The recent grade downgrades at Coal India’s mines could hit its realisation from fuel supply agreement (FSA) by 3-5% and estimated earnings for the current fiscal year by 11-16%
The supply of coal by state-owned Coal India to power sector increased by 1.3 per cent to 420.2 million tonnes (MT) in 2016-17
Coal India Ltd (CIL) on Tuesday said the coal quality watchdog Coal Controller Organisation has downgraded 40.76 per cent of 871 sidings at 386 mines in 2017-18
Thermal power companies including NTPC, the biggest of the lot, would be paying less for their coal requirement this month onwards as the Coal Controller, after a mammoth exercise, has reassessed and downgraded quality of about 177 coal mines across the country, sources said.
Coal India Ltd is actively looking to acquire coking coal assets in Australia, a senior company official told Reuters, as the country looks to beef up its foreign coal assets
The Minister said that the Government is fast opening up the coal sector to competition in near future and private miners would be coming into the sector to bring in competition. He also said that we are working towards bring linearity in pricing of coal between lower and higher grades.
Encouraging stakeholders of power and sectors to work on a Mission Mode to serve the masses and make India self reliant in coal reserves, Union Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, Piyush Goyal said on Wednesday that the “Difference between the Possible and Impossible lies in a Man’s determination.”
State-owned CIL is looking at spending Rs 8,500 crore on capital expenditure next fiscal, starting April 1.
No coal mine / block has been auctioned in the last one year under the provisions of the Coal Mines (Special Provisions) Act, 2015. However, 6 coal mines have been allotted to State Government Undertakings for sale of coal in the last one year under the provisions of the said Act.
The government has so far allocated 82 coal blocks and mines by way of auction / allotment under the provisions of the Coal Mines (Special Provisions) Act, 2015 and the Rules made thereunder. Of these 82 coal mines, 31 have been allocated through e-auction and 51 by way of allotment.
State-owned miner Coal India Ltd (CIL) announced another interim dividend of Rs 1.15 per share of face value Rs 10 on Sunday.
The capacity utilization of thermal power plants has been in the red for the last several years. From a peak of 79 per cent in 2007-08, it fell to 75 per cent in 2010-11 due to the twin reasons of faster capacity addition and stressed coal availability. It now stands at less than 60 per cent despite availability of coal.