Sical Logistics wants to handle coal at Ennore port for TNEB...

 

Sical Logistics continues to explore opportunity to handle thermal coal at Ennore port as an alternative cargo for its iron ore terminal lying idle for nearly two years due to a ban on export of the ore.

The company has invested Rs 475 crore on the terminal and spends Rs 4 crore a month to service the principal, interest and other expenses, the company said.

Sical, a part of the Bangalore-based Coffee Day, hopes to make the investment productive by handling coal for Tamil Nadu Electricity Board. It has obtained necessary approvals of the Ennore port. The final approval for conversion is pending from the Shipping Ministry . “We continue to work with the ministry to make it happen,” the company said.

Sical, which originally belonged to the Chennai-based M.A. Chidambaram Group, was also awarded the project to develop a mechanised iron ore handling at the deep draft berth No 14 of the New Mangalore port on a build, own and transfer basis. It is facing a similar situation there due to the ban.

The company has not invested much of its resources at the facility there. To complete the project, the company has approached the port authorities seeking permission to handle multiple cargoes.

An official of Ennore Port Ltd said since a competing facility operated by the Chettinad group is handling coal at the port, it is not possible for Sical to handle the same cargo. However, it is up to the Shipping ministry to take the final call.

Sical Iron Ore Terminals Ltd, a special purpose vehicle to manage the project, developed a six million tonnes terminal at the country's first corporatised port. The terminal, for which the company has signed an agreement with Ennore Port in July 2006, was developed on a build-operate-transfer, revenue-sharing contract with Ennore Port for 30 years, including the construction period.

Source

Read More...

Tamil Nadu to get 4887 MW of power projects; may ease the power cuts…

Some good news are finally coming in for the power-starved Tamil Nadu with around 4,887 MW of state and central power projects getting commissioned before the end of 2013.

 

Tamil Nadu in recent times getting frequent power cuts which vary from two to four hours ad day in various parts of the state. This will be reduced or may completely be withdrawn with above stated power projects coming in.

Further , the state government also envisions investments of some Rs 4.50 lakh crore as part of its Vision 2023 for the energy sector.

 

The state government has set a target of adding 3,000 Mw through solar energy as part of it solar mission programme and is planning to announce a new policy for solar energy. Similarly, it is also focusing on wind energy, where it has envisaged investments to the tune of Rs 25,000 crore for generating capacity of 10,000 Mw.

 

Recently, the chief minister also said that since the Centre is not providing enough coal for the state’s thermal power plants, the state government will look at alternate sources like liquefied natural gas (LNG). On May 10, her government signed a MoU with GAIL.

 

The further advantage of LNG Power Plants is that they can be developed in relatively shorter period, 28 to 30 months, compared to coal.

 

As part of the MoU a 500-Mw gas-based power plant will be set up with an investment of around Rs 2,500 crore.

 

Meanwhile, at present, projects with a total generating capacity of 2,042 Mw are being implemented by the state sector with an investment of Rs 9,989 crore. Projects with a total generating capacity of 1,428 Mw are being implemented with joint venture partners at an investment of Rs 13,354 crore.

 

Besides, projects worth Rs 49,038 crore are at different stages of planning and approval. These projects will have a combined generating capacity of 8,360 Mw.

 

Recently, the chief minister urged the Centre to provide the entire power produced from the Kudankulam nuclear plant to the state. She also terminated the contract given to BHEL to set up a power plant at Tuticorin — stating that the company was delaying the project — and announced the government would build the Rs 8,000 crore project on its own.

Read More...

GMR moved to Supreme Court for non-payment of Rs. 600 Crs by Tamil Nadu Electricity Board…

Power India found that GMR Power Corporation Private Ltd has filed a case against Tamil Nadu Electricity Board (TNEB) for non-payment of tariff invoices amounting to around Rs. 600 Crs from the 200 MW Diesel Based Power Project at Basin Bridge.

 

GMR had entered into a power purchase agreement (PPA) with TNEB in September 1996 for setting up a 200 MW Diesel Power Plant at Basin Bridge of Chennai.

 

The infrastructure company had also entered into a fuel supply agreement with HPCL in December 1996 for purchase of low sulphur heavy stock fuel for its diesel engine based power plant and onward sale of power to the electricity board.

 

GMR had a dispute with the state electricity board with respect to PPA, land lease rentals among others.

 

GMR had earlier filed a petition against non payment of invoices by TNEB to Tamil Nadu Electricity Regulatory Commission in the year 2008.

• Tamil Nadu Electricity Regulatory Commission by its order dated April 16, 2010 had allowed the claims of GME and directed TNEB to pay approximately Rs 480 crore with interest in six equal monthly instalments to the former.

 

However, thereafter TNEB has approached the Appellate Tribunal for Electricity.

• The Aptel wide its order dated February 28, 2012  had ruled in favour of GPC.
• Aptel ruled that reimbursements received by GMR from Hindustan Petroleum Corporation Ltd (HPCL) by way of fuel credits should be paid or set-off against dues payable by the Tamil Nadu Electricity Board (TNEB).

 

Recently, GMR has challenged the above petition into the Supreme Court.

• A bench headed by Chief Justice S H Kapadia has sought reply from HPCL as to whether such credit has been given by it gratuitously to GMR as claimed by the latter.
• However, it asked the parties to maintain “status-quo as far as inter-se adjustment is concerned.”

 

---

More Literature on this topic:

http://courtnic.nic.in/supremecourt/temp/ac%203201-320212p.txt

http://aptel.gov.in/judgements/Appeal%20No.%20177%20of%202010.pdf

http://tnerc.tn.nic.in/orders/commn%20order/2010/DRP%20No.10%20of%202008.pdf

---

 

---

Power India – A popular blog on Indian Power Sector

This work is licensed under a Creative Commons license.

Read More...

RBI blacklists TNEB,claims state govt…

According to reports, the Tamil Nadu government on Thursday claimed that the Reserve Bank of India (RBI) has blacklisted the state’s electricity board, but banks here said they had not received any communication from the central bank that barred them from lending further loans to Tamil Nadu Electricity Board (TNEB).

Earlier, while announcing her Cabinet’s decisions, state Chief Minister J Jayalalithaa said the debt-ridden TNEB should not expect any help from the banks since the RBI had issued them an order blocking financial aid to the board.

The All India Anna Dravida Munnetra Kazhagam (AIADMK) supremo blamed the erstwhile regime of M Karunanidhi for precipitating TNEB’s plight to the present state, adding her administration had no plans now to bail out the board.

She said the 1957-founded TNEB’s current loss was at Rs 40,659 crore, and it had a debt burden of Rs 42,175 crore. “Its debt is expected to likely to cross Rs 53,000 crore by end of the current fiscal,” she added. Besides, the Board has to pay around Rs 10,000 crore to power producers and contractors.

In 2010-11, TNEB had borrowed Rs 21,385.70 crore. So far, it has repaid Rs 15,000 crore towards instalments and interest. In such circumstances, rating agencies have reduced their outlook for the board, Jayalalithaa said.

Leading bankers in the state, when contacted, said they had not got any information about the RBI having blacklisted TNEB.

Jayalalithaa said her government had paid Rs 2,016-crore subsidy to TNEB, besides giving it an advance of Rs 1,055 crore. Another Rs 2,000 crore would be given to the Board as share capital, she said.

Further, the government had, last month, given another Rs 500 crore to the Board to buy power from the open market. “We don’t have anymore money to give it,” she added.

Read More...

MTSL 1980 MW Thermal Project at Raigarh - 8 companies in the race…

Spark Network found that around 8 power companies have bided for the 1980 MW Thermal Power Project of Maha Tamil Collieries. The project is proposed to be set up at Raigarh district of Chhattisgarh.

Eight power companies are known to have bid for the 1,980-Mw thermal power project of Maha Tamil Collieries, in Raigarh district of Chhattisgarh.

The list of the companies include Reliance Power, GVK, Lanco Infratech, GMR, L&T, Sterlite Energy, JSW Energy and Indiabulls Power. The cost of the project estimated at Rs. 15,000 Crore. The project being a pit-head will be located right at the attached coal mine. The mine, Gare Pelma – II produces 15 mt annual output and having reserves of around 768 million tonnes.

Maha Tamil Collieries is a joint venture company of the Tamil Nadu Electricity Board (TNEB) and the Mahrashtra State Mining Corporation, each an arm of their respective state governments. TNEB has 77 per cent of the equity and MSMC the rest. The JV will allow the successful bidder to use coal from the mine to put up the power capacity. The developer must, after satisfying obligations to the host state (Chhattisgarh), sell half the remaining power produced to the state electricity boards of Maharashtra and Tamil Nadu. The other half can be sold on a “merchant basis” though the two boards will have first right of refusal on these, too. And, any extra coal from the mine should be diverted back to the joint venture company.

The bid rules asked for companies with at least three years experience in mining 10 million tonnes in the past three years, either in India or abroad. Bidders who have been selected to develop a coal mine with geological reserves of 250 million tonnes are also qualified.

Spark Network believes that the bid qualifications are very strict and very few companies can qualify,  but the project has generated huge interest because it is one the biggest power projects seeking bids after the Tilaiya (in Jharkhand) ultra mega power project (UMPP) bids.

Read More...