More demand constraint than production constraint now in Indian coal sector: Partha S Bhattacharyya, Coal India

A lot was promised when Coal India went public like coal washery, coal production, better infrastructure but frankly Coal India has not lived up to its promise.

There are so many factors which determine whether a company of the size of Coal Infdia and of the complexity of Coal India can meet its promises or not. First off all the production growth that was promised was based on timely clearances, forest clearances and environment clearance and just about at the same time in 2010 when the IPO came up the Ministry of Environment & Forest came out with the blanket ban on all kinds of industrial expansion in those areas which they call the critically polluted and unfortunately most of the coal projects were in those areas.

Although the coal projects were not the cause of that pollution because we clearly demonstrated that the comprehensive environment pollution index for coal mines was much lower than the critical pollution levels. But still then it took more than two years to argue it out and for Coal India to come out of that problem so there was one factor which really came in the way of continuing with the 6% to 7% kind of production increase. But once those issues have been sorted out you must appreciate that from 2014-2015 onwards Coal India has turned back. 2014-2015 they gave a growth of 7%, 2015-2016 was an unprecedented growth of close to 9% which Coal India has given. Read more

Coal India provides update on subsidiary – Central Coalfields

Coal India announced that the Board of Directors of Central Coalfields, a subsidiary of Coal India has approved revision of coking coal prices with effect from 14 January 2017. The increase in price is done by subsuming the Washery Recovery Charge (WRC) which was being charged separately in the case of non-linked washery grade coking coal keeping in view the observation of ADRM.

Due to this revision, Coal India will earn approx. additional revenue of Rs 89.98 crore for the balance period of FY 2017 and additional revenue of Rs 222 crore for FY 2018 subject to achievement of production and dispatch target norms. Read More…

Coal imports down 25% at 14 MT in December

Coal imports fell by 25 per cent to 14.31 million tonnes in December, due to higher availability of domestic fuel.

The country had imported 19.15 million tonnes of coal in December 2015.

“Coal import (all type of coals) in December 2016 stood at 14.31 million tonnes (provisional) against 19.15 MT in December 2015,” mjunction, an online procurement and sales platform floated jointly by state-run SAIL and Tata Steel said.

The coal import in November, 2016 was at 12.51 MT. Year-on-year imports were lower because public sector power generation companies have virtually stopped buying imported coal as they are getting almost sufficient supplies of domestic coal,” mjunction CEO Vinaya Varma told PTI. Read More…

Coal India arm Central Coalfields hikes coal price, eyes more revenue

State-owned Coal India arm Central Coalfields Ltd has announced an increase in price of coking coal, which may help the PSU earn an additional revenue of nearly Rs 89.98 crore for the remainder of 2016-17 and Rs 222 crore for the next fiscal Read more

Panel defers green nod to MCLs Rs 335-cr coal washery project

A green panel has deferred its decision on granting environment clearance to Coal India arm Mahanadi Coalfields Ltd (MCL) for setting up of a Rs 334.72 crore coal washery in Odisha and asked it to get forest clearance first, and also sought other inputs.MCL has proposed setting up of a coal washery with 10 million tonnes per annum capacity in Basundhara area of IB-Valley Coalfield in Sundergarh district.

The Expert Appraisal Committee (EAC) of the Union Environment Ministry recently examined the MCLs proposal and sought more information from the company before giving green signal for the project.

“The EAC, after detailed deliberations, deferred the proposal for want of inputs. It has asked the company to provide firm schedule of obtaining stage-I forest clearance for 29.41 hectares of forest land,” a senior government official told PTI. Read More…

SteelMin seeks coking coal on long-term basis

As steel companies feeling the heat from surge in coking coal prices, the Steel Ministry has approached Coal Ministry to seek availability of metallurgical coal on long-term basis, a top official said.

“What we are asking the Coal Ministry is that when they auction the coking coal mines they should do it long-term, so that if the private sector wants to invest upon the washeries they are free to invest upon it,” Steel Secretary Aruna Sharma said.

Currently, domestic steel makers meet 70 per cent of their coking coal requirement through imports.

“It should not a short term…We want to underline it very clearly that coking coal mine should be for long-term. thats all,” she said adding that “So just create a facilitating platform by flagging all the issues and getting them resolved so that the steel sector blooms in a big way.” Read More…

Coal India goes big on digital, to sell 10% output via e-auctions

Coal India Ltd (CIL) is planning to sell 10% of its annual output in the next three years via e-auction, for which it is inviting bids from service providers.

State-owned MSTC Ltd and mjunction Ltd—jointly owned by Tata Steel and the Steel Authority of India Ltd (SAIL) — are the two existing service providers.

CIL has been conducting its e-auctions through the two service providers since the process started in 2005.

The country’s near-monopoly coal miner is set to sell 235 million tonne (mt) through the process during this year that comes to a yearly average of 78 mt. It had sold 51 mt and 80 mt in fiscals 2015 and 2016, respectively. Read More…

Coal India close to achieving e-auction target for FY17

Coal India has almost achieved its e-auction target for the current fiscal, and is looking at offering additional supplies.

At the start of the year, it targeted eauction sales of 120 million tonnes of which it has already achieved 113 million tonnes by December, officials said.

On offer is an additional 5 million tonnes which company officials think would be lapped up as its prices would be far lower than the international prices and it would offer a long-term assured contract which could be extended to 25 years. This would make it 118 million tonnes against a target of 120 million tonnes “We are now looking at offering additional volumes depending on the demand and stock positions at various coalfields,“ a senior Coal India official said.

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Majority of mining lease issues in Odisha have been sorted: Piyush Goyal

Union Minister of State for Power, Coal, New & Renewable Energy and Mines Piyush Goyal today met Odisha Chief Minister Naveen Patnaik in New Delhi to discuss the mining lease issue in the state among others.

Speaking to reporters after the meeting, Goyal said that they held discussions pertaining to mining leases to be granted in the state.

“The month of January is the last date for renewal. We have sorted out most of those issues,” said Goyal.

“I believe we have been able to agree on most of the issue that were flagged off. Particularly, taking power to every home in the state of Odisha. We also held discussion relating to some of the mining clearances for minerals to be mined in Odisha and for development of renewable energy in the state of Odisha,” he added. Read More…

China to invest $360 bln in renewable power over four years through 2020

China will invest 2.5 trillion yuan ($361 billion) in renewable power generation between 2016 and 2020, the National Energy Administration (NEA) said on Thursday, as the world’s largest energy market pushes to shift away from coal power.

The investment will create over 13 million jobs in the sector, the NEA said in a blueprint document that lays out its plan to develop the nation’s energy sector in a five-year period.

The NEA repeated its goal to have 580 million tonnes of coal equivalent of renewable energy consumption by 2020, accounting for 15 percent of overall energy consumption. Read More…