NTPC for Kudanali-Luburi Coal Project

7/24/2019 NTPC for Kudanali-Luburi Coal Project

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Short facts/Key Concerns

1 J&K state electricity board (JKSPDC) which has high share of hydel power in

% 'PC c!rrently iport costly theral coal fro ndonesia and seeks to elii

* 'PC is adding +,-. /0 coal based capacity by the end of 1%th ve year pl

, n %.1* /C eeting of /inistry of coal4 the K!danali coal block was alloted

7 8ecently in J!ne %.174 'PC and JKSPDC fored a J64 other proceedings are- Since both 'PC and JKSPDC do not have any e9pertise in ining activities

Questions answered in this study

1 =ow sho!ld 'PC develop the ine> 'hro!gh foring a J6"SP6 or thro!gh a

2 =ow was the reserve split of %-- ' for 'PC and 1*. ' for JKSPDC was a

3 0hat co!ld be possible cost of ining (8!n of the ine cost) for a /D:>

4 @t what 9ed price per ton sho!ld the /D: agree for the contract ining>

5 @t what price per ton can J6 s!pply coal to 'PC and JKSPDC>

6 s the arrived cost of coal cheaper than iports fro ndonesia>

Note:Kindly refer to comments (wherever assigned) for more e

;/D:A/ining developer c! operator


2/58

he state is actively looking for coal based power to eet the shortfall d!ring winter se

nate iport dependence by ac!iring captive ines$

an$ 2or this it estiated a coal shortage of %-- '$ 3oing forward 'PC does not want

to both 'PC and JKSPDC (thro!gh dispensation ro!te) to eet their respective needs$

!nderway c!rrently he J6 is likely to eploy a /D:; contract ining service$ /D: is the ost pre

rrived at by /C> 'otal reserve at K!danali 5!b!ri is *?- '$

planations


3/58

sons beca!se river discharge is less"fro#en$

to iport coal fro o!tside$

5 will only be given only to the J6$

thod for ine developent and operation$


4/58

Key Assumptions/Data for Mine developer cum Operator (MDO service provider

1 o Coal Stock deterioration d!ring life of ine (*.Brs)

% o CS8 9penses by the /D:

* o other nonoperating incoe

, 0ill take * years for ine developent and then it will take , ore years to

7 @ll aor :verb!rden reoval to be done in the ine developent period- /D: operatorEs ining operations are atleast as eFcient as /C5(C5 s!bsidi

G *.H of all intial Cape9 is intangible assets like 8econassaince Perit4 /inin

+ /ine clos!re cape9 is a andatory part of the selection proced!re

? /D: is responsible for entire f!nding and operation of the ining operation

1. nitial cape94 Ieta and a9i! ining capacity has been estiated by ta

11 0orking Capital reains sae BoB

Key Assumptions/Data for !" #etween $%&C and !KS&DC

1 @s per C54 /ining licence will only be granted to a J6 between 'PC and JK

% 'he e!ity share in the J6 will be in ratio of their coal share allotent (as pe% 'he e!ity share of the J6 cannot be changed witho!t prior perission fro

* Since both 'PC and JKSPDC do not have any ining e9pertise4 the J6 will e

, @ll CS8 and andatory contrib!tions are paid by the J6 all incl!ded in 1,H l

7 C!!lative levies will be reg!lated by C8C so as not to res!lt in higher en

- @ny !antity of coal prod!ced in e9cess of sanctioned capacity(if prod!ced)

G pfront payent (L1.H)by J6 on Coal blockEs intrinsic val!e is to be paid in

Key Assumptions/Data for $%&C

1 @lready has a PP@ signed with P state electricity board for !pcoing powe

% 'PC had applied for K!danali ine to eet the forecasted coal deand at

* f coal deand had not been et fro K!danali ine then 'PC wo!ld hav

, 'he rational behing going after captive ining blocks is to have f!el s!pply

7 'PC will b!y -GH of the coal o!tp!t fro the J6

Key Assumptions/Data for !KS&DC

1 JKSPDC will b!y **H of coal o!tp!t fron the J6

% JKSPDC ay set !p a power plant in :rissa or transport the coal to J&K as it


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reach f!ll capacity after starting ining activity

ary) which does ining activity in nearby 'alcher Coaleld

license etc which are to be aorti#ed over life of ine operations

s in ret!rn for a 9ed price (per ton) agreeent with the J6

ing coparable /D: proects of @dani nterprise

PDC

r SI Caps recoendations) (-GA**)C5 (as per r!le)

ploy a contract based /D: thro!gh copetitive bidding

evy on the its reven!e

rgy charges thro!gho!t the ten!re of PP@

or !n!sed d!e to any reason will have to be sold to C5$

* installents in * years consec!tively

plant in Iailha!r

the power plant

to iport coal fro ndonesia since 2S@ with C5 is always sat!rated

for f!t!re

dees t$


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Mine Data

aeA K!danali 5!b!ri

5ocationA :rrissa4 ear 'alcher /ine

Developent period (Brs) *

5ife of /ine (Brs) *.

/ine 8eserves (') *?-@verage Caloric 6al!e of coal in block(Kcal) *,G7$+?

Coal grade (as per caloric 6al!e4 /oC) 3*

Coal 'eserve allotment

'PC (') %--

JKSPDC (') 1*.

Capacity sanctioned

2!ll capacity ('P@) 1*$%

sable coal (H of 2!ll Capacity) G7H

/a9i! !sable coal Lf!ll capacity (') ?$?

nd useNTPC: 2or power generation at power plant at Iilha!r4 ttarPradesh ($P)

JKSPDC: 2or setting !p a power plant in :rissa (9pectedcapacityA --. /w)


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MDO Service provider $%&C)!KS&DC !"

np!t np!t

Iid price(8s per ton) M ?G. Selling price (8s per ton) M 14,.. nternation

:!tp!t :!tp!t 9change

88 %1$G+H 88 1,H Coal Price

/argin of Safety 1%$*7H /argin of Safety ,$%.H @verage 'r

P6 (in Crores) M %4G7* P6 (n Crores) M 1?%

@verage DSC8 1$71 et port

:ther Data :ther DataDebt +.H Debt G.H Cost of co

!ity %.H !ity *.H 'ransporta

'a9 8ate *7H 'a9 8ate *7H

ntngible assets *.H 5evies & isc ta9es by state 1,H So!rcing fr

Cost of Capital Cost of Capital

8isk 2ree 8ate G$+%H 8isk 2ree 8ate G$+%HCost di


8/58


9/58

$et profit to $%&C (per ton #y sourcin* coal from !" in stead of importin*

port Data

al coal prices N ,1

ate M -7

M %4--1

ansportation cost to 'PC M -..

Cost(at plant location) M *4%-1

Soo!rcing fro J6 captive inel (as obtained fro J6) M 14,..

ion charge (via 8akes) M 14*7.

o J6 net cost(at plant location) M %4G7.

nce (Captive iningiport) per ton of coalM 711


10/58


11/58

stimatin* minin* cost per ton for the MDO contract usin* MC+ as #ase case

About MCL:/C5 is one of the aor coal ining copany of ndia$ s is one of the s!bsidiaries of Coal ndia 5iited$

/ost of the ines owned by /C5 are in :rissa

2ro /C5 2B%.1, P&5 stateent

9penses 8s (n Crores)

1 Cost of /aterial Cons!ed M -..

% ployee Ienet 9penses (Salary OPP2O/isc) M 14-7.

* Power and 2!el M 1*.

, 8epairs (I!ilding O Plant and achinery) M 11.

7 =a!lage road O 0ashery plant charges M +..

- :ther 9penses M ,+.

'otal 9penses M *4GG.

/C5 coal prod!ction (2B%.1,17) ' 1%1

Cost per tonne(8:/) M *1%


12/58

st year it ined 1%1 ' of coal and o


13/58

MDO Operatin* Assumptions

Copany aeA /D: Contractor /D: str!ct!re

Developent period * Brs Debt +.H

5ife of /ine *. Brs !ity %.H

/ine 8eserves *?- '

8eplaceent cape9 in every 7 yrs +. Crores Cost of !ity

Cost per ton (Iase Price) *1% 8isk 2ree 8ate G$+%H

Quoted pe ton p!"e#b!d P!"e$ M ?G. np!t /arket 8et!rn 1,$.,H

Cost of Capital ?$,*H /arket 8isk Prei! -$%*H

88 %1$G+H

:!tp!t

Ieta 1$*

/argin of Safety 1%$*7H Ieta @sset .$%-

P6 M %4G7*

,-.0 ,-.02

%.. 17.

@verage DSC8 1$71 DSC8 1$,%

De#t Schedule(in Crores

&2'(6 &2'() &2'(* &2'(9

De#t Schedule 3

:pening Ialance M +%,$.. M ?*?$*- M 14.G.$+G M 14%%.$G?

nterest M 117$*- M 1*1$71 M 1,?$?% M 1G.$?1Principle repayent M M M M ,,$GG

nding Ialance M ?*?$*- M 14.G.$+G M 14%%.$G? M 141G-$.*

/ M %17$-+

De#t Schedule 33

:pening Ialance M 7G-$+. M -71$G+ M G*-$7%

nterest M G,$?+ M +,$G* M ?7$G7

Principle repayent M M M 7G$G*

/ine Clos!re Cape9 at the end of /ine 5ife$ 'his is entirely f!nded thro!ghinternal accr!als and is andatory part of contract


14/58

nding Ialance M -71$G+ M G*-$7% M -G+$G+

/ M 17*$,+

De#t Schedule 333

:pening Ialance M %,G$%. M %,G$%.

nterest M %?$-- M %?$--

Principle repayent M M 71$G%

nding Ialance M %,G$%. M 1?7$,+

/ M +1$*?

et nterest Paid + , + , + , + (54.22

Depriciation 4 Amorti5ation (in Crores

Depriciation on plant and e!ipents M M M M -,$+G

@orti#ation of intangible assets M 1?$+.

'otal D&@ + , + , + , + *4.6)

6traneous ,actors Assumption

&2'(6 &2'() &2'(* &2'(9

Bears since start of proect ( 2 3 4

/ining Capacity(H) 0.0% 0.0% 0.0% 60.0%

/ining Capacity(' per year) 0 0 0 7.9

Cost per ton 0 0 0 312

ncrease in cost per ton of ining(yoy) 0.0%Disco!nting factor L cost of e!ity 0.91 0.84 0.76 0.70

$et 3ncome for MDO

-n!t!/ De0e/op1ent M!ne opt!n

&2'(6 2'() 2'(* 2'(9

e0enue: M!ned Cp"!t P!"e pe ton M M M )6*

pet!ng e7pene M M M + 246.)6


15/58

8o -n"o1e M M M M 7%1$,+

DA M M M M +,$-G

;-T M M M M ,*-$+1

-nteet 7pene M M M M 17,$%%

P;T M M M M %+%$7?

T7 < 34.5% M M M M

Net -n"o1e M M M M %+%$7?

CC, Calculation

Net -n"o1e M M M M %+%$7?

Add DA M M M M +,$-G

Le Cpe7 M 14.*. M G%1$.. M *.?$.. M

Le "=nge !n >C M M M M

Add -nteet M M M M 17,

CC M 14.*. M G%1 M *.? M 7%1

D!"ounted "= /o? M ?,1 M -.% M %*- M *-,

Po@e"t net NP M %4G7*

- %1$G+H

DSC . . . 1$,%


16/58

5ong 'er Debt ss!ed(in Crores) 'er loan (n yrs)

Bear @o!nt Period(Brs) 8ate /oratori!

1 M +%, 17 1,H *

% M 7GG 1. 1*H %

* M %,G 7 1%H 1

Short 'er 2inancing

, onwards 0C loan /a9 1 yr ?H o

nitial Cape9(in Crores) M %4.-.

ntangible assets M 7?,

0orking capital reains sae yoy

'a9 8ate

1$*G 1$*% 1$%G 1$-7 1$,7 1$%+ 1$1% %$1G 1$?.

&2'2' &2'2( &2'22 &2'23 &2'24 &2'25 &2'26 &2'2) &2'2*

M 141G-$.* M 141%,$?? M 14.--$+% M 14...$,? M ?%,$+? M +*+$-? M G,.$,, M -%+$,% M 7..$G%

M 1-,$-, M 17G$7. M 1,?$*7 M 1,.$.G M 1%?$,+ M 11G$,% M 1.*$-- M +G$?+ M G.$1.M 71$.* M 7+$1+ M --$*% M G7$-1 M +-$1? M ?+$%- M 11%$.% M 1%G$G. M 1,7$7+

M 141%,$?? M 14.--$+% M 14...$,? M ?%,$+? M +*+$-? M G,.$,, M -%+$,% M 7..$G% M *77$17

M %17$-+ M %17$-+ M %17$-+ M %17$-+ M %17$-+ M %17$-+ M %17$-+ M %17$-+ M %17$-+

M -G+$G+ M -1*$7, M 7*?$+* M ,7-$7% M *-%$*? M %7-$.% M 1*7$+%

M ++$%, M G?$G- M G.$1+ M 7?$*7 M ,G$11 M **$%+ M 1G$--

M -7$%, M G*$G% M +*$*. M ?,$1* M 1.-$*G M 1%.$%. M 1*7$+%


17/58

M -1*$7, M 7*?$+* M ,7-$7% M *-%$*? M %7-$.% M 1*7$+% M .$..

M 17*$,+ M 17*$,+ M 17*$,+ M 17*$,+ M 17*$,+ M 17*$,+ M 17*$,+

M 1?7$,+ M 1*G$77 M G%$-G

M %*$,- M 1-$71 M +$G%

M 7G$?* M -,$++ M G%$-G

M 1*G$77 M G%$-G M

M +1$*? M +1$*? M +1$*?

+ ()4.2' + (96.)* + 222.29 + (69.)4 + (92.56 + 2(*.46 + 24).*4 + (2).)' + (45.5*

M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G

M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+.

+ *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6)

&2'2' &2'2( &2'22 &2'23 &2'24 &2'25 &2'26 &2'2) &2'2*

5 6 ) * 9 (' (( (2 (3

65.0% 70.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0%

8.6 9.2 9.9 9.9 9.9 9.9 9.9 9.9 9.9

313 315 316 318 319 321 323 324 326

0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%0.64 0.58 0.53 0.49 0.44 0.41 0.37 0.34 0.31

g e

2'2' 2'2( 2'22 2'23 2'24 2'25 2'26 2'2) 2'2*

*32 *96 96' 96' 96' 96' 96' 96' 96'

+ 26*.66 + 29'.)* + 3(3.(' + 3(4.6) + 3(6.24 + 3().*2 + 3(9.4( + 32(.'( + 322.62


18/58

M 7-*$-. M -.7$7. M -,G$%. M -,7$-* M -,,$.- M -,%$,+ M -,.$+? M -*?$%? M -*G$-+

M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G

M ,G+$?* M 7%.$+, M 7-%$7* M 7-.$?- M 77?$*? M 77G$+1 M 77-$%% M 77,$-% M 77*$.%

M 1G,$%. M 1?-$G+ M %%%$%? M 1-?$G, M 1?%$7- M %1+$,- M %,G$+, M 1%G$G. M 1,7$7+

M *.,$G* M *%,$.- M *,.$%, M *?1$%% M *--$+* M **?$*7 M *.+$*+ M ,%-$?% M ,.G$,,

M M M M M M M M M

M *.,$G* M *%,$.- M *,.$%, M *?1$%% M *--$+* M **?$*7 M *.+$*+ M ,%-$?% M ,.G$,,

M *.,$G* M *%,$.- M *,.$%, M *?1$%% M *--$+* M **?$*7 M *.+$*+ M ,%-$?% M ,.G$,,


M M M +.$.. M M M M M +.$..

M M M M M M M M M

M 1G, M 1?G M %%% M 1G. M 1?* M %1+ M %,+ M 1%+ M 1,-

M 7-, M -.- M -,G M 7-- M -,, M -,% M -,1 M -*? M 77+

M *7? M *7* M *,, M %G7 M %+- M %-1 M %*+ M %1G M 1G*

1$*G 1$*% 1$%G 1$-7 1$,7 1$%+ 1$1% %$1G 1$?.


19/58

1$-- 1$,7

&2'29 &2'3' &2'3( &2'32 &2'33 &2'34 &2'35 &2'36 &2'3)

M *77$17 M 1+?$1?

M ,?$G% M %-$,?M 1-7$?- M 1+?$1?

M 1+?$1? M

M %17$-+ M %17$-+


20/58

+ (65.96 + (*9.(9 + , + , + , + , + , + , + ,

M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G

M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+.

+ *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6)

&2'29 &2'3' &2'3( &2'32 &2'33 &2'34 &2'35 &2'36 &2'3)

(4 (5 (6 () (* (9 2' 2( 22

75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0%

9.9 9.9 9.9 9.9 9.9 9.9 9.9 9.9 9.9

328 329 331 332 334 336 337 339 341

0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%0.28 0.26 0.24 0.22 0.20 0.18 0.16 0.15 0.14

2'29 2'3' 2'3( 2'32 2'33 2'34 2'35 2'36 2'3)

96' 96' 96' 96' 96' 96' 96' 96' 96'

+ 324.23 + 325.*5 + 32).4* + 329.(2 + 33'.)6 + 332.42 + 334.'* + 335.)5 + 33).43


21/58

M -*-$.G M -*,$,7 M -*%$+% M -*1$1+ M -%?$7, M -%G$++ M -%-$%% M -%,$77 M -%%$+G


M 771$,. M 7,?$G+ M 7,+$17 M 7,-$7% M 7,,$+G M 7,*$%% M 7,1$7- M 7*?$++ M 7*+$%1

M 1-7$?- M 1+?$1? M M M M M M M

M *+7$,7 M *-.$7? M 7,+$17 M 7,-$7% M 7,,$+G M 7,*$%% M 7,1$7- M 7*?$++ M 7*+$%1

M M M M M M M M M

M *+7$,7 M *-.$7? M 7,+$17 M 7,-$7% M 7,,$+G M 7,*$%% M 7,1$7- M 7*?$++ M 7*+$%1

M *+7$,7 M *-.$7? M 7,+$17 M 7,-$7% M 7,,$+G M 7,*$%% M 7,1$7- M 7*?$++ M 7*+$%1


M M M M M +.$.. M M M

M M M M M M M M M

M 1-- M 1+? M M M M M M M

M -*- M -*, M -** M -*1 M 77. M -%+ M -%- M -%7 M -%*

M 1+. M 1-, M 17. M 1*- M 1.+ M 11* M 1.* M ?, M +-

1$-- 1$,7


22/58

&2'3* &2'39 &2'4' &2'4( &2'42 &2'43 &2'44 &2'45 &2'46 &2'4)


23/58

+ , + , + , + , + , + , + , + , + , + ,

M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+G M -,$+

M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+. M 1?$+

+ *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6) + *4.6

&2'3* &2'39 &2'4' &2'4( &2'42 &2'43 &2'44 &2'45 &2'46 &2'4)

23 24 25 26 2) 2* 29 3' 3( 32

75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0

9.9 9.9 9.9 9.9 9.9 9.9 9.9 9.9 9.9 9

343 344 346 348 349 351 353 355 356 3

0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.50.13 0.11 0.11 0.10 0.09 0.08 0.07 0.07 0.06 0.

2'3* 2'39 2'4' 2'4( 2'42 2'43 2'44 2'45 2'46 2'4)

96' 96' 96' 96' 96' 96' 96' 96' 96' 9

+ 339.(( + 34'.*( + 342.5( + 344.23 + 345.95 + 34).6* + 349.42 + 35(.(6 + 352.92 + 354.6


24/58

M -%1$1? M -1?$,? M -1G$G? M -1-$.G M -1,$*7 M -1%$-% M -1.$++ M -.?$1, M -.G$*+ M -.7$-

M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-

M 7*-$7% M 7*,$+% M 7**$1% M 7*1$,1 M 7%?$-? M 7%G$?- M 7%-$%% M 7%,$,G M 7%%$G1 M 7%.$?

M M M M M M M M M M

M 7*-$7% M 7*,$+% M 7**$1% M 7*1$,1 M 7%?$-? M 7%G$?- M 7%-$%% M 7%,$,G M 7%%$G1 M 7%.$?

M M M M M M M M M M

M 7*-$7% M 7*,$+% M 7**$1% M 7*1$,1 M 7%?$-? M 7%G$?- M 7%-$%% M 7%,$,G M 7%%$G1 M 7%.$?

M 7*-$7% M 7*,$+% M 7**$1% M 7*1$,1 M 7%?$-? M 7%G$?- M 7%-$%% M 7%,$,G M 7%%$G1 M 7%.$?

M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-G M +,$-

M +.$.. M M M M M +.$.. M M M M %..$.

M M M M M M M M M M

M M M M M M M M M M

M 7,1 M -1? M -1+ M -1- M -1, M 7** M -11 M -.? M -.G M ,.

M -+ M G1 M -7 M 7? M 7, M ,* M ,7 M ,1 M *G M %


25/58

&2'4*


26/58

+ ,

M -,$+G

M 1?$+.

+ *4.6)

&2'4*

33

75.0%

9.9

360

0.5%0.05

2'4*

96'

+ 356.46


27/58

M -.*$+,

M +,$-G

M 71?$1+

M

M 71?$1+

M

M 71?$1+

M 71?$1+

M +,$-G

M 17.$..

M

M

M ,7,

M %*


28/58

$%&C)!KS&DC !" Operatin* Assumptions

Copany aeA 'PCJKSPDC J6 J6 str!ct!re

Developent period * Brs Debt G.H

5ife of /ine *. Brs !ity *.H

/ine 8eserves *?- '

S3&@ (as H of cost per ton) %H Cost of !ity

Cost per ton to J6 (8s) ?G. 8isk 2ree 8ate G$+%H

Cost of Capital ?$7?H /arket 8et!rn 1,$.,H

ntrinsic 6al!e of the block M ,G* /arket 8isk Prei! -$%*H

Selling Price to ('PCOJKSPDC) M 14,.. np!t Ieta .$?7

88 1,H

:!tp!t

@sset beta .$%?

/argin of Safety ,H

P6 M 1?%$1,

De#t Schedule(in Crores

&2'(6 &2'() &2'(* &2'(9

De#t Shedule 3

:pening Ialance M 1-- M 1+- M %.+ M %**

nterest M 1?$+? M %%$%G M %,$?, M %G$?,

Principle repayent M M M ?$-7

nding Ialance M 1+- M %.+ M %** M %%*$1-

/ M *G$7+

De#t Shedule 33

:pening Ialance M +* M ?1$1, M 1..$%7

nterest M +$%? M ?$11 M 1.$.*

Principle repayent M M M +$GG

nding Ialance M ?1$1, M 1..$%7 M ?1$,?

/ M 1+$G?


29/58

De#t Shedule 333

:pening Ialance M +* M ?.$*1

nterest M G$,- M +$1*

Principle repayent M M 1?$G7

nding Ialance M ?.$*1 M G.$7-

/ M %G$++

et nterest Payent M M M ,-$.?

6traneous ,actors Assumption

&2'(6 &2'() &2'(* &2'(9

/ining Capacity (H) 0.0% 0.0% 0.0% 60.0%

/ining Capacity (') 0 0 0 7.92

Price escalation 2or!la(@ss!ed cyclical) 0.0% 0.0% 0.0% 0.5%

Disco!nting factor L cost of e!ity 1.00 0.91 0.83 0.76

6penses

&2'(6 &2'() &2'(* &2'(9

Coal proc!reent fro /D: M M M G-+

8eserve Price payable L 8s 1.. per tone M M M G?

S3&@ M M M 17

et :perating e9penses M M M M +-*

$et 3ncome for !"

&2'(6 &2'() &2'(* &2'(9

8even!e M M M 141.?

5evies L1,H of reven!e M M M M 177

et :perating 9penses M M M M +-*

3ross ncoe M M M M ?1


30/58

D&@ M M M

nterest 9pense M M M M ,-$.?

I' M M M M ,,$-G

'a9 L *.H M M M M 17$-,

et ncoe M M M M %?$.,

CC, Calculation

et ncoe M M M M %?$.,

@dd D&@ M M M M

5ess cape9 M %*G M 11+ M 11+ M

@dd nterest M M M M ,-$.?

CC2 M %*G M 11+ M 11+ M G7$1*

Disco!nted cash Qow M %*G M 1.+ M ?? M 7G$.+

P6 M 1?%$1,

88 1,H


31/58

5' Debt ss!ed(in Crores)

Bear @o!nt Period(Brs) 8ate /oratori! (in Brs)

1 M 1-- 17 1%H *

% M +* 1. 1.H %

* M +* 7 ?H 1

Short 'er 2inancing

'a9 8ate *7H

5evies 1,H

&2'2' &2'2( &2'22 &2'23 &2'24 &2'25 &2'26 &2'2) &2'2* &2'29

M %%* M %1% M %.. M 1+G M 1G% M 177 M 1*7 M 11, M ?. M -

M %-$G+ M %7$,+ M %,$.* M %%$,. M %.$7+ M 1+$7, M 1-$%- M 1*$G. M 1.$+* M G$-

M 1.$+. M 1%$1. M 1*$77 M 17$1+ M 1G$.. M 1?$., M %1$** M %*$+? M %-$G7 M %?$?

M %1%$*- M %..$%- M 1+-$G. M 1G1$7* M 17,$7% M 1*7$,+ M 11,$1- M ?.$%G M -*$7% M **$7

M *G$7+ M *G$7+ M *G$7+ M *G$7+ M *G$7+ M *G$7+ M *G$7+ M *G$7+ M *G$7+ M *G$7

M ?1$,? M +1$+, M G1$%, M 7?$7G M ,-$G* M *%$-1 M 1G$.+

M ?$17 M +$1+ M G$1% M 7$?- M ,$-G M *$%- M 1$G1

M ?$-, M 1.$-1 M 11$-G M 1%$+, M 1,$1% M 17$7* M 1G$.+

M +1$+, M G1$%, M 7?$7G M ,-$G* M *%$-1 M 1G$.+ M

M 1+$G? M 1+$G? M 1+$G? M 1+$G? M 1+$G? M 1+$G? M 1+$G?


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M G.$7- M ,?$., M %7$7G

M -$*7 M ,$,1 M %$*.

M %1$7* M %*$,- M %7$7G

M ,?$., M %7$7G M

M %G$++ M %G$++ M %G$++

M ,%$%+ M *+$.+ M **$,- M %+$*- M %7$%- M %1$+. M 1G$?G M 1*$G. M 1.$+* M G$-

&2'2' &2'2( &2'22 &2'23 &2'24 &2'25 &2'26 &2'2) &2'2* &2'29

65.0% 70.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0

8.58 9.24 9.90 9.90 9.90 9.90 9.90 9.90 9.90 9.

1.0% 1.5% 1.0% 0.5% -0.5% -1.0% -1.5% -1.0% -0.5% 0.5

0.69 0.63 0.58 0.53 0.48 0.44 0.40 0.37 0.33 0.

&2'2' &2'2( &2'22 &2'23 &2'24 &2'25 &2'26 &2'2) &2'2* &2'29

M +*% M +?- M ?-. M ?-. M ?-. M ?-. M ?-. M ?-. M ?-. M ?-

M +- M ?% M ?? M ?? M ?? M ?? M ?? M ?? M ?? M ?

M 1G M 1+ M 1? M 1? M 1? M 1? M 1? M 1? M 1? M 1

M ?*7 M 14..G M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G

&2'2' &2'2( &2'22 &2'23 &2'24 &2'25 &2'26 &2'2) &2'2* &2'29

M 14%.1 M 14%?, M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+

M 1-+ M 1+1 M 1?, M 1?, M 1?, M 1?, M 1?, M 1?, M 1?, M 1?

M ?*7 M 14..G M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G

M ?+ M 1.- M 11* M 11* M 11* M 11* M 11* M 11* M 11* M 11


33/58

M M M M M M M M M M

M ,%$%+ M *+$.+ M **$,- M %+$*- M %7$%- M %1$+. M 1G$?G M 1*$G. M 1.$+* M G$-

M 7-$.7 M -G$+1 M +.$.. M +7$.? M ++$%. M ?1$-7 M ?7$,? M ??$G- M 1.%$-% M 1.7$+

M 1?$-% M %*$G* M %+$.. M %?$G+ M *.$+G M *%$.+ M **$,% M *,$?1 M *7$?% M *G$.

M *-$,* M ,,$.+ M 7%$.. M 77$*1 M 7G$** M 7?$7G M -%$.G M -,$+, M --$G. M -+$G

M *-$,* M ,,$.+ M 7%$.. M 77$*1 M 7G$** M 7?$7G M -%$.G M -,$+, M --$G. M -+$G

M M M M M M M M M M

M M M M M M M M M M

M ,%$%+ M *+$.+ M **$,- M %+$*- M %7$%- M %1$+. M 1G$?G M 1*$G. M 1.$+* M G$-

M G+$G1 M +%$1- M +7$,7 M +*$-G M +%$7+ M +1$*+ M +.$.* M G+$7, M GG$7, M G-$,

M 7,$7G M 71$?+ M ,?$** M ,,$.+ M *?$G. M *7$-? M *%$.* M %+$-+ M %7$+, M %*$%


34/58

&2'3' &2'3( &2'32 &2'33 &2'34 &2'35 &2'36 &2'3) &2'3* &2'39

M *,

M ,$.*

M **$7-

M

M *G$7+


35/58

M ,$.*

&2'3' &2'3( &2'32 &2'33 &2'34 &2'35 &2'36 &2'3) &2'3* &2'39

75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0

9.90 9.90 9.90 9.90 9.90 9.90 9.90 9.90 9.90 9.

1.0% 1.5% 1.0% 0.5% -0.5% -1.0% -1.5% -1.0% -0.5% 0.5

0.28 0.25 0.23 0.21 0.19 0.18 0.16 0.15 0.13 0.

&2'3' &2'3( &2'32 &2'33 &2'34 &2'35 &2'36 &2'3) &2'3* &2'39

M ?-. M ?-. M ?-. M ?-. M ?-. M ?-. M ?-. M ?-. M ?-. M ?-

M ?? M ?? M ?? M ?? M ?? M ?? M ?? M ?? M ?? M ?

M 1? M 1? M 1? M 1? M 1? M 1? M 1? M 1? M 1? M 1

M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G

&2'3' &2'3( &2'32 &2'33 &2'34 &2'35 &2'36 &2'3) &2'3* &2'39

M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+

M 1?, M 1?, M 1?, M 1?, M 1?, M 1?, M 1?, M 1?, M 1?, M 1?

M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G

M 11* M 11* M 11* M 11* M 11* M 11* M 11* M 11* M 11* M 11


36/58

M M M M M M M M M M

M ,$.* M M M M M M M M M

M 1.?$,* M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,

M *+$*. M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G

M G1$1* M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G

M G1$1* M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G

M M M M M M M M M M

M M M M M M M M M M

M ,$.* M M M M M M M M M

M G7$17 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G

M %.$+- M 1+$-G M 1G$., M 17$77 M 1,$1? M 1%$?7 M 11$+1 M 1.$G+ M ?$+, M +$?


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&2'4' &2'4( &2'42 &2'43 &2'44 &2'45 &2'46 &2'4) &2'4*


38/58

&2'4' &2'4( &2'42 &2'43 &2'44 &2'45 &2'46 &2'4) &2'4*

75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0%

9.90 9.90 9.90 9.90 9.90 9.90 9.90 9.90 9.90

1.0% 1.5% 1.0% 0.5% -0.5% -1.0% -1.5% -1.0% -0.5%

0.11 0.10 0.09 0.08 0.08 0.07 0.06 0.06 0.05

&2'4' &2'4( &2'42 &2'43 &2'44 &2'45 &2'46 &2'4) &2'4*

M ?-. M ?-. M ?-. M ?-. M ?-. M ?-. M ?-. M ?-. M ?-.

M ?? M ?? M ?? M ?? M ?? M ?? M ?? M ?? M ??

M 1? M 1? M 1? M 1? M 1? M 1? M 1? M 1? M 1?

M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G?

&2'4' &2'4( &2'42 &2'43 &2'44 &2'45 &2'46 &2'4) &2'4*

M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+- M 14*+-

M 1?, M 1?, M 1?, M 1?, M 1?, M 1?, M 1?, M 1?, M 1?,

M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G? M 14.G?

M 11* M 11* M 11* M 11* M 11* M 11* M 11* M 11* M 11*


39/58

M M M M M M M M M

M M M M M M M M M

M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7 M 11*$,7

M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G1 M *?$G1

M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7 M G*$G7


M M M M M M M M M

M M M M M M M M M

M M M M M M M M M


M +$1? M G$,G M -$+% M -$%% M 7$-+ M 7$1+ M ,$G* M ,$*1 M *$?,


40/58

8!le

o1 CMPD-L Dt S=eet on Kudn/! Lubu! ;/o"B

Coal Ilock e9ploration sheet data

Sea 2raction

666 1G%7,7%7 *1%7 ?%$1+ .$%*

(') 1*%1,**% %+%-$7 *G$-1 .$.?

(/) 1?-G*+,7 %?.?$7 1-$7 .$.,

(I) %,G*,-?1 *7+% +,$*+ .$%1

(') %-?*,7?, *-,*$7 G*$G* .$1?

(I) %7--*G+. *1G* *+$., .$1.

**%?7G%- ,7%G$7 7*$7- .$1,et 8eserve(') *?-

@verage caloric val!e of the K!danali 5!b!ri Ilock

Coal ndia otied Price (as per cloric val!e)

Disco!nt 8ate (J6Es cost of capital)

ntrinsic val!e of coal block R P6(rH4 DC2(otied Price;/ine capacit

%.1- %.1G %.1+

8even!e M . .8even!e after disco!nting M M M

P6 M ,4G*,$-

pfront payent to /oC M ,G* ('his is to be

2B%.1- M %*G

0e here ass!e2B%.1G M 11+

2B%.1+ M 11+

@s per r!le the intrinsic val!e of a coal block is to be calc!lathe rate of ret!rn which is e!al to rate of ret!rn of the ini

=6 (K$Cal$" kg)(8ange)

@verage =6(K$Cal$" kg)(8ange)

!antity(in tons)


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G%G$,*

%-+$,7

1%1$%*

G-*$%-

-G+$*G

*.,$+.

-1%$*-

*,G7$+?

+ 6('

1.H

)

%.1? %.%. %.%1 %.%% %.%* %.%, %.%7 %.%-

M ,+*$1% M 7%*$*+ M 7-*$-, M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?.M *-G$.G M *-%$+G M *7-$7? M *,+$-* M *1+$1% M %?.$%? M %-,$+? M %,1$G1

payed in three installeents of 7.H4 %7H and %7H)

that this ao!nt will be paid in s!bse!ent two years

ed by !ltiplying C5 notied price with ining capacity ('P@) for each year of ine operg copany

@verage =6(K$Cal$" kg)(8ange)


42/58

%.%G %.%+ %.%? %.*. %.*1 %.*% %.** %.*,

M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?.M %%.$7- M %.1$%- M 1+*$-7 M 1-G$7+ M 17%$?% M 1*?$7, M 1%G$** M 11-$1?

tion and then applying DC2 at


43/58

%.*7 %.*- %.*G %.*+ %.*? %.,. %.,1 %.,%

M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?.M 1.-$.% M ?-$G, M ++$%+ M +.$77 M G*$7. M -G$.G M -1$%. M 77$+7


44/58

%.,* %.,, %.,7 %.,- %.,G %.,+

M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?. M -.*$?.M 7.$?- M ,-$7. M ,%$,* M *+$G% M *7$** M *%$%,


45/58

-nt!/ Cpe7 et!1t!on o MD u!ng Adn! nt

'his intial cape9 is !sed for ine developent e$g 8ehabilitation of P@P4

Me!// Ln"= epot on : Adn! Co/ M!n!

Coal /ining Proects

ParsaKente /acchakata Parsa

Iasic Details

5ocation :rissa :rissa :rissa@rea (s k) %+ %. 1*

3eological 8eserves (n ') 7** 14%*% %1.

9tractable 8eserves (n ') ,7% 141G. 1G,

:verall Stripping 8atio ,$.1 %$7 -$%G

9pected CoD 2B1* 2B1, 2B%1

Developent

Developent period (yrs) * * *

Prod!ction period (yrs) *. *. *.

Prod!ction

Peak prod!ction (n ') 17 7. 7Peak prod!ction fro 2B1- 2B1? 2B%,

0ashed coal as H of total coal GG$7.H G%$..H G%$..H

Cape9 and 2!nding

'otal cape9 (8s crore) M *4... M ,4?.. M 141%.

nterest rate Proect Debt 1,$..H 1*$..H 1%$..H

nterest rate 0orking Cap 5oan 1.$..H 1.$..H 1*$..H

Ieta 1$* 1$* 1$*


46/58

ep!e#MD$ e71p/e

5and @c!isition4 8econnaissance s!rvey etc

g Po@e"t #2'(2$

stiations

Chendipada 'otal K!danali 5!b!ri

:rissa ndia :rissa%% +* -$7

14-.. *7G7 *?-

14-.. **?- *?-

%$-- *$+-

2B17 2B1+

* *

*. *.

,. 11. 1*$%2B%1 2B1+

G%$..H G,$G7H

M 74G.. M 1,4G%. M %4.-.

11$+.H

1.$..H

1$* 1$*


47/58

Description 6al!e nit

'PC toal coal re!ireent d!ring 2B%.1, 1G+ '

Split 2S@ with C5 1,7 '

Captive /ining * '

Iilateral or a!ction % '

port %+ '

'otal Coal Iased Capacity installed till 2B%.1, *+-7, /0

'PC @vg Ioiler Fciency+G$7.H

*7H

Plant 5oad 2actor for 2B%.1, +1$7.H

Conversions

1kw hr *-.. K"hr

1Kcal ,$1+-+ K

'ypical =eat Cycle Fciency ('woCobined cycle(Irayton"8ankine) plants

and rest noral 8ankine Cycle plant)

Co/ -1pot e /!Be/ to bebndoned !n utue due to p!d

"p"!t dd!t!on b C-L nd "o/o1 NTPC "pt!0e 1!ne

M!nb/e "o/ o1 1!ne ! gene//6',)'% o t=e tot/ ee0e


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So!rce

'PC 0ebsite

I!sinessStandard

ndependentSt!dy report

ndependentSt!dy report

'PC nvestorPresentation

2S@ wit

Captive /iningT %HIilateral or a!ctionT 1H

portT 1-H

NTPC Co/ eEu!e1e


49/58

n A0ege -nd!n

"o/ ! t=e1//5',6'% /e

eF"!ent t=n!1poted "o/

o1Aut/!G-ndone!

GHSA et"

C5T +1H

nt &2'(4


50/58

@verage Caloric 6al!

2or!lae sed

@ :verall Conversion 2actorR

R

I

R

R

C

R

R

D

'otal Coal 8e!ired (kg) R

1G+......... R

pR

R

p is the @verage caloric 6al!e of

=eat inp!t re!ired afterconsidering the conversion

eFciency

!antity of coal re!ired for 1Kw of electricity generation


51/58

calc!lation for per K3 of coal (5etEs Say p K"kg)

Ioiler iciency U =eat Cycle Fciency

*.$-%7H

*-.. K"hr

:verall Conversion 2actor

11G77 K"Kw hr

I

p K"kg

11G77"p kg

nstalled capacity U 1... U (*-7 U %,) U (Plant 5oad 2actor) U C

*%,,.1%+1.?G1,*.

p

1+%%,$G? K"Kg

,*7%$?% Kcal"Kg

he coal !sed by 'PC in %.1, (Ioth Dosestic O ported)


52/58

@verage Caloric 6al!e of Doestic Coasl !sed by 'PC

@ 0eight of ported coal .$1-

I 0eight of Doestic Coal .$+,

C @ss!e ported Coal Caloric val!e to be

D Doestion Coal Caloric 6al!e .$-

0eigted average Caloric 6al!e R

,*7%$?% R

S!bstit!ting we get

R

=ence Doestic Coal @vg caloric val!e is R


53/58

in 2B %.1,

Kcal"Kg

Kcal"Kg

(@ U C) O (I U D)

(@ U C) O (I U D)

-7--$%- Kcal"Kg

*?,. Kcal"Kg


54/58

'PC coal based Proect !nder constr!ction Capacity /0

Iarethi %-,.

K!dgi %,..

3adarwara 1-..

nchachar 7..

Iilha!r 1*%.'otal Capacity addition +,-.


55/58

Coal 8eserves @vailable 8eserve !antity

Ianai -%?

Ihal!da 77.

Chandrabila 77.

'otal reserve available today for new capacity addition ()29

Production from newly allocated bloc to !tart by 2018


56/58

H!ng t=e 1e o1u/ de"!bed !n S=eet A0g C/ /ue #;2'$

@ss!ption

=ence Caloric val!e of Coal

!anntity of coal re!ired for 1Kw

'otal Coal re!ired per year for the new capacity addition

@ss!ing coal ininable aterial to -7H of the available reserve

'otal 8eserve 8e!ired ass!ing plant life of *. Brs

Net Co/ ee0e S=ot//

@ct!al !antity of Coal reserve @llotted (K!danali 5!b!ri4 :rissa)by C5

7"e "p"!t o (3' 1T //otted to JKSPDC pe


57/58

0e will stop iporting coal$ @ll the coal re!ireent will be f!llled by 2S@ a

R *?,. Kcal"Kg

R .$G1* Kg

R nstalled capacity U 1... U (*-7 U %,) U (Plant 5oad 2actor) U !antit

R ,*$., 'P@

R --$%% 'P@

R (9*6.62 '

I 25).62 '

R %-- '

-MC ode


58/58

d Captive prodection

of coal re!ired for 1Kw

NTPC for Kudanali-Luburi Coal Project

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Transcript of NTPC for Kudanali-Luburi Coal Project