Coal news and updates

Sesa Sterlite power division’s output declines in Q4

May 8: Production at Sesa Sterlite’s power division declined in the fourth quarter of FY15 due to lower demand and subdued power prices and evacuation constraints, according to an industry report by India Infoline.

Production was lower by 18.6% quarter-on-quarter at 1,525 million units. This impact on overall volume growth was offset by an increase in production at Talwandi Sabo Power Limited (TSPL), a 100% subsidiary of Sesa Sterlite. At TSPL ramp-up of a 660-MW unit led to an increase in volumes from 259 million units to 690 million units, the report said.

The company targets to commission Unit II & III in Q4 of FY15 and Q1 of FY16. The co-efficient of performance (CoP) at all the plants reduced due to increase in supply of linkage coal. The plant load factor (PLF) at Jharsuguda was 39% during the year due to lower demand. Realisations too were lower on a Q-o-Q basis.

Sesa Sterlite is working on a plan to convert its IPP to CPP and has been in talks with the government for the same. The company plans to supply power to the 1.25 mtpa smelter plant from May 2015. The company expects production to improve going forward due to increase in supply of coal from Coal India, easing of transmission lines and rising demand at its aluminium smelter.