NTPC restrained from proceeding with tender for Odisha coal mine
The Supreme Court on Thursday restrained NTPC from proceeding with its tender process for operation and development of Dulanga coal mine in Odisha. A bench headed by Justice Dipak Misra reserved its judgment on Montecarlo’s appeal against the
NTPC’s decision to reject its techno-commercial bid for the project. However, it stayed till further orders the Delhi High Court’s September 30 ruling that upheld the PSU’s decision to reject the bid of the private firm on the ground that there would be loss of public revenue if a coal block is not operated properly.
Challenging the HC’s decision, senior counsel P Chidambaram, representing Montecarlo, said the NTPC’s August 29, 2016 communication rejecting its techno-commercial bid was “arbitrary,” “unreasonable” and contrary to the terms of tender document.
He claimed that the private company engaged in the business of mining of coal and lignite possessed all the required experience in drilling, but NTPC rejected its proposal on the ground that it did not meet the
qualifying requirements in this regard.
Montecarlo further alleged that in the tender document, the qualifying requirement was about the bidder’s experience only in drilling, excavation and hauling, and not blasting or drilling for blasting purposes as claimed by NTPC, which had issued separate invitations for bids for development and operation of three coal mines in Odisha-Dulanga coal block, Chhati Bariatu and Talaipalli.
According to the company, the scope of work for Dulanga mines project, which was taken into account in evaluating its technical proposal, was not part of the tender document and hence, absolutely incorrect for NTPC to have shut it out at the threshold stage. Besides,
the PSU had emphasised that in certain lignite deposits blast hole drilling is normally required.
However, senior counsel Vikas Singh, appearing for NTPC, said the PSU’s decision was in conformity with larger public interest of selecting the most suitable operator on the basis of competitive bidding.
Stating that experience in drilling for the purpose of blasting was a necessary qualifying requirement, he said the drilling in this context would mean blast hole drilling and not just drilling bore holes for putting water for softening harder strata of overburden or lignite. Besides, NTPC’s technical evaluation committee had gone into the feasibility and viability of full operation while rejecting the firm’s proposal.
Six C-category iron ore mine leases auctioned
Six of the 14 C-category iron ore mine leases, have been e-auctioned by the Department of Mines and Geology. They have been won by JSW Steel and MSPL. One more lease is likely to be auctioned on Friay.
Though the department listed 14 C-category mining leases for e-auctioning in Ballari, Chitradurga and Tumakuru districts, the end-users had expressed their interest in getting the leases of only seven mines.
The Supreme Court, in April 2013, had directed the government to cancel 51 C-category mining leases for indulging in rampant illegal mining.
The apex court had directed the government to re-allot the leases to end users in a transparent manner.
Accordingly, the e-auctioning of the mining leases has been in progress for the past four days.
As the Supreme Court made it clear that only end users have to participate in the e-auctioning, the steel companies took part in it.
The auctioning of the other seven mining leases has not begun as there were less than three bidders for each mining leases.
Coal dispatch by CIL to power sector dips 13 per cent in August
In view of weak demand for power in the country, the dispatch of coal by CILBSE -0.60 % to power sector declined by 12.7 per cent to 26.4 million tonnes (MT) in August this year.
State-owned Coal India (CIL), which accounts for over 80 per cent of domestic coal production, dispatched 30.25 MT of coal in the same month last fiscal, according to government data.
Company's supply to power sector in the first five months of the current fiscal also dropped by two per cent to 157 MT, against 160 MT in the corresponding period of previous fiscal.
Coal dispatch by Singareni Collieries Company (SCCL), declined by 9.4 per cent to 3.6 MT in August 2016.
SCCL is a coal mining firm jointly owned by Telangana and the Coal Ministry.
Expressing concerns over lack of power demand, Coal Secretary Anil Swarup yesterday wondered as to what would the government do with its ambitious 1 billion tonnes of production target for fossil fuel by 2020.
He had stressed upon the need to increase the demand for power.
He had further said that the government is on a sticky-wicket where it doesn't know what to do with the surplus coal.
In fact, in the current financial year, there was cut down in coal production so the fossil fuel does not catch fire at the pit heads.
"On March 31 this year we had a balance of 56 MT as inventory at pitheads and around 32 MT at the power plants. People ask me how do you manage this situation of surplus," Swarup had said.
The official said that power sector constitutes to around 78 per cent of CIL's overall coal off-take. Brimming over with coal has also led to stock piling up at pit-heads, a situation that CIL wants to avoid.
Vedanta expects Goa to export 20 million tonnes iron ore in FY17
Mining conglomerate Vedanta Ltd expects that Goa will export around 20 million tonnes of iron ore in the current fiscal. Goa produces low grade iron ore (Fe content below 58 per cent), which is exported to China. After removal of the mining ban by the Supreme Court in 2014, the state is allowed to mine 20 million tonnes, with the highest share of 5.5 million tonnes going to the firm led by billionaire Anil Agrawal.
“We expect the state to export about 20 million tonnes of iron ore in this fiscal, which also includes the opening stocks that were left before mining started in Goa last year,” CEO of Vedanta’s Iron Ore business Kishore Kumar told PTI.
Since the resumption of mining operations in Goa, the state has exported about 5 million tonnes of ore, which includes both the old as well as the freshly mined stock, he added.
In terms of Vedanta’s cap of 5.5 million tonnes, Kumar said: “We have exported 2.2 tonnes and will export the rest in this fiscal.”
Vedanta mines iron ore in Goa from the Codli and Sonshi mines. It also has a met coke and pig iron plant, besides a captive power plant in the state.
The firm maintained a monthly production run rate of 8 lakh tonnes in the April-June quarter this fiscal. During the quarter, Vedanta produced 2.4 tonnes ore and exported 2.1 million tonnes. This is against a production of 1.9 million tonnes and sales of 1.6 million tonnes in the January-March quarter of 2015-16.
The mining giant feels that the worst phase for the iron ore industry is over and exuded confidence that its Goa arm is prepared to sustain the export momentum amidst softening global prices and subdued demand.
“Goa iron ore industry went through a lot, but the worst is over. Globally, prices are soft and demand is subdued, but we will find traction. We competed in similar environments earlier and will do it again. The future of mining is intact,” Kumar had said earlier.
GSIDC gears up to construct mining corridor
After a delay due to the ban on iron ore mining operations, Goa State Infrastructure Development Corporation is gearing up to construct a mining corridor dedicated to ore transportation in the Quepem-Sanguem mining belt in three phases. The agency hopes to complete the project before the October 2017 mining season.
Phase I of the corridor from Ugem to Guddemol will be taken up and completed in the current mining season from October to May 2017. Phase I was tendered for Rs 67.75 crore and the work had commenced in 2012 but could not go ahead due to objections raised by the Forest Department and closure of the mining industry. In January 2013, GSIDC had scrapped the contract of the first phase and had decided to hold back the proposal till resumption of mining activities.
Speaking to Herald, GSIDC vice chairman Siddharth Kuncolienkar said the design of all three phases has been prepared by the Corporation and it is currently in the process of obtaining permissions from the Forest Department for the first phase and land acquisition for the second phase.
“Government has already given us a green signal and work is in process. We intend to complete phase I in the current mining season,” Kuncolienkar said adding, “We want to provide mining corridors to the people before the season next year. That is our target.”
Last week, Chief Minister Laxmikant Parsekar had directed GSIDC to immediately tender Phase I from Ugem to Guddemol and Phase II from Guddemol to Capxem.
In 2012 the government had published sections IV, VI and VII of the Land Acquisition Act for two phases – Ugem to Guddemol and Guddemo to Capxem. The mining corridor also had a proposed third phase, which was planned to connect the mines of Cavrem, Maina, Rivona, to the main mining corridor.
When asked whether GSIDC has held talks with mining companies on funding of the project, Kuncolienkar said, “Talks are yet to be held but since Chief Minister has announced it (funding from mining companies), it is a very good decision.”
A group of villagers from Sanguem, Quepem and Curchorem, under the banner of ‘Mission Bypass’, had called on Parsekar earlier this month demanding that work on the mining bypass be completed as soon as possible. They had threatened to block ore transportation till the corridors were put in place.
http://www.heraldgoa.in/Goa/GSIDC-gears-up-to-construct-mining-corridor/107105.html
Coal rises from the ashes, rally to last until 2017
Talk of coal's demise is proving premature, with prices soaring from 10-year lows this year and further rises on the cards into 2017 as the “dirty" fuel continues to be very much in demand for power generation.
A global push to reduce greenhouse gas emissions in favour of renewable energy has seen investors and funds ditch coal assets for cleaner sources.
But coal is still the world's second primary fuel after oil, according to the International Energy Agency.
Following half a decade of steady decline, thermal coal physical and futures prices have all rallied between 50 and 80 percent this year, taking many in the industry by surprise.
The price recovery is a boon for mining companies, such as Whitehaven Coal, Rio Tinto, and Glencore , and stands in sharp contrast to forecasts by Goldman Sachs and the International Energy Agency, who have said coal is in terminal decline.
Tightening market conditions in both the Atlantic and Pacific basins mean that further price rises are possible, as demand picks up from Europe to Asia and as supplies fall.
“I don't think this rally is over yet. There is still price upside for physical markets for the fourth quarter and into Q1 2017,” said Rodrigo Echeverri, head of coal analysis at commodity trading house Noble Resources in Singapore.
CASH INJECTION
Several traders say an influx of new cash into API2 coal futures, which have risen almost 80 percent this year to over $65 per tonne, was also a sign that miners and speculators are buying into a higher market.
Strong import demand from China, following domestic mining caps which have forced power generators back into the import market, as well as low coal stocks in South Korea, have tightened the market in Asia, Noble's Echeverri said.
There is lower coal supply from Indonesia and Australia due to cutbacks but also heavy rainfall this year, which has squeezed the market and pushed prices higher, traders said.
Demand has even increased in Europe due to lower nuclear power availability in countries such as France and Belgium; lower wind and hydro power generation so far this year and expectations of a cold winter for the rest of 2016.
Nevertheless, the future for coal in the longer term is less rosy. Nations agreed in Paris last year to unprecedented rates of decarbonisation, which will require a radical shift from fossil-fuel based power to clean energy.
This has prompted many countries, such as Belgium, Britain, Austria and Portugal and others in Europe, to close coal plants in favour of renewables and nuclear. Several countries are introducing increasingly stricter measures to limit emissions from power plants.
Hundreds of investors, such as the Rockefeller Family Fund, Norway's state pension fund, and French insurance group AXA , are also divesting coal.
Yet at the same time, some countries, such as Australia, Poland and Turkey have plans for new mines and to build more coal plants to secure their energy independence or meet growing energy demand, as the fuel remains relatively cheap.
Even though traders say recent price increases had been warranted given the tighter market, they warned that far higher prices are unlikely.
“I can't see (Newcastle) thermal coal going to $100/tonne any time soon, especially with the Chinese now relaxing their production constraints,” said a coal investment advisor who did not want to be identified.
To rein in spiralling costs for utilities, China in late September relaxed some of its previously introduced mining caps.
“The (Chinese) initially worked out (the regulation) on the basis of a $60/tonne price; now it's hurting their steel business so I think they really need to ramp up production again to see the price go back to around $55/tonne,” said Wayne Bryan, analyst at consultancy Alfa Energy.
(This article was published on October 6, 2016)
'Expansion of NTPC Kaniha on the anvil'
The much-awaited expansion of 3010 mw National Thermal Power Corportaion at Kaniha is very much on the cards and will take place at the appropriate time, said Executive Director, NTPC-Kaniha, NK Kothari.
Interacting with mediapersons at Kaniha plant on Wednesday, Kothari denied any delay in initiation of the expansion project. Two more units of 800 mw each will be added to the existing 3010 mw plant, he said. Besides 3000 mw thermal power capacity there is also a 10 mw solar power plant here, he added.
“Several measures are required to be taken before an expansion of a project is initiated. So far, survey works and technical study have been completed and reports have been sent to corporate office for further action. There will be feasibility study after which budget will be allocated by the corporate office to initiate construction works. The construction may take 38 to 42 months to complete,” Kothari said.
On completion of the expansion project, Kaniha plant will be the second largest in the country having a total installed capacity of 4610 mw.
Kothari said, “The cumulative power generation of NTPC as a whole in 2016-17 financial year is 1,22,509 million units and cumulative plant load factor of coal based stations till September 26, 2016 is 78.04 per cent.”
The installed capacity of NTPC stands at 47,228 mw, which includes 800 mw of hydro and 360 mw of solar generation capacity. Plans have been sketched to generate solar power of 10,000 mw by 2022 and wind energy of 1,000 mw with focus to reduce carbon emission, the Executive Director added.
NTPC plans for a total capacity addition of 24,000 mw with an investment of `1.6 lakh crore in near future. In FY-2016, our total cost of power generation was down to `2.92 a unit against `3.06 the previous year, due to reduction in both energy and capacity charges. Under afforestation drive, NTPC intends to plant 10 million trees during 2016-17, he added.
India’s largest generating company has clocked 10 per cent increase in power generation in the first quarter of FY-17 in comparison to the corresponding period last year with an increase in generation from 58.70 billion units to 64.6 BUs.
About NTPC-Kaniha, Kothari said “during 2016-17 fiscal it has generated 11,381 million units compared to 11,384 million units last year with current plant load factor of 87.81 per cent as compared to last year’s PLF of 87.83 per cent.
The station ranks fourth best power station in the country in terms of PLF. The plant provides power, one of the cheapest, to eight states. Senior officials of NTPC plant were present on the occasion.
http://www.newindianexpress.com/states/odisha/2016/sep/30/expansion-of-ntpc-kaniha-on-the-anvil-213.html?pm=179
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Anurag Singal
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EMIL, Aditya Birla Group
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