Imports
July 25, 2013
India imports billions of dollars of goods and services despite having the resources and manpower to manufacture the goods/services at lower costs on its shores. India’s […]
March 12, 2013
International Business After globalization becoming the buzzword in today’s world, international business has given a new shape and has also created a new dimension in the […]
February 25, 2013
Global Crisis & India Currently the global economy is undergoing the state of crisis. The recent eurozone second recession coupled with very slow growth in US […]
February 5, 2013
Foreign Trade Foreign trade is nothing but trade between the different countries of the world. It is also called as International trade, External trade or Inter-Regional […]
June 20, 2012
State Owned Chinese conglomerates strengthen their position in solar industry during industry crisis
While thousands of small solar companies in the world have gone / are going bust on account of massive industry oversupply and crashed solar panel prices, […]
February 9, 2012
US Coal Companies are being forced to close coal mines and reduce production because of a massive glut of cheap natural gas and emission standards . Note Coal Disadvantages are much more than that of other fossil fuels making it the dirtiest form of energy. While India and China face massive coal shortages , USA on the other hand faces a glut . Coal has been coming under increasing attact in the West with few new thermal plants being opened and many closed due to tougher pollution standards. Note Clean Coal Technolgies and CCS is being promoted to prolong the use of Coal but they are not getting much traction.
February 3, 2012
China India Trade has been rising at very high growth rates over the last few years driven by the booming GDP growth in the fastest growing economies of the world. However India like other countries faces the mounting problem of a huge trade deficit with China which is growing all the time. Like Brazil ,USA this has become a major problem . Beside the official reported figures , there is a large clandestine trade takes place outside the normal channels. Massive imports from China go unreported to avoid excise duties and custom taxes. Both countries have corrupt officials and businessmen which facilitate trade without paying of taxes and duties. Unofficial Trade Deficit with China may be double the $27 billion reported in 2011.
January 26, 2012
Quick quiz. What is common to Suzlon, Moser Baer, Indo Solar, Websol Energy systems and Orient Green Power? All these stocks had successful runs on the stock market and hyped as the next game changers in wind energy, semi conductors, solar power and hydel/geo thermal power. Valuations were more on growth stories than through an hard nosed DCF spreadsheet. But now, they trade at record lows(like other stocks but what is different is the pressing fundamental concerns in each case). Is this a bubble finally bursting, or are investors panicking?
January 9, 2012
Coal Stealing and Pilferage by the Coal Mafia has always been done on a massive multi million dollar scale. In the coal rich states of Jharkhand, Bihar, West Bengal and Chattisgarh, Stealing of Coal is a major illegal industry. Everyone knows about it and nothing is done as most officials and politicians get a cut of the illegal gains. Corruption in India is institutionalized as governing bodies remain weak and powerless. Despite India's much touted growth story,all these needling problems have contributed towards the Indian GDP slowing down sharply. Unless governance is improved,its tough to see how India can achieve its potential.
January 4, 2012
Adani Power,which is a leading Indian electricity company and part of the Adani Group is set to invest big money in the solar power in India.The company plans to set up 140 MW of energy capacity according to news reports with an investment of $600 million.Given the current costs of solar equipment and solar panels ,the price tag looks high at almost $3.5 million/MW when the current prices are more like $2 million/MW for large power plants in low cost locations like India.
July 6, 2011
Coal is the biggest source of Energy for Electricity Production in the world and its use is expected to continue to grow to 44% of the Electricity Production by 2030 (IEA).Despite Coal having many dangerous disadvantages,its Advantages of cheapness and abundance have made it the Fossil Fuel of choice.With global reserves estimated to be around 200 years,it does not have the "peak oil" characteristics as well.Though not a Coal Fan,nonetheless Coal stocks are a great investment choice due to the fact of its growing demand which is outstripping supply.China and India are massively growing their electricity,steel and cement production which requires billions of tons of coal.China consumers almost 45% of the global coal production while Indian demand is growing by leaps and demands as well.Indian Power Utilities are grabbing up Coal Mines in Africa,Australia and Asia to secure feedstock for their gigawatt thermal power plants.Despite its growing importance Coal does not have a lot of choice in terms of investment unlike Fossil Fuels like Oil and Gas.Here is a list of Coal Stocks which one can invest in and the sole Coal ETF - Market Vectors Coal ETF (KOL).
July 6, 2011
The Indian economy has performed strongly over the last few years, regularly hitting 8% and above growth rates . This rapid economic growth has led to a significant increase in demand for crude oil and natural gas, to the extent that India is currently the sixth largest consumer of oil and gas. India is one of the biggest importers of crude oil and natural gas as it has to import 2/3rd of its requirements of Oil. Upstream activity in India has rapidly grown post liberalization with 42 active offshore rigs and several seismic vessels engaged in operations offshore on the east and west coasts. Several significant discoveries have been announced since the New Exploration and Licensing Policy (NELP) was introduced. The commercial discovery of the Dhirubhai field by Reliance in the deepwater Krishna Godavari basin has demonstrated the existence of significant reserves in the basins of India. As India imports about two-thirds of its crude oil requirement, Exploration and production of oil and gas is critical for India's energy security and economic growth. Over the years the E&P industry has registered significant growth, primarily due to spiraling crude oil and gas prices.
July 5, 2011
Steel is an essential material used in many industries – it’s the backbone to countless products, structures and services that shape the everyday lives of people throughout the world.One of the major uses of Steel is in the Manufacture of Pipes which are used to transport energy products.Pipelines are a transportation system that enables the safe movement of inordinate quantities of energy products to industry and consumers, literally fueling our economy and way of life. They are arteries of any Nation's energy infrastructure, as well as the safest and least costly ways to transport energy products.
In general Steel Companies in India with the exception of the Jindal Group are not involved in the Steel Pipe production .Most of the Steel makers in India have major operations in foreign countries particularly Middle East.The boom times seem to be over for the sector and competition has become higher.
July 5, 2011
Stainless steel production in India increased from 0.5 million tonnes in 1994-95 to 1.76 million tonnes in 2004-05. India has emerged as one of the top ten stainless steel producer in the world. With a production of 1.1 million tonnes during 2002, the country was ranked 8th in the world. With the economy booming, there is increasing demand for a wider range of products and services in stainless steel.Stainless Steel is manufactured by the mainstream Steel Companies in India beside there are some focused stainless steel companies as well.The Mining Industry in India supplies most of the raw materials used in the production of Stainless Steel.
July 5, 2011
Production of iron ore in the country is through a combination of large mechanised mines in both public and private sectors and several smaller mines operated in manual or semi mechanised basis in the private sector. During 2001-02, 215 iron ore mines were operating in a total 638 leases which increased to 261, during 2005-06 operating in 505 leases. During 2006-07, India produced 172.3 MT of iron ore including lump, fines & concentrate. Normally, iron ore mining in India is done by opencast method and on the basis of mining methods, the mining can be broadly divided into two categories, i.e., manual and mechanized. Majority of the large mechanised mines are in the public sectors whereas manual mines are mainly in the private sector. In order to support steel production of 110 MT by 2019-20, the requirement of iron ore is placed at 190 MT & exports have been estimated to be around 100 MT. World iron ore production was 1,690 MT in 2006. Although iron ore is mined in more than 50 countries, the bulk of world production comes from just a few countries. The five largest producers are Brazil,China, Australia, India & Russia.
July 5, 2011
In 2007 the World Crude Steel output reached 1343 million metric tons and showed a growth of 7.5% over the previous year.China remained the world’s largest Crude Steel producer in 2007 also (489 million metric tons) followed by Japan (112. million metric tons) and USA (97 million metric tons). India occupied the 5 th position (53million metric tons) (Source: IISI). According to an estimate by Credit Suisse, India’s steel consumption will continue to grow at nearly 16% rate annually, till 2012, fuelled by demand for construction projects worth US$ 1 trillion. The scope for raising the total consumption of steel is huge, given that per capita steel consumption is only 40 kg – compared to 150 kg across the world and 250 kg in China.
July 4, 2011
Fly Ash Pollution of nearby water bodies had forced the Orissa State Pollution Control Board (OSPCB) to issue a notice to the massive 3000 MW NTPC Talcher Thermal Power Plant.While the notice asked for immediate shutdown of 4 untis of 500 MW,NTPC has only closed down 1 unit citing that closing more units will lead to massive power disruptions in nearby states.The action comes following NTPC bad fly ash managment system which has led to two past incidences of water pollution.There was a danger that the massive amounts of fly ash being generated would lead to breakdown of the storage dykes and lead to more pollution.
July 4, 2011
Indian Electricity Companies are crying for a bailout from the government after coal prices surged last year amidst shortages of coal.Note before the Lehman crisis,Indian private […]
May 31, 2011
India and China are largely dependent on Coal for fueling a majority of their energy needs despite the evident disadvantages of coal.China derives almost 80% of its electricity from coal while India uses Coal for 50% of its Energy Needs.Most of the new power plants being built in India have plans to use thermal power which means that the coal demand is going to skyrocket even as these 2 Asian giants are already suffering from coal shortages.India's Coal Production is falling short as the Environment Ministry makes it tough for the coal miners to dig up virgin forest areas even as private Indian power companies keep on building gargantuan thermal power plants of more than 4,000 MW capacity.Most Indian companies are now racing to acquire coal mines abroad joining the Chinese companies.Seeing the massive potential in coal,international resource giants such as Rio Tinto and others are trying to access coal assets as well.
May 30, 2011
Coal has become the hottest energy topic in the world’s fastest growing economies India and China which depend on Coal for a majority of their Energy […]
May 3, 2011
Coal M&A is picking up at a feverish pace as the demand and price of coal shoot through the roof.Note Coal is the cheapest fossil fuel and powers most of the world's power plants despite its disadvantages.The abundance and cheapness of coal has managed to hide its deleterious effects.Indian and Chinese companies are gobbling up coal mines and companies globally as they rush to secure raw material for the growing thermal power plant capacity.The Adani Group is one of the leading Indian private power companies setting up gigawatts of new thermal power plant capacity.Mundhra Port the Adani Flagship has been buying up coal plants,ports and building power plants to vertically integrate itself in the whole coal supply chain.It recently bought the Australian Linnc Energy's Gaililee coal project for USD 2.7 billion.It has followed it up by buying Abbot Point Coal Terminal from the Queensland state of Australia for 1.8 billion Australian dollars.
May 2, 2011
Arch Coal is the 3rd largest Coal Company in the USA. During the year ended December 31, 2009, the Company sold approximately 126.1 million tons of coal and operated 19 active mines at 11 mining complexes located in the United States. On October 1, 2009, the Company acquired Rio Tinto’s Jacobs Ranch mine with 345 million tons of coal reserves and integrated it into the Black Thunder mine.International Coal on the other hand is a small producer with a market cap of $2.2 billion previously which has managed a nearly 50% premium.Market Cap of $2.2 Billion is a producer of coal in Northern and Central Appalachia .As of December 31, 2009, the Company operated a total of 11 surface and 11 underground coal mines located in Kentucky, Maryland, Virginia, West Virginia and Illinois.The Company’s mines in Central Appalachia produced 10.1 million tons of coal in 2009, and the mines in Northern Appalachia produced 3.9 million tons of coal in 2009.
April 22, 2011
Mining Industry in India is an important economic sector which contributes significantly to the economy of India. India's minerals range from both metallic and non-metallic types.The total working mines were 2,854 in 2007-08 with 569 mines belonged to coal and lignite, 676 mines to metallic minerals and 1,609 mines to non-metallic minerals.There were 755 mines in public sector and the remaining 2,099 mines in private sector.India is an important exporter of iron ore, titanium, manganese, bauxite, granite, and imports cobalt, mercury, graphite etc. India mineral resources of the country are surveyed by the Indian Ministry of Mines, which also regulates the manner in which these resources are used. The ministry oversees the various aspects of industrial mining in the country.Note Mining in India comes under both the ferderal and state supervision.
April 12, 2011
Clean Coal Technologies – Greenwashing or Reality – List of Coal Technologies – IGCC,CHP,FBC,UCC,CCS
Coal is the largest source of electricity supply in the world with 41% of the global power coming from the burning of coal.The Pros of Coal have made the growth of Thermal Power Plants accelerate in developing countries like China and India.This has made Coal Stocks run up by more than 150% in 2010 and another 30% in 2010.However Coal is also the greatest contributor to Greenhouse Gas Emissions.Coal is also responsible for thousands of deaths directly and indirectly due to Coal Mining and Coal Combustion which leads to waste products like Mercury,Arsenic etc which are extremely toxic to human health.To solve the twin problems of cheap energy and global warming, a number of technologies have been been proposed which would reduce the harmful effects of Coal Combustion.
Despite a number of Clean Coal Technologies being developed and employed,carbon emissions from Coal Ming and Use can only be partly reduced and will not make a major impact on the problem of Climate Change.Clean Coal Technology is not a Green Solution to the Disadvantages of Coal.Saying that implementing Clean Coal Technology will result in Climate Change Mitigation is Greenwashing.That said these technologies need to be implemented till the world is ready to move away from its addiction to cheap energy provided by Coal even though it has a deleterious long term affect.
April 11, 2011
Market Vectors KOL ETF provides a good well diversified way to invest in Coal which is seeing a massive upsurge in demand driven by India and China.For investors looking for individual stocks here is a list of US Solar Companies and Stocks and Indian Coal Stocks.China with around 3 Billion Tons of Coal Consumption and India with another 500 million Tons depend on King Coal for majority of their Energy Needs.While China generates 80% of its Electricity from Coal,India generates around 65%.While both countries have Huge Reserves and Production of Coal,their voracious demand is leading to surging imports.These Imports are being sourced from countries like Australia,Canada and USA which are going through Coal Mining Booms.Ports are getting congested as Infrastructure failed to meet the growing coal needs of India and China..The Biggest Advantages of Coal its Abundance and Cheapness of Coal has made it the Fossil Fuel of Choice for Electricity Companies building power plants in developing countries despite its Drawbacks.This has led to a fight to secure Coal Supplies through vertical integration into buying up of coal mines,building ports and railways to transport Coal.Though India too faces some environmental opposition,massive ultra mega power plants with capacity of 4000 MW are getting built by new Indian private utilities.
April 11, 2011
Coal is the biggest source of Energy for Electricity Production in the world and its use is expected to continue to grow to 44% of the Electricity Production by 2030 (IEA).Despite Coal having many dangerous disadvantages,its Advantages of cheapness and abundance have made it the Fossil Fuel of choice.With global reserves estimated to be around 200 years,it does not have the "peak oil" characteristics as well.Though not a Coal Fan,nonetheless Coal stocks are a great investment choice due to the fact of its growing demand which is outstripping supply.China and India are massively growing their electricity,steel and cement production which requires billions of tons of coal.China consumers almost 45% of the global coal production while Indian demand is growing by leaps and demands as well.Indian Power Utilities are grabbing up Coal Mines in Africa,Australia and Asia to secure feedstock for their gigawatt thermal power plants.Despite its growing importance Coal does not have a lot of choice in terms of investment unlike Fossil Fuels like Oil and Gas.Here is a list of Coal Stocks which one can invest in and the sole Coal ETF - Market Vectors Coal ETF (KOL).
April 11, 2011
Coal is one of the most important sources of energy for mankind providing an easy way to generate energy in a cheap manner.The relative abundance and low costs of using Coal has made it the the first choice of Fuel for building Power Plants in the world.Coal has huge importance as an Energy source and forms the most important raw material for Cement and Steel.Coal is also used in a variety of other industries like Paper,Aluminium,Chemical,Transportation and Pharma.However Coal also has huge negative consequences as it is the largest source of Carbon Emissions which happen during Coal Combustion.Coal Mining despite two hundred years remain as hazardous as ever resulting in thousands of deaths in India and China.Mercury,Arsenic and pollution of other harmful substances into the environment causes diseases and many deaths as well.However for countries like India and China there are little other alternatives and there is no conviction amongst policymakers to change their energy strategies as well.So the advantages of Coal are currently overpowering those of the Cons of Coal.This despite Coal being the dirtiest form of Energy and causing many deaths globally.The main reason for the cheapness of Coal is that the societal costs are not added on explicitly to the Price of Coal making it seem artificially cheap.
April 9, 2011
Coal is the Biggest Contributor to Global Warming generating billions of tons of carbon dioxide during combustion.Coal is one of the most abundant fossil fuels available on earth and it is expected that Coal will last another 200 years.The mass usage of Coal and its deleterious effect on the environment makes Coal a controversial choice of Energy.Coal is responsible for 25% of Human Energy Consumption and is the largest producer of Electricity in the world.
Coal causes Human Deaths in the Thousands each year directly through Mining Deaths and Indirectly through Human Diseases like Lung Cancer,Mercury and Arsenic Poisoning.The costs of Coal are artificially low because these costs are passed onto society and not explicity added onto the cost of coal powered electricity or coal products like Steel and Cement.Reducing Coal Usage gradually is a big necessity but given the growing hunger for energy by India and China and lack of a Climate Agreement that looks unlikely in the near future
April 9, 2011
Coal is one of the cheapest and most important sources of energy, responsible for 41% of electricity productionworldwide. In many important countries like India,China,Germany,USA,Coal is the primary source of electricity and energy.Other smaller countries also heavily rely on coal for example Poland 94% , South Africa 92%, China for 77% and Australia for 76%.Coal has played this a pivotal role in the development of mankind and his progress into the Industrial Age.Coal is an essential raw material and fuel for important global industries like Cement and Steel.Different qualities of Coal are used for different purposes.For example coking coal with higher carbon percentage is used in Steel Production while Thermal Coal is used in Production of Electricity.It was during the Industrial Revolution in the 18th and 19th centuries that demand for coal surged. Coal is responsible for almost a quarter of the global energy production,41% of the Electricity Production and more than 60% for Steel Making.Here is a list of the Major Uses of Coal
April 9, 2011
Coal is one of the most abundant fossil fuels available on earth and is a major supplier of energy.Coal is the largest producer of electricity in the world accounting for more than 40% of the global electricity production.This is expected to rise to 44% according to IEA.In the last decade global coal consumption has grown faster than any other fuel.Coal has many other important uses as well such as steel production, cement manufacturing 6 billon tonnes of hard coal and 909 million tonnes of brown coal were used with China accounting for almost 45% of the global coal consumption.Coal is also one of the largest sources of Carbon Dioxide Emissions as well responsible for double the GHG emissions from Oil.Coal is regarded as the dirtiest form of Energy due to high Carbon Emissions,Pollution,Hazardous Substances such as Mercury,Deaths due to Coal Mining etc.However the cheapness of coal,its established industrial base and abundance makes Coal indispensable in the Short Term just like Nuclear Energy.Here are the main Advantages of Coal