Italian Gearbox maker, Bonfiglioli, planning to set up another plant in Chennai…

Power India found that Bonfiglioli Transmissions (the Italian gearbox maker) is planning to set up its second plant at Sriperumbudur near Chennai.

 

Bonfiglioli has already invested around Rs. 60 Crores in a facility and the another proposed facility along with an R&D unit will need investment amount of roughly Rs. 40 Crorers.

 

Bonfiglioli is a leading gearbox makers and designs, manufactures and distributes a complete range of gear motors, drive systems and planetary gearboxes for segments including industrial processes, automation, mobile and renewable energy applications.

 

The company is present in India since 1998 and has so far invested about Rs 650 crore.

 

As said by Sonia Bonfiglioli, Chairman & CEO of the Company:

“Despite the global economic slowdown, 2011-12 has been the year in our history. We continued to invest in new and emerging markets through the slump. The company invested close to Rs 150 crore in expansions in each of the last three years. Since India is our top market, we have been putting our money here. We have so far manufactured and sold over 22-lakh gear boxes and gear motors from our Chennai plant. Extending it further, the second facility and the R&D unit would not only cater to the growing domestic market but also to our global customers.

The second facility near Chennai would be dedicated to industrial products. The company has so far been making small- and medium-sized motors. The focus now would be on larger products for heavy-duty applications.

 

While it has already localised about 80 per cent of component sourcing in India, Bonfiglioli would strive to procure from domestic suppliers for the new applications.

 

 

---

More Literature on this topic:

• http://www.mydigitalfc.com/news/bonfiglioli-italy-sets-second-plant-chennai-406
• http://www.bonfiglioli.com/en/corporate/company/history

---

Read More...

Coal Ministry directed CIL Subsidiaries to supply coal through MOU route till FSA related issues are resolved…

  Power India found that the Coal Ministry has issued a directive to Coal India and its subsidiaries to supply coal through the Memorandum of Understanding (MOU) route to the power plants which have been commissioned this year till the issues related to Fuel Supply Agreement (FSA) are resolved.

 

According to the Economic Times, this directive will benefit to the  as much as 8,800 MW of electricity generation capacity which are getting commissioned during the first three months of this year.

 

According to a statement of Power Ministry:

"The Ministry of Coal has issued a directive to coal companies to supply coal to power plants commissioned till March 31, 2012 as well as those to be commissioned during 2012-13 through the MOU route as the FSAs are getting delayed. With this directive, the commissioned plants would be able to generate power without facing disruption of coal supply.”

As per the release, the quantity of coal to be supplied to these power plants would be decided in consultation with the Central Electricity Authority (CEA) till FSAs for these projects are signed.

Most of the power companies have expressed concerns on certain clauses, such as those related to penalty, in the revised FSA mooted by Coal India Ltd.

CEA held discussion with major power producers to gather their views on the FSA.

 

---

More Literature on this topic:

• http://economictimes.indiatimes.com/news/news-by-industry/energy/power/coal-cos-directed-to-supply-fuel-to-power-plants-via-mou-route/articleshow/13082288.cms

---

This work is licensed under a Creative Commons license.

Read More...

IFC to finance Rs. 750 Million equity to SunEdison…

Power India found that International Finance Corporation (IFC), is planning to invest around Rs. 750 Million equity to SunEdison along with possible funding of Rs. 2.9 Billion depending upon certain future conditions. 

 

The funds are intended to support the growth,development and construction of SunEdison’s PV power projects in South Asia, South East Asia and sub-Saharan Africa.

 

The above transaction will take place in a way that, IFC will acquire a 15% stake in SunEdison Energy Holding (Singapore) and Sun Edison Energy Holdings B.V., two holding companies incorporated by SunEdison LLC, in Singapore and the Netherlands, respectively.

 

As said by Pashupathy Gopalan, SunEdison’s Managing Director, South Asia and sub-Saharan Operations:

“SunEdison recognizes the potential of the South Asian and Sub-Saharan regions for solar power generation and is one of the leading solar energy platforms across the region. Driven by economic growth and an emerging focus on energy security in these regions, countries in the region are assessing and supporting alternative energy sources.

 

Anita George, IFC Director for Infrastructure in Asia also said:

“IFC is engaging across the entire solar PV supply chain to improve its economics. We are doing this by enabling pioneering projects under new regulatory support schemes and increasing economies of scale in downstream installations.”

---

This work is licensed under a Creative Commons license.

Read More...

Coal Ministry backed the Power Producers’ demand of review of new FSA of Coal India…

Power India found that Coal Ministry has backed the Power Developers’ – Reliance Power, NTPC and India Bulls etc – demand for review of the new Fuel Supply Agreement (FSA) Proposed by Coal India Ltd (CIL).

 

Most the Power Developers has argued that the FSA proposed by CIL is having too many escape clauses and heavily loaded against the Power Developers.

 

Some of them are enlisted here:

 

• All duties, levy to be pass through: All Duties and/or levies include liabilities arising out of the MMDR Bill have to be borne by Power Producers. This means whenever the MMDR Bill comes into effect, Coal India will increase prices proportionately. 
  
• Force majeure clause: The clause shields Coal India from supply of fuel as per LOA due to (1) Government of India or relevant state government’s refusal to grant or renew any required permit or mining lease or governmental approvals related to land acquisition and environment/forest clearance, (2) law and order problem, strikes and civil disturbances 
  
• Import of coal in case of domestic fuel shortage: CIL shall have, at its sole discretion, the option to supply the balance quantity of coal through import to be delivered at unload port at cost plus pricing including service charges of CIL. In the event, the quantity offered for imported coal is not accepted by the purchaser, no penalty shall be applicable for the shortfall to CIL. Power producers will have to pay imported coal prices. Hence, no pooling of prices will happen  
  
• Timely execution of power projects: The FSA directs power companies to complete all activities within 24 months of LoAs (with a grace period of 180 days). The purchaser shall have completed the construction, as per the implementation schedule specified in detailed project report/techno-economic feasibility report submitted during the validity of letter of assurance (LoA).This would be result in exclusion of power projects, which are delayed .
  
• Coal for long term PPAs only: CIL will provide coal only to those capacities that have long-term PPAs. Thus, coal will be available only to regulated entities 
  
• Penalty clause for CIL: The penalty for Coal India in the event of fuel shortfall will be minimal (0.01%)

 

Though some of the developers have inked the agreements because of fuel supply constraints, the general consensus is that Coal India is making use of its monopolistic situation, those from the industry said.

 

On the review of the FSA after five years, power developers say that this clause provides undue liberty to the seller as ‘aggrieved party’ to exercise the right to terminate the agreement. They say that the scope of review should be agreed upon upfront instead of leaving it open-ended. The developers want it to be modified in line with the previous FSAs executed in 2009.

 

With regard to the clause on compensation on short delivery/lifting, the developers feel the rate of compensation for the ‘failed quantity’ is too little a penalty for non-fulfilment of obligations. It is hardly a disincentive and will not discourage low fuel suppliers.

 

Till Monday, 10 FSAs were signed. Out of these, four each were signed with Rajasthan Rajya Vidyut Utpadan Nigam Ltd and Bajaj Hindustan Ltd and two with Lanco Anpara Power Ltd.

 

“There is a list of around 50 power companies. However, FSAs would be signed with 38 of them. This is because, fuel supply pacts can be signed only with producers who have signed power purchase agreements with distribution utilities,” said a Coal India official.

This work is licensed under a Creative Commons license.

Read More...

Chhattisgarh is set to become a national power hub…

Power India found that Chhattisgarh is one of the few States of India where Power sector is effectively being developed.

 

Based on the current production of surplus electric power, position of the State is comfortable and profitable.

 

The Chhattisgarh State Electricity Board (CSEB) is in a strong position to meet the electricity requirement of the new State and is in good financial health.

 

Chhattisgarh provides electricity to several other states because of surplus production, and it's power hubs are Korba and Bilaspur.

 

In Chhattisgarh, NTPC has an installed thermal capacity of 2100 MW at Sipat, Bilaspur while CSEB's units have a thermal capacity of 1240 MW and hydro capacity of 130 MW. Apart from NTPC and CSEB, there are a number of private generation units of large and small capacity. The State Government has pursued a liberal policy with regard to captive generation which has resulted in a number of private players coming up.

 

As per a study made by the Power Finance Corporation Ltd New Delhi, the State has potential of 61,000 MW of additional thermal power in terms of availability of coal for more than 100 years and more than 2,500 MW hydro capacity. To tap this vast potential, substantial addition to the existing generation capacity is already under way.

 

 

---

More Literature on this topic:

http://www.dailypioneer.com/state-editions/raipur/63844-chhattisgarh-set-to-emerge-power-house-in-the-country.html

---

This work is licensed under a Creative Commons license.

Read More...