{"id":10005,"date":"2012-04-17T16:20:58","date_gmt":"2012-04-17T14:20:58","guid":{"rendered":"http:\/\/www.myza.co.za\/04\/new-pacts-unlikely-to-improve-india-coal-supply-power-cos\/"},"modified":"2012-04-17T16:20:58","modified_gmt":"2012-04-17T14:20:58","slug":"new-pacts-unlikely-to-improve-india-coal-supply-power-cos","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/new-pacts-unlikely-to-improve-india-coal-supply-power-cos\/","title":{"rendered":"New pacts unlikely to improve India coal supply-power cos"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>By Sanjeev Choudhary and Krittivas Mukherjee<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">NEW DELHI, April 17<\/span> (Reuters) &#8211; Coal India&#8217;s offer<br \/>\nto pay a paltry penalty for missing supply obligations will not<br \/>\nforce the state-run monopoly to ramp up production quickly to<br \/>\nmeet burgeoning demand in energy-starved India, power producers<br \/>\nsaid on Tuesday.<\/p>\n<p><span><\/span><\/p>\n<p>The world&#8217;s biggest coal miner has been ordered by the<br \/>\ngovernment, which owns 90 percent of Coal India, to sign<br \/>\ncontracts agreeing to supply at least 80 percent of the coal<br \/>\nrequirement of utilities that have been hobbled by scarce fuel.<\/p>\n<p><span><\/span><\/p>\n<p>The company&#8217;s board approved the proposal on Monday and<br \/>\noffered to pay a penalty of 0.01 percent if it fell behind<br \/>\nschedule.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;This is a task well begun, but only half done,&#8221; said A.<br \/>\nIssac George, chief financial officer at GVK Power, referring to<br \/>\nthe supply contracts that were proposed after industry captains<br \/>\nsuch as Ratan Tata and Anil Ambani approached Prime Minister<br \/>\nManmohan Singh for an end to fuel shortage.<\/p>\n<p><span><\/span><\/p>\n<p>The penalty would apply only after three years and so<br \/>\nchanges almost nothing in the short term for many power plants,<br \/>\nwhich have been running below capacity due to fuel shortage over<br \/>\nthe past year.<\/p>\n<p><span><\/span><\/p>\n<p>Hemmed in by regulatory hurdles and land acquisition<br \/>\nproblems, Coal India&#8217;s production has stagnated over the past<br \/>\nthree years and power companies were hoping a stringent penalty<br \/>\nclause in the fuel supply pact would have goaded the company to<br \/>\ntake measures to boost output.<\/p>\n<p><span><\/span><\/p>\n<p>Coal India expects to raise its output to 464 million tonnes<br \/>\nin 2012\/13, after producing about 436 million tonnes in the<br \/>\nfiscal year that ended in March &#8211; missing its scaled down<br \/>\ntarget.<\/p>\n<p><span><\/span><\/p>\n<p>It would need an additional 64 million tonnes in the current<br \/>\nfiscal year to meet obligations under the new fuel pacts. But<br \/>\nthe company may not be able to boost production in line with<br \/>\ndemand and may have to resort to imports.<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Sanjeev Choudhary and Krittivas Mukherjee NEW DELHI, April 17 (Reuters) &#8211; Coal India&#8217;s offer to pay a paltry penalty for missing supply obligations will not force the state-run monopoly to ramp up production quickly to meet burgeoning demand in energy-starved India, power producers said on Tuesday. The world&#8217;s biggest coal miner has been ordered [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-10005","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=10005"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10005\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=10005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=10005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=10005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}