Coal news and updates

RIL, Coal India and NTPC to see some action today

Reliance Industries' (RIL) most significant recent gas discovery MJ-1 in KG-D6 block may hold 1.4 trillion cubic feet of gas resources, roughly half of the reserves in the block’s main gas fields. Located about 2,000 meters below the producing D1-D3 field in the eastern offshore KG-D6 block, MJ-1 may hold contingent resource of between 0.988 Tcf of gas and condensate (low estimate) and 2 Tcf (high estimate). The estimate compares to the downgraded reserves of 3.10 Tcf in the main Dhirubhai-1 and 3 gas fields, which have been on production for six years now. If proved correct, MJ-1 would the third biggest gas field in KG-D6 after D1&D3 and R-Series which holds about 2 Tcf of recoverable reserves.

Coal India (CIL) was at loggerheads with the coal ministry around six months ago over the latter’s directive to halve its lucrative e-auction volumes. It finally settled for keeping its e-auction sales to seven per cent of the total sales. Besides, CIL and state-run power producer NTPC have agreed to end their dispute on coal sampling, an outcome that could be related to having a common minister for power and coal. For nearly two years, NTPC led a pack of state-owned utilities in demanding that fuel sampling be held at the plant-end, even as CIL refused to grant utilities such a liberty. Both sides now agree by ironing out differences on a new mechanism that involves independent testing laboratories. Earlier, NTPC had even withheld payments to CIL, citing ‘grade slippage’ or discrepancies in actual and promised quality of supplies.

NTPC, India’s biggest power generator, aims to set up 5,000 mw solar capacity in the next two years. This is a third of its target of installing 15,000 mw over the next seven years and spells an over fiftyfold jump from the current solar capacity. The state-run company is clear that states will have to come on board for procuring solar energy for it to take off as per plan, as it maintains that coal will remain the base fuel for power generation in India for many years to come. NTPC has a capacity of 44,398 mw, accounting for 17% of the country’s total power generation capacity of 255,012.79 mw.

Dr. Reddy’s Laboratories and its subsidiary, Promius Pharma has filed three new drug applications (NDAs) with the US Food and Drug Administration. Of the three, two are related to dermatology (skincare) applications and one is a corticosteroid. These products represent new, compelling options for segments of patients suffering from Psoriasis, Rosacea and Migraine. They are also the first of a large basket of products targeting conditions predominantly treated by dermatologist and neurologists. Upon approval, the products will be commercialised by Promius Pharma.

Oil Ministry has allowed national oil companies ONGC and Oil India to sell any new natural gas supplies from their small and isolated fields through an open tender. While the BJP-led government had approved an international gas hub-based formula for all of the domestically produced natural gas in November last year, small and isolated fields were exempt. The Oil Ministry on April 1 issued amendment to the guidelines for pricing of gas from small and isolated fields by allowing producers to sell gas at market rates by inviting competitive bids from prospective consumers. Companies will fix minimum price for their gas, which would be the prevailing government-determined rate, and ask interested buyers to offer more through bidding.

India’s largest bus and truck maker Tata Motors and the Tata group’s private equity fund Tata Capital are looking to sell their 90% stake in Pune-based auto designer Tata Technologies. The valuation of the two-decade-old company is being pegged at $1 billion or Rs 6,200 crore. Tata Motors owns around 70.43% of the unit, while various Tata Group companies including Tata Capital hold a 17.36% stake. The rest is owned by employees of Tata Technologies through stock options. Separately, Tata Motors plans to launch more than 100 new commercial vehicles until 2018 and two new products every year in the passenger vehicle segment to become one of the top three carmakers in the local market.

Indian Oil Corporation (IOC), the country’s largest refiner and fuel retailer, is set to spend about Rs 45,000 crore over three years to build petrochemicals plants and LNG terminal, lay pipelines and upgrade its refineries, aided by a deregulation of fuel sales and oil price crash that have helped slash its debt. The state-run firm is also likely to benefit from a rise in crude oil prices since January without much price fluctuations.

IFGL Refractories’ US subsidiary, El Ceramics LLC has completed initial expansion of its manufacturing facilities in Sharonville and Fairfield Ohio in December 2014. This has resulted in a capacity increase to the main line Sharonville ISO Plant from previous 85,000 pcs per annum to a new current level of 126,000 pcs per annum.  Also, in Fairfield the installation of a completely new plant for the manufacture of the Clay graphite foundry stoppers with a capacity of 10,000 pcs per annum. Total capital expenditure for the project has been partly financed through internal accruals and partly by loan from a bank.

source: http://money.livemint.com