VITAL INDUSTRY UPDATES – 11/05/2015

May 11, 2015 4:12 pm Published by

Ministry cancels coal mine allocated for Sasan UMPP

The Coal Ministry has cancelled one of the coal mines allocated for Anil Ambani Group’s ultra mega power project at Sasan, Madhya Pradesh.

The Ministry has cancelled the Chhatrasal coal mine as it is surplus for requirements. However, those associated with the project said that there is no surplus being generated currently.

Reliance Power’s Sasan UMPP is being fed by coal from Moher and Moher-Amlohri and Chatrasal mines. On April 22, Reliance Power had said coal production had begun from the 20 mt Moher and Moher-Amlohri block.

The Ministry’s decision is following the Supreme Court decision on September 24, 2014 of not allowing surplus coal from the mines associated with such projects for commercial uses.

The surplus from Chatrasal mine is to be used for the company’s 4,000-MW Chitrangi power project.

The Ministry has also decided to restrict the use of coal from Moher and Moher-Amlohri block to only Sasan project.

Reliance Power had been permitted to use surplus coal from the three mines given to Sasan UMPP in 2008. After the Supreme Court decision last year, it was allowed to use the surplus coal only for generating electricity at tariffs derived through competitive bidding.

The Sasan UMPP achieved power station commercial operation recently after all six units totalling 3,960 MW were working continuously for 24 hours. The project was completed 12 months ahead of the power purchase agreement schedule. Reliance has invested Rs. 27,000 crore in the project.

However, recently, the company had sought to exit the Rs. 36,000 crore Tilaiya UMPP in Jharkhand.

Single-day cargo handling records achieved at Kandla Port

The first week of May 2015 saw a couple of single-day cargo handling records being achieved at Kandla Port.

The first was on May 2 when 1.62 lakh tonnes of dry cargo was handled, surpassing the previous best of 1.45 lakh tonnes on March 3 this year.

On May 6, another record was achieved when the Port handled 2.20 lakh tonnes of cargo (including dry and liquid) in 24 hours, surpassing its previous best of 1.92 lakh tonnes on May 2.

The Kandla Port management congratulated the agents, stevedores, and all others involved in these records, and hoped for even better performance in future.

Two more non-major ports to import new vehicles

 In order to increase vehicle imports and reduce pressure and transaction costs of the manufacturers, the government has recently decided to add two more non-major ports, namely, Kattupalli Port and APM Terminals Pipavav, for importing new vehicles.

 

Among the Major Ports, Jawaharlal Nehru Port, Mumbai Port, Kolkata Port, Chennai Port, Kamarajar Port and Cochin Port are permitted by the Department of Commerce, Ministry of Commerce and Industry, to import new vehicles.

This information was given by the Minister of State for Shipping, Mr Pon Radhakrishnan, in a written reply in the Lok Sabha last week.

Ministries of  Coal & Railways sign MoU with Jharkhand

The Ministries of Coal and Railways have signed a memorandum of understanding (MoU) with the Jharkhand government to form a three-way joint venture (JV) for the smooth evacuation of coal from the North Karanpura coalfield area of the Central Coalfields Ltd in the state, sources said.

The JV would have an authorised share capital of Rs 1,000 crore, in which the Ministry of Coal would have a 64 per cent stake, the Ministry of Railways 26 per cent, and the state government 10 per cent.

All the three parties have reached a consensus that there is need for development of rail infrastructure for evacuation of coal. The development of the corridors shall be implemented either through the proposed JV, or through separate project-specific JV companies. The JV also extends to construction of rail sidings pertaining to the Tori-Shivpur-Kathotia railway line, sources said.

“Most importantly, on completion of this critical railway line, around 200 million tonnes of coal per annum can be transported from Jharkhand, with which 40,000 MW of power could be generated. This would be in line with the government’s policy of power for all. Additionally, not only coal but there could also be freight movement of other materials. There could be employment opportunities as well. The basic idea is to speed up the critical Tori-Shivpur-Kathotia railway line,” Mr Piyush Goyal, Minister of State for Coal, Power and Renewable Energy, said.

Steel imports climb over 50 per cent in April, exports fall

India’s steel imports jumped 51.6 per cent to 0.76 million tonnes (MT) last month compared with the year-ago period, government data showed.

However, on a sequential basis, the imports declined 9.4 per cent from March this year, the Joint Plant Committee (JPC), a unit of the Steel Ministry, said in a report.

 

“Import of total finished steel, at 0.761 MT in April 2015, saw a growth of 51.6 per cent over April 2014 and decline by 9.4 per cent over March 2015,” the report said.

“Domestic steel industry is going through tough times, mainly due to a decline in demand in China, the world’s largest steel producer. Importing steel from China was cheaper than producing it here and this led to imports, especially in the second half of 2014,” a steel company executive reasoned.
But since the first quarter (January-March), imports have been in decline, an assuring sign for the domestic steel industry, he added.

According to JPC data, steel imports grew 71 per cent to 9.321 MT in 2014-15, with India remaining a net importer in the previous fiscal.

Imports in March 2015 rose 91.8 per cent to 0.84 MT, but down 14.8 per cent compared with February 2015, the data showed.

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This post was written by Atlantic Admin