development of coal and power sector l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Development of Coal and Power Sector PowerPoint Presentation
Download Presentation
Development of Coal and Power Sector

Loading in 2 Seconds...

play fullscreen
1 / 10

Development of Coal and Power Sector - PowerPoint PPT Presentation


  • 185 Views
  • Uploaded on

Investor Perspectives. Development of Coal and Power Sector. Harsh Agrawal February 2011. Experienced Generators. Companies Associated with the Power Sector. Companies Unrelated to Power Sector / Unawarded Projects. Large Capacity Additions Planned in Power Generation.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Development of Coal and Power Sector' - bernad


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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
large capacity additions planned in power generation

Experienced Generators

Companies Associated with the Power Sector

Companies Unrelated to Power Sector / Unawarded Projects

Large Capacity Additions Planned in Power Generation

~81 GW in Additions by FY2015, Led Primarily by Private Sector

Capacity Announcements by the Private Sector

MW

Installed Capacity at March 2010

Capacity Addition Announcements Between F2011e–17e

Potential Installed Capacity at March 2017e

Private

Centre

Private

Centre

Private

Centre

+

=

State

State

State

Source: CEA, Infraline, Company Data, Morgan Stanley Research; e= Morgan Stanley Research estimates

high dependence on domestic coal to meet targets
High Dependence on Domestic Coal to Meet Targets

Coal Dominates the Thermal Category

Significant Capacities Dependant on Domestic Linkages and Coal Blocks

% of Total Thermal Capacity Additions between FY 2011E and FY 2017E (118GW of Thermal Capacity)

% of Total Thermal Capacity Additions between FY 2011E and FY 2017E (118GW of Thermal Capacity)

Lignite

Gas

Domestic -Linkage

Fuel Linkage not tied up

Domestic +Imported

Coal

Imported

Domestic -Captive Blocks

Source: CEA, Infraline, Company Data, Morgan Stanley Research

captive mine production till date

CIL

SCCL

Captive

Captive Mine Production Till Date

Production Dominated by CIL, Coal Block Production Needs to Ramp Up to Meet Demand

Captive Mine Production Relative to CIL, SCCL Production

MnT

Source: Infraline, Company Websites, Industry Sources

captive coal block status
Captive Coal Block Status

Source: Minutes of Review Meeting held on 20th and 21st July 2010 under the Chairmanship of Additional Secretary (Coal) to review progress of captive blocks and associated End Use Projects

captive coal block status6
Captive Coal Block Status

Details of operating blocks

Source: Minutes of Review Meeting held on 20th and 21st July 2010 under the Chairmanship of Additional Secretary (Coal) to review progress of captive blocks and associated End Use Projects, Company Websites, Industry Sources

issues faced in development of captive mines

Potential for substantial delay

Issues Faced in Development of Captive Mines

Core Issues faced by Captive Mine Developers

  • Clearance hurdles: Grant of prospecting license, approval of mining plan, land acquisition etc. time-consuming
  • Infrastructure bottlenecks: Blocks in remote areas require development of transport infrastructure at extra cost
  • Land acquisition issues: Availability of land records, tribal and forested land, R&R procedures add to acquisition delays
  • Local issues: 90% of coal reserves in India are in 4 states which have been affected by Naxalism
  • Financing limitations: Uncertainty of cash flows, aggravated by the issues listed above, lead to lender discomfort

Normative timelines issued by MoC indicate that production may start ~72 months from allotment

Coal block allotment

Purchase of geological report

Mining lease application to State Govt.

Mining plan preparation and approval

Environ-mental clearance

ForestClearance

Land Acquisition

Production

24 months

12-18 months

28 months

Of the 24 operational blocks, the time to become operational has ranged from 3 to 9 years

Source: KPMG, Infraline, Industry Sources

analysts predicting growing deficits over time
Analysts Predicting Growing Deficits Over Time

Deficit Predictions of 300 – 400 MM Tonnes by FY 2017

Analyst 1

Projected Thermal Coal deficit; MM Tonnes

Source: CEA, Infraline, Company Data, Morgan Stanley Research; e = Morgan Stanley Research estimates

Analyst 2

Projected Total Coal Deficit; MM Tonnes

Source: Credit Suisse Estimates

however constrained port handling capacity

Majors Ports Running at Very High Utilisation

Total Traffic (mtpa) %

Total Coal Handling Capacity Needed at Ports

mtpa

Source Indian Ports Association

Source Credit Suisse Estimates

However, Constrained Port Handling Capacity

Imported Coal Volumes to be Affected due to Capacity Constraints

increasing investments and the way forward
Increasing Investments and the Way Forward
  • Policy changes to increase coal production
    • Allowing for coal block auctions
    • Third party sales from captive blocks
  • Streamlining clearance procedure for coal blocks
    • Shortening of development timeline critical
    • Forest and environment clearance obtained before allocation
    • Land acquisition substantially complete
    • R&R issues analyzed before allocation
  • Strengthening inland transportation and port handling capacity
    • Increasing rail capacity and reduction in transportation time
    • Enhanced port handling capacity