Results of E-Auction for 8 Schedule II Coal Mines

 

The Tender Process for the Scheduled II 23 coal mines was started on December 27, 2014 with the release of Tender Documents. As a part of auction process, Technical Bids, both online bids and offline supporting documents were opened on 3^rd February 2015 in the presence of Bidders.

In the first stage of the tender process, bidders submitted their technical bids on MSTC portal created for the purpose. Bidders were also required to submit separately a sealed envelope containing bank guarantee, power of attorney and the affidavit. The cut-off date for submission of technical bids was 12:00 noon, February 03, 2015.

The electronic bids were decrypted and opened electronically in the presence of bidders. Entire process was displayed on the screen for the bidders. Subsequently, sealed envelopes containing bank guarantee, power of attorney and affidavit were also opened in the presence of bidders. These bids has been evaluated by a multi-disciplinary Technical Evaluation Committee to shortlist bidders for participation in the electronic auction conducted on MSTC portal from February 14, 2015.

Results of the E-Auction are as below:

1. Talabira I : Rs 478/MT by GMR Chhattisgarh Energy Limited
2. Sial Ghoghri : Rs 1402/MT by Reliance Cement Company Private Limited
3. Sarisatolli : Rs 470/MT by CESC Limited
4. Belgaon : Rs 1785/MT by Sunflag Iron and Steel Company Limited
5. Kathautia : Rs 2860/MT by Hindalco Industries Limited
6. Marki Mangli III: Rs 918/MT by BS Ispat Ltd
7. Mandla North : Rs 2505/MT by Jaiprakash Associates Limited
8. Trans Damodar : Rs 940/MT by The Durgapur Projects Limited

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Parliamentary Panel seeks for top most priority to power sector from country’s natural gas output…

Power India found that a parliamentary panel is seeking for top most priority to power sector from country’s natural gas output.

 

India’s natural gas output is plunging owing to the sharp drop in production from Reliance Industries’ D6 block in the Krishna-Godavari Basin. Nevertheless, the government is under pressure to change its gas allocation policy in favour of the power sector.

 

A parliamentary panel has sought topmost priority for the power sector, the rapid development of which is integral to sustained levels of high economic growth, in allocation of existing and future domestic gas supplies.

 

As of now, the fertiliser sector is given the highest priority in gas disbursal, followed by the city gas sector in the government’s policy for utilisation of the hydrocarbon resource. Power comes third on the priority list.

 

The fertiliser sector has been given the top priory in gas allocation because the product is subsidised and the central government has to bear the subsidy, while city gas distribution is important to check vehicular pollution in metros.

 

Gas-based projects totalling 4,200 MW commissioned during the 11th Five-Year Plan are unable to start operations due to non-availability of gas.

 

As said by Tantra Narayan Thakur, Chairman PTC India:

“Gas-based power plants are not able to fully utilise their capacity due to fuel shortage. Better allocation of gas for the power sector will be a welcome step”.

 

The fall in production from RIL's D6 has aggravated the gas shortage for the power sector. The block was expected to reach peak production of 80 million metric standard cubic metres per day (mmscmd) by the end of 2012. But instead production from the field has dropped to 34 mmscmd and is projected to further fall to 20 mmscmd by 2015.

 

India is projected to face a domestic gas shortfall of 20-25% over the long term despite an increase in production. In the short term, the country is meeting the gas shortfall by importing liquefied natural gas. To meet its long-term shortfall, the government is trying to tie up piped gas supplies from Turkmenistan and Iran.

 

 

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More Literature on this topic:

• http://www.financialexpress.com/news/give-power-sector-top-priority-in-gas-disbursal-panel/948428/0
• http://godavarionline.blogspot.in/2012/05/give-power-sector-top-priority-in-gas.html

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Power Ministry to link tariffs of new power projects with the fuel prices…

Power India found from a news article on Economic Times that the Power Ministry is planning to allow power producers to raise tariffs if the fuel costs of new projects rise; this move may hurt consumers but will rescue the huge investments being made in the power sector.

 

However, currently this is bein planned for the new power projects such as the next Ultra Mega Power Plant (UMPPs) and Gas based Power Plants with a capacity of over 7000 MW which have been built but not operational due to fuel unavailability.

As said by Power Minister

….building new capacity was a priority for his ministry and he was monitoring all new projects, helping the country add a record 20,500 mw of new capacity in 2011-12. He said appropriate policies for fuel supply and tariffs were important to sustain the momentum”

As said earlier the move to link tariffs to fuel costs would not apply to existing UMPPs of Tata Power and Reliance Power, which are suffering because they can't bill customers for the sharp rise in cost of imported coal; however the Power Ministry is considering some solutions for these projects also.

New power projects with a capacity of more than 30,000 mw are idling or underutilised because of acute fuel scarcity and high cost of imported coal. Power Ministry said if fuel costs are passed on to customers, power producers would be able to use existing capacity and build new plants.

Several gas projects have suffered because output from Reliance Industries' KG-D6 block has fallen. The company recently said it was preparing multi-billion dollar investments in new fields but it needs market-linked pricing.

The government has approved a price of $4.2 per unit for KG-D6 gas up to 2014, but the company wants to raise rates before that to help it invest more in new fields, which would not be viable at the old price.

 

 

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Power India – A popular blog on Indian Power Sector

This work is licensed under a Creative Commons license.

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Delhi Government’s Bawana plant in trouble…

The Bawana plant, one of the ambitious project of the Delhi government, may not start producing power anytime in the near future.

 

For, reports said Reliance Industries has expressed its helplessness to provide gas to Delhi to run the plant.

 

Delhi chief secretary Praveen Kumar Tripathi said the union ministry of petroleum and natural gas had recently allocated gas for Delhi’s Bawana plant. The plant was built at a cost of Rs 4,500 crore,

 

“We now have to sign an agreement with Reliance Industries for the supply of gas. If the company fails to abide by the central government’s order, we will take up the matter at the minister’s level,” Tripathi said.

 

Delhi currently produces 1200 MW electricity. It gets about 3,000 MW as its share produced at central government power generation plants.

 

 

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Power India – A popular blog on Indian Power Sector

This work is licensed under a Creative Commons license.

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Reliance, Tata Face Energy Caps in $3 Billion Efficiency Market in India…

According to reports, India has set targets for companies including Reliance Industries Ltd. (RIL) and Tata Steel Ltd. (TATA) on energy consumption reductions in preparation for a $3 billion-a-year market for trading efficiency credits.

Companies have been notified of their targets and audits of their energy consumption have started, said Ajay Mathur, director of the Bureau of Energy Efficiency.

“By mid-2012, we should be able to start issuing tradable certificates,” Mathur said in an interview this week. The government may disclose the individual targets assigned to 563 facilities, including oil refineries, steel plants and paper mills in its official gazette as early as next month, he said.

The program aims to lower fossil fuel use in the world’s third-largest energy consumer by forcing eight industries to reduce their power needs. Companies that save more power than required earn credits which they can trade on power exchanges to others seeking to meet their targets.

Other companies with facilities falling under the program include NTPC Ltd. (NATP), Hindalco Industries Ltd. (HNDL), Essar Steel Ltd., JSW Steel Ltd. (JSTL) and Reliance Power Ltd. (RPWR), according to a list from the bureau.

By using energy more efficiently and reducing losses, India may avoid building 10,000 megawatts of new power capacity, saving 1 trillion rupees ($19 billion), according to the power ministry. That’s the equivalent of about 9 new nuclear reactors.

Over three years, the energy-efficiency program should reduce power consumption across the eight industries by about 5 percent, Mathur said. India became the world’s third-largest energy consumer after topping Russia in 2009, the International Energy Agency said in its annual outlook this month.

Trading of the credits may create a market worth $3 billion annually, according to Baman K. Mehta, chief executive of Darashaw & Company Pvt., a Mumbai-based investment bank. Within five years, that could climb to $16 billion, Mathur has estimated.

India’s trade in international carbon credits could be affected because of an impasse over the renewal of the Kyoto Protocol, the world’s only climate treaty that created the carbon market.

Annual climate negotiations begin next week in Durban, South Africa. Japan, Canada and Russia are expected to refuse an extension of the treaty requiring industrialized nations to cut emissions through 2012.

With the future of a global emissions trading market at risk, India is pressing ahead with domestic environmental trading programs to slow emissions and promote clean energy.

In April, trading began in India’s renewable energy market that requires power distributors and large energy consumers to buy a certain amount of their electricity from clean sources like wind farms and hydropower plants.

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Coal India slips to third slot in market valuation league…

Coal India on today (August 24, 2011) slipped to the third position after Reliance Industries and ONGC on market valuation charts, as it lost further ground after losing the top slot to Mukesh Ambani-led corporate giant yesterday.

Shares of Coal India today slumped by 4.6 per cent at the Bombay Stock Exchange (BSE) to close at Rs 373.85, giving the company a market valuation of Rs 2,36,137 crore. This made Coal India the third largest company in the country after RIL (Rs 2,49,142 crore) and ONGC (Rs 2,38,783 crore).

The stock performances of RIL and ONGC were relatively better in a weak market. As against a 1.3 per cent decline in the benchmark Sensex, ONGC was nearly flat with a 0.02 per cent decline to Rs 279.10, and RIL fell 0.6 per cent to Rs 760.95.

RIL yesterday regained its position as the country's most valued firm, pushing Coal India to second position, while ONGC was ranked third.

Coal India had dethroned RIL as the country's most valued firm on August 17. Since then, there have been many twists and turns in the market valuation charts, especially in the top three positions.

Two days later on August 19, RIL briefly fell behind ONGC to third position in the market valuation charts, but returned to the second slot before the market close that day.

However, Coal India shares have come under tremendous pressure in the past few days and in today's intra-day trade, it touched a low of Rs 371 -- its lowest in a week.

Coal India's market value has fallen by more than Rs 5,000 crore since August 17, when it became top-ranked company with a valuation of Rs 2,51,296 crore.

At the same time, RIL's market value has risen by about Rs 2,000 crore even in an overall weak market in this period. ONGC's market value has also grown by about Rs 1,500 crore since August 17.

When Coal India topped RIL on August 17 to emerge as the country's most valued firm, it had ended the private sector corporate giant's over four-year reign at the top of the market valuation charts.

RIL had first toppled ONGC to become the country's most valued firm way back in late 2006, but the state-run energy giant later reclaimed its top position, albeit only for a brief period. RIL has managed to stay on the top since February, 2007, except for a few days last week.

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