, and Rio, are understood to be among a number of Australian miners that have submitted expressions of interest to sell stakes in mines and projects to Coal India.
Rapid acquisitions
In July, Coal India said it would make rapid acquisitions of coal resources in major exporting countries as it looked to plug a potential 200 million tonnes a year shortfall by 2012.
India's 11th five-year development plan aims to provide all villages and houses below the poverty line with power and to boost economic growth to 10 per cent by 2011-12.
Bhattacharya said he planned to have a deal with one or more Australian miners within a year. He would not indicate what funds he had at his disposal.
Coal India is entertaining all levels of deals, from minority stakes in mines to becoming an operator and is said to be reportedly chasing stakes in large-scale mines of 10 million to 15 million tonnes a year.
The firm is also said to be eyeing acquisition of a mid-sized thermal coal block in Australia. This is in addition to the recent offers from a number of prospective 'strategic partners.'
Expression of interest
CIL has already received 15 expressions of interests (EoI) from Australia for strategic partnership. Apart from Australia, the company received 18 EoIs from Indonesia, 6 from South Africa and 13 from the US.
"We have received a total of 52 EoIs. Of the same 45 are from the mining companies and appear to be sound. A committee is set-up to shortlist the proposals," Bhattacharyya said. The CIL chairman will be visiting the US next week.
Indian miners do not produce any Australian thermal coal.
ASX-listed Gujarat NRE Minerals, which is 82 per cent owned by Indian importer Gujarat NRE Coke, is the only Indian-controlled coalminer in Australia. It has two coking coalmines near Wollongong, from which it hopes to boost production in Australia from less than one million tonnes a year to seven million tonnes.
Search on
Looking beyond its border for coal is India's largest power generator, NTPC, which is currently engaged in capacity addition of 22,430 mw by the end of 11th plan. The firm is said to be exploring opportunities for acquisition of coal blocks or coal mines in South Africa, Indonesia, Mozambique and Australia.
NTPC chairman and managing director RS Sharma said on Tuesday, "It is at a preliminary stage. As far as the acquisition of coal mines in Indonesia is concerned, NTPC has roped in Australian firm Macquarie as a consultant to do the due diligence."
Sharma said the NTPC board was yet to take any decision on acquiring mines or picking up minority stake in coal blocks in either of these countries.
NTPC sources, however, said the company plans to buy a minority stake in Kalimantau coal mines in Indonesia to achieve fuel security.
NTPC, which currently produces over 30,000mw, will need 150 million tonne of coal for 2009-10. It plans to import nearly 12 million tonne. After adding the proposed 22,430 mw by end of 2011-12, NTPC's coal requirement will shoot up to 225-250 million tonne. The company will import around 20 million tonne then.
NTPC hopes to produce 20 million tonne from its captive coal mines, which are under various stages of development. According to NTPC's corporate plan, the company has proposed a coal mining capacity of 50 million tonne per annum by 2017.
The company is currently developing four coal blocks - North Karanpura and Brahmini (both in Jharkhand), Ib Valley (Orissa), and Mand Raigarh (Chhattisgarh).
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on one hand western countries encourage solar, wind industry to reduce emissions. Here India will be importing huge amounts of coal to power the new power plants.
PGCIL to invest Rs 9,000 crore on inter-state transmission plan
PGCIL to invest Rs 9,000 crore on inter-state transmission plan
As part of its inter-state transmission plan, the Power Grid Corporation of India (PGCIL) has agreed to invest about Rs 9000 crore for improving the power evacuation infrastructure in the state. This amount will be invested in next 5-6 years”, C J Venugopal, chairman-managing director (CMD), Grid Corporation of Orissa (Gridco), said.
This inter-state transmission plan, already approved by CEA, will provide the much needed infrastructure for power evacuation to the IPPs setting up of projects in Orissa. Sources said, the plan includes setting up of three 765/400 kv substations, the ring link among the sub-stations and construction of two power corridors. While the western corridor will connect Jharsuguda to Dharmanjaygarh, the northern corridor will run from from Angul to Barnala. The three 765/400 KV substations will be set up at Angul, Dhenkanal and Jharsuguda and those three sub-stations will be connected through 2 circuit of 765 KV line. The IPPs will get connected to this network and the project will help in the evacuation of the surplus power to be generated from Orissa. “This will be just like a transmission highway in the state and it will facilit ate trading of surplus power”, a senior Gridco official said.
Govt to source power equipment in bulk
Govt to source power equipment in bulk- Power-Energy-News By Industry-News-The Economic Times
MUMBAI: In a move to speed up power capacity addition and to tide over issues related
to supply agreements with foreign equipment vendors,
the government is all set for a
bulk procurement of power equipment through public-private participation (PPP), Union minister of state for power Bharatsinh Solanki told ET on Wednesday.
Large companies, such as Bharat Heavy Electricals, L&T, Bharat Forge and GB Engg, that have formed joint ventures with overseas companies, are planning to commission production capacities that would supply equipment for generating about 25,000 megawatts by the end of 2011, Mr Solanki said on the sidelines of the 62nd annual general meeting of the Indian Electrical & Electronics Manufacturers Association.
“Equipment for at least 11 units of 660 MW will be available within four months,” he added. India has plans to add power generating capacity of around 78,000 MW by 2012.
The total estimated investment for power equipment for 660 MW units is estimated to be around $8 billion (over Rs 39,000 crore as per current exchange rates), Mr Solanki said. The country plans to adopt bulk procurement of equipment for supercritical power projects, which typically use technology that increases efficiency and reduces emission output.
While the minister did not elaborate on the source of funds for the projects, it is widely-believed that the PPP model would be used. Also, in the Union Budget, the finance minister said that the Indian Infrastructure Finance Company would provide Rs 6,000 crore for infrastructure projects that also include power projects.
Nearly 20 power projects in the country have sourced equipment from Chinese manufacturers, in the absence of supply capacity of Indian power equipment manufacturers, said an industry analyst. Projects sourcing Chinese equipments are being developed mostly by private players, such as Reliance Power, Adani Power, JSW Energy, Essar Power and Lanco.
Now, with the recent move of the government to increase the private participation and allowing 100% foreign direct investment in power sector, most of the newly-formed JV firms are likely to start commercial operations by 2011, while BHEL has targeted to raise capacity up to 15,500 MW by the end of 2009 and to 20,215 MW by December 2011, according to a presentation made by the minister.
The production schedules of the JVs are also ready. The L&T-Mitsubishi JV is likely to commence boiler production next month, while turbine and generator production will be started by March 2010. Similarly, Bharat Forge-Alstom, JSW-Tohiba and GB Engg-Ansaldo are scheduled to start production in 2011, said Mr Solanki.