India's largest coal handling agency - Mjunction

CORPORATE
We have already commissioned a 25-MW power plant in
Durgapur recently. We also did a lot of preliminary work for
setting up an integrated steel project of 2 mtpa along with
captive power project. However, it could not be happen due to
other reasons such as raw materials and land acquisition. We
will take this project forward at an appropriate time, when the
situation becomes conducive. At the moment we are mainly
focusing on the renewable energy based projects in the state.
How much of the power produced will be sold and how
much will be used for captive consumption
Most of our projects are Independent Power Plants (IPPs)
and the power generated will be sold to bulk purchasers.
Necessary agreements are already in place for the same. As
there is no end use plant, there will be no captive consumption
other than the power plant auxiliaries.
Indonesian cos evince interest in Nalco JV
Coal Insights Bureau
National Aluminium Company’s (Nalco) $4-billion
Indonesia aluminium project has received a boost
with four Indonesian coal majors showing interest
in a joint venture with the company for the project. Nalco has
received responses from four Indonesian coal companies –
MEC, Bumi Murau Coal, Energy Indonesia and Param Dwi
Jaya – to its expression of interest (EoI) tenders. Nalco had
floated tenders in August, which closed on September 30,
2010. Nalco will now evaluate the technical specifications of
the bids and short-list the firms.
According to senior officials of the company, Nalco
will ask the companies to submit the financial bids if they
meet all conditions. Nalco will be an equity partner in the
coal mining operations, officials said, adding that after the
scrutiny of technical and financial bids, talks will be held
with the selected party in this regard. But the extent of
shareholding will depend on the total volume of production
from the mine, volume required by Nalco and the valuation
of the asset. The finalisation of the JV partner will be followed
with preparation of a detailed project report (DPR) for the
venture. The JV agreement is a precursor to the DPR as this
will provide a clear picture on the cost to be borne towards
procurement of coal and transportation.
With a debt equity ratio of the `18,000 crore-project
being pegged at 70:30 and Nalco intent on having at least a
50 percent stake in it, the equity exposure of the company
is estimated at around `2700 crore. After the JV agreement
and finalisation of DPR, the company will seek the approval
of its board and the government for equity investment
and approach foreign financial institutions for financing
the project. The debt component at `12,400 crore being
a sizeable amount, the company will seek international
consortium financing.
The company had invited EoIs from coal companies
which have a minimum 500 million tons (mt) of coal
reserve with some developed infrastructure like road and
port connectivity. Nalco proposes to set up a 0.5-mt per
annum aluminium smelter and a 1250-MW coal-based
thermal captive power plant in East Kalimantan province in
Indonesia at an estimated investment of $4 billion. Alumina
of 1 mt per annum will be imported from India in bulk
shipment through sea route.
The other requirements are fresh water sources, 500
hectares of non-forest and non-litigation land within
3 to 4 km of the mines for setting up the plant, besides
preparedness of the company to start production of 10
million tons per annum coal from 2014 for the next 10 years.
Nalco needs 8-10 million tons per annum (mtpa) of thermal
grade coal, 4-5 mtpa of which is for its 1250-MW pit head
captive power plant (CPP) for East Kalimantan project
and rest for its energy requirements elsewhere. Nalco has
already opened an office in Jakarta, the capital of Indonesia,
to expedite the project activities.
The company has set an ambitious target of achieving
an annual turnover of `25,000 crore by 2020, giving a major
thrust to diversification and capacity expansion. Meanwhile,
the company has also sought coal blocks in Orissa and is
ready to establish a power plant with a capacity of up to
4000 MW if granted proper linkages.
Besides proposing to set up two independent thermal
power projects (IPPs) in Orissa, Nalco is ready to establish
a nuclear power plant in Gujarat as part of its plan to enter
the energy sector in a big way. The company has already
signed a memorandum of understanding (MoU) with
the Nuclear Power Corporation of India Ltd (NPCIL) for
setting up a nuclear power plant as a joint venture. The
central government has accorded approval for a 1400-MW
project comprising two 700-MW units.
In addition, the Navaratna PSU plans to set up a super
critical thermal power plant of 1980-MW capacity (3x660
MW) in Dhenkanal district, along with another IPP. The
company is also keen to enter into a strategic partnership
with Orissa Mining Corporation (OMC) and Orissa Hydro
Power Corporation (OHPC) for developing coal blocks to
set up power plants. Plans are also afoot to set up a joint
venture cement plant for effective utilisation of fly ash
generated from the company's captive power plant (CPP)
at Angul.
COAL INSIGHTS 61 October 2010