Jindal’s Cheap Coal – Rs.1 Power Sold for Rs.6, Ambani Tata Paid Rs.10
Honorable Members of Parliament,
Can you believe Subscribed Equity Capital of Jindal Steel & Power was Rs.12 crores in 1998 only majority owned by Indians – OP Jindal’s salary of Rs.39,000 pm – other allowances like Annual Leave Travel Allowance Rs.15,000/- for Self and Family were approved by Special Resolution of AGM 1999-00 now own Mining, Steel, Power, Petroleum Interests & Projects in Australia, China, Indonesia, Georgia, Bolivia, Congo, Zimbabwe, Mozambique, Madagascar, South Africa besides Chhatisgarh, Jharkhand, Orissa in India? Annual Report 2009-10
Can you believe Paid Up Equity Jindal Steel & Power is Rs.93 crores 2011-12 or 0.5% of the turnover? Was Rs.12 crores in 1998 or 4% of the turnover and 2003-04 Rs. 153961340 or Rs.15.4 crores or 1% of the turnover.
Jindal Own Natural Resources Worth $Trillions, Tiranga to 10 cr Poor
TURNOVER OF FOREIGN OPERATIONS ARE NOT DETAILED IN ANNUAL REPORTS.
Naveen Jindal gave us right to Hold National Flag when 80% of population or 10 crores poor in project areas of Chhatisgarh, Jharkhand and Orissa don’t have anything to wear on chests and rags around waste or single old saree to cover entire body for women as their live long treasure.
Ambani, Jindal, Adani had surpassed ENRON in manipulating the Power Market 2000-2001 – I attached CPUC report on how Power Markets Was Rigged by Under Declaring Availability, Unscheduled Shut Downs, Manipulating Congestion By Exporting Importing Power Through Fictitious Trading, etc.
Here in I have further expanded to TOI story – Jindal have operational Coal Mines, Iron Ore Mines, Coal Washeries since NDA times so the cost of power generation at captive power station just 10 kilometers from Mines shouldn’t be more than Rs.1 per unit but charged Rs.6 per unit.
In the attached ‘BRPL Conned GoDelhi, DERC and APTEL - Rs.1045 Crore + FRAUD 2009-10 (C)’ ten days ago I had reported how BRPL cheated Delhi consumers of Rs.1045 crores – BRPL+ BYPL + NDLP together Rs.2000 crores in just 2009-10.
TOI had now come up with New Exposures of How Navin Jindal Company Sold captive power plant generation at average price of Rs.6 per unit.
But actually Purchased Price to Delhi was Rs.10 per unit plus T&D cost.
Even before UPA came to power or when BJP ruled both at Center and Chhatisgarh Jindal Steel & Power was already mining & selling 2.18 million tones of Iron Ore, Mining 2.49 million tones of coal, 6 million tones of Coal Washery, producing 2.15 mullion tones of steel making long products.
AR2011-12 Page98 Promoters Equity 58.9% - Public 7.8%
The equity shares of the Company of face value of Rs.10/- each
were subdivided into two equity shares of Rs.5/- each with effect
from 30.12.2003. Consequently, the Authorised equity share
capital now consists of 4,00,00,000 equity shares of Rs.5/- each
and subscribed and paid up equity share capital of 3,07,92,268
fully paid up equity shares of Rs. 5/- each.
Obviously people of Chhatisgarh, Jgarkhand and Orissa don’t even own 1% in Jindal Companies – majority are in fact registered and operated in foreign countries.
Secret of Jindal’s success Cheap coal, costly power
Cong MP’s Firm Not Bound By Tariff Agreement
Supriya Sharma TNN September09, 2012
New Delhi: As recent revelations have shown, many gained from coal blocks by selling stakes in their companies. But a few gained by simply producing and selling power at high prices.
A case in point is Jindal Power Limited (JPL), a subsidiary of Jindal Steel and Power Limited (JSPL), owned by Congress MP Naveen Jindal.
Its coal-fired power project in Chhattisgarh’s Raigarh district is the first ever project in India to operate on a ‘merchant power’ basis. This means that unlike other projects bound by tariffs fixed through longterm power purchase agreements (PPAs) with state governments, JPL is free to sell power at spot rates to any buyer in the market.
The company’s 1000MW plant turned fully operational in 2008. Over the next year, it sold power at an average price of more than Rs 6 per unit. By 2010, the high returns had not only covered its running costs but also investments of Rs 4,338 crore. According to infrastructure experts, it takes a minimum of 5-7 years to repay debt incurred for capital investment in power projects.
However, that’s not the case with this project. A July 2011 report by the research firm Motilal Oswal notes, “Jindal Power has become debt-free within two years of operation due to strong cash flows on account of low cost.” A big component of the low cost was cheap coal obtained from its captive coal mine just 10km away — Gare Palma IV/2 and IV/3 with combined reserves of 246 million tonnes of coal.
Koda under scanner for pushing ‘dummy cos’
Former Jharkhand CM Madhu Koda, who is facing charges of corruption, may soon come under the scanner for recommending 13 coal block allocations to private companies during his tenure, of which CBI found instances of misrepresentation and fudging of net worth in four. CBI sources said three of these blocks went to “dummy companies” formed just before the allocation. One of the companies reportedly got a nod after stake was sold to an aide of Koda.
Goa to file FIRs against ex-CMs for mining scam
Aday after the Shah Commission indicted former Goa CM Digambar Kamat in the Rs 35,000 crore mining scam, CM Manohar Parrikar on Saturday said FIRs would be filed against Kamat and his predecessor Pratapsingh Rane within 15 days. On action against mine owners, he said, “If anything has been done illegally, we will not tolerate it.” The commission had blamed the state’s chief ministers and mines ministers between 1994 and 2010 for the alleged illegalities.
Jindal case deflates govt’s ‘low-cost power’ defence
New Delhi: The coal blocks allotted to Jindal Power Limited (JPL) in 1998, during the NDA regime, were followed by a slew of allocations under the UPA, which have culminated in making the Jindal Group the largest beneficiary of coal block allocations. It has reserves of 2,580 million tonnes of coal, while the second largest beneficiary in the private sector has just 1,500 million tonnes.
Emailed queries to Jindal Power went unanswered.
“The problem is not that the company got access to massive reserves of coal. The issue is that it uses cheap coal to sell power at prices much higher than the others,” says Sudeip Srivastava, an activist based in Chhattisgarh who has closely tracked the performance of the state’s power projects and has obtained documents which show that JPL sold 22 million units of power last October for a price as high as Rs 5.47 per unit.
TOI did a comparative analysis of three power projects in north Chhattisgarh — Sipat project of public sector firm NTPC, Amarkantak project of Lanco group and JPL’s Raigarh project. The three projects came into existence around the same time. Lanco and JPL have similar sized units while NTPC’s units are larger.
But the big difference, said officials in NTPC, is the cost of coal. Lanco Amarkantak and NTPC Sipat buy coal from South Eastern Coalfields, a subsidiary of Coal India. JPL mines its own coal. NTPC’s average fuel cost last year came to Rs 1,200 per tonne while Lanco’s cost worked out to an average of Rs 1,020 per tonne.
Jindal officials refused to share the company’s coal cost figures. But sources in Chhattisgarh’s mining industry said JPL’s cost could not exceed Rs 300-400 per tonne as it extracts coal from an open cast mine for which it had bought land at low prices. Taking an even broader estimate of Rs 500 per tonne of coal, based on Coal India’s current margins, would still leave JPL with half the coal cost of its competitors.
Cheaper coal should ideally translate into lower power prices — at least this has been the coal ministry and UPA’s key defence. They have argued that coal blocks were given for free to private companies to keep power tariffs low.
But despite having the cheapest coal, Jindal sold power at the highest prices — Rs 3.85 per unit in 2011-2012, compared to Lanco’s Rs 3.67 and NTPC’s Rs 2.20. The previous year, JPL had sold power at an even higher rate of Rs 4.30 per unit. The combination of cheap coal and high power prices explains why Jindal posted Rs 1,765 crore as profits, or 60% of its income, while Lanco made a profit of just Rs 155 crore, just 12% of its income.
In fact, attracted by the merchant power rates, Lanco Amarkantak reneged on its long-term agreement with state power companies. But it was punished. This year, Coal India stopped supply to Lanco’s plant for 35 days on the grounds that only those with long-term PPAs with state power distribution companies were eligible for coal at discounted rates. Those who did not have longterm contracts with fixed tariffs would have to buy expensive coal from auctions.
The directive had originated from the power ministry. Issued on June 15, after ‘Coalgate’ revelations had forced the government into face-saving measures, it said the move was aimed at ensuring that “the benefits of coal prices at (Coal India’s) notified rates was passed on to consumers”.
But what about the companies that do not depend on Coal India and have even cheaper supplies of coal from captive coal mines? “Regulators must step in and reopen contracts and force those with captive blocks to sign long-term pacts with state distribution companies,” said Vinayak Chatterjee, chairman of CII’s National Task Force on Regulatory Framework in Infrastructure. “What we saw in the last few years was a policy aberration which must be corrected. Those with far lesser costs must not be allowed to leverage it in the merchant power market,” he said.