Avantha Group firm CG bags $20 million transmission infrastructure contract from Indonesia

 

Avantha Group company CG has bagged a $20 million (approximately Rs 124 Crs) contract from Indonesian firm PT PLN for setting up power transmission infrastructure around Indonesia.

Under the contract, CG has to set up a total of 36 transformer bays around Indonesia.

This project is being funded by IBRD - World Bank and is aimed at enhancing the performance of PT PLN's transmission grid.

The scope of the order includes design, manufacture, supply, construction and installation of transmission equipment in Java, Sumatra, Kalimantan and Sulawesi islands of Indonesia.

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Indonesian coal to be part of index determining power tariffs...

 

Power sector regulator CERC has decided to provide 50% weightage for Indonesian coal in the benchmark index that is used to determine escalation rates for electricity generated using imported dry fuel.

The move would help in having a benchmark in deciding the escalation rates for electricity generated by power plants that are fired by Indonesian coal.

It also assumes significance amid deadlock between various power generators and procurers over increasing the electricity tariff due to rise in imported coal prices.

The Central Electricity Regulatory Commission has decided to include Indonesian coal, besides South African and Australian dry fuel, in the composite index for imported coal for payment purposes.

Currently, for payment purposes, the index takes into account only Australian and South African coal.

The Commission said that the decision to revise the index has been taken after considering the composition of steam coal imports as well as the importance and acceptability of indices in international contracts.

The Commission said in an order dated December 23rd that "The weights of different coal in the composite index shall include 25% Australian coal, 25% South African coal and 50% Indonesian coal."

CERC has the mandate to notify the escalation rates for imported coal used to fire power plants. These rates are notified every 6 months.

According to the watchdog, Indonesian coal has been included in the index considering that it makes up for a pre dominant share of steam coal imports into the country.

In 2010 to 2011, period about 73% coal was imported from Indonesia while 24% was from South Africa.

Average import of steam coal for the last 3 years shows about 76% from Indonesia and 19% from South Africa.

During the same period, the dry fuel import from Australia was just about one per cent.

The Commission said that despite insignificant steam coal imports from Australia, it would have 25 per the Commission said in an order dated December 23rd weightage in the index.

Thr soiurb said that Australian coal has been retained in the composite index despite very low volume of consumption in India due to its liquidity, acceptability for contracts, and possibility of increased use of Australian coal in future."

The new index should be used to determine the escalation rates from April 1st 2014.

Source: Business Standard

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CIL eyes mine acquisitions in Indonesia...

 

Pursuing its overseas expansion strategy, Coal India Ltd (CIL) is actively looking at as many as five proposals for acquisition of mines in Indonesia.

CIL’s overseas plans come at a time when the company is facing flak for acute shortages of coal, which is hurting country’s key sectors including power and fertiliser.

“Coal India is examining four to five proposals and they all are in Indonesia,” according to Coal Ministry sources. The sources, however, refused to give a timeline as to when they are likely to be finalised.

Coal India in September had said that it invited an expression of interest inviting global companies to offer overseas assets.

“In pursuant to the Government of India’s guidelines to acquire raw material assets abroad, a notice inviting proposal offering overseas coal assets to CIL was floated... A number of proposals has been received and are being evaluated,” the company had said.

Coal Minister Sriprakash Jaiswal earlier said that acquisition of coal mines overseas should be done in an aggressive manner to meet the country’s energy requirements.

In order to tide over the fossil fuel shortages, the government is also proposing to import coal.

Meanwhile, CIL has already finalised bids for further drilling its twin mines in Mozambique. Two coal blocks - A1 and A2 - at Motaize, in Tete Province of Mozambique, are spread over 200 sq km.

CIL has proposed a capital outlay of Rs 25,400 crore in the 12th Five Year Plan, plus an ad-hoc provision of Rs 35,000 crore to acquire coal assets abroad and develop the acquired coal blocks in Mozambique, according to the coal PSU.

The capital expenditure for current fiscal has been envisaged at Rs 5,000 crore, along with additional ad-hoc provision of Rs 4,000 crore to acquire coal assets abroad and develop coal blocks in Mozambique, it said.

The demand-supply gap of coal was 135 million tonne (MT) last fiscal and may widen to 185.5 million tonnes in 2016-17.

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Tata Power forms JV with Indonesian firm for development of power projects...

 

India's Tata Power has reportedly partnered with an Indonesian conglomerate company Astra International to form a joint venture in Indonesia, with each owning 50 per cent of the venture. The new venture has been set up to produce electricity. Astra, through its unit Astratel Nusantara, will set up the JV with Tata Power.

According to several reports, Astra is bidding for a 200-megawatt power plant in Indonesia. "We are one of the pre-qualification winners of the tender," Jakarta Globe quoted Astra International deputy director Paulus Bambang as saying.

Commenting on the partnership, Paulus said the company decided to partner with Tata Power because Astra did not have the necessary expertise in the field of electricity generation.

Tata Power expands global reach

Recently, Tata Power signed an MoU with the Government of Vietnam for developing a thermal power plant that will run on imported coal in the Soc Trang Province of Vietnam. India's largest integrated power company Tata Power was awarded the Long Phu 2 Power project by the Vietnam government based on the pre-feasibility studies earlier this year.

In accordance with the MOU, Tata Power will carry out feasibility studies for developing this power project on build, own and transfer basis. The Long Phu 2 Power project is Tata Power's first coal based project outside India.

Other international projects under implementation include the company's recently signed an agreement with Clean Energy Invest AS (Clean Energy) and IFC InfraVentures(IFC) for developing a 400 MW hydro project in Georgia for sale of power primarily to Turkey. Tata Power is also currently implementing a 126 MW Dagachhu Hydro Project in Bhutan.

Some of the other global projects under implementation include the company's agreement with Clean Energy Invest AS and IFC InfraVentures for developing a 400 MW hydro project in Georgia for sale of power primarily to Turkey. Tata Power is currently implementing a 126 MW Dagachhu Hydro Project in Bhutan; and has also successfully achieved financial closure of its 95 MW Tsitsikamma and 134 MW Amakhala Emoyeni Wind Projects in South Africa.

Tata Power, along with consortium partners Origin Energy and PT Supraco, won 240 MW Sorik Marapi Project, a geothermal project in Indonesia.

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