Tag Archives: KPMG

Loss of output from captive coal mines cost the nation Rs 1.4 lakh crore

What is the financial cost to the nation from the loss of output from captive coal mines allocated to corporates? The figure is a whopping Rs 1.46 lakh crore, which is the result of delayed clearances for coal blocks as well as the companies’ own failure in developing mines.

The humongous loss figure has been arrived at by adding the additional cost of imported coal to meet a part of the shortfall with the value of electricity that could not be generated over the past five years because the other part of the shortfall could not be met even with imported coal. The second part represents the loss of a possible opportunity gain.

According to consultancy firm KPMG, the total loss of output from captive coal mines over the past five years is 394 million tonnes (mt) based on delays with reference to a normative time of 54 months to develop allocated mines. Of this, 200 mt shortfall was substituted by imported coal. Assuming the delivered cost of this coal is Rs 3,980 a tonne, and the cost of domestic coal for a port-based plant at Rs 2,380 a tonne, the additional cost of imported coal works out to Rs 32,000 crore.

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Source: Business Standard

KPMG India report paints bleak power scenario, but bankers optimistic

A shortage of fuel has stranded more than 33,000 megawatts (MW) of power generation in India, and if the situation does not improve fast, Indian banks could be staring at a bad debt of more than Rs.1 trillion, according to a white paper by a global consulting firm, even as bankers said things have improved substantially in the sector and bad debts are not likely to deteriorate in the near future.

Bad debt as a percentage of total advances in the power sector stands at 0.57%, according to Reserve Bank of India (RBI) data. However, including restructured advances, the ratio is 19.40% at the end of fiscal ended March against 13.30% a year ago. It was as low as 4.11% in the fiscal to March 2011. This includes advances to state electricity distribution companies (discoms), which together accounted for Rs.1.9 trillion of restructured advances.
“A big concern today is a lack of financing available for new projects,” said the report by KPMG?India, titled Recharging the Power Sector. The 13th Five-Year Plan requires Rs.1.27 trillion of private sector equity and the project pipeline looks weak, the report said.
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Source: Mint

India to reach solar market potential of 12,500MW by 2016-17

With solar PV capacity rising from under 20MW to more than 1,000MW in two years, all eyes are turned towards India. The latest energy report from KPMG, The Rising Sun, predicts that India has a solar market potential of 12,500MW, calculated to be reached by 2016-17.

India currently has a power deficit of 9%, expected to continue its steady increase over the next few years. This has generated net losses of INR88,170 crores this year.

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Rooftop solar power can be a game-changer: Report

KPMG In India through its latest Thought Leadership “The Rising Sun”, reveals that the rooftop solar power will see parity faster with utility tariffs due to high T&D losses and cross-subsidies present today and parity in many categories can emerge as early as 2014. For this segment, the solar lease model could become a game-changer.

“Solar power technology can help India leapfrog in the energy sector as we are in a unique position in time when solar power costs are becoming competitive with alternate sources at a time when our energy requirement is going to grow two times over the next decade,”said Santosh Kamath, Partner, KPMG in India.

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Taxes and incentives for renewable energy : KPMG report

This report describes the 2012 taxes and
incentives provided by 23 countries around the
world to promote renewable energy from wind,
solar, biomass, geothermal and hydropower.
These policies also support other areas such
as increased energy eficiency, smart-grid
management, biofuels, carbon capture systems
and storage technologies. Content includes an
introduction on global trends in renewables, a
summary of renewable energy production in the
top ive countries and a brief outline of renewable
energy promotion policies in the 23 countries.

 

Original PDF

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