Coal news and updates

MPGENCO to seek tariff hike due to clean coal cess

The impact of the increase in the clean energy cess is likely to be Rs 380 crore for Madhya Pradesh Power Generation Corporation (MPGENCO) and, in all probability, the power utility will make a plea for a tariff hike to the State Power Regulator, a top official from the company told ICMW. 

According to him, the state-owned power utility procures 189.89 lakh tons of coal per annum for its 9 thermal plants from Coal India subsidiaries Western Coalfields Limited (WCL) and South Eastern Coalfields Limited (SECL).

According to estimates, the increase in the Green cess could cost the utility an additional around Rs 380 crore in its coal bill.

The official said: “It’s not decided yet how to manage this hike. But, in all probability, the company would appeal to the State Power Regulator to hike the tariff as the full impact of this hike would not be possible to absorb.”

Incidentally, Finance Minister Arun Jaitley, while presenting the Union Budget proposals for 2016-17, had doubled the clean energy cess on coal to Rs 400 per ton from Rs 200 per ton earlier.

Earlier, in the 2015-16 Budget, the finance minister had doubled the clean energy cess from Rs 100 to Rs 200 per ton. India, which is the world’s third largest emitter of greenhouse gases, is among the few countries in the world to have introduced a carbon tax.

Haldia Dock Complex to set up coal jetty in August

India Coal Market Watch

March 21: The Haldia Dock Complex (HDC) will set up a coal handling jetty in August this year, a port official told ICMW.

As per the port official, HDC will set up the coal jetty in August 2017 at an investment of Rs 100 crore, which could be handling 2.5 million tons (mt) per year.

Apart from this, HDC has decided to set up two new coal handling terminals, Outer Terminal 1 and Outer Terminal 2, with a combined capacity of 9.4 mt. The feasibility studies of both these projects would be taken up shortly and it is expected that construction of this Rs 590-crore project would start in financial year 2017-18.

Explaining the justification of setting up these three coal terminals and jetty, the official said that HDC would handle 40 mt coal on average per year. But keeping an eye on the potential of coastal shipping of coal from the coal-rich regions of Bihar and Jharkhand to southern India and imports of the fuel, HDC has decided to go for these terminals and jetty.

As per the dock official, currently, there is one terminal each for handling overseas and inland coal at HDC. The official said: “In order to make berth availability more to coal and non-coal coal cargo, this endeavour would be fruitful for the port in the long run.”