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KSK Energy Ventures Ltd.

BSE: 532997 | NSE: KSK | Series: NA | ISIN: INE143H01015 | SECTOR: Power - Generation & Distribution

BSE Live

Jan 15, 15:43
0.57 0.00 (0.00%)
Volume
No Data Available
109,263
  • Prev. Close

    0.57

  • Open Price

    0.57

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.57 (70044)

KSK Energy Ventures is not traded on BSE in the last 30 days

NSE Live

Jan 15, 15:46
0.55 0.00 (0.00%)
Volume
No Data Available
843,039
  • Prev. Close

    0.55

  • Open Price

    0.55

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

KSK Energy Ventures is not traded on NSE in the last 30 days

Annual Report

For Year :
2015 2014 2012 2011 2010 2009

Chairman's Speech

Dear Shareholders, Power generation in India has been on the increase with generation of 1,048 Terawatt hours (TWh) during 2014-15 on the back of doubling of installed capacity in the sector over the last decade. However, lower than 60% Plant Load Factor (PLF) experienced by private owned coal fired power plants across India during the year only goes to reflect the significant asymmetry that has occurred over the last three years with respect to fuel and transmission issues in the sector requiring corrective action for the sector as a whole. The Group''s gross generation of 6.16 TWhs during 2014-15 in spite of achieving an installed capacity base of 2072 MW only confirms to the overall sectoral trend of moderated PLFs. However, with the various challenges at 540 MW Sai Wardha and the 1,200 MW KSK Mahanadi power plants now being addressed, it is anticipated that gross generation could achieve 9 TWhs during 2015-16. Whilst the issues at Sai Wardha have seen certain improvement during the period and thereafter on account of partial resolution through Fuel Supply Agreement amendments, the full resolution with respect to price is anticipated for achievement during the current year. As regards, 3600 MW KSK Mahanadi power project, the same is India''s truly private sponsor driven Ultra Mega power Project with major achievements on the ground along with various ancillary infrastructure by group companies as below: * Power plant built over 2000 acres of land * c.72 kms of dedicated water pipeline from Mahanadi River * c.42 Kms of railway line from Howrah-Bombay Line * c.60 kms of transmission corridor Therefore substantial completion has been achieved at the power station with entire Balance of Plant for the project i.e DM plant, cooling water system, coal handling system, ash handling system, fuel oil system, chimney, ESP along with power evacuation system for the plant been completed, common civil works, boiler foundations for the construction units. This accounts for the substantial completion of the overall facility and the Company is currently in discussions with both Government and project stakeholders regarding the terms of existing drawn and undrawn financial facilities in order to match these to the current development and additional financing plans for KSK Mahanadi. The plan forward has now been agreed by the Consortium of Project Lenders and regulatory dispensation is currently being sought. The outcome of all of the above may impact on the timing of the strategic development of the remaining four units. However, in line with the overall Indian sector, the Company has suffered fuel supply setbacks during the year, wherein both the Fuel Supply Agreements with Goa Industries Development Corporation and Gujarat Mineral Development Corporation have become inoperable on account of the cancellation of their respective coal blocks by Hon. Supreme Court of India. In a recent development, the tapering linkage contract has been discontinued by the Ministry of Coal and an alternate Memorandum of Understanding based supplies has been proposed as an interim arrangement until 31st March 2016. It is now expected that the Ministry of Power and Ministry of Coal are currently planning a comprehensive new plan and structure wherein the coal supply plans would be formulated to address needs of those power plants that have physically progressed on the ground and with PPA commitments to DISCOMS already made. KSK Mahanadi together with multiple DISCOMS supply PPAs is pre- eminently qualified for favourable consideration and accordingly it is expected that necessary coal requirements of KSK Mahanadi could be suitably addressed. As regards the operational 1200 MW, in addition to Andhra Pradesh State Discoms, commencement of power supplies to the States of Tamil Nadu and Uttar Pradesh would enable achieving higher PLF during 2015-16 and associated operational and financial performance. Further, interim coal imports from overseas through appropriate collaborative arrangements that have been put in place and facilitated by working capital lenders, will provide sufficient fuel for the planned generation from KSK Mahanadi. The year continued to be a difficult time for the entire power sector in India and management have maintained their efforts to address various challenges in the operating projects. KSK''s bold growth initiative, from start-up to becoming a leading independent power producer targeting c.3% of total Indian power generation by 2017 (upon completion of all units of KSK Mahanadi), demonstrates KSK''s long term strategy and, upon successful resolution of various issues, demonstrates the potential for profitability in this key area of the Indian economy. I reiterate that KSK''s performance during the year would not have been possible without the valuable and appreciated support of its shareholders who have enabled us to pursue appropriate business opportunities in these challenging times. T.L. Sankar Chairman