Evacuation problems play spoil sport

The rates of power generated from Odisha have been declining in the energy market over the past couple of months because of evacuation problems precipitated by poor transmission infrastructure, said the state-run power trader Gridco Ltd. The rates, which were as high as Rs 6.30 per unit in November 2012, came down to Rs 4.50 per unit this week.

The All Odisha Steel Federation (AOSF), an association of secondary and finished steel makers, has urged the ministerial panel on raw material supply to address issues pertaining to pricing and availability of minerals ahead of the next meeting of the committee on Thursday.

It said, though the recent state government notification to reserve half of the iron ore output for local units was beneficial for the industry, the mine owners were deliberately quoting higher rates.

The fate of 2400 Mw coal-fired power plant proposed by Odisha Thermal Power Corporation Ltd (OTPCL) now hangs in balance after both its promoters lost coal mines allotted to them.

The company, which claims to have completed the land acquisition process by the end of July 2013, is also undecided over how to start the construction for the Rs 8,000 crore plant as it is in search of a strategic partner to sell its 74 per cent stake.

The second category included steel, cement and other specified end users including captive power producers who will get coal at prices to be notified separately

Clearing the air over the role of Odisha Industrial Infrastructure Development Corporation (Idco) to acquire land for mining projects when its primary responsibility is to buy land for industries, the state government has said, there is nothing wrong in land buying for coal mining as mineral excavation is also an industrial activity.

The state is the highest producer of high-quality sized iron ore and fines, with annual output surpassing 75 mn tonnes

Odisha, the largest producer of iron ore in the country, is mulling canalisation of iron ore trade by appointing a designated agency in order to bring in transparency and generate more revenue. The single-point trading process is likely to push iron ore rates and impact margins of steel makers across the country who depend on the state for the raw material supply, as many other major producers, such as Karnataka and Goa, have restricted output.

Illegal mining probe agency Justice M B Shah Commission of enquiry has sought the state government’s view on imposing a ban on export of minerals, especially iron ore.

National Thermal Power Corporation (NTPC), which aims to run its Talcher power station at higher plant load factor (PLF), has requested the state government to direct Mahanadi Coalfields Ltd, a subsidiary of Coal India (CIL) to step up coal supply over and above the assured quantity.

The Talcher unit of the power producer is currently running at 91.45 per cent PLF against the target of 95 per cent. To maintain the target for the full year, the plant needs to run at 104 per cent PLF in the balance period and hence the need for more coal.

The team has so far completed investigating records of 65 mines and is expected to verify about 20 odd papers

The five member team of Justice M B Shah Commission of enquiry, which has been in Odisha since October 3 to probe illegal mining, has detected massive irregularities during scrutinisation of mining records and other documents. Most of the irregularities include conducting mining operation without statutory clearances such as forest and environment.

Says reserves to last only four years more

Has Hindalco Industries’ lease for Odisha’s only operational private coal mine been a bonanza or a carefully husbanded and now depleting asset? According to the state mining department, the company has so far excavated about 16 million tonnes from this one, at Talabira in this district. If the calculation of operating margin at Rs 295.41 per tonne of coal indicated in the report of the country’s Comptroller and Auditor General (CAG) is taken as reference, Hindalco made a financial gain of Rs 466 crore.

Faced with stiff margins pressure in iron ore fines exports due to poor demand and higher transportation cost and taxes, most of the miners of the state are now planning to foray into pellet production to cater to the rising demand of the domestic steel industry for the commodity.

“Iron ore fines exports have come down to a level that is a fraction of what it used be a couple of years ago. Fines were being shipped out as the Indian steel industry did not have the technology to use it.