Weekend Company Reading - Anil Sardana

Company -  Anil Sardana, MD, Tata Power

Source: CNBC

See higher coal sale volume in Q3  

On coal volumes and the lower coal sales:In Q2 the coal production was higher. We could do about more than 19 million tonne. However, the sales were restricted to 15 million tonnes. Reason that the coal could not go up-to the port side. They had some difficulty in the conveyors. But fortunately the production was already done. Therefore, in the coming quarter, we would be able to do much higher sales. We are increasing our margins and in the coming quarters you would see improved margins.

On looking at alternatives to source coal:As far as Tata Powers coal requirements, imported coal that we source for our plant in Gujarat, and our plant in Maharashtra; both the places are comfortably placed with coal sourcing. As far as our domestic coal requirement is concerned, for Maithon and Jojobera, we do not have difficulty

Volume ramp-up up to 70 million tonne per annum for FY13:The sales till now have been close to 32 million tonne. The guidance with regard to 70 million tonne still stays.

When can we expect the performance to stabilize and perhaps even turnaround for Mundra?Mundra plant is contributing positively to EBITDA and for H1; it has contributed in positive terms. It has been one of the very stable units.We are very satisfied with the way Mundra is responding. As far as the prices are concerned, we are already in CERC and our petition has been admitted recently.On a PAT basis, Mundra will continue to have a challenge for the reason that coal prices are not getting reflected in the variable cost.

On CERC petition:One has to hope and see how this whole thing pans out. There is a likelihood that the beneficiaries and us will have to further get on the table to see how the best solution can evolve and it is a win-win situation for both sides.  

Any chances that this matter will undergo litigation and be decided by the Supreme Court?As far as CERC is concerned, that itself is a court. It is equivalent to the High Court. The entire issue of judgment and adjudication is akin to being in the court. I am sure if a domain related court decides on a matter and there is a decision, then generally both sides will typically accept that.