SAIL, RINL and MOIL to set up ferro alloy plant JV
25 Dec 2013 12:43 AM GMT
State-run MOIL Ltd, formerly known as Manganese Ore India Ltd, had inked two separate joint venture (JV) pacts with SAIL and RINL to set up two ferro alloy plants with a total outlay of Rs 600 crore.
‘A couple of round discussions has already taken place between the three parties for jointly setting up the ferro alloy plant along with a captive power plant. Final decision will be taken in a couple of months’ time,’ a source said. Ferro alloys are used in steel-making for de-oxidising purposes.
The Rs 400 crore JV between SAIL and MOIL was proposed to be set up in Chhattisgarh with an annual capacity of one lakh tonnes per annum. The Rs 200 crore JV between RINL-MOIL in Andhra Pradesh was supposed to manufacture 50,000 tonnes of ferro alloys a year.
While power shortage was the primary reason for scrapping the RINL-MOIL JV; till recently SAIL was maintaining that the proposed venture with MOIL was not yet scrapped.
Meanwhile, a committee has been set up comprising members from all the three state-run firms under the Steel Ministry to work on the shareholding pattern, proposed capacity and likely investment for the three-way venture, a top management in one of the three firms said.
‘The committee is likely to submit its report in a couple of months. We will take a final decision on the venture after going through the report,’ he said, adding the plant may come up at Nandini near Bhilai in
Chhattisgarh.
FSA coal need will not be for capacity over 60K mw
New Delhi: The coal need under fuel supply agreements would not be for more than 60,000 mw by 2015 due to various reasons, including slippages in the schedule for commissioning of projects, the Coal Ministry has informed state-owned CIL. ‘The coal drawal would not be more than 60,000 MW by March 2015...due to slippage in commissioning schedule, constraints in evacuation of power and due to not having long-term PPA,’ the Coal Ministry has said in a letter to CIL chairman and managing director S Narsing Rao.
‘The actual lifting of coal by power projects of 78,000 MW capacity approved by the CCEA (Cabinet Committee on Economic Affairs) has not exceeded 37,695 MW so far,’ it said. ‘It may also be confirmed whether as per commissioning schedules/PPA (power purchase agreement) provided so far, the total supplies would not exceed (the power projects’ capacity of) 60,000 MW up to March 31, 2015,’ it added.
As on date, the total commissioned capacity is 41,461 MW (38,821 MW long term linkage + 4,640 mw tapering linkage) out of the 78,000 mw capacity approved by Cabinet for signing of FSA (fuel supply agreements), the letter said.
Coal Minister Sriprakash Jaiswal had earlier said that 85 per cent fuel supply pacts have been signed and the remaining would also be done once technical glitches are addressed. Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.
Two deadlines set recently for signing of the fuel supply agreements by CIL with the power producers could not be adhered to. CCI had even directed the Power Minister to review the progress of the power projects on a daily basis with the secretaries of both Power and Coal Ministries.
‘A couple of round discussions has already taken place between the three parties for jointly setting up the ferro alloy plant along with a captive power plant. Final decision will be taken in a couple of months’ time,’ a source said. Ferro alloys are used in steel-making for de-oxidising purposes.
The Rs 400 crore JV between SAIL and MOIL was proposed to be set up in Chhattisgarh with an annual capacity of one lakh tonnes per annum. The Rs 200 crore JV between RINL-MOIL in Andhra Pradesh was supposed to manufacture 50,000 tonnes of ferro alloys a year.
While power shortage was the primary reason for scrapping the RINL-MOIL JV; till recently SAIL was maintaining that the proposed venture with MOIL was not yet scrapped.
Meanwhile, a committee has been set up comprising members from all the three state-run firms under the Steel Ministry to work on the shareholding pattern, proposed capacity and likely investment for the three-way venture, a top management in one of the three firms said.
‘The committee is likely to submit its report in a couple of months. We will take a final decision on the venture after going through the report,’ he said, adding the plant may come up at Nandini near Bhilai in
Chhattisgarh.
FSA coal need will not be for capacity over 60K mw
New Delhi: The coal need under fuel supply agreements would not be for more than 60,000 mw by 2015 due to various reasons, including slippages in the schedule for commissioning of projects, the Coal Ministry has informed state-owned CIL. ‘The coal drawal would not be more than 60,000 MW by March 2015...due to slippage in commissioning schedule, constraints in evacuation of power and due to not having long-term PPA,’ the Coal Ministry has said in a letter to CIL chairman and managing director S Narsing Rao.
‘The actual lifting of coal by power projects of 78,000 MW capacity approved by the CCEA (Cabinet Committee on Economic Affairs) has not exceeded 37,695 MW so far,’ it said. ‘It may also be confirmed whether as per commissioning schedules/PPA (power purchase agreement) provided so far, the total supplies would not exceed (the power projects’ capacity of) 60,000 MW up to March 31, 2015,’ it added.
As on date, the total commissioned capacity is 41,461 MW (38,821 MW long term linkage + 4,640 mw tapering linkage) out of the 78,000 mw capacity approved by Cabinet for signing of FSA (fuel supply agreements), the letter said.
Coal Minister Sriprakash Jaiswal had earlier said that 85 per cent fuel supply pacts have been signed and the remaining would also be done once technical glitches are addressed. Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.
Two deadlines set recently for signing of the fuel supply agreements by CIL with the power producers could not be adhered to. CCI had even directed the Power Minister to review the progress of the power projects on a daily basis with the secretaries of both Power and Coal Ministries.
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