Indian Power Sector

State-owned BHEL has invited bids from the eligible companies for the thermal power station in Begusarai district of Bihar.

The bids have been invited for civil, structural and architectural works of auxiliary plant buildings for 2×250 MW Barauni Thermal Power Station (extension project) Unit 8 & 9 and balance civil works for boiler auxiliaries foundation for R&M job of 2×110 MW Barauni Thermal Power Station in Bihar.

Last date for the submission of bids 24 January 2012.

Mahagenco has given its nod to erect a coal washery of its own in Chandrapur Super Thermal Power Station (CSTPS). In addition, a small capacity power generation unit would also come up which would be run with the help of reject coal from washery.

The CSTPS was under scanner for its alleged failure in capacity utilization. For better generation, CSTPS had obtained the services of private coal washeries to wash part of the coal they require.

However, after private washeries failed to comply with the agreed quality of combustible coal, their contract was cancelled last year. MP Hansraj Ahir and former MP Naresh Puglia had repeatedly raised the demand of erecting its own coal washery. However, Mahagenco officers kept denying.

After recent visit of power minister Ajit Pawar, the issue of erecting its own washery in CSTPS got a momentum.

The moment the country opened gates for liberalization a couple of decades ago, started the growing demand for electricity, an issue which is yet to be addressed fully.

Energy-intensive industries such as power, iron and steel, cement, fertiliser account for over 45 per cent of commercial energy use in India, to deliver 25 per cent of national GDP, as per the estimate of BEE.

For these businesses, energy constitutes a high proportion of input cost ranging from about 25 per cent in the case of iron and steel, 40 per cent in case of cement and fertiliser to almost 90 per cent in case of thermal power plants.

An assessment by the World Bank says Indian industry has seen greater energy efficiency improvement since the late 1980s than any other sector of the economy. Some of the reasons for this are the rise in competition following liberalization, high energy prices and the enactment of the Energy Conservation Act, 2001. This trend needs to be sustained. There is strong evidence to show that investment in energy efficiency pays back in a short period of time, while delivering a lasting impact on input costs.

The Prime Minister, in his address on National Energy Conservation Day, reiterated the need for measures to stimulate energy efficiency, and thereby enhance cost-effectiveness of commercial and industrial activities.

Adani Power Ltd will start the entire 4,620-MW proposed thermal power capacity at Mundra by February.

Quoting sources, reports said the fourth 660 MW super critical unit of the project will be commissioned this month with the final and fifth of such units to be on stream in February. The company had set up four units of 330 MW each at Mundra in the initial phases.

Considering that APL Mundra project is largely based ion imported coal— especially imports from Indonesia — the added capacity may not augur well on the company’s finances.

This is in view of the introduction of benchmark prices by Indonesia beginning September; dramatic fall of rupee against dollar coupled with recent hardening of international prices vis-à-vis the long-term tariff agreements in place between APL Mundra and different State utilities.

According to a leading Indian coal importer, irrespective of an apparent easing of global demand for energy commodities including coal, the 5,300-gcv (gross calorific value) Indonesian coal is selling at $45 f.o.b., attracting a landed (CIF) price of $59-60 a tonne in Indian ports during the last fortnight. The 6,500-gcv South African coal is holding firm at $102 f.o.b. ($119 CIF).

BinduVayuUrja Pvt Ltd, a wholly owned subsidiary of Mytrah Energy (formerly Caparo Energy) has secured Rs 960 crore of loan funding.

According to the company’s website, BinduVayuUrja has secured funding of $192 million, of which $120 million (Rs 600 crore) has been underwritten by Infrastructure Development Finance Corporation. The balance $72 million (Rs 36 crore) is at “an advanced stage of syndication.”

In addition, Mytrah Energy India Ltd, another wholly owned subsidiary of Mytrah Energy, has raised $20 million (Rs 100 crore) from PTC India Financial Services Ltd. “It is expected that relevant documentation and drawdown of this tranche will be completed in mid-January 2012.
Suzlon, Gamesa win orders

Since the announcement of the Group’s final results in September 2011, MEIL has finalised the terms of specific purchase orders placed with Suzlon for a further 63 MW of wind projects, and with Gamesa Wind Turbines Pvt Ltd for “an initial order of 79.9 MW”. When combined with the 100.8 MW ordered in February and the 260 MW ordered in August, Mytrah Energy India will have 11 with total capacity of 500 MW by the end of calendar year 2011.

All these projects will sell power at rates upwards of Rs 5, taking into account the ‘generation based incentives’, the Web site said.

Power infrastructure developer Ind-Barath Power Infra Ltd is holding discussions to raise about $150 million from TPG Capital and Apollo Global Management.

The company is talking to the private-equity companies after it shelved plans for an initial public offering due to a sharp plunge in the stock markets, said a report, quoting sources.

Ind-Barath, which currently operates eight power projects across the country, will use the private-equity funding to launch new projects and increase its power generation capacity, the report said.

Ind-Barath had filed a draft prospectus last year with the Indian market regulator to raise more than $200 million in the IPO. The main stock index has fallen more than a fifth this year, forcing many firms to put off share sale plans.

Indian Electrical and Electronics Manufacturers’ Association (IEEMA) has urged the government to extend service tax exemption to all power projects and lower the duty on raw materials.

The domestic electrical equipment manufacturing industry suffers a substantial cost disadvantage as compared to import while supplying to power projects, IEEMA president Ramesh Chandak said.

This is mainly due to many factors such as local taxes and higher financing cost, he added.

GEI Industrial Systems announced it has received a contract worth Rs 37 crore from Nuclear Power Corporation of India (NPCIL).

“The company would impart engineering, procurement and construction services for Heavy Water Upgrading Plant and Waste Management Plant for 2X700 MWe PHWR type Rajasthan Atomic Power Project 7&8,” GEI said in a statement.

The government of West Bengal has invited Larsen & Toubro to set up a thermal power plant of 700-800 MW capacity in the Maoist-affected West Midnapore district.

Chief Minister Mamata Banerjee said, “”We have offered L&T land at Goaltore to set up a power plant.” She added that preliminary talks have been held with the company in this regard.

“L&T officials are coming on December 19 for further discussions. I will sit with them and discuss the issue with the land map of the area,” the Chief Minister told a Bengali news channel.

She pointed out that the state government owns 1,000 acres of land at Goaltore.

“While 300 acres can be set aside for manufacturing industry, we can give them 700 acres to set up a power plant,” Banerjee said.

Petron Engineering Construction has received orders from Lanco Infratech.

The new order is for supply of electrical equipment and erection, testing & commissioning of electrical erection package for their 2 x 600 MW thermal power project at dist. Dhenkanal, Odisha, India for a total order value of Rs 316 million.

The stock had underperformed the market over the past one month till December 14, 2011, falling 10.56% compared with the Sensex`s 7.23% decline. It underperformed the market in past one quarter, declining 16.89% as against 4.96% fall in the Sensex.