Coal block allocations to 11 companies including tata, jindal & Monet ispat may be revoked...

 

Nearly a dozen companies including Tata Sons, Jindal Steel & Power, Birla Corp and Monnet Ispat & Energy are likely to lose captive coal mining licences for delaying development of the blocks.

An inter-ministerial group has recommended revoking the licences of 11 mines with over 4.5 billion tonnes of reserves in states of Odisha, Chhattisgarh, Jharkhand, Madhya Pradesh and Maharashtra.

"The panel has recommended de-allocating three coal blocks of Jindal Steel & Power and two coal blocks of Monnet Ispat for unsatisfactory progress. Two big blocks allocated to Jindal Steel & Power and Tata Sons for country's pilot coal-to-liquid (CTL) projects are also proposed to be de-allocated since the companies have not done any work on the blocks," a senior official in the coal ministry said.

Strategic Energy Technology Systems — a consortium of Tata Sons and Sasol Synfuels International (Proprietary) of South Africa — was awarded North of Arkhapal block for CTL project. Jindal Steel & Power was awarded Ramchandi Promotional block for another such project. Each project entails an investment of aboutRs 45,000 crore.

The panel made its recommendations after it reviewed 30 blocks and heard the companies' explanations for delayed development. "During their presentations most companies blamed the central and state authorities for non-cooperation. We are, however, in favour of cancelling the licences as under the law companies are solely responsible for developing the blocks," the official said Other companies that are set to lose mines are Rungta Mines, Dalmia Cement, Sunflag Iron & Steel, Topworth Steel and Maharashtra State Mining Corp, he said.

The panel, headed by coal additional secretary A K Dubey, has also recommended imposition or deduction of bank guarantees on companies like NTPCBSE 0.45 %, Steel Authority of India and Tenughat Vidyut Nigam. No action has been recommended against three other coal blocks — Mandakini A belonging to Tata PowerBSE 1.65 %, Jindal Photo, Monnet Ispat & Energy; Mandla North of Jaiprakash Associates and Sondiha of Chhattisgarh Mineral Development Corp.

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Adani Group in race to buy Stemcor India assets...

 

Adani Group, in line with Tata Steel, JSW and JSPL, is planning to participate in the auction of the coal assets of Stemcor India which are valued at around USD 800 Million.

Adani Group, having primary interests in coal, power and port sectors, has already evinced interests to buy Stemcor India assets with Stemcor management in London, said a source close to the development.

Adanis are all set to participate in the auction, slated for the middle of next month.

As said by the company officials, Stemcor India's assets is lucrative for the Adani Group mainly for two reasons. First, it would help the company to foray into the iron ore sector. Secondly, Stemcor India's trading business fits with Adani's existing business domain.

However, arranging funds could be a big issue for the company as it is already saddled with debt and thus, funds may not come easy for the company for carrying out the acquisition, industry sources said.

Meanwhile, with Adani Group in the list, the number of interested parties for Stemcor India's assets now goes beyond a dozen including Essar Steel, Vedanta Group, Adhunik Metaliks and Vale.

 

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http://www.moneycontrol.com/news/business/adani-grouprace-to-buy-stemcor-india-assets_931402.html

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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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