Infrastructure and Energy Sector

[NSG_Blackcats]

Gujarat State petroleum Corporation (GSPC) gas find offshore KG-OSN-2001/3 block.​

=>KG-OSN-2001/3 exploration block is located 6 km from the shore of the Yanam-Kakinada coast off Andhra Pradesh. (Bay of Bengal)

=>In 2008 The Director General of Hydrocarbons (DGH) has declared certification for a gas discovery by the Gujarat State Petroleum Corporation (GSPC) in the Krishna-Godavari basin.

=>GSPC, the operator of the block, has a 80 per cent interest in the KG basin block, while the balance 20 per cent interest is shared by Jubilant Enpro and Geoglobal.

=>The GSPC discovery of 10.8 trillion cubic feet can provide 40-50 mmscmd of natural gas for a period of around 20 years (rough estimates). A gas supply of 50 mmscmd of gas can, for instance, run a power plant of capacity 10,000 MW. To put this in perspective, this is 5 per cent of India's total current installed capacity.

=>GSPC is planning to spend $1.7 billion for developing its offshore gas field in the Krishna Godavari (KG) basin.

=>GSPC will drill 15 wells and expect to start gas production by 2012,” V K Sibal, director general, DGH told Business Standard.

=>As GSPC is still in the process of drilling more well in this area the exact amount of gas may increase.

=>GSPC has put up 1,200 km of gas grid covering 14 of 26 districts of Gujarat at a cost of Rs 3,000 crore (610 million US$) for transportation of about 18 million standard cubic metres per day of gas. It caters to 30 major industrial and power sector customers and 300 small and medium industries apart from 2.5 lakh domestic customers.

=>Gujarat has India’s both LNG terminals with a capacity of 17.5 million tons at Dahej and Hazira and two more are being planned at Mundra and Pipavav.

Links for more Information

The Hindu Business Line : ‘Initial output from GSPC’s gas find by 2010-end’

Welcome to GSPC

GSPC's KG basin discovery 10.8 TCF: Saurabh Patel - Ahmedabad - City - NEWS - The Times of India

Video

 

[ajay_ijn]

Gujarat State petroleum Corporation (GSPC) gas find offshore KG-OSN-2001/3 block.​

=>KG-OSN-2001/3 exploration block is located 6 km from the shore of the Yanam-Kakinada coast off Andhra Pradesh. (Bay of Bengal)

=>In 2008 The Director General of Hydrocarbons (DGH) has declared certification for a gas discovery by the Gujarat State Petroleum Corporation (GSPC) in the Krishna-Godavari basin.

=>GSPC, the operator of the block, has a 80 per cent interest in the KG basin block, while the balance 20 per cent interest is shared by Jubilant Enpro and Geoglobal.

=>The GSPC discovery of 10.8 trillion cubic feet can provide 40-50 mmscmd of natural gas for a period of around 20 years (rough estimates). A gas supply of 50 mmscmd of gas can, for instance, run a power plant of capacity 10,000 MW. To put this in perspective, this is 5 per cent of India's total current installed capacity.

=>GSPC is planning to spend $1.7 billion for developing its offshore gas field in the Krishna Godavari (KG) basin.

=>GSPC will drill 15 wells and expect to start gas production by 2012,” V K Sibal, director general, DGH told Business Standard.

=>As GSPC is still in the process of drilling more well in this area the exact amount of gas may increase.

=>GSPC has put up 1,200 km of gas grid covering 14 of 26 districts of Gujarat at a cost of Rs 3,000 crore (610 million US$) for transportation of about 18 million standard cubic metres per day of gas. It caters to 30 major industrial and power sector customers and 300 small and medium industries apart from 2.5 lakh domestic customers.

=>Gujarat has India’s both LNG terminals with a capacity of 17.5 million tons at Dahej and Hazira and two more are being planned at Mundra and Pipavav.

Links for more Information

The Hindu Business Line : ‘Initial output from GSPC’s gas find by 2010-end’

Welcome to GSPC

GSPC's KG basin discovery 10.8 TCF: Saurabh Patel - Ahmedabad - City - NEWS - The Times of India

Video

gr8 to see such an agressive State Govt PSU. It clearly reflects Modis way of doing business.

 

[thakur_ritesh]

gr8 to see such an agressive State Govt PSU. It clearly reflects Modis way of doing business.

Ajay,

he is the only real chinese in india , using it as a metaphor similar to one that was used for tendulkar, when the aussies used to refer to him as the only aussie in our cricket team when he started his career.

as a matter of fact, with the way modi goes on development front we need his clones in rest of the state governments, also this chap seems to have an absolutely clean image, no corruption!

 

[ajay_ijn]

Ajay,
he is the only real chinese in india , using it as a metaphor similar to one that was used for tendulkar, when the aussies used to refer to him as the only aussie in our cricket team when he started his career.

as a matter of fact, with the way modi goes on development front we need his clones in rest of the state governments, also this chap seems to have an absolutely clean image, no corruption!

But Modi may not be able to satisfy every one in the region. The people who are gonna love him are business persons, investors/traders, middle/lower middle class people who have good skills in their respective profession. The one who doesn't have enough to skills to survive in this modern economy might struggle. I am not aware if Modi spends money or has any big social programs.

imagine if Modi became PM of India? he will create a China in India. Its clear he sides with manufacturing and has no particular interest in creating another silicon valley.

 

[NSG_Blackcats]

Sterlite to invest Rs 20,000 cr (4.1 billion US$) in Power sector in Orissa, Chhattisgarh​

NEW DELHI: Sterlite Industries (India), the country’s largest private sector power producer, is planning to invest Rs 20,000 crore over the next one year to create additional capacity of 4,500 mw. This will also mark the company’s foray into commercial power generation. The company, part of the Anil Agarwal-promoted $6.5-billion Vedanta Group, is setting up new power projects at Jharsuguda and Lanjigarh in Orissa with a combined capacity of 3,150 mw. It also plans to set up a 160 MW project at Rajpura Dariba in Rajasthan and another 1,200 MW project at Korba in Chhattisgarh. The new initiative would be rolled out by Sterlite Energy (SEL), a 100% subsidiary of Sterlite Industries. SEL will function as the commercial power generation arm of the company.

“We are excited to enter the commercial power business, as we start our 2400 MW independent power project (IPP) at Jharsuguda in Orissa. We can leverage our strength of building and operating power plants in India and also benefit from our mining experience,” Vedanta Group chairman Anil Agarwal told ET. “About 50% of the new capacity is expected to be sold on a commercial basis, while the balance would be used for the captive metals business,” Mr Agarwal added. Sterlite, with its five power plants in Orissa, Chattisgarh, Tamil Nadu and Rajasthan, has an installed capacity of 2009 mw. Currently, most of this capacity is used for captive businesses. With the setting up of the new power projects, the total installed capacity is expected to go up to 6,500 mw by next year and the total investment would reach Rs 30,000 crore. The company has already invested Rs 9,000 crore in its power venture.

Link

 

[ajay_ijn]

NEW DELHI: Sterlite Industries (India), the country’s largest private sector power producer

Starlite hasn't completed construction of any of their power plants. Then how come they became largest producer. Its Tata Power which produces more than 3000 MW.

 

[Sridhar]

Delhi Metro gets its first indigenous metro coach from BEML

12 September 2009


Delhi Metro Rail Corporation received its first standard gauge coach made by Bharat Earth Movers Limited. Karnataka chief minister symbolically handed the 80-tonne wagon to Delhi Metro chairman E Sreedharan.
The wagon has been developed by BEML in collaboration with the National Aluminium Company Ltd (NALCO). BEML has also bagged a contract to supply 150 coaches for the metro project in Bangalore for an order worth Rs1,672.5 crore.
For Delhi Metro, it will supply 196 standard gauge coaches for its phase II project. According to Sreedharan it may also get an extended order to deliver another 60 coaches.
Delhi Metro plans to upgrade its 4 coach tranins to 6-coach trains and has planced a trial order with BEML to develop eight such coaches. It may upgrade 70 of its trains if the trials are successful.

Indigenous coaches are not expensive and are built from local capabilities. Chinese manufacturers, supported by special incentives by the Chinese government, have also developed similar export quality coaches. According to BEML chairman and managing director V R S Natarajan, exemptions in VAT and customs duty could help it to compete with China.
BEML is also launching its new R&D centre for designing metro coaches at Bangalore soon.
With electrically oprated automatic doors, the metro coaches are built with aluminium with a stainless steel body, and can be used in the high-speed freight corridors currently under development. With a carrying capcity of about 1,500 passengers, the two-motor cars are air conditioned and meet global standards. The coaches are equipped with fired retardant GFRP panels on the inside.

domain-b.com : Delhi Metro gets its first indigenous metro coach from BEML

 

[RPK]

After Mongolia uranium deal, India targets Turkmenistan gas

New Delhi, Sep 15 (IANS) After signing a uranium deal with Mongolia, India turns its gaze towards Turkmenistan with External Affairs Minister S.M. Krishna visiting the gas-rich Central Asian republic from Belarus, the first stop of his two-nation tour beginning Wednesday.
In Belarus, Krishna will call on President Alexander Lukashenko and hold wide-ranging talks with his counterpart Sergey Martynov. India and Belarus will sign an agreement on cooperation in physical education and another pact on the establishment of a Digital Learning Centre in Minsk.

The centre will impart skills in advanced computing and software creation to young Belarusian students, initially with Indian faculty members and thereafter with trained Belarusian professionals, the external affairs ministry said here while announcing Krishna’s visit.

With austerity as the reigning mantra of the government, Krishna will travel to Minsk via Frankfurt in economy class on commercial flights.

On Friday, Krishna heads to Ashgabat, the capital of Turkmenistan. A programme of cooperation between the foreign ministries of India and Turkmenistan will be signed during the visit.

Krishna’s visit to Turkmenistan comes close on the heels of a uranium supply deal India signed with Mongolia Monday.

The discussions in Turkmenistan will focus on intensifying cooperation in hydrocarbon sector.

Krishna’s talks with Deputy Prime Minister and Minister in-charge of Oil and Gas sector Baymyrat Hojamuhammedov is expected to set the stage for substantive gas deals between the two countries. The two sides will also exchange ideas on reviving the proposed Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline which has been languishing for some time.

Turkmenistan produces roughly 60 billion cubic metres of natural gas each year. About two-thirds of gas exports go to Russia’s state-run Gazprom.

Turkmenistan, one of the most ethnically homogeneous former Soviet republics, is now diversifying its gas exports. It is building a major gas pipeline to China, and is considering taking part in the EU-backed Nabucco pipeline.

 

[ajay_ijn]

India may need $1.7 tn for infra financing over 10 yrs
India may need $1.7 tn for infra financing over 10 yrs- Finance-Economy-News-The Economic Times

MUMBAI: India may require $1.7- trillion for ten years beginning 2010 to meet
infrastructure demand and keep pace with economic growth and
urbanisation, Goldman Sachs said today. Of this, power and roads alone may require upwards of $700 billion. The figure is higher than Goldman's previous estimate of $620-billion and the Government's estimate of $500- billion for the Eleventh Five Year Plan (2007-12).

"For the decade between 2010 and 2019, we expect (in today's prices) that India may require $1.7 trillion in the infrastructure sector, especially in roads, power, ports, telecom, water, sanitation and irrigation," Goldman Sachs India, Chief Economist, Tushar Poddar, told reporters here.

"India's savings rate could reach 40 per cent in the next few years and can potentially be sustained at high levels for well over a decade," the paper said. However, India should take a leaf out of last year's financial meltdown and abstain from using funds coming into the stock market, Poddar said.

"The annual pool of financial savings can potentially rise to $800-billion by 2020, which would be about one-and- a-half-times the current stock of credit by the banking system," Goldman Sachs said. This could have significant implications for the growth of the financial sector, including the growth of banking, insurance and mutual funds, it added.

While India can intermediate household savings through the financial sector to the Government, it also needs to "develop a deep and liquid corporate bond market" to boost spending on infrastructure, the investment bank said.

It also needs to further liberalise pension and insurance funds to mobilise long-term savings. Government's balance-sheet is stretched, with an overall debt at about of 80 per cent of GDP, which raises concerns about the sustainability of its debt, it said.

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Jai Corp mulls setting up three power plants in Maharashtra
Jai Corp mulls setting up three power plants in Maharashtra

Anand Jain-controlled Jai Corp Ltd, proposes to set up three power projects aggregating 6,200 Mw, through its associate companies in Raigad district of Maharashtra, the company said in its annual report.

Jai Corp has strategised its presence in power generation distribution and trasmission through its associate companies, Urban Energy Generation Pvt Ltd (UEGPL), Urban Energy Distribution Pvt Ltd (UEDPL) and Urban Energy Transmission Pvt Ltd (UETPL)," the company said.UGEPL, a special purpose vehicle (SPV) has been granted the status of a co-developer by the Board of Approval, Ministry of Commerce and Industries.

It's 2,000 Mw power plant at Dronagiri node of Navi Mumbai SEZ (NMSEZ) in Uran Taluka will be implemented in three phases. Environmental and coastal regulation zone clearances have been obtained, it said. The Maharashtra government has also issued support letter for its 2,100 Mw power plant at Vangni Tarfe Taloja in Panvel Taluka and the state government has issued support letter for its 2,100 Mw power plant at Kondgaon, Nagothane in Roha Taluka, it said.

Performance of Indian ports in 2008-09: Increased efficiency on all major parameters
The Hindu Business Line : Performance of Indian ports in 2008-09: Increased efficiency on all major parameters

Indian ports have been the target of much criticism for their poor efficiency. But, according to recent government data, the average operational efficiency in the country’s 12 major ports has improved considerably in the last seven years. Whether it is turnaround time, pre-berthing detention time or output per ship per berth-day — the three basic efficiency parameters at major ports — have all shown improvement since the beginning of the decade.

The average turnaround time — between arrival of a ship and its departure from a port — has nearly ‘plateaued’ out as vessels of higher tonnage are increasingly berthing at ports, keeping in line with the international trend of a bigger vessels being employed by the shipping lines. This is reflected by the fact that the average output per ship per berth-day has shown a consistently increasing trend, indicating improved cargo- handling at the ports (see Table on ‘Performance...’). However, there has been a deterioration in the average pre-berthing time — time that elapses between when the vessel arrives at a port and it is berthed at the terminal — because of capacity constraints in handling specific commodities in certain ports. Further, priority berthing for fertilisers and food-grains in 2006-07 and 2007-08, in consonance with the Government’s policy of giving priority to vessel carrying food-grains and fertilisers, has also often led to bunching of vessels, with consequent increase in pre-berthing waiting time, according to the Outcome Budget for 2009-10 of the Shipping Ministry.
Growing volume

About 72 per cent of seaborne trade is handled by the major ports and the rest by non-major ports. Traffic has increased at a CAGR of 7.4 per cent over a ten-year period, from a volume of 227.26 million tonnes (MT) in 1996-97 to 463.78 MT in 2006-07 — in the Tenth Plan period alone, the traffic volume has increased at a CAGR of 10 per cent, from 287.59 MT in 2001-02 to 463.78 MT in 2006-07. Despite the global slowdown the cargo handled by major Indian ports in 2008-09 was 530.35 MT — a 2.1 per cent increase compared to the volume of 519.3 MT handled the previous year. The non-major ports handled 185 MT in 2006-07, or 28 per cent of the overall seaborne trade.

There has been an impressive growth in the cargo categories of fertilisers, thermal coal, petroleum, oil and lubricants. The projected increase in traffic requires a concomitant increase in the installed capacity of ports.

In view of resource constraints in the public domain, active public private partnership (PPP) is envisaged for the purpose. To encourage private sector participation, it is essential to have an enabling policy framework.

There are mega plans for Indian ports. By the end of the Eleventh Plan Period, the total traffic handled by the ports in India is expected to cross the one-billion mark and the share of major ports is likely to be 70 per cent. The Shipping Ministry’s National Maritime Development Programme involves a total investment of Rs 1,00,339 crore over a period of 10 years to ensure co-ordinated development of port infrastructure, tonnage acquisition, maritime training, coastal shipping, aid to navigation, shipbuilding and building up IWT infrastructure.

While it is good to hear about the efficiency improvement, people in the trade say the Indian ports are a long way away from catching up with standards in the international ports. For instance, in ports such as Singapore the turnaround of ships is six to eight hours, compared with more than 24 hours in India.

While the cargo volume is increasing there have been no major investments recently in creating additional capacity. “We need to develop the infrastructure quickly,” said an official from a large shipping company. “Look at China. They are far ahead of others in the region mainly due to huge investments in their ports. Of the top ten global ports, almost half are in that country,” he said.

13 cos show interest for JV with PSEB to develop coal blocks
http://www.samaylive.com/news/13-co...-with-pseb-to-develop-coal-blocks/656983.html

Chandigarh, Sep 16 Sterlite Industries, India Bulls, Welspun Urja are among the 13 companies which have shown interest in forming a joint venture with the Punjab State Electricity Board (PSEB) for development of coal blocks. PSEB intends to form a joint venture company with a successful bidder for identifying and maintaining the coal blocks to meet its annual requirement of 31.2 million metric tonne for running its thermal power plants.

"The JV company, in which PSEB will have 51 per cent stake, will study and identify suitable coal blocks and acquire necessary mining licence. Moreover, the firm shall do the engineering, procurement, construction and operation and maintenance of coal blocks," said a senior official of PSEB. "Many a companies have showed interest in forming the joint venture company with PSEB but the most suitable company based on merits shall only be selected," an official revealed.

The last date for submission of bids is September 30. PSEB Member (Generation) GS Sra said that PSEB had engaged ICRA Management Consulting Services Ltd as consultant for providing its experts services inputs in evaluation of bids.

Currently, PSEB has got coal linkages for 13.2 million metric tonne from the Coal Ministry for 1,980 MW Talwandi Sabo thermal power project and 1,320 MW Rajpura power project.

"But since the Board has ambitious plans to expand its generation capacity with 2,640 MW Gidderbaha thermal power project and 500 MW extension of Guru Nanak Dev thermal plant, Bathinda, so more coal to the tune of 31.2 million metric tonne per annum, is required," officials said.

 

[A M J]

India may need $1.7 tn for infra financing over 10 yrs

That's more than India's GDP. Is that possible?

 

[thakur_ritesh]

That's more than India's GDP. Is that possible?

the spoken amount is to be spent over a period of 10years. assuming india were to grow at 7% over the next 10years and the rupee were to appreciate to rs40 to a dollar, india's gdp by march 2019 would be 2.46t usd and if the growth rate were to be at 8% the same figure would be 2.7t usd.

india intends to increase its infrastructure spending to 9% of gdp by 2011-12, as per montek singh ahluwalia, chairman planning commission.

2010 - 1.33t usd (9% - 120b usd) - 1.35t usd
2011 - 1.43t usd (9% - 128b usd) - 1.45t usd
2012 - 1.53t usd (9% - 137b usd) - 1.57t usd
2013 - 1.64t usd (9% - 147b usd) - 1.70t usd
2014 - 1.75t usd (9% - 157b usd) - 1.81t usd
2015 - 1.87t usd (9% - 168b usd) - 1.96t usd
2016 - 2.00t usd (9% - 180b usd) - 2.12t usd
2017 - 2.14t usd (9% - 192b usd) - 2.29t usd
2018 - 2.30t usd (9% - 207b usd) - 2.47t usd
2019 - 2.46t usd (9% - 221b usd) - 2.67t usd

i think the question should be, can we increase our infrastructure spending to 9% and can this rate be sustained, if yes, then if we grow at 7% with the exchange rate at 40 to a dollar, we should most certainly achieve the figure of 1.65t usd over the next 10years.

the present rate of investment should be around 6% of gdp.

please go through: http://www.globalinsight.com/gcpath/India_Construction_1-7.pdf

 

[NSG_Blackcats]

Metro's first broad gauge train to hit tracks next month​

New Delhi: A ride on a Delhi Metro train is likely to become more comfortable with DMRC planning to roll out 83 broad gauge trains, which will be faster than the present ones, by 2011 at a cost of Rs 2,984 crore. Some of the facilities of the new trains are a high capacity air-conditioning system, heat and humidity control system, sockets for charging mobile phones and laptops and CCTVs to keep a watch on passengers' misconduct. The first train of this bunch is likely to hit the tracks in the first week of October with the Commissioner of Railway Safety giving the nod for starting the services. The process for procuring 424 coaches from German-based Bombardier is on and officials would assemble 37 four-car and 46 six-car trains, which will be used to run services on the Dwarka-Anand Vihar and Dwarka-Noida and Jehangirpuri-Shashank Lok Line.

Full Story

 

[NSG_Blackcats]

Kamal Nath looks for money to build better roads​

Minister for Road Transport and Highways Kamal Nath has hit the road looking for foreign investment in India's highways. He in the United States for a week, capping off a world tour to revive foreign interest in India's roads and highways and says India is set to launch the world's biggest Public Private Partnership program. One that will result in the development of 15,000 km of roads and highways over the next three years. "Roads in India are not merely a matter of connectivity but are a very important component of inclusive growth and the outlays of roads by the government are a very important domestic stimulus, says Kamal Nath.

The minister has plans to increase the pace of road building, up from 2 km a day to 20 km a day. The Ministry is scouting for investment of $70 billion for road construction. Of this $45 billion is expected to come from the private sector, including $10 billion from foreign investors. India's road network of 3.2 million km is second only to the US and is in need of a major upgrade. This is why the minister for road transport and highways has been circling the globe looking for investors. "India remains a very important investment destination and with some of the shocks that have happened here in the US India is a much better parking lot for investments. When there is a recession here people are skeptical of growth here but they are not skeptical of growth in India", Kamal Nath said.

Investors worry about issues like the model concession agreement (MCA), including the termination clause, exit clause, conflict of interest and definition of associate's clauses. Minister Nath says many of these issues would be ironed-out by the end of the month.

Link

 

[ajay_ijn]

the spoken amount is to be spent over a period of 10years. assuming india were to grow at 7% over the next 10years and the rupee were to appreciate to rs40 to a dollar, india's gdp by march 2019 would be 2.46t usd and if the growth rate were to be at 8% the same figure would be 2.7t usd.

india intends to increase its infrastructure spending to 9% of gdp by 2011-12, as per montek singh ahluwalia, chairman planning commission.

2010 - 1.33t usd (9% - 120b usd) - 1.35t usd
2011 - 1.43t usd (9% - 128b usd) - 1.45t usd
2012 - 1.53t usd (9% - 137b usd) - 1.57t usd
2013 - 1.64t usd (9% - 147b usd) - 1.70t usd
2014 - 1.75t usd (9% - 157b usd) - 1.81t usd
2015 - 1.87t usd (9% - 168b usd) - 1.96t usd
2016 - 2.00t usd (9% - 180b usd) - 2.12t usd
2017 - 2.14t usd (9% - 192b usd) - 2.29t usd
2018 - 2.30t usd (9% - 207b usd) - 2.47t usd
2019 - 2.46t usd (9% - 221b usd) - 2.67t usd

i think the question should be, can we increase our infrastructure spending to 9% and can this rate be sustained, if yes, then if we grow at 7% with the exchange rate at 40 to a dollar, we should most certainly achieve the figure of 1.65t usd over the next 10years.

the present rate of investment should be around 6% of gdp.

please go through: http://www.globalinsight.com/gcpath/India_Construction_1-7.pdf

Govt may have to ease the lending norms for infrastructure. Also unlock the value of pension, insurance funds, bond market. But with that there is always a risk of easy n cheap n too much money flowing into the sector resulting in boom and risky projects being taken up, followed by defaults.

another worrying thing is not much FDI is flowing into infrastructure projects. we don't see many foreign companies operating power plants, building roads or even ports. there is some private equity and FIIs into IPOs but foreign expertise and management of projects is not coming in. Foreign cos are running away because they see govt policy fraught with lot of risks.

Foreign cos will probably wait and watch for Indian private companies to succeed before jumping in, untill then would be limited to private equity n stock market flows. like telecom, foreign cos rushed in only when they realised indian market offers huge potential and Indian companies are capturing much of the market. Vodafone payed 9 billion for Hutch, largest inbound M&A only because of that.

Also one needs long term funds. to build a nuclear reactor or a large hydro power plant takes 5 to 8 years. coal power plant takes 4 to 5 yrs. So investors have to wait for all those years before they start getting returns.

right now infrastructure cos trade at very high levels in markets. Almost every investor is bullish on them in longterm because assured returns for companies once project starts running. As the report also says, its important to have matured bond market, it would help Companies a lot to raise long term funds.

 

[ajay_ijn]

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).
---------------------------------
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.

 

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WB to provide USD 3 Billion for Road projects

New York, Sep 17 (PTI) The World Bank has agreed to provide a USD 3 billion loan for developing India's national highways.

The World Bank assistance will be utilised for converting 6,372 km of one-lane highways to two-lane, out of the total of 19,702 km of single lane highways in the country.

"They have (World Bank) for the first time informed me that they will be willing to fund the viability gap funding and also fund 50 per cent of our annuity projects," Transport Minister Kamal Nath told the Indian media here after concluding his week-long tour to the United States yesterday.

Nath also announced the construction of 18,000 kms of expressways in the country.

"We are going to set up an expressway division in the next fortnight and I propose bringing in legislation for Expressway Authority of India," he said.

 

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Cabinet approves availing of Japanese loan for DFC

New Delhi, Sep 17 (PTI) The western segment of the ambitious Dedicated Freight Corridor is expected to go on fast track with the Union Cabinet today giving approval to availing of loan from Japan for the project that will cost Rs 26,124 crore.

Availing of loan was approved for the first phase of the Japan-aided rail project that will be constructed between Rewari (Haryana) and Vadodara (Gujarat) at the cost of Rs 17,700 crore.

The entire rail project, which will cover Rajasthan, Gujarat and Maharashtra, is expected to be completed by 2017 and would benefit various sectors en route including power, mines, ports, industries and agriculture.

The Japanese Overseas Development Assistance (ODA) loan is a soft loan with very low interest of 0

 

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Centre to set up solar energy panels in imp shrines

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Hyderabad, Sep 16 (PTI) The government would set up solar energy panels and other such equipment at important shrines in the country like Tirupathi, Vaishnodevi and Shirdi to promote awareness among people on the benefits of solar energy.

Highlighting the importance of renewable energy sources, Union Minister for New and Renewable Energy Farooq Abdullah said the installation of the solar energy equipment at famous shrines is aimed at promoting the use of solar energy among the masses.

The government would give Rs 1 crore rupees for installation of solar energy equipment at all Raj Bhavans in the country to promote and increase the use of the unlimited energy from the sun.

There are also plans to provide funds to set up similar equipment at state secretariats and legislature buildings.

Abdullah was inaugurating a semi-conductor manufacturing facility at the Fab City on the outskirts of Hyderabad.

 

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India to receive Rs 130 cr aid from Germany

New Delhi, Sep 16 (PTI) India will receive Rs 130 crore (19.4 million Euro) aid from Germany for viable loan-based financing of natural resources and conservation initiatives taken up in rural areas.

An agreement was inked by the National Bank for Agriculture and Rural Development (NABARD) and Germany's Development Bank KfW as part of financial cooperation between both the nations, a German embassy statement said here.

The assistance to be given for the Umbrella Programme for Natural Resource Management includes 15 million Euro as standard loan and 4.4 million Euro as grant, for which NABARD is the executing agency.

The Umbrella programme aims to demonstrate viability of loan-based financing for management of natural resources and conservation initiatives in rural areas.

Indo-German bilateral development cooperation focuses on three priority areas, environment, energy and sustainable economic development, to facilitate inclusive growth, reducing poverty and meeting millennium development goals.

 

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Cabinet approves availing of Japanese loan for DFC

New Delhi, Sep 17 (PTI) The western segment of the ambitious Dedicated Freight Corridor is expected to go on fast track with the Union Cabinet today giving approval to availing of loan from Japan for the project that will cost Rs 26,124 crore.

Availing of loan was approved for the first phase of the Japan-aided rail project that will be constructed between Rewari (Haryana) and Vadodara (Gujarat) at the cost of Rs 17,700 crore.

The entire rail project, which will cover Rajasthan, Gujarat and Maharashtra, is expected to be completed by 2017 and would benefit various sectors en route including power, mines, ports, industries and agriculture.

The Japanese Overseas Development Assistance (ODA) loan is a soft loan with very low interest of 0

Interesting details of Japanese loan
PIB Press Release
First phase loan - Rs.17,700 crores
Interest - 0.2% per annum (thats dead cheap money)
Repayment period- 30 to 40 years
Even after 30 years, Japs will only get interest of around 1000 crore.

But there are conditions

1. Prime Contractors must be Japanese firms. Joint Ventures (JV) with firms incorporated and re registered in recipient countries are also allowed to be a Prime Contractor, provided a Japanese firm is a lead partner. Sub-contractors may be from any country.

2. Not less than 30% of the total amount of contracts (excluding consulting services) financed by the STEP loan must be accounted for by goods and services from Japan. Here, procurement of goods from firms which are joint ventures in a recipient country and in certain developing countries can also be regarded as goods from Japan, subject to certain conditions.

3. In the case of consulting services, the prime Contractor i.e. the Consultants will be either Japanese or a joint venture with Indian partners where the total share of work of Japanese partners in the Joint venture is more than 50% of the contract amount.
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Even these conditions are very much fine considering the cheap loan provided by japanese. japan wants exports to grow, India wants infrastructure to be financed and developed.

Project is gr8, dedicated tracks for goods connecting mumbai port to punjab via all states in between and then to kolkatta. will facilitate easy and speedy transport of bulk materials, coal, iron ore, all other minerals to all these states.