The Nifty Trading Lounge

[Taurus1]

Nasdaq down 1.7%

.......

SPX down 1.2% .......

 

[deneb]

Good move.

Coal India to guarantee fuel supply to only those firms with power sales for 20 years

KOLKATA: Coal India will guarantee fuel supply to only those firms which have contracted power sales for 20 years, significantly reducing its requirement for additional coal, top company executives said after a meeting with ministry officials regarding Tuesday's Presidential decree.

The Presidential directive asked the company to sign fuel supply agreements (FSAs) with power producers, with penalties if supplies dip below 80% of the commitments. It was also decided at the meeting that the penalty in case of inability to meet the trigger level would be brought down to a minimum, officials said.

The company now hopes to finalise the fuel supply agreements and upload it on its website for power generators to come forward and sign next week.

Signing FSAs with generators, who qualify, is expected to drastically reduce CIL's requirement of additional coal. "Nevertheless, we will now have to calculate the exact additional volume once again which will be less than the volume calculated earlier," a CIL official said.

At present, it is working on finalising the import options that will be offered to power generators. It has also decided to supply the exact quantum of coal that will be necessary to generate the quantum of electricity required to meet the power purchase agreements.

"Following finalisation of these clauses, it will be legally vetted and put up on its website so that power producers can sign," a senior Coal India official said.

CIL will ask the power companies to furnish details of the PPAs signed with power distribution utilities. It will supply the volume of coal that will be sufficient to supply the quantum of electricity that the unit needs to supply under the PPA and not for the entire capacity of the unit. PPAs for 20 years will only be honoured.

For example, a 500 MW unit may have signed a PPA with a state government for supplying 200 MW of power for 20 years. CIL will supply the quantum of coal sufficient to generate 200 MW - the volume signed under the PPA.

On the import front CIL will offer imported coal at sold at cost plus basis on the landed price of coal. However, power producers will have the option of indicating whether they intend to take the imported coal from CIL.

 

[timepass]

Europe is all red. Maybe our markets will also have a global meltdown on Monday, and Taurus will post 20 images in one post :lol:

 

[MurAtt]

Europe is all red. Maybe our markets will also have a global meltdown on Monday, and Taurus will post 20 images in one post :lol:

Our markets cannot have a global meltdown :rofl:

And taurus can't post 20 smilies in 1 post .... 9 is the limit !!!!!

 

[timepass]

Our markets cannot have a global meltdown :rofl:

And taurus can't post 20 smilies in 1 post .... 9 is the limit !!!!!

When both of you three can do something, then 9 limit can have 20 smilies and our markets can have a global meltdown

:rofl: :rofl: :rofl:

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[Taurus1]

Our markets cannot have a global meltdown :rofl:
And taurus can't post 20 smilies in 1 post .... 9 is the limit !!!!!

When both of you three can do something, then 9 limit can have 20 smilies and our markets can have a global meltdown
:rofl: :rofl: :rofl:

== SM is heavily long and TP is heavily short

 

[timepass]

== SM is heavily long and TP is heavily short

How did you know that I am heavy and short

:lol: :lol: :lol:
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[Taurus1]

Monday or Tuesday could be slightly up, the phun starts after that

 

[Taurus1]

Of course, if the petrol hike comes from Sunday night then

 

[timepass]

Monday or Tuesday could be slightly up, the phun starts after that

The same for BNF ??

Of course, if the petrol hike comes from Sunday night then

Ah.. about that, seems like the govt. isn't too much of a hurry to raise prices as yet.

5 Apr, 2012, 08.44AM IST, Pradeep Thakur & Sanjay Dutta,TNN

Government may cut excise on petrol to avert price hike

NEW DELHI: The finance ministry has indicated to oil companies that it may reduce the excise duty on petrol to lower their under-recovery burden, a move that is expected to help consumers do without an additional burden.

Sources said the ministry was "actively considering" a proposal from the oil ministry to reduce duty. At present, the government levies excise duty of Rs 14.45 for every litre of petrol and oil companies are losing over Rs 9 a litre by selling the auto fuel below the international price. Last time the government had lowered excise duty on petrol in 2008 when the international crude price had touched $135. The reduction in duty then was by Re 1 a litre. However, this was restored in 2010-11 Budget. A reduction of Re 1 will help oil companies recover Rs 8,000 crore of under-recoveries.

By agreeing to lower the excise duty, the finance ministry will at the start of the year itself see a dent in its revenue target, although it can still meet it through buoyancy later in the year. But that's provided the overall economic situation is better than what it has anticipated. With political compulsions in hand and Presidential election ahead, the government is waiting for the passage of the Finance Bill in May before taking any harsh measures such as increase in petrol or diesel prices.

A senior finance ministry official said the government was serious about giving a push to the decontrol of its motor fuel prices by June this year to cap the subsidy bill and send out a signal that it is committed to reforms. By then, the government also hopes that the international crude price would stabilize with some positive movement on the Iran's nuclear standoff.
http://economictimes.indiatimes.com...-to-avert-price-hike/articleshow/12541683.cms