India Indian Economy + Infra Archive

[Nilgiri]

I will celebrate till it's confirmed......

We have been burned repeatedly...and I agree 100%

Something feels more likely this time though....

 

[Rajendra Chola]

We have been burned repeatedly...and I agree 100%

Something feels more likely this time though....

The thing is investment of this scale takes time. Taiwan will more likely want more than acceptance protection for its big investment.

 

[Nilgiri]

Indian firms buy 2 million tons of Australian coal sitting in Chinese warehouses

The buyers include cement-makers and sponge iron plants that are using the fuel to compensate for the domestic shortages

www.moneycontrol.com

Faced with an acute shortage, Indian companies have reportedly purchased nearly 2 million tons of Australian thermal coal and continue to buy more fuel that is lying in Chinese warehouses for months amid rising tensions between the two countries.

Indian companies are buying coal at $12 to $15 a ton discount to fresh shipments from Australia, a Bloomberg report said.


Coal accounts for over 70 percent of India's electricity output, and utilities account for about 75 percent of India's coal consumption.

Also read: Explained | Why is India facing a coal shortage?

The buyers include cement-makers and sponge iron plants that are using the fuel to compensate for the domestic shortages, the report said.

"The development reflects the extent to which China-Australia relations have soured: China is battling a crippling energy crunch that’s set to get worse as winter sets in, and yet it won’t touch coal from Australia due to a geopolitical squabble," sources told Bloomberg.

China’s decision to ban the purchase of Australian coal due to political tensions left 70 ships and 1,400 seafarers stranded with their cargoes outside Chinese ports in January, the report said.

Moneycontrold could not independently verify the report.

Also read: Explained | Why Europe and China are facing an energy crisis and how it affects India

Coal stockpiles at Indian coal-fired power plants have nosedived. As of September 29, 16 of India's 135 coal-fired power plants had zero coal stocks, according to the Central Electricity Authority (CEA).

Over half of the plants had stocks that would last fewer than three days, while over 80 percent had less than a week's stock left.

Coal India, which produces over 80 percent of India's coal, recently said an increase in global prices and freight costs had led to a curtailment in power production by plants using imported coal, adding to the pressure on utilities using domestically mined coal to ramp up output.

 

[Ryder]

China said we will punish Australia.

Australia redirects Coal to India.

China: Pikachu face

 

[Viva_vietnamm]

Everyone need Australia coal when the winter is coming now.

Australia will not stop accussing China of virus disinformation

 

[Anastasius]

China said we will punish Australia.

Australia redirects Coal to India.

China: Pikachu face

Weren't you guys selling some to Argentina too?

I think China just got too comfortable with their role as the trade lynchpin of the world, so they forgot that there are other markets.

 

[Ryder]

Weren't you guys selling some to Argentina too?

I think China just got too comfortable with their role as the trade lynchpin of the world, so they forgot that there are other markets.

We sell coal to everybody but China was our biggest market. So now we redirected it to India and other markets.

 

[Indos]

2 million tons is nothing actually for a country like India

Supply-hit power cos tap Indonesian miners for coal - Times of India

India Business News: Kolkata: As coal stocks nearing an all-time low, some of the state power utilities along with some non-power coal users have sent SOS to Indonesian co.

timesofindia.indiatimes.com

 

[Nilgiri]

2 million tons is nothing actually for a country like India

Supply-hit power cos tap Indonesian miners for coal - Times of India

India Business News: Kolkata: As coal stocks nearing an all-time low, some of the state power utilities along with some non-power coal users have sent SOS to Indonesian co.

timesofindia.indiatimes.com

Yah it is not even a days' worth of consumption for India.

But still its good we got quality coal for about 1 day on the cheap....because of PRC govt self-inflicted silliness.

The larger coal and energy supply chain problem (and the high prices for some time) is however worrying.

Australia and Indonesia will offer some respite for Indian coal import strategy.....but we need to increase local production more as well.

 

[Anastasius]

Yah it is not even a days' worth of consumption for India.

But still its good we got quality coal for about 1 day on the cheap....because of PRC govt self-inflicted silliness.

The larger coal and energy supply chain problem (and the high prices for some time) is however worrying.

Australia and Indonesia will offer some respite for Indian coal import strategy.....but we need to increase local production more as well.

How's the renewable energy market in India looking? Or is it not really worth it to invest in stuff like wind turbines, geothermal and solar?

 

[kumata]

How's the renewable energy market in India looking? Or is it not really worth it to invest in stuff like wind turbines, geothermal and solar?

Pretty satisfactory if not good by indian standards but wind / sun energy needs time and investment...many are investing, setting up solar park but these things take time ....

Source - https://mnre.gov.in/

last 7 years have seen the real push with solar parks being build at brek neck speed, metro;s are self running them with solar energy with many station roof feeding into grid...

 

[Nilgiri]

How's the renewable energy market in India looking? Or is it not really worth it to invest in stuff like wind turbines, geothermal and solar?

It is looking fairly robust as well....kumata post shows how as % of total production, it has doubled from 5 to 10% in 6 years or so recently etc.

So another doubling to 20% (for production) in this decade should be feasible, we shall see.

The %'s are even higher in installed capacity (since RE has generally lot lower average load factor than conventional).

Coincidentally, the Danish PM (Mette Fredriksen) is soon to arrive in India for 3 day visit:

Danish PM Mette Frederiksen to begin 3-day India visit from 9 October

During the tour, Frederiksen will meet PM Modi, President Kovind and review the implementation of 'Green Strategic Partnership', established between India and Demark last year.

theprint.in

Denmark punches above its weight in this (Renewable) sector, so that is one of the large underlying reasons for the visit.

There is a "green strategic partnership" that was signed last year between the two countries.

@Saithan

 

[Nilgiri]

Long overdue!:​

Tata regains control of troubled Air India with $2.4 bln bid

Tata Sons will resume control of Air India after bidding $2.4 billion, including equity and debt, the government said on Friday, marking the end of years of struggle to privatise the financially troubled airline.

www.reuters.com

​

Tata regains control of troubled Air India with $2.4 bln bid​

NEW DELHI, Oct 8 (Reuters) - Tata Sons will resume control of Air India after bidding $2.4 billion, including equity and debt, the government said on Friday, marking the end of years of struggle to privatise the financially troubled airline.

A successful sale of the loss-making national flag carrier will be a major victory for Prime Minister Narendra Modi as it had cost tax payers an average of nearly $3 million a day for the past decade. It would also bode well for planned stake sales in a slew of state-run firms to bolster government coffers and make India a fully market-driven economy.

Talace Pvt Ltd, a unit of Tata Sons - the holding company for the autos-to-steel Tata conglomerate which owns luxury carmaker Jaguar Land Rover - will acquire 100% of Air India, Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management, said.

The deal, which is expected to be finalised by the end of the year, puts Air India back in the hands of the group which founded it as Tata Airlines in 1932 before it was nationalised in 1953.


The bid amount includes Tata taking on $2 billion of Air India's $8.2 billion total debt, resulting in an equity value for the government of only about $400 million.

Tata currently operates two airlines - Vistara, India's only other full-service carrier, in a venture with Singapore Airlines (SIAL.SI) as well as budget airline AirAsia India, a venture with Malaysia's AirAsia Group (AIRA.KL).

Adding Air India will give Tata a combined share of about 27% of the country's domestic aviation market, second only to IndiGo.

Family scion and emeritus chairman of Tata Sons, Ratan Tata said on Twitter that while it will take "considerable effort" to rebuild Air India's reputation, it would provide Tata with a strong opportunity in the aviation industry.

An Air India Airbus A320neo plane takes off in Colomiers near Toulouse, France, December 13, 2017. REUTERS/Regis Duvignau/File Photo
"Welcome back, Air India!," he said in a tweet.

The acquisition will give Tata an additional 4,400 domestic and 1,800 international slots at Indian airports annually, as well as 900 slots at airports overseas, the most lucrative of which are at London's Heathrow.

"Air India provides a unique and attractive international footprint," Tata Sons said in a statement, adding that more than two-thirds of its revenue comes from international markets like North America, Europe and the Middle East.

Tata will gain 8,000 full-time employees, which it must retain for at least one year under the terms of the deal, and some 120 planes, mostly older narrowbody Airbus (AIR.PA) aircraft but also some newer widebody Boeing (BA.N) planes.


It will also become the sole owner of Air India's low-cost arm, Air India Express, likely giving the group a competitive advantage, said Suman Chowdhury, chief analytical officer at Mumbai-based Acuité Ratings & Research.

"However, the ability to optimise costs, and streamline operations will be a formidable challenge and the key to profitability," he said.

It has taken the Modi administration more than four years to find a buyer for Air India. The latest push began in January 2020, just weeks before the COVID-19 pandemic brought the global airline industry to its knees.

Over the past decade, the government has spent about $15 billion of taxpayer money on Air India, famous for its Maharaja mascot, Pandey said, adding that the deal will plug the outflow of bailout funds.

Reporting by Aftab Ahmed and Aditi Shah; additional reporting by Chris Thomas in Bengaluru; Editing by Edwina Gibbs, Kirsten Donovan

 

[Zapper]

I wonder if Tata intends to change the name of the airline to project it as a brand new carrier...even if it doesn't, the logos, design, branding should all be revamped

 

[crixus]

Finally no wastage of taxpayers money on such white elephants

 

[Nilgiri]

I wonder if Tata intends to change the name of the airline to project it as a brand new carrier...even if it doesn't, the logos, design, branding should all be revamped

Well its in their hands now.

It wont be some babu rubbing his hands at taxpayer money calling such shots.

 

[Jackdaws]

It's going to be quite a task to unravel the mess. An AI pilot told me there are 22 Unions within Air India. He also used to give me free upgrades to first class on international routes which I now guess might not happen.

If the service of Air Vistara is any indication, we are in for a treat - Starbucks coffee, Taj catering, great customer service.

I think they'd keep the name Air India - it has significant brand equity.

 

[Lonewolf]

It's going to be quite a task to unravel the mess. An AI pilot told me there are 22 Unions within Air India. He also used to give me free upgrades to first class on international routes which I now guess might not happen.

If the service of Air Vistara is any indication, we are in for a treat - Starbucks coffee, Taj catering, great customer service.

I think they'd keep the name Air India - it has significant brand equity.

Restructuring will happen for sure

 

[Rajendra Chola]

Will be air India for sure. Infact I expect Air Asia India and Vistara to be absorbed into the bigger air India family. But I don't know how long it will take them to make a profit.

Last aircrafts were bought in 2004-2008 circa and they were never renovated. Renovation needs to be done. In addition to the debts Tata would need to pay out slowly.

 

[Saithan]

It is looking fairly robust as well....kumata post shows how as % of total production, it has doubled from 5 to 10% in 6 years or so recently etc.

So another doubling to 20% (for production) in this decade should be feasible, we shall see.

The %'s are even higher in installed capacity (since RE has generally lot lower average load factor than conventional).

Coincidentally, the Danish PM (Mette Fredriksen) is soon to arrive in India for 3 day visit:

Danish PM Mette Frederiksen to begin 3-day India visit from 9 October

During the tour, Frederiksen will meet PM Modi, President Kovind and review the implementation of 'Green Strategic Partnership', established between India and Demark last year.

theprint.in

Denmark punches above its weight in this (Renewable) sector, so that is one of the large underlying reasons for the visit.

There is a "green strategic partnership" that was signed last year between the two countries.

@Saithan

Mega plus love to see more Renewable energy in India, Denmark is also very much engaged in Turkey, but that's to be expected.

With Vestas engaged in projects around the world the government is doing the right thing by supporting their business with political visits and such.

That's how government officials should be and not like what we've been cursed with.