‘2 coal e-auction windows planned for power units’
5 July 2015 4:38 AM IST
Speaking to reporters on the sidelines of an interactive session at Bharat Chamber of Commerce, Coal Minster Piyush Goyal said this would be a short-term measure for power companies with or without power purchase agreement (PPA) to all the linkage holders who get coal under CCEA decision of 2013.
To begin with, five million tonnes of coal will be provided in each new e-auction windows to offer level. Asked if allocation to these power-dedicated e-auction windows would be over and above 10 per cent of Coal India’s production going to existing e-auction platform, Goyal said, “It is an operational matter.” Goyal said the e-auction floor price would be set at notified price plus 20 <g data-gr-id="39">per cent</g> for those having existing PPA and notified price plus 40 <g data-gr-id="40">per cent</g> for power generators who do not have PPA.
The two e-auction windows will serve the two categories. Both of these would be transparent processes through which everybody who <g data-gr-id="44">don’t</g> have coal would have equal opportunity, the minister said. However, he said, this is a temporary solution till we come out with a framework, which will be a permanent solution. Meanwhile, Coal Consumers’ Association welcoming the coal linkage to stressed utilities said the determination of floor price above 20 per cent and 40 per cent over the notified price would not serve the purpose and encourage import.
Adding they said the investment decisions had been taken by the companies based on assured fuel supply at notified price and cancel the existing linkages would jeopardise their company’s economics.
Also speaking in the Chamber programme Goyal said that the revised bidding norms for ultra mega power projects would be finalised very soon. “The Pratyush Sinha committee has recently submitted its report (on bid documents for UMPPs).
Final consultation and final deliberation are going on and will be finalised very soon after which we
will restart the process of bidding for UMPPs,” he said.
The government had <g data-gr-id="38">tasked</g> the committee to suggest modification in the standard bidding document following withdrawal of all the qualified private developers from the final round of the bidding process of the proposed 4,000 <g data-gr-id="37">mw</g> UMPPs in Tamil Nadu and Odisha, citing difficulty in securing bank finance due to flaws in the bidding norms. A meeting is likely to be held on July 8 with the industry, bankers and other stakeholders. Goyal stated that his government was committed for 24x7 power for all by 2019.
Govt to sell some stake in NTPC, Oil India, three other PSUs
The government will sell a minority stake in the nation’s biggest power producer NTPC, as well as in Oil India Ltd and three other PSUs as part of its disinvestment drive. The Department of Disinvestment today sought bids to appoint legal advisors for <g data-gr-id="89">sale</g> of <g data-gr-id="90">stake</g> in five PSUs through an offer for sale (OFS), besides a <g data-gr-id="81">follow on</g> offer of the CPSE Exchange Traded Fund. At the current market prices, the stake sale in five PSUs could fetch the exchequer around Rs 11,500 crore. The disinvestment department plans to sell 15 per cent stake in Hindustan Copper Ltd (HCL), 10 per cent each in Oil India (OIL) and Engineers India (EIL) and 5 per cent each in NTPC and Bharat Electronics Ltd (BEL).
As regards the ETF, it said: “The government intends to launch a Follow-on Fund/Tap/Tranche Offer of existing Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF) Scheme comprising stocks <g data-gr-id="82">of ten</g> listed CPSEs”. While NTPC disinvestment could garner Rs 5,724 crore, part stake sale in OIL could fetch Rs 2,723 crore. Disinvestment in BEL would fetch Rs 1,366 <g data-gr-id="86">crore,</g> while Rs 874 crore is expected from HCL and Rs 813 crore from EIL divestment. The Finance Ministry is also planning to launch a revamped and retail investor-friendly CPSE Exchange Traded Fund (ETF) by October in which <g data-gr-id="83">cash rich</g> EPFO and NPS could park their money along with individual investors.
The government had first launched a CPSE ETF, comprising <g data-gr-id="84">scrips</g> of 10 PSUs, in March 2014 under which retail investors have to invest a minimum of Rs 5,000 to buy units. It had raised Rs 3,000 crore through the ETF then. For the current fiscal, the government has set a target of raising Rs 69,500 crore through disinvestment.
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