NTPC to start mining coal from Dulanga block by Mar 2015...

 

NTPC Ltd, the country's biggest power generating utility hopes to start coal production from the Dulanga block by March 2015.

With a mineable reserve of 152 million tonne, the Dulanga block located in the Ib valley coalfields, is linked to NTPC's 1600 Mw super thermal power station coming up at Darlipalli in Sundargarh district. The power plant is scheduled to be commissioned by 2018.

The cost of developing the coal block is estimated at Rs 1556.65 crore. So far, NTPC has spent Rs 76.92 crore on the coal mine project.

The coal block has got in-principle environment clearance in March 2012. Final green clearance is expected after receipt of Stage-I forest clearance.

Development of the coal mine needs 464.15 acres of private land. Notification under Section 11 of Coal Bearing Areas (Acquisition & Development)- CBA Act, 1957 has been issued. Land rates have been finalized and disbursement of compensation would commence after approval from the NTPC board.

Similarly, development of township, rehabilitation & resettlement (R&R) colony and necessary infrastructure needs another 410.07 acres of land. The state revenue & disaster management department has approved the proposal to issue notification under Section (7) for R&R colony, CISF colony and infrastructure area. Proposal for Section 4 (1) notification for 210.63 acres for overburden dump area is being processed by the state government.

Requirement of government land for the coal block is 432.21 acres out of which an amount of Rs 17.65 crore has been deposited with the tahsildar office for 263.23 acres.

Forest land of 794.13 acres also needs to be diverted for the coal mine project. Acquisition of forest land will be initiated after receipt of Stage-II forest clearance from the Union ministry of environment & forests (MoEF) and subsequent permission from the state government for tree felling.

It may be noted that the Ministry of Coal (MoC) recently sought explanation from NTPC in respect of slow progress in developing the Dulanga coal block. The notice to NTPC was on the basis of recommendation by the inter-ministerial group mandated to review the progress of development of allocated coal blocks and associated end-use projects and to recommend action, including de-allocation, if required. The IMG observed that many critical milestones were still pending for developing the coal mine.

Source: Business Standard

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Monthly review of Indian Power Sector for the month of November 2013...

 

During the month of November 2013, around 1635 MW of generating capacity has been installed under the Indian Power Sector reaching the total cumulative generating capacity at around 232.16 GW.

Further around 1226 Circuit Kms of transmission lines are also added.

 

Summary of the review of Indian Power Sector for the month of November 2013 is depicted below:

• Electricity Generation for the month was at 79.52 BUs
• Generating Capacity Addition for the month was 1635 MW
  • Dhariwal TPP U-1 (300 MW) in Maharashtra  by Dhariwal Infastructure (P) Ltd on 3/11/2013
  • Shre Sangaji TPP U-1 (600 MW) in Madhya Pradesh by MPPGCL on 18/11/2013
  • Barh STPS St-II, U-4 (660 MW) in Bihar by NTPC on 30/11/2013
  • Nimmo Bazgo HE Project U-1 (15 MW) in J&K by NHPC on 2/11/2013
  • Uri-II, U-2, (60 MW) in J&K by NHPC on 16/11/2013
• The all India installed capacity reaches at 232164.94 MW
• Transmission Lines for 1226 Circuit Kms installed during the month
• Transformation Capacity Addition during the month was 4580 MVA
• Average Power Supply deficit was around 4.1% during the month
  • Northern Region - 6.5%,
  • Western Region - 1.1%,
  • Southern Region - 5.9%,
  • Eastern Region - 1.5%,
  • North Eastern Region - 4.6%
• Peak Power Supply deficit was at 2.9%
  • Northern Region - 1.1%,
  • Western Region - 0.8%,
  • Southern Region - 6.8%,
  • Eastern Region - 1.4%,
  • North Eastern Region - 3.9%
• All India Plant Load Factor maintained was around 65.44%
  • Central Generating Plants -  77.12%,
  • State Generating Plants - 58.67%,
  • Private Generating Plants - 69.47%

Complete report can be downloaded from this link.

Source: CEA

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Reliance Power up 3% as CBI likely to close enquiry in Sasan project...

 

Shares of Reliance Power today rose by nearly 3 per cent on the possibility of CBI closing its preliminary enquiry to probe coal block allocation to a power project in Sasan in Madhya Pradesh run by Anil Ambani's firm.

Reacting to this, Reliance Power's scrip went up by 2.89 per cent to Rs 74.7 on the BSE.

On the NSE, the stock rose by 2.89 per cent to Rs 74.70. The CBI is of the view that the allocation is a policy decision vetted by group of ministers.

CBI sources said it has come to light that use of surplus coal from the Sasan UMPP was approved on two separate occasions by two EGoMs. They said since it was a policy decision, CBI was not likely to question it.

However, they added that any final decision has not been taken over the closure and any such decision can only be taken after taking into consideration the views of the Supreme Court.

The sources said they have informed the Supreme Court about the preliminary enquiry in their status report and agency would proceed according to further directions of the apex court.

After the registration of the preliminary enquiry, ADAG spokesperson had said in a statement that "we welcome the independent time-bound enquiries by the CBI, monitored by the Supreme Court, which will clearly establish our bonafides".

It will "once and for all prove beyond doubt that we have been the unfortunate victims of a mischievous campaign of calumny and vilification conducted at the behest of our unscrupulous corporate rivals over the past 5 years," the statement said.

The allocation of coal mines to the Sasan project was done to a 100 percent government-owned company in the year 2006 when Reliance Power had not even won the project, it said adding the government disinvested its shares to Reliance pursuant to a global tender in the year 2007.

The preliminary enquiry was registered on the directions of the Supreme Court that had asked the CBI to probe 14 issues including supply of low floor buses by Tata motors to Tamil Nadu government, grant of spectrum and alleged market manipulations and hammering of stocks by Unitech.

Source

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Year end review of Indian Coal Sector for the year 2013 by Coal Ministry...

 

Coal Ministry has done an year end analysis of the progress made by the Indian Coal Sector during the year 2013.

The same has been depicted below:

 

 

Major Highlights:

• Regulator proposed for Coal Sector
• Public Private Partnership to augment coal production
• Thirty eight captive coal blocks comes under production
• Year End Review of Ministry of Coal

Coal sector witnessed a number of initiatives during 2013 to augment coal production and supply. Regular reviews of captive coal blocks were held by Inter-Ministrial Group to expedite their development, fuel supply agreements were signed with Power Sector and setting of Coal regulator approved. Under the bidding policy, seventeen coal blocks allotted to the Government Companies and thirty eight coal blocks brought under production. Highlights and achievements of the Coal Ministry during the year are as follows:

Assured coal supplies to 78,000 MW projects to boost power production

In a major boost to the power sector, the Government approved supply of coal to power plants with a capacity of 78,000 MW. Commissioned or to be commissioned during April 2009 to March 31, 2015. Coal India Limited(CIL) has already signed 157 Fuel Supply Agreements for a capacity of 71,145 MW. This will not only increase the power generation further but will also fast track several power project which are under consideration.

Coal Regulator proposed for Coal Sector

The Government has approved the setting up a Regulatory Authority for Coal Sector on June 27, 2013. As the enactment of the legislation through the Parliament would take some time, therefore, it was decided that a non-statutory regulator be set up through an appropriate executive order. Accordingly, the matter has been referred to the Ministry of Law for advice/ consultation for framing the executive order. The Coal Regulatory Authority Bill was also introduced in theLok Sabha on December 13, 2013 for its consideration.

Public Private Partnership to Augment coal production

The Government has decided to initiate Public Private Participation (PPP) to augment coal production in the country. Accordingly, a committee has been set up under the chairmanship of Secretary (Coal) with representatives from Planning Commission, Ministry of Finance (DEA), Ministry of Labour, Ministry of Law & Justice (DLA) among others to recommend a framework for the PPP. The committee deliberated on the various models including engaging Mine Developer cum Operators (MDO) & In consultation with all the stake holders, the Government is in the process of finalizing a Model Concession Agreement (MCA) for engagement of MDO in CIL.

Further Disinvestment of Neyveli Lignite Corporation

Disinvestment of 3.56% paid up equity capital of Neyveli Lignite Corporation (NLC) out of Government of India’s shareholding (93.56%) has taken place through Institutional Placement Programme (IPP). This has made NLC compliant with the norms as per SEBI regulations. The 59701260 shares have been sold @ Rs. 60/- per share and total sale proceeds received by the Government are Rs.358.29 Crores.

Allocation of Coal Blocks to Government Companies

Under newly initiated bidding policy seventeen coal blocks, fourteen blocks for specified end-use i.e. Power and three blocks for Mining were allocated to various State Government Companies/Corporations/CPSUs. The proposed Coal Mines Production and Development Agreement to be signed by the Government with the respective eligible Companies is under finalization.

Further, the Government has also decided to put on offer five lignite blocks located in the states of Gujarat and Rajasthan for Power/Commercial mining/ Underground Coal Gasification, for allocation to Government Companies and invited applications July 29, 2013 from Government Companies/Corp. particularly from the state of Gujarat and Rajasthan, keeping in view the fact that lignite cannot be transported over long distances due to its low calorific value, high moisture and soft/brittle nature of mineral, making it susceptible to catch fire. The applications received in response to the NIA are under process.

Four coal blocks have also been identified for allocation to power projects on the basis of competitive bids for tariff and applications for the same were invited on December 20, 2013. Besides this, procedure for allocation of area containing coal through auction by competitive bidding is under process.

Thirty eight captive coal blocks come under Production

The target fixed for coal production from the captive coal blocks for the year 2013-14 is 46.15 million tonnes.As on date (upto October, 2013), 38 captive coal blocks have come under production. The production achieved during the year 2013-14 (upto October, 2013 provisional) is 21.740 million tonnes (13.645 million tonnes for private companies and 8.095 million tonnes for government companies).

Third Party sampling of coal supplies introduced

Various consumers of Coal India Limited have been raising their concern about the quality of coal supplied. In order to address these concerns, CIL has introduced Third Party Sampling and analysis of coal supplied to various power plants in the country. For this purpose, CIL has engaged independent third Party agencies for sampling and analysis of coal at suppliers’ end and the system has been made operational from October 1, 2013

Source: Coal Ministry

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Odisha to float tenders soon for 48 Mw solar power...

 

In its efforts to maximize solar power generation and also to fulfill the renewable purchase obligation (RPO) of its bulk power purchaser Gridco, the state government would soon float tenders for new soar power capacity of 48 Mw.

Presently, on-grid solar power projects with a total capacity of 13 Mw are operational in the state. According to RPO fixed for 2013-14, Gridco has to buy six per cent of its energy from renewable sources out of which 0.20% has to be from solar power.

Gridco has signed power purchase agreements (PPAs) for eight solar photo voltaic (PV) projects of 1 Mw under Roof Top PV and Small Solar Power Generation Programme (RPSSGP) scheme.

Gridco has also entered into power sale agreement with NTPC Vidyut Vyapar Nigam Ltd, a 100% subsidiary of NTPC Ltd, to avail solar power bundled with equivalent capacity of thermal power from unallocated share of upcoming NTPC stations under 'New Solar Projects' scheme of Union ministry of new and renewable energy (MNRE). Under the said scheme, 20 Mw of solar power has been allocated to Gridco.

NTPC would be supplying solar power to Gridco in bundled form along with thermal power and the tariff for solar power will be in the range of Rs 4.74-5 per unit.

The Green Energy Development Corporation of Odisha Ltd (GEDCOL) has planned to go for solar PV generation to the tune of 20-40 Mw immediately for which it has already held two rounds of discussions with Gridco. GEDCOL is also setting up 50 Mw solar power project at Manmunda in Boudh district. Around 250 acres of land will be needed to set up the project. The project will cost Rs 400 crore.

Source: Business Standard

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CIL to begin final exploration round in Mozambique early next financial year...

Coal India Ltd (CIL), the Kolkata-based world’s largest coal miner, will begin third and final round of exploration in two of its blocks in Mozambique early next financial year. This brings the miner a step closer to commissioning mining in its maiden overseas project by 2016.
 
“The second phase of exploration, which is currently on, has seen minor delays owing to the onset of monsoon in that nation. That made the site inaccessible for some time. We will definitely award drilling contracts for the third phase coming March after which the exploration work will start,” said a senior CIL official.
 
The company has already completed 17,000 meters of the overall 30,000 meters of drilling in the ongoing phase. The miner was allocated two blocks with reserves exceeding a Billion Tonne (BT) in a government-to-government deal in Maotize in Tete province in the African nation in 2009.
 
The idea is to import the entire quantity of coal available in the two blocks to India to bridge the gap in demand and supply of coal which currently stands at over 135 million tonne (MT) for domestic industries. However, CIL has already missed the original deadline of starting production by 2013.
 
The progress on the project has been slow owing to procedural delays in outsourcing drilling contracts and the inter-governmental differences over the pattern of funding apart from the lack of local infrastructure support, including roads and ports. The official said the company hopes by the time mining begins in 2016, Mozambique government builds infrastructure for evacuation.
 
“The Mozambique government is building infrastructure. Also, we expect a railway carrying capacity of 6 MT annually to be free next year after the work of another mining company which is currently working there closes,” the executive said. Apart from infrastructure issues, the extent and mode of local expenditure has been a bone of contention between the Indian and the Mozambique governments and a major irritant stalling progress of the project.
 
CIL has been allocating Rs 6,000 crore annually over the past few years for overseas investments but has failed repeatedly in its acquisition plans. The miner had earlier shortlisted Australian miner Peabody Energy’s Wilkie Creek mine and US-based Massey Energy Co’s Sidney mines but failed. It had also considered buying stake in Indonesia’s PT Golden Energy Mines Tbk (GEMS) but lost the deal owing to bureaucratic hurdles.

Source: Business Standard

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Update on REC Trading for the month of December 2013: Non-Solar RECs Up by 31%, Solar RECs by 7%...

 

The 10th REC Trading Session of the Financial Year 2013-14 was conducted on 26th December 2013 marking the end of Q3 on both the Power Exchanges, IEX and PXI.

This REC trading session shall bring some comfort and shall develop faith over REC Mechanism, as the market has shown a substantial positive growth and there are good indicators to grow even more.

Overall the results have sustained optimism as compared to the preceding trading month.

The increment in the overall Buy bid of both Solar and Non Solar has re-infused the faith in the future of REC market. Though, the Solar REC market has grown by a thin margin in this trading session, but the increasing participation from the buyers will ensure a promising future for solar market.

In comparison to last trading session of November 2013, the buyer’s participation has substantially increased by 30.73% for Non-solar and by 7.18% for Solar REC Market. The effect of RPO enforcement over the obligated entities has started showing the effect and it is expected to create more demand of certificates in the near future.

As per REC Registry, the market crossed 0.4 million marks in terms of REC redeemed. This volume (4,11,744 RECs) traded in a single session is the highest redeemed volume of this fiscal and more importantly marginally matches the volume of March 2013 (last month of FY13).

With last three months still remaining in this year and chances of higher buyer-side participation in the subsequent sessions REC markets may revers the earlier trends.

A more detailed analysis for each kind of RECs can be found as under:

Non-Solar RECs :

Buy bids for non-solar credits increased by 30.73 percent in comparison to last month’s stats. The most encouraging fact, considering a holistic view of FY14, was the cleared volume crossing the 0.4 million mark. Clearing percentages at both exchanges (IEX and PXIL) were recorded at parity (over 9%). With a total transactional value of non-solar RECs was 605.8 million INR, with price of each non-solar REC remaining at Rs. 1500 per REC.

Solar RECs:

The change in demand and supply as compared to previous month was up this month by 7.18 percent and 47.37 percent respectively. Although, the prices here also remained at floor we can still expect a jump in demand as we slip in the last quarter.

Analysis of Non-Solar REC Segment

Non-Solar REC Segment
Parameter	IEX	PXI	Total	Trend
Buy Bids	2,50,722	1,53,140	4,03,862	31%
Sell Bids	27,12,444	16,03,154	43,15,598	4%
Cleared Volume	2,50,722	1,53,140	4,03,862	31%
Cleared Price	1,500	1,500	1,500	0%
Cleared Volume as % of Total Sell Bids				9.36%
Transaction Amount (Rs. Crs)				60.58

 

• The Cleared Volume of Non-Solar RECs have been increased by more than 31%
• However, the above was mainly on account of the observed increased of more than 157% on IEX; on PXI a decline of 27% was observed.
• The Clearance Ratio in terms of Perc over Sell Bids has been increased to 9.36% from 7.45% in the previous month.
• The Market Clearing Price observed was the Floor Price i.e Rs. 1500 per RECs.
• Below charts shall give more clarity this.

Analysis of Solar REC Segment

Solar REC Segment
Parameter	IEX	PXI	Total	Trend
Buy Bids	6,983	989	7,972	7%
Sell Bids	77,180	13,240	90,420	47%
Cleared Volume	6,983	989	7,972	7%
Cleared Price	9,300	9,300	9,300	0%
Cleared Volume as % of Total Sell Bids				8.82%
Transaction Amount (Rs. Crs)				7.41

• The Cleared Volume of Solar RECs have been decreased by around 7%.

• However, the above was mainly on account of the observed decrease of more than 167% on PXI; on IEX,  marginal decrease of of 1.3% was observed.

• The Clearance Ratio in terms of Perc over Sell Bids has been decreased to 8.8% from 12.0% in the previous month.

• The Market Clearing Price observed was the Floor Price i.e Rs. 9300 per RECs.

• Below charts shall give more clarity this.

Source: IEX and PXI

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