Metis Weekly Sectoral Post

Power & Coal Sector

May 9-13, 2011

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11 13 15 17 18

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

Power Headlines
Generation

Renewable
India to add 67,000 MW solar power capacity by 2022 Renewables could meet global energy needs by 2050: Report

Delay in civil works forces NTPC to commission Bongaigaon TPP in 12th plan Chinese firms pip BHEL in gear supply to thermal plants Online monitoring for 12th plan power projects soon Metis: MoPNG furnishes gas allocations for power plants from KG D6 basin
Reliance gas supply squeeze for GVK Power, power generation to be affected Unit 3 at Ratnagiri commissioned North Karanpura TPP to head to GoM on coal for decision Pvt Players take NTPC to CERC, say NTPC sabotaging competition Chhattisgarh UMPP likely to be scrapped Warburg Pincus acquires stake in Diligent Power Jaypee's Karcham-Wangtoo's hydro unit to be commissioned on May 15 Power ministry wants realistic targets Metis: Ratnagiri TPP wants full supply of gas from KG D6 Metis: NHPCs Chutak hydroelectric project faces delays CEA wants power utilities to change in plant design to combat coal shortage

Others

Corporate Environmental Policy must for obtaining green clearances

Proposed 5 pc duty on coal to impact power tariff: Assocham PFC looks to fund chain sectors PFC issue subscribed 3.58 times on Day 3

Transmission & Distribution

IPPs in HP free to sell power DERC will take final call on power tariff hike: Dikshit RADRP projects see new funding from MoP ADB to invest $69 mn in MP's power sector

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

Coal Headlines
Metis: ONGC requests MoPNG for setting CBM gas price from Jharia Coal India ventures into methane projects in five blocks Coal India may hike prices after wage hike: CMD Plan panel suggests alternative to go, no go Metis: CCDAC proposal for unlocking of sterilized coal from Jharia Coalfields Metis: PSPCL requests MoC to allocate coal blocks for Power Projects in Punjab Abbot Point acquisition to be completed by June this year: Adani India to take up to 2 million tonne Russian coal in 2011 PM calls for high-power meeting to discuss coal availability Bhushan Steel's Australian mine to start production in 2015 Govt mulls simultaneous exploration of coal and CBM Coal Ministry willing to review block de-allocation MoEF not to change Chhatrasal's status, RPower's UMPP Metis: Coal ministry yet to take action on Manoharpur coal blocks of OPGC Metis: Haryana wants alternate coal supply for its Rajiv Gandhi TPP at Hisar CIL to finalise 10 yr coal import contract

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

Power News
Generation
Delay in civil works forces NTPC to commission Bongaigaon TPP in 12th planNTPC has rescheduled the commissioning of the first 250-MW unit of the much-delayed 750 MW (3 X 250 MW) coal-based thermal power station in Bongaigaon in Assam to July 2012 in the early Twelfth Plan period (2012-17). According to the original schedule, two units of the INR 4,720-crore project were slated to be commissioned in the final year of the current Plan in 2011-12.While the BTG contractor, BHEL, claims to have been ready to erect the plant and machinery on time, the project was hit by a delay in execution of civil work by the contractor, SPML Infra (formerly Subhash Projects and Marketing Ltd). NTPC has already decided to off-load the balance civil work of Unit-II and Unit-III of 250 MW each to a new contractor. According to company sources, bids in this regard have been received against a tender floated in January and the new contractor is expected to be finalised by the end of this month. SPML will, however, continue executing the civil work for the first unit. Chinese firms pip BHEL in gear supply to thermal plants- Chinese companies have edged out state-owned Bharat Heavy Electricals Ltd (BHEL) as the top equipment suppliers to thermal power projects slated to come up in the next five years. This comes even as the Government has been dragging its feet on a decision to impose a levy on equipment imports, including Chinese gear, to bridge an alleged duty differential being faced by domestic manufacturers. With Chinese gear manufacturers gaining ground, domestic firms led by BHEL and L&T had been pushing for the implementation of recommendations made by a Planning Commission panel. The Arun Maira-headed panel estimated a 14 per cent duty disadvantage faced by domestic firms for mega projects, which was proposed to be bridged through the levy of a 10 per cent Customs duty and 4 per cent Special Additional Duty. Online monitoring for 12th plan power projects soon- The ministry of power plans to bring private sector power projects under its online monitoring system in the 12th Plan. Private players are expected to add over 46% of the power capacity in the 12th Plan. The decision was taken in a meeting of the Central Electricity Authority and the Ministry of Power on April 15, in which the working plan for the 12th Plan was discussed. The government has set a target of adding 1,00,000 mw of capacity in the 12th Plan, of which 46,026mw would be added by the private sector. Online monitoring has helped us check our slippages. Now we can address the onsite problems immediately. It will help the private sector as well, said an NTPC official. Metis: MoPNG furnishes gas allocations for power plants from KG D6 basin- Ministry of Petroleum and Natural Gas (MoPNG) has recently furnished the details of gas allocations of power projects in view of the gas shortage being faced in the country due to low productivity in the KG D6 basin being operated by Reliance Industries Ltd. The details of the same are given below:
S. No Plant Name State Quantity (in mmscmd) 1.858

Gautami CCPP

Andhra Pradesh Andhra Pradesh Andhra Pradesh

Jegurupadu CCPP (GVK) Jegurupadu CCPP (GVK) Ext Konaseema CCPP Kondapalli CCGT Samlkot CCPP/

0.212

0.883

Andhra Pradesh Andhra Pradesh Andhra

1.783

0.360

0.253

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

Peddapuram 7 Vemagiri

Pradesh Andhra Pradesh Andhra Pradesh Andhra Pradesh Andhra Pradesh 1.483

Lanco Kondapalli Ext Tanir Bavi

1.458

last fiscal. The power units, which were operating at about 90% PLFs, have slipped on generation to operate at about 75% of the capacity. In case the R-LNG supplies stop completely and Reliance does not increase the gas supplies, the PLFs are bound to slip to about 70%, the officials said. Unit 3 at Ratnagiri commissioned- Sajjan Jindal-led JSW Energy today said it has successfully commissioned the third unit of the 300-Mw project at its plant in Ratnagiri in Maharashtra. With this, the present capacity of the plant has been ramped up to 900 Mw. The company is targeting to commission the balance one unit of 300 Mw in the first quarter of the current fiscal, the company said in a statement. The company had commissioned its second unit of 300 Mw project at Ratnagiri in December last year. JSW Energy posted about 13% rise in its consolidated net profit at Rs 841.75-crore for the financial year ended March 31, 2011, as against Rs 745.49-crore in the year-ago period. North Karanpura TPP to head to GoM on coal for decision- The Group of Ministers on coal in its next meeting-likely this month end will also consider the issue of the exact location of NTPC's 1,980-MW thermal power project in Jharkhand, an official said. The Rs 8,000-crore NTPC project has been hanging fire for almost a decade now due to a controversy over its location. The North Karanpura project situated in Chatra district in Jharkhand was supposed to be implemented during the 11th Five-Year Plan (2007-12). Pvt Players take NTPC to CERC, say NTPC sabotaging competition- A body of power producers including, Tata Power Company, Reliance Power and the Adani group, has formally accused NTPC of hurriedly signing power purchase agreement to stifle competition in the sector. The Association of Power Producers, a representative body of private power developers, has complained to the Central Electricity Regulatory Commission against NTPC on Tuesday, alleging that the state utility rushed into power purchase agreements for 37,000 mw of electricity in 2 months since October 2010, just before

0.883

10

RVK Energy Nandi Gama (Captive) Sirba Industries Ltd SilkRoad Sugars Pvt. Ltd. LVS Power Ltd.

0.025

11

Andhra Pradesh Andhra Pradesh Andhra Pradesh Gujarat

0.120

12

0.100

13

0.220

14

Vatwa (AEC)

CCGT

0.373

15

GPEC Paghuthan CCGT GIPCL Stage II CCGT Essar CCGT IMP

Gujarat

1.302

16

Gujarat

0.089

17

Gujarat

1.167

18 19

Torrent Sugen Dholpur GT

Gujarat Rajasthan

3.310 0.099

Reliance gas supply squeeze for GVK Power, power generation to be affectedGVK Power and Infrastructure Ltd (GVK PIL) is likely to take a hit on its power generation with gas supplies from Reliance turning unpredictable. The plant load factors (PLFs) at its power generation units are likely to slip to as low as 70% at least for the coming two quarters with the gas supplies remaining inadequate. According to the company officials, GVK has been facing problems in gas supplies since November last year and the impact of shortage in supplies has affected its power generation in the fourth quarter of the

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

mandatory bidding process for PPAs was introduced. Chhattisgarh UMPP likely to be scrappedThe government is set to scrap the 4,000-mw ultra mega power project (UMPP) in Sarguja, Chhattisgarh with the environment ministrys decision to not allow mining in the ecologically sensitive Hasdeo Arand coal fields. The captive blocks belong to Hasdeo Arand coal fields which have thick forest cover and rich wildlife habitat. It is expected that the process of identifying suitable coal linkage and alternate location for the INR20,000 crore would start afresh. Already government has started talks to find alternate coal linkages from the neighbouring Madhya Pradesh coal fields or the Mand-Raigarh coalfields for the UMPP. Warburg Pincus acquires stake in Diligent Power- Private Equity player Warburg Pincus has acquired a stake in Diligent Power Private Limited to enable the Dainik Bhaskar groups power vertical to accelerate its growth plans. Diligent Power, through its subsidiaries, is in the process of setting up power projects aggregating to 6,400 megawatts. These power projects include a 1,200 MW coal-based thermal power plant in the state of Chhattisgarh and a 1,320 MW super critical thermal power plant in the state of Madhya Pradesh. Jaypee's Karcham-Wangtoo's hydro unit to be commissioned on May 15- The commercial operations of Jaypee Group's 1,000 MW hydropower project in Himachal Pradesh's Kinnaur district will partially start May 15, an official said on Wednesday. He said initially one turbine of 250 MW would start generating power. The other three turbines of the same generation capacity would be operational in the next few months. Constructed with an outlay of around Rs.7,000 crore, the project would be made fully operational by Aug 15. Power ministry wants realistic targetsDescribing the Central Electricity Authoritys (CEA) projection of generating 25,000 MW each year in the next two years as too

ambitious, the power ministry has asked it to prepare a realistic blueprint detailing the status of projects under construction. The ministry has asked the Authority to re-consider the 12th Plan capacity in a manner so that it does not exceed 18,000-20,000 MW each year. In a recent stock-taking meeting to ascertain the status of under-construction projects, power secretary P Uma Shankar said there could be slippages in 11th Plan target of generating 78,989 MW (including 65,930 MW coal based and 1,086 gas-based) which could spill over into the 12th Plan. Senior ministry officials said that it was imperative to have a project-wise detailed analysis of the delays in the 11th Plan projects and make a real time assessment on their completion. Metis: Ratnagiri TPP wants full supply of gas from KG D6- Even as gas production from KG-D6 block dips, Ratnagiri Gas and Power Project Limited (RGPPL) has sought supply of its full allotment of 8.5 MMSCMD of gas now that all its turbines have been repaired. In October, 2008, the EGoM had decided to allocate 8.5 MMSCMD of D-6 gas to RGPPL. Accordingly, RGPPL was apportioned 7.6 MMSCMD of D-6 gas on firm basis and 1.4 MMSCMD on fall back basis. In a recent letter, RGPPL has indicated that they have completed the rehabilitation of five out of six gas turbines and would be in a position to run all six machines by end of May, 2011, with about six weeks outage at a later date. The outage will be to rehabilitate sixth machine matching with receipt of gas turbine rotor from overseas repair. Metis: Haryana wants alternate coal supply for its Rajiv Gandhi TPP at Hisar- Haryana Power Generation Corporation ltd has recently shot a letter to the Coal Ministry demanding additional coal supply for its 1200 MW Rajiv Gandhi Thermal Power Plant (TPP) at Hisar. Citing low availability of coal after washing, the company requested an additional allocation of 20 lakh tonne of coal from the spare quantity of coal available with BCCL. The company said that it has been allotted 55 lakh tonne of F-grade coal from Mahanadi Coalfields having a GCV of 2859 kCal/kg. However as a part of

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

the increasing trend of utilising equipments from China, HPGCL has got the boilers designed from SEC, a Chinese equipment manufacturer. These boilers, according to the company are designed for 4000 kCal/kg of coal with a maximum ash content of 33%. HPGCL said that in a recent meeting with BCCL, spare quantity of coal upto 20 lakh tonne was discussed which could be a potential source for increasing the coal supply to the plant. Metis: NHPCs Chutak hydroelectric project faces delays- Chutak Hydroelectric project with 44 MW capacity is being executed by National Hydro Power Corporation Limited (NHPC) in Jammu & Kashmir. NHPC is first time undertaking a project in highly inclement weather conditions of Leh & Ladakh in Jammu & Kashmir. The company informed that project is adversely affected due to the frequent civil disturbances in Kashmir valley, due to this the supplies of construction material, HM & E&M plants and equipment remained disrupted from June 2010 to August 2010. The said project has also faced the delay in award of HM works by 4 months due to abnormal high price bid and retendering procedures. Precedence and experience of heavy construction in such tough climatic condition is not available in the country. NHPC is trying to expedite all the processes as the expected date of commissioning of the last unit is August 30, 2011. CEA wants power utilities to change in plant design to combat coal shortage- To stave off a domestic coal shortage crisis, power utilities across the country have been instructed to make design changes in all future coal-fired projects. The move is aimed at enabling higher imported coal blending in these projects, amid a domestic coal crisis that is worsening by the day. In a missive, the Central Electricity Authority (CEA) has asked all power generators, developers and equipment manufacturers to ensure that the boilers for future projects are designed to permit blending of at least 30 per cent imported coal, up from 10-15 per cent permissible in the boilers currently used in

domestic power stations. The new stipulation by the apex planning body in the power sector, besides prescribing changes in boiler design and auxiliaries, asks developers to modify facilities for unloading, handling and blending of high-calorific imported coal at new project sites. The CEA has issued the advisory to four Central utilities, including power major NTPC Ltd, five equipment manufacturers including BHEL and L&T Power, a total of 37 State Governments and State-sector utilities, and 66 private power developers.

Transmission & Distribution

IPPs in HP free to sell power- The Himachal Pradesh government on Monday decided to allow all categories of independent power producers (IPPs) to sell off the power from their projects after allowing royalty in the shape of free power to the state government. The state cabinet has given its nod to private companies by allowing the disposal off power in accordance with the provisions contained in the Electricity Act,2003 and the rules and regulations made under this act. In case of projects where capacity enhancement has already been approved, the IPPs who have already signed the Implementation Agreements with a different clause of mode of sale of power,will be free to sign open access clause subject to above conditions. It approved enhancement of borrowing limit of HP State Electricity Board Limited from Rs 3,000 crore to Rs 4,000 crore. DERC will take final call on power tariff hike: Dikshit- With the private discoms strongly pitching for hike in tariff, Delhi Chief Minister Sheila Dikshit today said power regulator DERC will take a final decision on the issue and the government will not play any role in the matter. "The DERC will decide about the tariff. It is in their domain. The government has nothing to do with it," Dikshit said after a meeting with Power Minister Harun Yusuf. The Delhi Electricity Regulatory Commission (DERC) is currently in the process of finalising the annual tariff for the year 2011-12. Citing severe liquidity crunch,

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

Reliance Infrastructure- backed discoms BSES Rajdhani Power Ltd (BRPL) and BSES Yamuna Power Ltd (BYPL) had last week said that they will not be able to sustain operation beyond May if financial help is not provided immediately. The officials said Bawana power plant, which has already missed several deadlines, is likely to start producing power from June, which will help in bridging the gap between the demand and supply. RADRP projects see new funding from MoP- The Ministry of Power has released Rs. 4029 Crores for taking up new projects under the Restructured Accelerated Power Development & Reforms Programme (RAPDRP). These projects will be taken up in two parts. While the Part-A will be for establishing IT enabled systems for energy accounting/ auditing and SCADA for big cities, Part-B will be for regular distribution upgradation and strengthening projects. Out of the total released amount, Rs. 3903 Crores are in the form of loan for disbursement to state utilities while Rs. 126 Crores are as grant against enabling component for implementation of R-APDRP. The Union Power Minister, Shri Sushilkumar Shinde said here that all the States and Union Territories have invited Request for Proposals (RFPs) for appointing IT Implementing agencies for executing Part-A projects. So far 21 States and Union Territories have already appointed IT Implementing agencies. ADB to invest $69 mn in MP's power sector- India and the Asian Development Bank (ADB) signed a $69 million loan agreement which is the sixth and final tranche of the $620 million Madhya Pradesh Power Sector Investment Programme. This multitranche financing facility was approved by ADB on March 29 2007. The sixth tranche will assist the Madhya Kshetra Vidyut Vitaran Company reduce power transmission and distribution losses in 117 towns. It will also support the M. P. Poorv Kshetra Vidyut Vitaran Company, the M. P. Paschim Kshetra Vidyut Vitaran Company, and the M.P. Power Trading Company set up information technology (IT)management systems linking all parts of the

distribution and trading companies in the state. The 6 tranches of the Madhya Pradesh Power Sector Investment Programme will increase transmission capacity in the state to about 10,000 megawatts (MW) from 5,563 MW and reduce transmission and distribution losses significantly.

Renewable
India to add 67,000 MW solar power capacity by 2022Technological breakthroughs and economies of scale will make solar power competitive in six years and help India add 67,000 megawatts of solar generation capacity by 2022 - more than thrice the country's target, according to a report by consultancy firm, KPMG. The report, which will be released next week, says solar energy can contribute 7% of the total power needs of the country by 2022, helping cut coal imports by 30% or 71 million tonnes a year. This would result in saving of $5.5 billion in imports per year from 2022 onwards, it said. The projected increase in solar capacity can reduce India's carbon emissions by 2.5%, which is a tenth of the 20-25% reduction India has volunteered at the international summit on climate change in Copenhagen, KPMG says. Bids were received for prices being quoted between INR 10-13 kw/hr for both Concentrated Solar power and solar photovoltaic projects. To achieve the grid parity for solar power over the next 5 years, the government must take measures to sustain the momentum in growth. Renewables could meet global energy needs by 2050: Report- Renewable energy sources like wind and solar power could provide up to 80 percent of the global energy needs by 2050, an intergovernmental panel report on climate has said. The report released by the panel Monday in Abu Dhabi urged the governments to invest in clean energies. Rajendra Pachauri, chairman of the panel, said: "Investing in clean energy makes sense, as the cost of using clean energy has declined in recent years. "Renewable energy sources can save between 220,000 and 560,000 tonnes of carbon dioxide in the next 40 years, Prensa Latina said quoting the report. Urging

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

countries to gradually replace fossil fuels with cleaner and more environment friendly fuels like solar and wind power, the report says it will help reduce emissions from burning fossil fuels.

(CVD), also known as anti-subsidy duty, is an import duty imposed to neutralise the negative effects of subsidies. At present there is a 5 per cent custom duty on non-coking coal. PFC looks to fund chain sectors- To avoid concentration of its business in capitalintensive power generation projects, Power Finance Corporation (PFC) is looking to fund projects in sectors along the chain including in distribution, power trading, fuel sources, transportation and capital equipment manufacturing. At present, the Navratna infrastructure lender has 90.7 per cent of its total loans made to power generation, transmission, distribution, renovation and modernisation projects. Addressing a press conference here on Tuesday, PK Singh, general manager, PFC, said these forwardand backward-linkages would help the company expand its base while minimising risk. As part of the diversification strategy, the company would also focus more on independent transmission projects and private sector projects. PFC issue subscribed 3.58 times on Day 3The Indian governments Rs 40,000 crore disinvestment programme for the current financial year has started on a positive note with the follow-on public offering of Power Finance Corporation (PFC) getting subscribed 3.58 times shares offered on Thursday. The portion reserved for qualified institutional buyers was subscribed 6.92 times on Thursday, the last day of bidding for this category of investors, data available on the National Stock Exchange website showed. The categories reserved for retail and noninstitutional investors, for whom the issue closes on Friday, were subscribed 34 per cent and 1 per cent, respectively. The price band for the issue has been kept at Rs 193-203 a share. Retail investors and PFC employees will get 5 per cent discount on the issue price.

Others
Corporate Environmental Policy must for obtaining green clearances- According to the Ministry of Environment and Forests (MoEF), a company's projects' clearances will be linked to its Corporate Environment Policy (CEP). A ministry official said just like an internal financial audit, a green audit would protect stakeholders. The ministry has asked major companies, especially in coal, steel, cement and petroleum sectors, to have a CEP in place. The ministry, in an internal note, has asked its statutory committees to check a companys CEP before clearing its projects. For all project proposals at the appraisal stage, environment appraisal committees (EACs) and forest advisory committees (FACs) will deliberate on aspects related to CEP, especially its adequacy and comprehensiveness, says the note. (An EAC grants environmental clearance, whereas an FAC clears projects in forest areas).The note said CEP would have to be part of the initial approval for conducting impact studies of projects submitted for clearance. Proposed 5 pc duty on coal to impact power tariff: Assocham- Fearing the proposed 5 per cent countervailing duty (CVD) on coal would shoot power tariff, industry body Assocham today urged government not to levy it. Nearly two-third of power generation in the country is coal based and any such step would lead to an increase in power tariff by 13 paise per unit, it said. "A further imposition of countervailing duty at 5 per cent will not only make imported coal-based power plants unviable, but also lead to a steep rise in power tariff," Assocham Secretary General D S Rawat said in a letter to Finance Minister Pranab Mukherjee . Countervailing duty

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

Coal News
Metis: ONGC requests MoPNG for setting CBM gas price from Jharia- Oil and Natural Gas Corporation (ONGC) has in a recent letter to the Ministry of Petroleum and Natural Gas (MoPNG) requested for approval of selling incidentally produced CBM gas at the present price of $5.1/ mmbtu till November 9, 2011. In this matter ONGC has requested the Ministry to set the prices for the CBM gas produced during Exploration (Phase I) and the Pilot Phase (Phase II) in Jharia block. The gas producer wants to extend the initial pricing of CBM as decided in 2009. It said that according to the Term Sheet between ONGC and CC&L, the gas supply agreement was entered on February 25, 2009. The date of commencement of gas supply was shifted to November 9, 2009. Thus the prices entered were to be revised on November 9, 2011. Coal India ventures into methane projects in five blocks- Coal India is venturing into production of a new age clean fuel called coalmine methane (CMM). The near-monopoly coal producer has selected five mines to set up CMM projects for which it has invited application from developers. This marks yet another attempt by Coal India to make its presence felt in environmentally cleaner energy after foraying into extraction of coalbed methane gas and plans for ventilation air methane and underground coal gasification project. Coal India plans to produce CMM in the blocks Moonidih, Pootkee Bulliary and Mahuda sub-basin under subsidiary Bharat Coking Coal Ltd and North Kathara-Uchitdih and Asnapani-Jarangdih under Central Coalfields Ltd all located in Jharkhand. Applications from prospective developers will be accepted till June 15 and bids would be opened on that day. The applicant should have a minimum net worth of INR 200 crore. Coal India may hike prices after wage hike: CMD- NC Jha, chairman & managing director, Coal India, said, that the company will take a look at the price hike issue at the end of June. It expects that by then it will be able to constitute the Joint Bipartite Committee for Coal Industry. After discussions based on the outcome of that, it will have to factor some wage hike in our balance sheet. Accordingly it will look at the wage and means how to compensate it. Plan panel suggests alternative to go, no go- In a bid to broker peace between the coal and environment ministries on the go, no go issue, Planning Commission deputy chairman Montek Singh Ahluwalia said the forest areas be split into Category I and Category II, and then considered separately for forest clearances. The suggestion was put forth in the course of the group of ministers meeting on April 9. The ministry said all proposals be routed through the Forest Advisory Committee (FAC) of the environment ministry. The ministry said this is not desirable since the FAC is a statutory body for recommending proposals on forest diversion. Metis: CCDAC proposal for unlocking of sterilized coal from Jharia Coalfields- Coal Conservation and Development Advisory Committee (CCDAC) has proposed for unlocking of sterilized coal from Jharia Coalfields after shifting project affected population. The project was approved at INR 299.49 Lakhs including procurement of capital items for INR 22.90 Lakhs. The proposal is entrusted by CCDAC to Central Mine Planning and Design institute (CMPDI) for estimation of reserves of coking and non-coking coal (grade and depth-wise) under 872 habitation sites of 83 Collieries in Bharat Coking Coal Limited (BCCL). Metis: PSPCL requests MoC to allocate coal blocks for Power Projects in PunjabTo meet the shortage of power projects in Punjab, Punjab State Power Corporation Limited (PSPCL) has requested Ministry of Coal (MoC) to allocate coal blocks under Government Dispensation Route. The following power projects are being developed in Punjab: PSPCL is developing 1320 MW

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

(2x660) Thermal Power Project (TPP) as state sector project, Sterlite Energy Limited is selected as the developer of Talwandi Sobo TPP with a capacity as 1980 MW (3x660) at viallage Banawala, district Mansa and L&T Power Development Limited was selected as developer for Rajpura TPP with a capacity as 1400 MW (2x700) near village Nalash at Rajpura, district Patiala. Abbot Point acquisition to be completed by June this year: Adani- The Adani Group is expected to complete the Abbot Point port deal by June 2011. The company would have a long term-lease of the port premises for a period of 99 years. The group will acquire shares from State of Queensland to complete the transaction. Adani's Mundra Port and Special Economic Zone (MPSEZ) announced the acquisition of Abbot Point Port in Australia for A$1.8 billion (Rs 9,000 crore) earlier this week. The port would handle both captive and non-captive coal. India to take up to 2 million tonne Russian coal in 2011- India's surging demand for thermal coal will draw in 1 to 2 million tonnes of Russian supply for the first time in 2011 to compete with South African and Indonesian coal, Indian importers and Russian exporters said. Although Russian coal is likely to remain a minor part of India's projected 140 million tonnes of imports for 2011/2012, India has become a key growth market and has started to import Russian material for the first time this year, Russian exporters said. So far this year India's biggest trader importer, Adani Group, has bought two Capesize cargoes of Russian coal, a few smaller traders have booked several Panamax cargoes and others are in talks for 2011 supply with Russian sellers. PM calls for high-power meeting to discuss coal availability- The Prime Minister, Dr Manmohan Singh, has called a high powered meeting on May 16 to iron out issues regarding availability of coal in the country. Apart from the Coal Minister, Mr Sriprakash Jaiswal, the Union Ministers of Power and Steel as well as the top officials of the Planning Commission will attend the meeting.

According to sources, the meeting will focus on improving the availability of coal so as to ensure the availability of power and steel in the country. While the Group of Ministers (GoM) is already deliberating on issues regarding the environmental and forest clearances impacting the growth of the coal mining sector, such factors may come up in the discussion with the Prime Minister, an official said. According to sources, the logistics constraints in moving coal either from domestic or overseas sources to the consumer may feature in the discussion. Bhushan Steel's Australian mine to start production in 2015- Secondary steel manufacturer Bhushan Steel plans to start coal production from its Australian subsidiary Bowen Energys mines in the next three to four years. The preliminary exploration has been completed and now the reserve estimation will be done. Then a mining plan will be prepared and the development of the mines will begin, said Nitin Johri, director - finance, Bhushan Steel He said they will be opened for production and transportation in the next three to four years. The company plans to have a power capacity of up to 3,000 mw by 2015-16. Johri said the company is now not looking at overseas assets as it is currently focussed on developing the assets owned by Bowen Energy. Govt mulls simultaneous exploration of coal and CBM- The government will soon evolve a new system for offering hydrocarbon blocks to companies for simultaneous exploration of both coal and coal bed methane (a form of natural gas) which now fall under different ministries and regulatory regimes. This will be a new addition in the current government procedures under which coal blocks are offered for captive mining, liquefaction and gasification projects. Most probably, the exploration license for both coal and CBM would be given to the same bidder to avoid disputes on contractual obligations with respect to safety and environment. The government will also have to decide on how it should extract its share of revenue from these dual exploration blockseither by sharing

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

profits in a certain ratio discovered through competitive bidding or through a fixed royalty. Now, oil and gas exploration involves elements of both with the principal benefit to the central government coming from its share of revenue called profit petroleum. State governments get royalty from mining firms. Coal Ministry willing to review block deallocation- The government is open to review its decision of cancelling allotment of coal blocks to public sector firms including power major NTPC, Coal Minister Sriprakash Jaiswal said on Tuesday. On May 5, Coal Ministry had announced its decision to cancel allotment of 14 coal blocks and one lignite block to six PSUs, including NTPC, and three private firms for their failure to develop mines. The decision to deallocate blocks had followed recommendations by a Coal Ministry panel which reviewed progress made by firms in developing 88 coal and lignite blocks, allotted for captive use. The committee had also recommended issuing warning to 29 coal and three lignite block allocattees against any delay in bringing their blocks into production. To weed out non-serious players, the government had last year issued notices to 84 coal and four lignite block allocattees for not developing the same within stipulated time and sought explanation as to why blocks should not be cancelled. MoEF not to change Chhatrasal's status, RPower's UMPP- In a blow to Reliance Power, Environment Minister Jairam Ramesh has clarified that the No-Go status of the coal block, which would have supplied coal to the company's ultra mega power project in Sasan, remains as of now. Reliance Power owned Sasan ultra mega power project in Madhya Pradesh has been relying on the Chhatrasal

coal block nearby to ensure a continuous supply of coal. But the coal block was put under the No-Go areas list by the Environment Ministry sometime back. Metis: Coal ministry yet to take action on Manoharpur coal blocks of OPGC - The Ministry of Finance, last week, said that it is yet to receive any action, comment from the Coal Ministry for the issue on the No-Go category of Orissa Power Generation Corporation's (OPGC) Manoharpur and Dipside of Manoharpur coal block. The Finance Ministry had requested the Coal Ministry to furnish its comments on the reclassification of the two coal blocks currently falling in the restricted `No-Go` category, into the `Go` category. CIL to finalise 10 yr coal import contractCoal India Ltd will soon finalize a 10-year contract to import the mineral to supplement production, chairman N.C. Jha said, as the worlds largest coal miner looks to fill a supply shortfall. We have floated this (10-year tender) last week after an expression of interest earlier showed companies were interested in being suppliers, Jha said. Those who have shown interest will be given three weeks to make submissions. After that we will analyse them and finalize it. Jha said at least 14 entities from India and abroad had shown interest in the tender, the size of which is yet to be decided. He expects to import at a discount to index prices. Coal India may face some difficulties in finalizing the 10-year import contract, said A.K. Sarkar, a former director of marketing at the miner. The difficulty is that most of the companies want coal to be delivered at their doorstep, Sarkar said. Coal India must not take the price risk as in the transit there is pilferage.

Power Exchange Prices & Volumes

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

Fuel Statistics

Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

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Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

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Metis Daily Sectoral Post (Power & Coal sector)
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Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011

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Metis Power & Coal Weekly Sectoral Post | May 9-13, 2011