1 / 16

POWER

Public Private Partnership in coal sector: Role of MDO Mr Manoj Agarwal, COO - Lanco Infratech Limited. SOLAR. INFRASTRUCTURE. POWER. RESOURCES. EPC. Contents. Disclaimer

bainbridge-gourley
Download Presentation

POWER

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Public Private Partnership in coal sector: Role of MDOMr Manoj Agarwal, COO - Lanco Infratech Limited SOLAR INFRASTRUCTURE POWER RESOURCES EPC

  2. Contents

  3. Disclaimer The material in this presentation has been prepared by the presenter and is a general information about presenter’s own understanding and knowledge of the topic presented. This information is given in summary form and does not purport to be complete or correct or in any way proprietary of the presenter. Information in this presentation, including any fact, figure or the forecast information, should not be considered as advice or a recommendation of sort. Please note that this presentation is for informational purposes only. Any comments or statements made herein do not reflect the views of Lanco group or views of any of the group’s board, officials, employees, or advisors. The information is intended for the general discussion use only and should not be cited, reproduced or distributed to any third party without the prior consent of the presenter. Although great care is taken to ensure there is no act of plagiarism in this presentation and that the proprietary information is given due reference from where the information is taken however if there is any proprietary information from other sources which is mentioned in this presentation without proper references then presenter assures that the same has not been done on purpose and that in no way presenter or Lanco group is using this presentation for any commercial gains and therefore neither the presenter nor Lanco group shall be held responsible on the basis of the information cited in this presentation.

  4. Part 1 Coal mining in India

  5. Coal mining in India Source: CILwebsite and various reports • Domestic production unable to meet the demand, future demand expected to grow 14% YoY • Imported coal has many risks ~ sovereign, price volatility etc. therefore only limited growth is expected. • In order to keep the demand in control ~ domestic production must be increased. • Allocation of coal blocks to govt. and pvt. Cos in recent years has not been successful, only 30 coal block are operating out of original 218 blocks Demand CAGR 14% YoY (2010-2022)

  6. Problem we all know… Long term solution is leverage through Public-Private partnership in coal sector in India

  7. But we need answers for key Questions… Long term solution is leverage through Public-Private partnership in coal sector in India • Ultimate beneficiary will be public at large • With more coal more power • Less support from import, low cost product Demand – Supply GAP • Synergies of Public-Private partnership • Efficiency • Cheap financing • Faster Approvals • Rapid growth in limited time • Skill exchange • Role of Govt Cos in project • Support to MDO for key activities • More incentive to MDO • Secured contracts and fair exit clauses • Suggested PPP model • Minority participation by Govt Co. • Facilitation of Land/R&R/key approvals by MDO • Operational control for MDO

  8. Part 2 Various Models of Participation

  9. Various models

  10. Various models All models have individual risks/disadvantages …. • Release of Govt. Capital for larger public good. • Better performance standards are achieved • Sharing of risks and skills with Private sector • Performance based payment mechanism for a defined term (say 25 years) ….Suggested PPP model is a better structure

  11. Part 3 Suggested PPP Model

  12. Suggested PPP Model

  13. Key takeaways • Self mining and JV structure are not possible way for Govtcos to grow. • Typical MDO model ~ no incentive to the MDO, all risks and no recourse, hence not workable. • Better way forward is to have a PPP approach in the MDO model • With “suggested PPP” model • More International and large corporate participation will happen. • Execution of the project will be faster, lesser delays. • There will be support and recourse for the MDO in the event of non-performance by a Govt co. • The obligations will be fairly distributed and hence the process will be more streamlined. • Policies favoring such “suggested PPP” model must be encouraged and the present laws (for ex, present Indian Contract Act) should be accordingly amended.

  14. Our experience - SAIL • Tasra Coal Project of SAIL (in Jharkhand) • 3 attempts in past for appointment of pure MDO. • 4th attempt succeeded as Hybrid MDO model ~ providing mining MDO contract and additionally JV partner in Captive Power plant. • Land and R&R to be reimbursed by SAIL

  15. Our experience - MTCL • Mahatamil Project of TNEB/MSMC (in Chhattisgarh) • Coal block allotted with end use being power • MDO develops mine and supplies coal to the Power plant which is also developed by MDO • MDO then supplies generated power to MTCL and Host state and balance to Market. • Project gives MDO an opportunity to set up large size power and mining project • MDO is involved not only as MDO for mining but also as a partner to develop and sale Power

  16. End of Presentation PPP in Coal sector: role of MDO IBK Media coal Market conference 22nd Aug 2014

More Related