CEE Jan-Mar 2012

Office under the National Development and Reform Commission, said earlier this month that by 2015, coal will account for 65% of China's total energy consumption, down from its current 70%. Courtesy: London Commodity News, December 15, 2011, London ADITYA BIRLA MAY BID FOR INDONESIA COAL FIRM STAKE Aditya Birla group may bid for a 10 to 15 per cent stake in Indonesian coal miner Bumi Resources Tbk PT to secure coal supplies for its expanding cement and aluminum operations. The company requires thermal coal for group companies Hindalco Industries and Ultra Tech Cement, the country's largest cement producer. In the past, Aditya Birla had bid for several overseas coal assets; recently for Australian coal miner new hope Corporation. Courtesy: Construction Industry Review, Jan. 23, 2012, P12. BIRLA CORP TO SWITCH DURGAPUR UNIT TO GAS FROM COAL As coal prices continue to rise, Birta Corp has decided to go with coal bed methane gas instead of coal for its Durgapur plant, owing to the long-term risks associated with coal prices after being linked to global benchmarks. Birla Corp would be using coal bed methane gas to run a few key equipment at the unit. A company official said that the existing coal-fired slag drier is getting a replacement in the form of a roller press unit, used for drying and grinding of slag, which will be operated both by CBM gas and coal. This can be a substitute in case the gas goes scarce, he added. Birla Corp would be setting up a dedicated pipeline to bring the gas to its plant and wouldn't be storing the same. Courtesy: Construction Industry Review, Feb.13, 2012, P2. COS FACE 3-FOLD HIKE IN DUTY ON CAPTIVE ELECTRICITY IN STATE Reeling under a severe economic slowdown, manufacturing industries with captive power in Maharashtra may face another blow with the cash-strapped state government planning to increase electricity duty payable to the state. Top Mantralaya officials said that the state government is considering increasing the duty payable by companies consuming electricity generated by them for captive use. The rate, they add, is likely to more than treble to 150 paise per unit from 40 paise per unit. Maharashtra, which has the highest industrial- tariff in the country has 82 captive power plants generating 1,051 MW. "There is a proposal to increase the electricity duty, but it is still at a preliminary stage. It may take a while before it is approved and implemented," a senior official from Maharshtra State Electricity Distribution Company. Reliance Industries, JSW Steel, Ultra Tech Cement , ACC are among the large owners of captive power units in the state. Power supply has been extremely erratic in the state which faces a peak power deficit of 15 per cent higher than the national average of 10 per cent. Power cuts of 8-1 0 hours a day during the peak April-June summer season are not uncommon. Many industries have adjusted to the situation by setting up captive power plants. To increase the duty, the government will have to amend the Bombay Electricity Duty Act of 1958. Any hike now will be a severe blow to the industry which is grappling with a slowdown in key consumer industries, such as auto and rising input costs. "Captive power producers find it difficult to procure coal and in a lot of instances get bad quality coal. They depend a lot on spot market for supplies which leads to cost of generation being as high as Rs. 4 a unit," an expert tracking the power sector said. Private investment flow into one of India's most industrialized states may be affected even more, he-added. Captive power refers to generation from a unit set up by industry for its own consumption. Maharashtra, the largest power consumer in the country, has one of the highest tariffs for industrial users. Companies operating in: power intensive sectors such as metals, textile, cement and sugar, have set up captive plants ensure uninterrupted supply and keep costs down. Courtesy: The Economic Times, November 25, 211, Mumbai COAL RATES REVISION SET TO IMPACT CEMENT, STEEL, ALUMINIUM SECTORS Contrary to Coal India's ini– tial commitment, the gross calorific value (GCV)-based prices are expected to boost the Rs 50,000-crore consoiidated balance-sheet of the coal major by an estimated 12.5 per cent, or a little Over Rs.6,000 crore 37