CCAI Annual Report - 2021-22

CCAI ANNUAL2021-22REPORT

Phone: 033-2230 4488 / 033-4008 2776

COAL CONSUMERS’ ASSOCIATION OF INDIA

Email: Website:info@ccai.co.in/sec.ccai@gmail.comwww.ccai.co.in

4, India Exchange Place, 7th Floor, Kolkata- 700001

Page 1. Executive Committee Report 3 2. Seventy Sixth Annual General Meeting 4 3. Activities of the Association 6 4. Auditors Report 23 5. Coal

India at a

and growth over previous years 37 11. Plant

of coal projections 42 16. Pan-India summary of renewable energy generation 44 17. Yearly index & growth rate of eight core industries 45 18. Monthly index & growth rate of eight core industries 46

plants) 38 12. Power

2021-22 39 13. Overview

CONTENTS sector in glance: wise coal despatch generation load factor & lignite based supply position during 2009-10 to of all India energy program term demand

2021-22 31 6. Sector

(5 years) 32 7. Coal production and despatch for last 10 years 33 8. Pan-India sector-wise installed capacity 35 9. Sector-wise capacity addition in last ten years 36 10. Total

(coal

and generation 40 14. State wise coal reserve 41 15. Medium

CCAI ANNUAL REPORT, 2021-22 2

Mr. V S Mishra Birla Corporation Ltd

COAL CONSUMERS’ ASSOCIATION OF INDIA REPORT OF THE EXECUTIVE COMMITTEE FOR THE YEAR 2021-22

Mr. Prithvijoy Ganguly Birla Corporation Limited

Recognition by Various Bodies: The Association continued to be recognised by various Government and Semi-Government bodies as the major representative organisation of the industrial coal consumers in the country. The Association was consulted from time to time in the matters affecting the interests of the industrial coal consumers in the country.

Vice President

Mr. Pradeep Purohit Star Cement Limited

Mr. Yogesh Agrawal DCM Shriram Limited

Mr. Rajiv Kumar Angra Vardhman Fabrics Limited

President Mr. Prakash Sethia India Power Corporation Limited

Mr. Durga Sadhan Nag West Bengal Power Dev. Corp. Ltd

Co-opted Member

Various coal producing countries and mining companies have approached Coal Consum ers’ Association of India for providing a platform by organising meetings in order to col laborate and work as a conduit towards mutual business interests.

The Executive Committee of the Coal Consumers’ Association of India have great pleasure in submitting to the Constituents the Seventy Sixth Annual Report of the year ended March 31st, 2022 together with the audited statement of Accounts for the period.

Executive Committee: In pursuance of the provisions under Article 18 of the Articles of the Association, the Executive Committee for the year 2021-22 as confirmed at the last Annual General Meeting of the Association held on September 30, 2021 comprised of the following gentlemen:

Mr. Dipten Banerjee Hindalco Industries Limited

Mr. Sanjay Kumar Damodar Valley Corporation

INTRODUCTION:

CCAI ANNUAL REPORT, 2021-22 3

Executive Members

Mr. Deepak Kumar VISA Group

Mr. Kapil Dhagat Jindal Steel & Power Limited

Mr. Sanjib Narayan Lahiri CESC Limited

Shri Kapil Thapar, Executive Director, Fuel Management of RP-SG Group termed the ongoing coal situation in India as the bleakest period in the last 15 years. He urged CIL to at least honour the fuel supply agreements and provide coal to the FSA holders as per MSQ. He also reasoned that the CIL Subsidiaries may refrain from

Explainingcrisis.the

reasons behind ensuing coal crunch across the sectors at present, Head of CCAI Western Chap ter Shri Devendra Arolkar stated that the supply has been severely affected due to prolonged monsoon in several parts of India. He apprehended that under the current situation, coal prices may go up even further. He said the overburden removal may commence from November this year which means it may take till MarchApril of 2022 for the supply situation to normalize. He also suggested that CCAI may explore the opportunities by holding discussions with successful bidders of the commercial coal blocks so that coal can be procured from them in the near future.

Talking about the financial health of the Association, the outgoing President pointed out that CCAI has suffered considerable loss in the last financial year and recorded a negative growth in revenue generation.

At the outset, the outgoing President thanked everyone present in the meeting for reposing trust in CCAI and for attending the AGM as well as the First Executive Committee Meeting. He highlighted the plight of Utilities and Industries since last one year due to various impediments caused by the pandemic and complemented the member companies for their efforts to bounce back amid the ongoing adversities. He observed that at present the Association might have lack of resources but not intentions.

CCAI ANNUAL REPORT, 2021-22 4

He also pointed out that a number of CCAI member companies belong in the lowest threshold of member ship tariff. However, their actual consumption of coal at present refers to a higher slab. He sought a little bit of handholding from these esteemed member companies in this regard for the sustenance and growth of the HeAssociation.saidthat due to the pandemic situation and subsequent closure of office premises for several months, the invoices for CCAI Annual Membership Subscription could not be raised in time, which caused revenue genera tion of this age-old Association to decline further this year. Shri Maity further stated that in order to enhance services of the Association, it requires better workforce so that officials may be placed at strategic locations like New Delhi and at certain Subsidiary Coal Companies covering zonal Railways so that issues of coal quality, procurement and supply may be addressed in a more efficient manner-a point that was mutually agreed upon by the members.

Shri Swapan Maity and members of the Association congratulated Shri Prakash Sethia from India Power Cor poration for being elected as the new President of the Association and Shri Dipten Banerjee from Hindalco Industries Limited on becoming the new Vice-president of CCAI. CCAI Executive Committee member Shri Deepak Kumar handed Mr. Sethia a bouquet of flowers and wished him good luck for his tenure as the Presi dent of the Association. In his opening remarks, the newly inducted President expressed gratitude for bestow ing the responsibility and said the Association is whole-heartedly committed to raise and highlight coal issues faced by its member companies.

SEVENTY SIXTH ANNUAL GENERAL MEETING:

The President, Secretary and some of the Executive Committee members of CCAI had attended the meeting physically maintaining standard COVID protocol while others had joined through virtual mode considering the safety and security of the valued members of the Association and officials of CCAI.

Talking about the present coal scenario in the country, he touched upon the pressing concern of acute coal cri sis since the last few months. He said coal stock at IPPs have depleted significantly amid huge power demand while the Non-regulated sector is struggling due to halted supply of coal from different Subsidiary companies especially by Rail mode. Meanwhile, the price of imported coal has risen to all time high and extensive ocean freight rates are touching the roof as well, making it unviable for the consumers to import at this point. He hoped that collaborative efforts by the Ministry and coal companies would help find a way to overcome the ongoing

Esteemed member companies from both Power and Non-power sectors graced the meeting through VC. The outgoing president of the Association, Shri Swapan Maity of WBPDCL was presented with a flower bouquet by CCAI Secretary Ms. Subhasri Chaudhuri.

Shri Pradeep Purohit, Senior Vice-President of Meghalaya Cement highlighted the plight of cement plants from North-eastern India under the present crisis and said their plants are hardly getting any supply as they are located at a far-off area from the mines. As the rake movements are completely halted for NRS consumers by Rail mode, many plants in North-east India are on the verge of closure. Also, these plants are not able to import coal due its elevated price and already running FSAs with CIL. He said the Ministry may release at least some quantity of coal immediately in order to ensure the sustenance of those plants. Many of the members present at the meeting readily agreed to the notion.

CCAI ANNUAL REPORT, 2021-22 5

discussion, CCAI Secretary Ms. Subhasri Chaudhuri said the Association is planning to hold separate meetings with members from Power and Non-power sector on regular intervals as the issues faced by both sectors are markedly different.

supplying coal which is much higher than MSQ to Power Sector at one go when it is available as it is not viable to the IPPs to procure excess quantities at all times. He urged CIL to give equal importance to both Power NRS consumers in terms of coal supply. The member pointed out that the Ministry of Coal and Railways are holding regular meetings with the stakeholders from Power Sector to overcome the ongoing coal crisis but no such meetings are being held with the NRS consumers as of now. He suggested that the Ministries may be urged for the same.

CCAI Secretary emphasised that under the current condition, procurement through Road and RcR mode may be considered as alternative mode of transportation. She said the Association has already made multiple rep resentations to the Ministry, CIL and Subsidiaries regarding large amounts of funds of the consumers being stuck with ECL and CCL in terms of coal value worth MSQ of more than three months. Though CCL has pon dered over and taken a stand on the same, confirmation from ECL is still awaited.

Talking about the world coal scenario at present Shri Vikramjit Singh of Rawmet Resources Pvt Ltd said the rising coal price is a major concern for the buyers of imported coal as South African 6000 NAR coal price has already crossed $200 mark. He explained that Russian miners are not showing interest in exporting coal to India as they are getting a good return from China due to their geographical proximity. Meanwhile, Indonesian coal prices are also on the rise owing to tight supply and high demand, leaving Indian buyers with fewer op tions. However, he pointed out that US coal prices are relatively competitive and 5000 NAR Australian coal price is comparatively on the lower side and urged the consumers to buy coal now if they have the funds as the price may go up further in the next few months owing to several factors.

Shri Deepak Kumar, Managing Director of Visa Coke Limited suggested that the Association may collect the figures of coal supply shortage from its esteemed member companies and write to Coal India and Ministry of Coal with collective data apart from writing individual letters regarding short-supply. He also urged the fellow members of CCAI to mark a copy to the Association while writing to CIL and Subsidiaries regarding their coal related Respondingconcerns.tothe

Mr. Rajiv Kumar Angra, Senior Vice-President of Vardhman Fabrics and some of the other members from the Non-regulated Sector expressed concerns over the grim coal supply situation. It has been highlighted that due to complete lack of supply, many plants are suffering huge financial loss and are on the verge of shutdown. The members in unison said the Ministry and Coal India needs to take up some positive measures to immediately resume coal supply.

Secretary.

The discussion was followed by a presentation entitled Future of Coal in India by Shri Devendra Arolkar. The meeting ended with thanks to the Chair and all present in the meeting and VC.

During the fiscal, the Association have made various representations on a daily basis to resolve the issues raised by its member companies. As it is difficult to provide the true reflection of the Association’s voluminous activities within a few pages, a glimpse of some of the concerns raised by CCAI during FY 2021-22 has been furnished below for your kind perusal:

Submission by Power sector regarding regular short-supply from various mines of MCL, SECL, ECL & WCL:

CCAI ANNUAL REPORT, 2021-22 6

Asperiod.partial

lockdowns and restrictions on public gatherings were still in place, Association organised and par ticipated in the numerous virtual meetings and video conferences with MoC, CIL and its Subsidiaries. CCAI was instrumental in raising all the relevant concerns which are detrimental to the interest of the consumers across the board and played an active part in formulation of new policies related to coal, power, Railways and mines by disseminating the views and suggestions of its valued member organisations. It is worth mentioning that overall activities of the Association have increased manifolds during the year.

*Power Sector consumers with linkage auction FSAs were facing short-supply via rail mode from MCL’s Talcher, Sardega sidings to the tune of 4%-5% and from Sardega and IB Valley to the tune of 1.5%-2% sidings during October ’21 while in some cases, short-receipt ranged up to 9% as well. 4% short-receipt could be observed

There has been extremely low materialisation of rakes allotted under e-Auctions including Special Forward e-Auction for Power Sector and rakes allotted under the same e-Auctions are pending indefinitely. More than 600 rakes are pending from SECL and MCL.

Introduction:

Throughout the financial year, Coal Consumers’ Association of India (CCAI) interacted with the Ministry of Coal, Power, Steel and DIPP, Ministry of Railways, Railway Board and the Zonal Railway offices, Chairman & Director Marketing and Senior officials of Coal India Limited (CIL) and its Subsidiary Coal Companies on regular interval both through written representations, telephonic conversations as well as in-person visits in order to highlight several operational, financial and quality related hurdles faced by its valued member companies during this

BRIEF DETAILS OF ACTIVITIES OF COAL CONSUMERS’ ASSOCIATION OF INDIA (CCAI)

Request has been made to Ministry of Coal, CIL, CEA and the Railway Board so that 15% - 20% of the total sup ply of rakes / day to the Power Sector may be earmarked and supplied against e-Auction quantities in tandem with FSA rakes.

After facing COVID-related restrictions and nationwide lockdown in 2020, India gradually unlocked its trans portation, business and industrial activities in a phased manner during FY 2021-22. In a bid to bring country’s economy back on track, Government focused firmly on increasing the production of raw materials including coal. Surge in power demand as well as increased industrial activities caused massive upswing in coal demand from both Power ad Non-power sectors. As maintaining sufficient coal stock at power plants was given prece dence, an unprecedented coal crisis descended upon the industries despite significant production growth by CIL, SCCL as well as captive mines and MDOs in the fiscal.

During the FY2021-22, CCAI also prepared three monthly reports on power generation- distribution, supply pattern of fuel to the power sector and industrial production, growth and coal supply to NRS consumers by col lating relevant data from multiple credible sources like MoC, CEA, National Power Portal, DIPP etc.

ACTIVITIES OF COAL CONSUMERS’ ASSOCIATION OF INDIA (CCAI)

Submission by Power Sector to expedite release of e-Auction rakes:

Amid a sea-change in demand-supply scenario in the global coal market in the aftermath of Russia-Ukraine conflict in early 2022 and India’s growing requirement of coal import, CCAI organised a webinar with the edito rial team of Argus Media Limited for its valued members where insightful discussions were held on global coal price trends and fundamentals, impacts of Russia-Ukraine crisis, South African coal market update, Indian coal import fundamentals and outlook etc.

OPERATIONAL CONCERNS:

been made to Ministry of Coal and Ministry of Power so that for the Case 2 Scenario 4 under Section 63 Power Plants, the Supplementary PPA is not required as the actual benefits/cost savings acquired through rationalization of linkages would be passed on to the State Distribution Companies.

Requests has been made to CIL and the concerned Subsidiaries to ensure proper loading of coal in rakes, ex amine and recalibrate the weighbridges at regular intervals etc. to mitigate instances of short-receipt.

*Power sector and Industries are asked to procure the allocated quantities from the same source in RcR mode. So number of trucks per consumer gets drastically reduced as road loading points function with a fixed capac

from Spur-I& II during April-May ’21. From Spur-III &IV and V&VI short receipts were 3-6%.

*Supply of coal through RcR mode is an intermittent supply arrangement for the Power Sector for a relatively smaller quantity. Therefore, the number of interested bidders is significantly less, causing rate of loading and transportation of coal to be significantly higher than the long-term contract awarded for the same area.

RequestPPA.has

As per CIL’s notification to certain IPPs which had submitted Expression of Interest (EoI) for availing the facility of linkage rationalization, the IPPs are required to sign a supplementary agreement approved by the appropri ate Electricity Regulatory Commission with DISCOMs to pass on the entire benefit of actual cost saving.

Due to high coal demand in Power Sector, CIL allowed supply of coal to the Utilities through Road-cum-Rail (RcR) mode as and when supply through Rail mode is insufficient. However,

Submission for prioritizing coal supply to super-critical plants set up under Section 63 of the Electricity Act:

*From Wani area of WCL, regular short-receipts to the tune of over 3% was occurring in the rakes supplied during October ’21.

TPPs which fall under super-critical category set up under Section 63 of the Electricity Act and 100% power tied up with the state electricity boards are getting much lesser number of allotted rakes as per coal supply matrix which has led to severe depletion of coal stock at the plant ends. Hence, they are not able to generate power to their full capacity.

CCAI ANNUAL REPORT, 2021-22 7

* From SECL’s Burhar, Churcha, Naurajabad, Bhatgaon, Rajnagar OC, Katora and NCPH sidings, 4%-7% shortreceipt was occurring in almost all the rakes supplied during Oct-Nov’21 period.

*There is substantial time lag between the issuance of DOs and starting of supply of coal from pithead to Rail way good sheds due to formalities like obtaining mining permit, truck permit etc.

* From ECL’s Bankola, Jhanjra, SonepurBazari, Pandaveswar, regular short-receipts to the tune of nearly 2% was occurring in the rakes supplied from those sidings in October ’21.

Soliciting dispensation for Case 2 Scenario 4 Power Plants under Section 63 of Electricity Act, 2003 to avail rationalisation of coal Linkages without any requirement of Supplementary Agreements:

Request has been made to Ministry of Power to consider these super critical plants at par with central and state Gencos in terms of giving priority regarding sanctioning and dispatching of coal rakes provide higher GCV coal.

However, IPPs which belong to Section 63, Case 2 Scenario 4 Power Plants established through a competitive bidding process for determination of tariff for procurement of power, for them actual landed cost of coal is passed on to the State Discoms irrespective of source/grade of coal. Therefore, any savings due to this linkage rationalization would automatically get passed through as per the Energy Charges Formula under Schedule 7 of the

Submission by Power consumers regarding obstruction in coal supply via RcR mode:

ity. Also, movement of trucks is only allowed for a fixed period (6 am-6 pm).

Appeal on behalf of NRS consumers regarding urgent requirement of Linkage Auction for Sub-sectors except Sponge-iron subsector:

Request has been made to CIL to conduct the Tranche-V of NRS Linkage Auction for rest of the Sub- sectors at the earliest possible and announce the tentative timeline for the Linkage auction well in advance so that the

Significant amount of linkage quantities to be supplied to the Industries have been kept pending since last year from a number of collieries under various CIL Subsidiaries (SECL sidings including Baroud, Jampali etc.). In some cases, RDOs against the offered quantities have not been issued yet.

Sudden upsurge of Covid-19 cases across India during March-April ’21 had made coal transportation through Road mode difficult due to transporters and drivers getting infected in large numbers, pocketed lockdown in different states and lower turn out of vehicles. In spite CIL’s decision to extend validity of RDOs till April’21, the consumers, whose DOs were issued in March’21, were not able to complete lifting within the extended time period due to COVID crisis.

Request has been made to the MoC and CIL to ensure that consumer-wise allocation of coal quantity may be commensurate with the loading capacity as per available infrastructure of a particular road loading point. Ra tional allocation of good sheds / private sidings based on booked quantity is also requested.

Power Utilities having their plants in the vicinity of Raigarh area in Chhattisgarh have stated that they have been offered coal in the previous tranches of SHAKTI (B) (viii) from far off mines (100-150 kms away by Road) from the Power generating plants. CIL’s decision to offer coal under Shakti (B) (viii) has helped the power plants but increased the price of coal due to increased transport cost.

CIL and its Subsidiaries have been requested for immediate issuance of pending DOs to the Industries against their Linkage quantities.

Submission for extension of RDO validity expiring in April, May ’21 till 30th June ’21 due to severe COVID situation:

CCAI ANNUAL REPORT, 2021-22 8

Submission by Power Sector Consumers of Raigarh area regarding allocation of coal under the dispensation of SHAKTI Policy, Para B (viii) (A) short term from nearby sources:

Submission for immediate issuance of pending DOs against Linkage quantity from different CIL Subsidiaries:

Request has been made to CIL so that the cluster of Power plants present near Raigarh area could be provided coal from nearby sources by the Subsidiaries such as Baroud OC, Chaal OC and Bijari OCP of SECL and Kulda and Garjanbahal OCP of MCL.

Request was made to MoC, CIL and the concerned Subsidiaries so that the facility to lift DOs ending in April & May’21 be extended upto 30th June for both Power and NRS consumers for FSAs and e-Auction Quantities.

The Tranche-V of NRS Linkage Auction for the Sponge Iron sub-sector was conducted in December, 2019, Linkage Auction of Non-coking coal for the rest of the Sub-sectors under Tranche-IV, was last held way back in November- December, 2018.

*The Railway good sheds handle both inward traffic and outward traffic. Therefore, till the evacuation of the inward traffic, stacking and loading of coal in rakes for outward traffic cannot be allowed.

Industries may plan accordingly for long-term procurement of coal.

During FY 2021-22, the number of Exclusive e-Auctions held by various CIL Subsidiaries reduced drastically and quantities offered in those auctions are not sufficient to meet the requirement of the NRS consumers. The offered quantity was also of comparatively lower grade and supplied via Road Mode, making it inconvenient for the big Industries and plants situated at a far-off location to procure coal seamlessly.

Request has been made to the Ministry of Coal, CIL and Subsidiaries to immediately offer coal rakes and in crease present supplies for NRS Consumers and also to conduct Exclusive e-Auction for the Non-power sector on a tri-monthly basis.

Railways have allowed close circuit dispatch within the division and Subsidiaries permitted conversion of mode of supply from Rail to Road. But the amount of coal supplied to the Industries is grossly inadequate for their Submissionsustenance. has been made to the Railway Board and CIL to increase supply of rakes to the NRS Consumers having linkages through a window of dispatches in close circuit.

Submission by NRS Consumers for conducting Exclusive e-Auction from various CIL Subsidiaries:

Due to dearth of supply in FSA and e-Auction quantities, many NRS consumers are compelled to procure coal from the open market by paying 3-4 times of the premiums or import coal in spite of surging global prices and soaring freight rates. Also, barring a few plants, most of the boilers, kilns and furnaces are designed to run mostly on indigenous coal.

Request for releasing long-pending rakes for NRS Consumers:

Request has been made to CIL and concerned Subsidiaries to immediately commence rake supply to the NRS Consumers so that they can run their plants.

CCAI ANNUAL REPORT, 2021-22 9

Supply of coal to NRS consumers via Rail mode has significantly deteriorated while Road mode supply has also been hampered as preference is given to Power Sector via Road-cum-Rail (RcR mode). Coal requirement of the NRS Sub-sectors is around 25%-35% of the total coal production which is around 5 lakh tonne but total quantity dispatched to NRS Consumers via Rail, Road and RcR mode combined is lower than 3 lakh tonne/day. Also, more than 4,000 FSA and e-Auction Rakes allotted to NRS have been pending.

While CIL Subsidiaries like SECL and MCL were dispatching a moderate number of rakes and even coal com panies like ECL, BCCL and CCL started supply via Rail Mode to the NRS consumers during the third quarter of FY 2021-22, there was hardly any supply of rakes from WCL and NCL to the Industries including CPPs till midJanuary over 500 rakes allotted Non-regulated Sector were pending from these two Subsidiaries.

Request has been made to the Hon’ble PMO, MoC, MoP, MoR as well as other relevant Ministries, CIL and its Subsidiaries to ensure a justified ratio of coal allocation between Power Sector and Industries by immediately releasing pending rakes, conducting spot and exclusive auctions more frequently and offering more quantity in the e-auction and linkage auctions.

Submission by NRS Consumers for increasing rake despatch in close circuit:

Submission by NRS Consumers to immediately improve supply of coal rakes to the Industries:

Exclusive e-Auction for NRS Consumers were stalled from most of the Subsidiaries in 2022 (except Steel grade coal from BCCL). Though Spot auctions were being held, NRS Consumers are compelled to procure coal from open market by paying extensively higher costs.

Request for consideration of CEA norms in determining normative coal requirement for CPP sub-sector in Tranche-V NRS Linkage Auction:

Request has been made to MoC and CIL to consider the provision of extending the FSA term through mutual consent of both parties (CIL and the NRS consumers) as per clause 2.4 of the NRS Linkage Auction FSA.

Submission for increasing offer of coal from ECL, SECL, WCL and NCL in Tranche V NRS Linkage Auction for Cement Sub-sector:

Soliciting extension of time gap of two weeks between the offer dates to commencement Tranche V NRS Linkage Auction for Cement Sub-sector:

Assessment of the annual coal requirement of various cement manufacturers highlighted for the cement manufacturers from North Eastern India, the cumulative annual coal requirement stands at around 20 lakh MT. Also, coal requirement by Cement plants from rest of India is much higher than what was offered in the Tranche V NRS linkage auction.

As per coal consumption norms laid down by CEA for CPP Sector, certain factors need to be considered for calculating normative coal requirement including loss of heat value of coal for storage @85 KCal/kg, 5% GCV loss due to the difference between GCV (ARB) and GCV (EQ) and 0.8% transit loss, which are not considered in the scheme document of CIL leading to less quantity of coal supplied to CPPs in comparison to their actual coal Requestrequirements.hasbeenmade to CIL for inclusion of these factors for calculating normative requirement of coal in the CIL scheme document for NRS linkage auction for CPPs as per existing CEA guidelines.

Request has been made to CIL for providing at least two weeks of time between declaration of schedule and commencement of auction for the cement sub-sector.

Request has been made to CIL and Subsidiaries like ECL, SECL, WCL and NCL separately for offering more quantity in the upcoming linkage auctions and list of preferred mines from respective Subsidiaries were also mentioned for consideration.

CCAI ANNUAL REPORT, 2021-22 10

Submission by NRS consumers requesting extension of the term of Tranche-I NRS Linkage Auction FSAs expiring in 2021:

As per CIL directive, NRS Linkage auction FSAs of Tranche-I of various sub sectors will not be renewed after its initial term of five years. However, in order to run the manufacturing plants seamlessly, a continuous and assured supply of a specific quality of coal is necessary which can only be obtained through Linkage Auctions as they are source-specific and mode-specific and ensure supply of a specific grade of coal.

There is an uncertainty in procuring coal of required quantity and quality from a particular source through competitive bidding in the next tranche of linkage auction as and when it would be conducted. Also, Exclusive and Spot e-Auctions do not ensure assured supply of a specific grade of coal.

As per the CIL notification, offer of cement auction will be uploaded by 6th September, 2021 and the auction will commence from 10th September, 2021. However, the consumers from Cement sector have stated that such a short time between uploading of offer and commencement of auction is insufficient as it usually takes around 2 weeks to do a thorough review of the mines including physical verification for a long term commitment. Also, MSTC registration compliance with DSC and POA formalities take time.

The lifting period of coal at all the Subsidiary coal companies were extended by CIL multiple times in 2021 in view of the pandemic situation which led to massive disruption in road transport, dearth of vehicles and drivers and blockade in inter-state communication due to complete or partial lockdown in different states. Though the situation had improved further, it would have been almost impossible for many consumers to lift the allotted quantity from various CIL Subsidiaries within the extended time.

Submission by NRS Consumers for change of mode from Rail to Road/RcR:

Request has been made to the Ministry and CIL to allow the NRS consumers to opt for change of mode for coal transport temporarily from Rail mode to Road mode as well as Road cum Rail (RcR) mode if the allocation of rakes is delayed beyond 90-days period.

Increase in COVID-19 cases in many parts of India was affecting the availability of transport vehicles, crew/ truck drivers and was causing coal transport by Road mode unviable.

Considering the log gap between the last (Tranche IV) & ongoing (Tranche V) NRS Linkage Auction and the financial penalty, request has been made to CIL not to restrict the consumers from participating in the ongoing NRS Linkage auction for CPP and Other Sub-sectors (Tranche-V).

Rakes allotted to many successful bidders from the Non-power sector in Spot e-Auctions have getting delayed indefinitely since November ’21 due to supply priority to the Power Sector.

Request has been made to CIL to extend the temporary arrangement of change of mode for coal transportation from Road to Rail for the willing consumers who have urgent requirement of coal for their MSQ from April’21 till September’21.

Submission by NRS consumers to allow inter-plant transfer of coal:

Request for extension of lifting period of coal through Road mode:

Due to restrictions in rake allocation to Industries and obstructions in coal movement via Road/RCR modes NRS consumers are often facing scarcity of coal. Also, stock in many plants are alarmingly low due to lack of production/transport issues in certain mines.

MoC is requested to allow interplant transfer of coal within the same company/business group (within different units of the same organisation) for higher capacity plants in the Non-Power Sector in line with the Power Sec tor as it would ensure maximum lifting of booked Linkage/Exclusive e-Auction quantities, reduce dependence on imported coal and encourage the NRS consumers to go for more long-term Linkage/Exclusive Auction security.

Several NRS Consumers procuring coal under NRS Linkage auction FSAs from Tranche-I to Tranche IV had cancelled their FSAs within lock in period of two years for various reasons. Subsequently as per the FSA provi sion, large amount of security deposit made by those consumers have been forfeited and the organisations may be also disqualified from participating in the immediately subsequent tranche of any auction for the nonregulated sector conducted by CIL.

CCAI ANNUAL REPORT, 2021-22 11

Submission by NRS consumers with premature termination of Linkage Auction FSA to be permitted to par ticipate in the ongoing Tranche-V:

Submission regarding temporary change of mode from Road to Rail in Apr-May ’21 due to increasing num ber of COVID cases:

This delay in conducting Tranche-V of NRS Linkage Auction for CPP, Cement and Others Sub-sectors has made the functioning of a large number of Industries extremely difficult due to uncertainty over long-term coal supply Requestcommitment.hasbeenmade to CIL to conduct the Tranche-V of NRS Linkage Auction for rest of the Sub-sectors at the earliest possible and announce the tentative timeline for the Linkage auction well in advance so that the Industries may plan accordingly for long-term procurement of coal.

The Tranche-V of NRS Linkage Auction for the Sponge Iron sub-sector was conducted in December, 2019, Linkage Auction of Non-coking coal for the rest of the Sub-sectors under Tranche-IV, was last held way back in November- December, 2018.

Submission regarding significant grade slippage in coal supplied via Rail Mode from ECL, NCL, CCL:

COAL QUALITY RELATED CONCERNS

*2-3 grade slippage observed in CCL’s Birds Sounda, Churi sidings. In a few rakes grade slippage has been as high as 5 grades.

Request has been made to CIL to extend the facility to lift coal against RDOs for both Power and NRS consum ers for FSAs and e-Auction Quantities.

Both Utilities and Industries were not able to procure coal within the RDO validity due to various reasons in cluding outbreak of pandemic, lack of transport vehicles and drivers, lack of manpower for loading and unload ing of coal, incessant rain etc.

*2-3 grade slippage observed in NCL’s Dudhichua, Dudhichua WW, Bina WW, Block-B sidings.

CIL has extended the timeline for lifting of coal till 20th July, 2021.

CCAI ANNUAL REPORT, 2021-22 12

Request has been made to CIL and the respective Subsidiaries to to eradicate grade slippage and ensure sup ply of FSA-grade of coal to the Power Sector consumers. Also, re-gradation of certain mines are requested where instances grade variation are rampant.

Power sector procuring coal from various CIL Subsidiaries such as ECL, NCL, CCL are facing significant grade slippage in coal supplied via rail mode during August-October period in 2021.For instance,

*Grade slippage to the tune of 3-4 grades observed from ECL’s POCP, Bankola, Sonepur Bazari sidings. In some cases variation ranges upto 7 grades. From ECL’s Salanpur and Mugma sidings grade slippage of 5-8 grades was observed during March-April ’21. The coal quanlity further deteriorated during May-June ’21 as grade slippage is to the tune of 6-7 grades lower than declared grades.

Request for extension of timeline for lifting of coal (RDOs) for both Power and Non-power sector:

Appeal on behalf of NRS consumers regarding urgent requirement of Tranche-V Linkage Auction for Subsectors except Sponge-iron subsector:

Multiple representations were given to the Ministry of coal and CIL for extending the validity of RDOs originally expiring in May ’21 till end of July ’21.

Request for reassessment of mines at Salanpur and Mugma areas of ECL due to consistent and significant grade slippage:

Request has been made to CSIR-CIMFER to review the sample collection process at loading end so that repre sentative samples may be collected in a proper manner and such discrepancies may be avoided in the future.

Various forms of refunds pertaining to coal consumers across the board including operational refunds such as refund of additional coal value advance, security deposits, BGs related to financial coverage and performance security, EMDs, ad valorem taxes paid alongwith coal value, differential CST amounts and abnormal under loading/overloading charges; coal quality related refunds such as pending credit notes on account of grade slippage, excess surface moisture in coal and supply of ungraded coal have been pending since long.

Most of the error creeps in during the sampling process but there are hardly any chances of error in the analy sis of coal as it is being done through automatic bomb calorimeters. So it could be deduced that the abnormally higher grade found in the 3rd party analysis may be due to some error in the process of sample collection.

Though one or two collieries under these areas are producing better quality coal, supply from most of the other collieries are of much lower grade containing of high amount of shale and other substances.

CCAI ANNUAL REPORT, 2021-22 13

In spite of certain improvement in the quality of coal supplied from ECL during February-March’21, the issue of significant grade variation again started occurring in coal supplied from various collieries of Salanpur and Mugma areas of the Subsidiary to the tune of 4 to 8 grades during March-April’21, which has led to enormous financial loss for the consumers.

Request has been made to ECL and CIL to ensure supply of FSA grade of coal those collieries of ECL. Also, the coal controller is requested to conduct reassessment of ECL mines in Salanpur and Mugma area which may help in determining the actual grades of coal in those areas.

Request has been made to NCL to reduce the presence of extraneous materials from coal to the extent pos sible and ensure supply of FSA grade coal to the consumers from the sidings mentioned.

Submission regarding unusually higher grade of coal received by Power sector consumer as per 3rd Party analysis report from SECL:

As per 3rd party analysis of a rake supplied to a Power Utility from SECL’s Junadih Public-Silo during July ’21, the analyzed grade of coal was G7. However, the feeding mine of Junadih Public-Silo is Gevra OC, where the effective grade of Gevra OC is G11. Also, as per the grade/quality certificate issued by SECL for FY 2021-22, no mines in Korba region have G7 grade coal.

Quality of coal supplied from the DWWS, GCNM, SPUS sidings of NCL are often much lower than the declared grades. Also rakes supplied from various sidings of NCL has coal mixed with oversized stones and boulders which reduce the plant efficiency and increase ash load in the downstream. This also leads to higher average rake retention time (more than 8 Hours) in spite of usage of faster unloading methods through wagon tipplers.

Details of various forms of pending refunds from different CIL Subsidiaries to both Power and Non-power Sec tor consumers have been prepared in a tabular format and sent to MoC and CIL. MoC, CIL and its subsidiaries have been requested to ensure immediate processing of long-pending refunds. In case there is no definite timelines articulated in the FSA, suitable timeline may be framed for disbursement of refunds.

Submission by Power Sector regarding supply of lower grade coal and coal mixed with stones, boulders from NCL:

COMERCIAL ISSUES:

Submission regarding various forms of pending refunds from different CIL Subsidiaries:

While certain Subsidiary Coal Companies (CCL, NCL & ECL) are providing refund of idle freight along with GST components charged by the Railways, SECL, MCL and WCL are not reimbursing the GST amount during refund of idle freight.

For certain consumers from the Non-power sector, most of the FSAs with SECL’s Baroud OCP & Mahan-II OCP have been terminated in 2021 while cumulative Bank Guarantee (BG) amounts worth lakhs of rupees are yet to be released by the coal company.

CIL is requested to intervene to make necessary amendment in the scheme document in this regard so that so that NRS consumers of SECL may submit FC BG as per the modified CIL guidelines.

Request by Power Sector for reimbursement of idle freight on account of short-lifting along with GST:

Request for incorporating new guidelines for accepting FC BG by the Subsidiaries in the CIL Scheme Docu ment of NRS Linkage Auction:

Request has been made to CCL not to levy any additional charges/taxes on the coal bill in retrospective effect. It is also earnestly requested to consider not levying the aforementioned charge (CUF) on the consumers.

In addition to the bid price and the statutory levies payable for purchase of coal under various e-Auctions, coal consumers were also asked to deposit an additional amount of 0.75% of the material value as TDS within three working days. However, liability to deduct taxes under the aforesaid section is that of e-commerce operator and the company from whom taxes should be deducted is the e-commerce participant (seller of coal). Therefore, the said TDS should not be recovered from the coal purchasers.

CIL has been requested to intervene so that all the CIL Subsidiaries reimburse the idle freights for under load ing along with the GST amount.

Request has been made to CIL to ensure that the TDS should not be deducted from the consumers but it should be deducted from the coal value submitted to the e-commerce participants.

As per CIL’s modified guidelines of June 2020, financial coverage BG for coal supplies to Power and NRS con sumers through FSA and e-Auction schemes had been reduced from as delivered price of coal for 30 days sup plies to as delivered price of coal for 10 days supplies. However, SECL is still asking for FCBG equivalent to 30 days coal value and the revised FCBG modality has not been updated in scheme document so far.

Request has been made to SECL to immediately release the entire BG amount at the earliest possible.

Composition User Fee (CUF) levied by Government of Jharkhand on mineral transporting vehicles for usage of State roads and/or bridges at the rate of Rs 600 per trip (Rs 1200 per round trip) should be levied on commer cial vehicle owners/transport operators but CCL has decided to pay CUF on their behalf of the transporters for the period 26/10/2021 to 15/04/2022 which shall be recovered from the consumers, at the rate of Rs 60 (sixty) per tonne, as an additional charge as Reimbursement of CUF as an additional component in the coal sale bill.

Submission regarding immediate release of pending BGs for the terminated FSAs:

CCAI ANNUAL REPORT, 2021-22 14

Request for not levying Composition User Fee on consumers operating within state of Jharkhand:

Application of the provisions of section 194-O of the Income-tax Act, 1961 in relation to e-Auctions of coal conducted for Power and Non-power consumers:

Request has been made to SCCL to reschedule the date of Tranche VII NRS Linkage auction for Cement and CPP Sub-sectors after the CIL auction for Cement Sub-sector is concluded so that the NRS consumers may participate in both the auctions.

Submission to SECL by the coal consumers for refund of huge coal value against lapsed quantities and EMD:

Consumers across the board procuring coal from SECL could not lift booked quantities till mid-October’21 due to lack of production and adverse condition of coal evacuation infrastructure in certain mines of the Subsidiary such as Baroud, Chhal, Gevra, Dipka, Kusmunda, Bijari OCP. However, SECL is offering coal through Spot eAuctions via Road Mode from the same sources. So the consumers have to pay high premiums to procure coal via e-Auctions in spite of already having valid FSAs.

Request has been made to SECL for refund the coal value against lapsed quantity and EMD to the concerned customers at the earliest possible.

Prices of different grades of coal (G-1 to G17) supplied by SCCL as well as Washery Grades have been increased multiple times (five times) in FY 2021-22. Such a recurrent and steep hike in coal prices is putting a huge fi nancial pressure on the coal consumers dependent on SCCL and disrupting their annual consumption plan.

Submission for rescheduling the dates of Tranche VII NRS Linkage Auction by Singareni Collieries Company Limited (SCCL) for Cement and CPP Sub-sectors:

Despite the extension in coal lifting period till 20th July ’21, consumers from the Power sector could only man age to lift a portion of their allotted quantities while the remaining portion got lapsed due to various reasons like unavailability of declared grade of coal, adverse weather conditions for production of coal, less production of auctioned grade of coal due to geological disturbance which has caused massive amount of working capital of these companies in the form of coal value including Royalty, DMF, NMET etc. and EMD worth crores of ru pees to be blocked due to Non- materialisation of remitted amounts through refund.

Request has been made to the Ministry of Coal and SCCL to consider either complete or at least partial rollback of the hiked coal price as notified by the company on 10.01.2022.

In spite of extending the validity of RDOs and the period of coal lifting by CIL during COVID-19 outbreak, a number of consumers especially from the Power sector procuring coal from SECL, could only manage to lift a portion of their allotted quantities due to unfavourable conditions.

Submission for early issuance of long-pending credit notes and coal value reconciliation by Road- mode consumers:

CCAI ANNUAL REPORT, 2021-22 15

It had been found that the dates for Tranche VII NRS Linkage Auction by SCCL for Cement Sub-sector on 20.09.2021 and 21.09.2021 and for CPP Sub-sector on 22.09.2021 and 23.09.2021 were coinciding with the CIL Linkage auction dates for Cement Sub-sector.

Submission regarding refund of EMD against coal procured through different auctions:

Request has been made to CIL and respective Subsidiaries including SECL so that the EMD amounts are not forfeited for short-lifting but refunded along with the coal value of unlifted quantity to the respective consum ers.

Submission regarding complete or partial roll back of price increase of different grades of coal by SCCL as notified in January 2022:

In spite of the provision of carry forward the lapsed rakes which could not be supplied to the Power sector consumers due to production issue/Railway constraints, Utilities procuring coal from SECL stated that due to continued demand-supply mismatch and Railway constraints including unavailability of rakes, backlog of carry forward rakes have continued to accumulate.

Consumers from both Power and Non-power sectors have been facing delays (in some cases more than 2 years) in reconciliation of excess coal value against quantity despatched through Road mode which has caused a large amount of their fund to be stuck for long. In case of upgradation in analysed grade of coal, issuance of supplementary invoices is inordinately delayed for the Power consumers (Road mode).

CCAI ANNUAL REPORT, 2021-22 16

Thus, the consumers are not getting the quantities allotted to them for long while the advance coal value sub mitted by them is stuck with the coal company for an indefinite period which leads to significant financial loss.

Certain Subsidiary Coal Companies (CCL, NCL & ECL) are providing refund of idle freight alongwith GST com ponents charged by the Railways to the Power Utilities but others such as SECL, MCL and WCL are not reim bursing the GST amount during refund of idle freight.

Request for reimbursement of idle freight on account of under-loading alongwith GST

Request has been made to SECL and CIL to ensure that the carry forward rakes may be supplied to the con cerned consumers on time so that their requirement of coal could be fulfilled and financial loss may be mini

forward rakes which are not supplied to the generators because of production issue / Railway con straints are not taken in the calculation of compensation for short-lifting against deemed delivered quantity.

Certain NRS Consumers procuring coal from different Subsidiaries have not been getting the refund of Secu rity Deposit made by them against their FSA by Road Mode that has been terminated earlier this year.

Request has been made to CIL so that all Subsidiary coal companies reimburse the idle freights for underloading along with the GST amount.

Themized.carry

Request has been made to CIL and the Subsidiaries for early release of the Security Deposit to the respective companies whose FSAs have expired.

Request has been made to CIL and Subsidiaries for timely issuance of pending credit notes and supplementary invoices and ensure reconciliation of coal bills pertaining to despatch through Road mode at the earliest pos sible.

Request for not calculating compensation towards short-lifting for deemed delivered quantity against carry forward rakes of Power Utilities:

A number of CIL subsidiaries are providing refund against idle freight along with GST components charged by the Railways. However for consumers procuring coal from SECL, the refund of GST amount is not happening during the reimbursement provided for idle freight.

Request has been made to CIL and SECL so that adequate measures may be taken at the earliest possible in order to provide reimbursement of GST amounts along with refund on account of under loading.

Submission by Power Sector Consumers for refund of GST amount along with reimbursement of idle freight on account of under loading from SECL:

Requesting refund of Security Deposit against terminated FSAs:

Thus, the consumers are not getting supply of their value paid rakes allotted to them for an indefinite period which leads to significant financial loss.

Request has been made to SECL and CIL so that option may be offered to the generators not to carry forward rakes which already have huge pendency.

Coal transportation through Road mode has become extremely difficult since the upsurge in Covid-19 infec tions, as transporters and operators and coal handling workers are getting infected in large numbers causing lower turnout of vehicles and scarce workforce.

CCAI ANNUAL REPORT, 2021-22 17

Considering the situation, CIL has provided extension in lifting period and date of payment deposition of coal value till 15th June 2021 so far.

Due to huge pendency of rakes in the Non-lapsable category, NRS consumers procuring coal from various Subsidiaries of CIL have not been receiving rakes which were pending since FY 2019-20 in spite of high demand at their end. However, during the lockdown period, those long-pending rakes were being allotted to the NRS consumers in large numbers as demand in the Power sector waned down.

Many NRS consumers were forced to cancel the rakes as their plants were either shut down or running at low capacity during the lockdown period. As a result they were heavily penalized by certain Subsidiaries for non/ short-lifting. Even rakes cancelled in April, May & June, 2020 (lockdown period) have been considered while calculating this penalty for the FY 2019-20 as these rakes were scheduled to be supplied within FY 2019-20, which could not be done within stipulated time.

• Subsidiaries may allow waiver of all forms of penalties imposed on the consumers for Non- perfor mance during the Pandemic-induced lockdown period.

Submission regarding invoking of general Force Majeure allowing cancellation of rakes by NRS consumers during COVID period:

• Termination of FSAs may not be imposed for rakes being cancelled during the national lockdown.

• Subsidiaries may be allowed to invoke general Force Majeure for waiver of performance related obliga tions during national lock down period i.e. 24th March to 31st May, 2020.

Request for not calculating compensation towards short-lifting for deemed delivered quantity against carry forward rakes of Power Utilities:

Request has been made to CIL to extend the lifting period and payment of coal value for the RDOs ending in April & May’21 till June end (30.06.2021) for both Power and NRS consumers against FSA and e-Auction quantities.

In spite of the provision to carry forward the lapsed rakes which could not be supplied to the Power sector consumers due to production issue/Railway constraints, Utilities procuring coal from SECL stated that due to continued demand-supply mismatch and Railway constraints including unavailability of rakes, backlog of carry forward rakes have continued to accumulate.

Requests have been made to MoC and CIL so that,

Also, the carry forward rakes which are not supplied to the generators because of production issue/ Railway constraints are not taken in the calculation of compensation for short-lifting against deemed delivered quantity.

Request for providing extension of timeline for lifting of coal and date of payment for deposition of coal value under various RDOs:

been made to SECL, CIL and the Railway Board to increase the number of rakes loaded from these areas to supply committed FSA quantities to the Power Plants.

Special Forward e-Auction for Power Sector consumers both in Rail and Road mode consumers were last held on 09.02.2021 for the February’21–April’21 period in spite of an urgent requirement of coal among the Utilities.

SECL and CIL are requested for immediate issuance of pending DOs to the Industries against their Linkage quantities so that the Industries may procure coal via Road mode as Rail mode supply is prioritized for Power utilities.

WCL was requested for urgently conducting Special Forward e-Auction in order to replenish the shortage in coal stock at their respective plant ends.

Submission by NRS Consumers regarding extension of RDO validity issued from specific areas of WCL:

The requests have been percolated to the WCL authorities.

The daily dispatch plan to the Industries has been revised based on area-wise commitments under Linkage Auction FSAs, Spot and Exclusive auctions from 25.03.2022. The revision has caused the average daily dispatch from WCL’s Ballarpur, Wani North, Nagpur and Pench (also Kanhan and Pathakhera) areas to reduce.

Submission to WCL by the Power Sector Consumers for immediately conducting Special Forward e- Auction:

Supply of rakes from various sidings of SECL has been significantly lesser than respective MSQs in Decem ber’21. Supply of coal from SECL’s Dipka, Gevra, Kusmunda sidings under the Korba coalfields area has been Requestinsufficient.has

The consumers from Cement, CPP and Other Sub-sectors procuring coal from WCL have requested for the Tranche-V of NRS Linkage Auction for their respective sub-sectors to be conducted immediately and men tioned certain WCL mines including Ballarpur, Tawa I & II, Chattarur I & II in Pathakera area, Nehariya and Urdhan sidings in Pench area and Singhori and Gondegaon sidings in Nagpur area to be including in the up coming linkage auction.

Requests have been made to WCL and CIL to extend the RDO validity of the aforesaid WCL areas where the daily coal dispatch quantity has been reduced so that allotted quantity may be lifted completely.

Submission for immediate issuance of pending DOs against Linkage quantity from different sidings of SECL:

CCAI ANNUAL REPORT, 2021-22 18

Submission by Power Utilities to immediately increase supply of rakes from SECL on a daily basis:

SPECIFIC SUBSIDIARY RELATED CONCERNS

Request by NRS consumers for inclusion of certain WCL mines in rest of Tranche-V NRS Linkage Auctions:

Significant amount of linkage quantities allotted to Industries have been kept pending since last year from SECL sidings including Baroud, Jampali etc. as RDOs against FSA quantities are not issued. However, SECL is offering coal through Spot e-Auctions via Road Mode from the same sources. So the consumers have to pay high premiums to procure coal via e-Auctions in spite of already having valid FSAs.

Despite temporary improvement in the quality of coal supplied to the Power Utilities from various ECL sidings during February-March ’21, the issue of significant grade slippage started reoccurring in the rake supplied from ECL’s Salanpur and Mugma sidings where grade variation to the tune of 4-6 grades could be observed. This led to massive financial loss to the Power sector consumers.

CCAI ANNUAL REPORT, 2021-22 19

Submission for refunding of Evacuation Facility Charges (EFC) in case of despatches through rapid loading arrangements:

Request has been made to SECL to continue with the provision of a single LC for entire supplies irrespective of mode of dispatch (Rail/Road) to the respective companies.

Request has been made to SECL to ensure that the amount remitted by consumers in terms of EFC may kindly be refunded at the earliest in case of despatches through rapid loading arrangements.

Generally, consumers had to provide a single Letter of Credit (LC) for the entire supply irrespective of the mode of dispatch. However, as per instructions given by SECL, separate LC needed to be issued for separate modes of dispatch (Road or Rail mode). Issuance of separate LC for separate modes would be financially difficult for many consumers avilig both mode of procurement.

The consumers have to remit Evacuation Facility Charges at the standard rate of Rs. 50 per tonne along with the coal value while receiving despatches from SECL’s Junadih sidings through Silo loading, which is a form of rapid loading. However, as per CIL notification dated 19th December 2017, Evacuation Facility Charges (EFC) are not applicable for coal despatches through rapid loading arrangements.

Request has been made to SECL and CIL to ensure immediate issuance of pending credit notes and reconcili ation of coal bills against procurement of coal through Road mode.

Inordinate delay in reconciliation of excess coal value against quantity despatched through Road mode by SECL has been a point of major financial concern for both Utilities and Industries as large amount of their fund has been stuck with SECL for a long period.

Submission for supply of coal as per MSQ and providing e-Auction rakes without deposition of fresh advance from MCL:

Request has been made to MCL and CIL to ensure supply of coal as per MSQ to Non-regulated Sector FSA Con sumers. Advance payment to be made by the NRS FSA consumers may not be higher than coal value equivalent to MSQ of one month. Also, MCL and CIL are requested for liquidation value-paid pending rakes to the Indus tries and allowing them to participate in the upcoming auctions without depositing fresh advance as coal value.

Submission by Power Sector consumers regarding huge grade slippage in coal supplied from specific ECL sidings:

MCL decided to allocate coal to NRS consumers at trigger level (75% of the MSQ) in case the FSA is signed un der Linkage Auction since January 2022. Restricted supply led to even greater coal crunch among Industries.

Request for early issuance of long-pending credit notes and coal value reconciliation for Road-mode con sumers by SECL:

Submission to SECL regarding continuation with single LC against coal supply through Rail and Road mode:

Representations were given to ECL, CIL and the Ministry of coal so that measures could be taken to ensure supply of requisite grade as per FSA to the customers of ECL.

Immediate requirement of coal from ECL for NRS consumers through Exclusive e-Auction:

However, Consumers procuring coal from NCL via Rail mode have pointed out that in addition to the above payments, they also have to deposit a fresh advance to the coal company to ensure that the balance advance payment always remains equivalent to not less than one-month coal value for availing Usance LC mode of payment, which is not levied on the consumers procuring coal from other CIL Subsidiaries. This practice is defeating the very purpose of Usance LC.

Request has been made to ECL to conduct an Exclusive e-Auction for the NRS consumers at the earliest pos sible and also ensure that Exclusive auctions can be held regularly on a monthly/bi-monthly basis so that the Industries do not suffer from dearth of fossil fuel.

Exclusive e-Auction for the Non-power Sector (including CPPs) is generally held on a bi-monthly basis by ECL. The auction was last held on 30th March, 2021 and Non-power sector consumers without having Linkage auc tion FSAs prefer to procure coal through Exclusive e-Auction.

Though one or two collieries under Salanpur and Mugma are producing better quality coal, supply from most of the other collieries from these two areas are of much lower grade containing of high amount of shale and other Requestsubstances.hasbeen

Submission for reviewing the provision of taking additional advance by NCL from NRS consumers availing Usance LC mode of payment:

Submission by NRS consumers regarding deferment of rakes from NCL through Dhanbad Division of East Central Railways:

NRS consumers procuring coal from Northern Coalfields Limited (NCL) through Dhanbad division of East

While availing the Usance LC payment option in Rail mode, NRS consumers have to deposit an advance amount equivalent to seven (7) days coal value and a Financial Coverage amount equivalent to 10 days coal value over and above the LC amount.

Submission regarding further deterioration in quality of coal supplied from Salanpur and Mugma area of ECL:

made to ECL and CIL to take necessary measures to improve the coal quality supplied from these two areas as Power producers procuring coal from ECL, largely depend on supply from these sidings.

Request has been made to NCL so that the matter of keeping aditional advance value of one month MSQ (ACQ/12 and converted to no. of rakes) fromNRS consumers procuring coal through Rail Mode from NCL may kindly be considered so that the payment schedule is in conformity with the Usance LC norms formulated by CIL.

CCAI ANNUAL REPORT, 2021-22 20

As per the Power sector consumers, quality of coal supplied from ECL Salanpur and Mugma sidings through Rail mode further deteriorated during May-June ’21 as coal supplied from these two sidings were 6-7 grades lower than the declared grade.

It has been stated by ECL that through conducting Quality Awareness Week, continuous monitoring and strict vigil on third party sampling have been implemented to eradicate the problem of grade slippage.

Submission for considering actual tare weight instead of designed tare weight for weighment of coal rakes:

Request has been made to MCL to ensure proper loading of rakes in order to eradicate the issue of overloading in future.

Request has been made to CIL and NCL to consider taking the matter with the Railways like the previous year so that deferment of rakes may be allowed to those consumers, who are unable to receive rakes until the con dition improves.

Meetings have been held with MCL authorities at the headquarters and area GMs of Bhubaneswari and Jag annath mines. Request has been made for recalibration of weighbridges where the issue of short-receipt has been frequent.

Submission regarding constant overloading of rakes from Spur sidings of Talcher Area and Sardega Mines of MCL:

Continuous and significant short-receipt of coal from MCL’s Talcher Spur (I-VI) Sidings:

Central Railways are not in a position to receive the rakes allotted to them as coal handling workers are hardly available at the plant ends. Therefore, they have requested the Railways to defer the rakes till the pandemic situation improves. However, Railways have suggested them to cancel the rakes as per norms.

Power consumers have raised concern over continuous overloading of rakes from Talcher Spur sidings and Sardega mines of MCL since the last few months. Some of these consumers have to pay significant punitive charges amounting to crores of rupees to the Railways on account of overloading of rakes during August ’21. Also, rakes are detained for load adjustment for a long time.

Power sector consumers have been facing difficulties due to continuous and significant short-receipt of coal from Spur (I to VI) sidings of Talcher coalfields at MCL over the last few months mostly due to faulty weighment at the bi-directional weighbridges in the areas.

The MCL authorities have promised to look into the matter with utmost gravity. MCL has undertaken the in spection of the status of weighbridges in the Spur sidings and also made arrangement for weighing empties and loaded rakes separately as much as possible. MCL has also requested to send the company representa tives or handling agents of the affected organisations to the concerned areas of MCL to witness the weighment of rakes and hold discussions.

ISSUES RELATED TO RAILWAYS

Request has been made to the Railway Board to measure tare weight of the empties in the in-motion weigh bridges during the time of their inward movement and consider that actual tare weight measured on a realtime basis for calculating the RR so that the consumers may get designated quantity of coal for which freight charges and coal value are paid.

CCAI ANNUAL REPORT, 2021-22 21

Designed tare weight is lower than the actual tare weight of wagons due to various reasons such as variable stencilled tare weight of different wagons under the same type, increase in tare weight of older wagons due to repairing, weathering, deposition of coal dust and extraneous material etc. Therefore, calculation of RR based on designed tare weight leads to significant short-receipt of coal equivalent to the tare difference on a regular basis. Also, tare difference leads to significant over-charging of freight as the delivered coal quantity is lower than the RR quantity.

Submission has been made to ECR so that preferential loading and dispatch of rakes to the long distance con sumers may be prioritised by ECR in accordance with the Railway circular.

As per Railway Notification, distance-based graded concession for transportation of certain commodities in cluding coal and coke was provided at the rate of 20% on normal tariff rate (NTR) for distance beyond 1400 KM to attract additional freight traffic. The concession was valid till 31.12.2021.

Submission to prioritise loading and supply of rakes to long-distance consumers from ECR:

As per the Railway circular regarding Preferential Traffic Order GO 95, the Zonal Railways is obligated to pro vide special facilities or preference long distarnce consumers (more than 600 Kms) to transport coal and coke loaded from a siding irrespective of priority and date of registration on all days of the week except the two nominated days. However, East Central Railway (ECR) is not giving due priority to the long-distance consumers and supplying indents to the Utilities as per the order of seniority only.

Owing to severe disruption/ Non-supply of rakes to the Non-power Sector during that period, NRS consumers could not avail the benefit of concession. So, Railway Board was requested to extend the dis tance based graded concession for one more year i.e. 31.12.2022.

CCAI ANNUAL REPORT, 2021-22 22

Submission regarding extension of Long-lead Traffic scheme for NRS Consumers:

Submission for kind intervention in improving coal supply via Rail mode for Non-regulated Sector including CPPs:

The lack of supply to NRS that started around August/September ‘21 this year, became further arduous in December ’21 as coal stock at many plants plunged below critical level. The condition had shown signs of improvement during November ’21. However, due to high demand at the power sector for building coal stock at the plant ends for the upcoming winter, coal supply to the NRS consumers including CPPs curtailed once again. More than 4500 rakes have been pending during that period.

Request has been made to the Ministry of Railways alongwith other Ministries to ensure that specific quantity (minimum 15% of total coal dispatch by Rail mode) may be earmarked for the Non-regulated sector even dur ing the high power demand scenario.

1. We have obtained all the information and explanation that to the best of our knowledge and beliefs were necessary for the purpose of our audit.

2. In the case of Income & Expenditure Account the excess of Income over Expenditure for the accounting year ending on 31st March 2022. The prescribed particulars are annexed hereto.

We have examined the Balance Sheet of M/S COAL CONSUMERS ASSOCIATION OF INDIA as at 31st March, 2022 and the Income & Expenditure Account for the year ended on that date, which is in agreement with the Books of Account maintained by the said Association.

Dated . 06th September, 2022.

Subject to the above:

The Incomes of the Association are accounted for on mercantile system of accounting.

24, Chowringhee Road,Kolkata

3. In our opinion and to the best of our information and according to explanations give to us together with the Notes to Account and subjects to the notes given here above and, the said accounts give a true and fair view:

CCAI ANNUAL REPORT, 2021-22 23

UDIN: 22052891ARGUXR4999

2. In our opinion, proper Books of Account have been kept by the above mentioned Association subject to the comments given below:

AUDITORS REPORT

1. In the case of Balance Sheet of the state of affairs of the above named Association as at 31st March, 2022. and

CCAI ANNUAL REPORT, 2021-22 24

COAL CONSUMERS ASSOCIATION OF INDIA

Kolkata 700087

B) Note to Accounts

2) Contingent liability not provided for in respect of Income Tax demand for Financial Year 2018 19 Rs.1718430/ .

24, Chowringee Road

These are the schedules referred to in the Balance sheet & Income & Expenditure account of even date.

1) Every members of the association under takes to contributes of the Association in the event of the same being wound up during the time that he is a member or within one year afterwards for payment of the debts and liabilities of the association contracted, before the time at which he is to be a member and cost, charges and expenses of the right of the contributions amongst themselves.

A) Significant Accounting Policies

2) Income & Expenditure are accounted for on Mercantile Basis .

1) Accounts are maintained on Mercantile Basis method.

NOTES TO ACCOUNTS

Dated 06th September, 2022

3) Investments are accounted at cost of acquisition.

4) Fixed Assets are accounted for at their cost of acquisition, depreciation has been charged as per Income Tax Act.

UDIN: 22052891ARGUXR4999

NOTES NO ‘11’

CCAI ANNUAL REPORT, 2021-22 25

2 CURRENT ASSETS

(B) Non -Current Investments (i) Fixed Deposits 5 2,006,439.51 1,936,614.21

NOTES TO ACCOUNTS 12 Examined and found to be in agreement with the Books of Accounts

I EQUI TY & LIABILITIES

1 RESERVE FUND

TOTAL 4,273,600.08 3,448,185.10

II ASSETS

(A) Fixed Assets

TOTAL 4,273,600.08 3,448,185.10

2 CUURRENT LIABILITIES

(A) Reserves & Surplus 1 538.27 538.27

CA B P JENA No 052891 No-02531345 Din No-07641903

(A) Trade Receivables 6 398,535.00 455,300.00 (B) Cash & Cash Equivalents 7 1,315,691.60 687,629.79 C Advances & Deposits 8 441,161.96 310,312.00

(B) General Reserve 2 3,595,971.21 2,858,806.39

(A) Othrer Current Liabilities 3 677,090.60 588,840.44

1 NON CUURRENT ASSETS

(i) Tangible Assets 4 111,772.01 58,329.10

PARTNER Director Director M

Din

Firm Reg No 316167E Dated : 06/09/2022 Place : Kolkata

UDIN: 22052891ARGUXR4999COAL

CONSUMERS' ASSOCIATION OF INDIA 4,INDIA EXCHANGE PLACE,7TH FLOOR,KOLKATA 700001

Rs Rs

as per Report in Form 10B of even date BALANCE SHEET AS AT 31ST MARCH 2022 31ST2MARCH021PARTICULARS Note No 31ST2MARCH022

As per our separate report of even date attached hereto For & on behalf of B P JENA & ASSOCIATES Chartered Accountants

CIN NO U51109WB1945NPL012572

Advertisement on Newsletter 826,400.00 604,800.00

Firm Reg No. 316167E

Membership Subscription 4,293,000.00 2,943,000.00

Annual Subscription News & Update Service 125,000.00

Dated : 06/09/2022

PARTNEER Din No-02531345 Din No-07641903

as per Report in Form 10B of even date

Rs Rs

AdmissionINCOMEFee 85,000.00 55,000.00

III 737,164.82 (3,590.95)

Interest on Fixed Deposit 98,536.00 106,154.00

Excess of Income over Expenditure transferred to General Reserve CCIN NO U51109WB1945NPL012572

TOTAL INCOME 5,432,936 00 3,708,954 00

Place : Kolkata

NOTES TO ACCOUNTS 11

As per our separate report of even date attached hereto For & on behalf of B P JENAA & ASSOCIATES Chartered Accountants

4,INDIA EXCHANGE PLACE, 7TH FLOOR, KOLKATA 700001

Examined and found to be in agreement with the Books of Accounts

M No 052891

UDIN:: 22052891ARGUXR4999

CCAI ANNUAL REPORT, 2021-22 26

31ST MARCH 2022 PARTICULARS

II EXPENSESDepreciation 10 22,228.36 9,064.65

I OTHER

TOTAL EXPENSES 4,695,771 18 3,712,544 95

31ST MARCH 2021

INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2022

CA B P JENA Director Director

Other Expenses 11 4,673,542.82 3,703,480.30

COAL CONSUMERS' ASSOCIATION OF INDIA

Sundry Credit Balance Written Back 5,000.00

Note No

Fixed Deposit with Bank of Baroda 1,255,673.00 1,255,673.00

b CCash & Cash Equivalents

As per last Balance Sheet 1 538.27 538.27

Statutory Liabilities Payable 6,970.00 42,242.00 103,219 00 69,968 84

3 Current Liabilities & Provisions 3

With Schedule Banks

NOTE THIS YEAR PREVIOUS YEAR Rs Rs

GST Receivable 16,048.96 TDS A.Y. 2022-23 114,801.00 TDS 310,312.00 310,312.00 441,161 96 310,312 00 9 22,228.36 9,064.65

As per last Balance Sheet 2,858,806.39 2,862,397.34

Bank of India 177,491.00 158,153.26

1 Reeserve & Surplus

Add : Excess of Income over Expenditure for the year 737,164.82 (3,590.95) 3,595,971 21 2,858,806 39

a Current LiabilitiesLiabilitiesForExpenses 96,249.00 27,726.84

Cash in hand (As Certified by the Management) 19,639.58 2,503.00 1,315,691 60 687,629 79

2 GENERAL RESERVE 2

10 Depreciation and Amortzation Expenses Depreciation

COAL CONSUMERS' ASSOCIATION OF INDIA 4,INDIA EXCHANGE PLACE,7TH FLOOR,KOLKATA 700001

6 Current Assets 6 a Trade SubscriptionReceivableMembership Receivable 398,535.00 455,300.00 398,535 00 455,300 00

CCAI ANNUAL REPORT, 2021-22 27

Add: Provision for this year 55,000.00 42,692.00 573,871 60 518,871 60 677,090 60 588,840 44

c Advances & Deposits 8

Accrued Interest on Fixed Deposit 359,842.51 290,017.21 Deposits for Power (ICC) 90,924.00 90,924.00 2,006,439 51 1,936,614 21

Bank of Baroda 1,118,561.02 526,973.53

7

b FIXED DEPOSIT 5

Notes forming Part of Balance Sheet and Income & Expenditure Account for the Year 2021 2022

Fixed Deposit with Bank of India 300,000.00 300,000.00

b ProvisionGratuityFund 518,871.60 476,179.60

5 Non Current Assets

Depreciation 9 22,228.36 9,064.65

and found to be in agreement with the Books of Accounts as per Report in Form 10B of even date As per our separate report of even date attached hereto For & on behalf of B P JENA & ASSOCIATES Chartered Accountants CA B P JENA FMPARTNERNo052891irmRegNo 316167E Dated : 06/09/2022 Place : Kolkata

Nootes

CONSUMERS' ASSOCIATION OF INDIA 4,INDIA EXCHANGE PLACE,7TH FLOOR,KOLKATA 700001

Newsletter Publication Expenses 109,845.00 87,800.00 Office Rent 66,742.08 66,742.08 Printing & Stationary 7,059.00 5,916.00 Postage & Courier 8,191.00 8,489.00

TDS Interest 7,220.00

TDS Penalty 8,340.00 Rounded Off 0.62 4,673,542 82 3,703,480 30

Miscellaneous Expenses 26,659.46 7,492.96

(a) Noon Administrative Expenses

(b) Administrative Salaries,Bonus,Medical,ExpensesL.T.A,HRA,Tiffin & Leave Encashment etc 2,905,400.00 2,664,100.00

Examined

Depreciation and Amortzation Expenses

Provision for Gratuity 55,000.00 42,692.00 Staff Welfare 6,800.00 9,938.80 Books & Periodicals 4,100.00 3,050.00

COAL 22,228 36 Other Expenses

10

Professional Fees 107,500.00 60,000.00

Discard of Fixed Assets 403.35

Computer Expenses 5,948.30

10

Bank Charges 1,763.75 1,472.46

CCAI ANNUAL REPORT, 2021-22 28

AGM & Seminar Meeting Expenses 10,000.00 16,800.00 Audit Fees 3,500.00 3,500.00

Bad Debts Written Off 273,960.00

Electricity Charges 24,968.00 12,509.00 Kolkata Muncipal Tax KMC 40,380.00 40,380.00

9,064 65 11

forming Part of Balance Sheet and Income & Expenditure Account for the Year 2021 2022

Professional Tax 1,200.00 1,200.00 Repair & Maintaince Expenses 167,329.26 60,457.00 Service Charges 592,000.00 562,000.00

Telephone Charges 15,227.00 23,502.00 Travelling & Conveyance 191,496.00 25,439.00 Web Site Charges 32,510.00

Jindal Steel & Power Ltd 74,160.00

Cygnet Industries Ltd 35,400.00

398,535.00

Adillusion Creative Solutions 11,200.00

Goldstone cement Ltd 1,100.00

Subdry Creditors For Expenses

Audit Fees Payable 7,000.00

Maharashtra State Power generation Company 11,000.00

96,249.00

Bla Power Ltd 59,000.00

6,970.00

Retrocon Glaxis LLP 78,049.00

P.TAX PAYABLE 800.00

Bravo sponge Iron Pvt Ltd 35,400.00

Statutory Liabilities Payable GST Payment 6,170.00

Kesoram Industries Ltd 23,600.00

Shiv Shipping Services 75.00

CCAI ANNUAL REPORT, 2021-22 29

COAL CONSUMERS' ASSOCIATION OF INDIA 4,INDIA EXCHANGE PLACE,7TH FLOOR,KOLKATA 700001

Details of Balance Sheet Item For the Year ended 31.03.2022.

TOTALTOTALTOTAL

Tata Steel Long Products Ltd 35,400.00

Tata Steel Bsl Ltd 118,000.00

Century Pulp & Paper 5,400.00

Sundary Debtors

CCAI ANNUAL REPORT, 2021-22 30 DepreciationDiscardAddition/SaleAddition/SaleParticularsW.D.VASONTotalasonRateofW.D.V.AsOn DepreciationYr.theDuringYr.theDuringYr.TheDuring01.04.202131.03.202231.03.2022 Days180(-)Days180(+) Fixture&Furniture18,809.4718,809.4710%1,880.9516,928.52 MachineConditionerAir31,296.6331,296.6315%4,694.4926,602.14 FanCelling111.82111.8215% SystemExtinushierFire7819.657,819.6515%1,172.956,646.70 EquipmentOffice290.22290.2215% 15%3,423.683,423.68Fan---256.783,166.90 31.03.2022 MiniFanTower--1,355.94-1,355.9415%101.691,254.25 31.03.2022 GuardSpike1,100.001,100.0015%82.501,017.50 31.03.2022 TOTAL+A58,327.79-5,879.62402.0463,805.378,189.3655,616.01 40%Computer1.311.31 40%70,195.0070,195.00Laptop14,039.0056,156.00 31.03.2022 TOTAL+C1.3170,195.001.3170,195.0014,039.0056,156.00 A+B+CTOTALGRAND58,329.10-76,074.62403.35134,000.3722,228.36111,772.01 Kolkata:-Place 06/09/2022:-Dated INDIAOFASSOCIATIONCONSUMERS'COAL FLOOR,KOLKATA-700001PLACE,7THEXCHANGE4,INDIA 31.03.2022.AtAsAssetsFixedShowing'A'4-Schedule

CCAI ANNUAL REPORT, 2021-22 31 A BRIEF OVERVIEW OF DIFFERENT ASPECTS OF COAL SECTOR IN INDIA COAL SECTOR IN INDIA AT A GLANCE: 2021-22 (Qty. in Mill tn.) FY 2020-21 FY 2021-22 GROWTH (%) PRODUCTION 716.083 778.19 8.67 DESPATCH 690.884 818.997 18.54 STOCK 109.06 68.889 -36.83 IMPORT 215.251 208.934 -2.93 EXPORT 2.945 1.169 -60.3 *Source MoC The all India Production of coal during 2021-22 were 778.19 MT (Provisional) with a positive growth of 8.67 % and despatch growth of 18.54%. It is a point of concern for the industries that in spite of such a huge growth in despatch coal supply to this sector reduced by 4.13%. 716.083 690.884 109.06 215.251 2.945 778.19 818.997 68.889 208.934 1.169 PRODUCTIONDESPATCH STOCK IMPORT EXPORT Coal Sector In India At a Glance FY 20-21 FY 21-22

CCAI ANNUAL REPORT, 2021-22 32 Sector SECTOR WISE COAL DESPATCH (5 YEARS) YEARS 2017-18 2018-19 2019-20 2020-21 2021-22 POWER 454.22 491.25 567.25 544.07 677.67 % OF DESPATCHTOTAL 78.12 80.78 80.2 78.69 82.83 NON POWER 127.25 116.89 139.98 147.32 140.47 % OF DESPATCHTOTAL 21.88 19.22 19.79 21.3 17.17 TOTAL 581.47 608.14 707.23 691.39 818.14 *Source MoC Coal production in India is increasing on y-o-y basis during last ten years with only exception in 2020 where production was less than 2019. Continuation of this trend will definitely land on 1 Billion Tonnes production by 2024. All India Despatch has also shown a steady growth with an only exception during 2019 and 2020. 78.1280.7880.278.6982.8317.1719.2221.8819.7921.3 0102030405060708090 2021-222020-212019-202018-192017-18YEAR (%) SHARE OF TOTAL DESPATCH TO POWER & NON-POWER NON-POWER POWER

2012-13 51.58 504.82 556.4 46.45 55.86 511.28 567.1 46.31 2013-14 56.82 508.95 565.77 44.27 58.46 513.6 572.1 43.9 2014-15 57.45 551.73 609.18 48.27 56.44 547.33 603.8 46.95 2015-16 60.89 578.34 639.23 43.84 59.21 573.23 632.4 42.21 2016-17 61.66 596.21 657.87 45.23 59.31 586.67 646 43.16 2017-18 40.15 635.25 675.4 46.64 45.38 644.62 690 46.32 2018-19 41.13 687.59 728.72 44.28 43.32 689.48 732.8 45.81 2019-20 52.94 677.94 730.87 42.1 50.66 656.52 707.2 42.27 2020-21 44.79 671.3 716.08 37.9 44 646.88 690.9 38.49 2021-22 51.7 726.49 778.19 47.49 54.4 764.56 819 49.07

8006004002000 Coal & Lignite Production Last Ten Years (in mill. tn.) Total Coal Production ( Mill. Te ) Lignite 0100200300400500600700800 2021-222020-212019-202018-192017-182016-172015-162014-152013-142012-13 Coal & Lignite Despatch Last Ten Years (in mill. tn.) Lignite Total Coal Despatch ( Mill. Te )

*Source CCO

CCAI ANNUAL REPORT, 2021-22 33 COAL PRODUCTION AND DESPATCH STAT ISTICS FOR LAST TEN (10) YEARS (figs. In Mill. Te) Year Production Despatch CokingCoal CokingNon-Coal TotalCoal Lignite CokingCoal CokingNon-Coal TotalCoal Lignite

0306090120150180210 NON ANTHRACITECOKINGCOKINGPCICOALPETCOKEMETCOKETOTAL: IMPORTED COAL & COKE FY 2022 VIS-A-VIS FY 2021 Year 2020-21 Year 2021-22

Pet

Coking

Total:

PCI

Non

TOTAL COAL IMPORT COKE 2021-22 VIS-À-VIS 2020-21

Type of Coal Year Growth 2021-22 2020-21 Coking 124.99 139.4 -10.34 51.65 49.44 4.47 2.14 1.96 9.18 Coal 13.66 12.85 6.30 Coke 2.29 2.42 -5.37 5.98 8.23 -27.34 200.71 214.3 -6.34 MoC

Met Coke

CCAI ANNUAL REPORT, 2021-22 34

Anthracite

INCLUDING

*Source

Overall coal import for FY 2021-22 declined by 6.34% in comparison to FY2020-21. However coking coal, anthracite & PCI coal import has been increased by 4.47, 9.18 & 6.3 % respectively.

*RES or Renewable Energy Sources include SHP, BP, U&I, Solar and Wind Energy. *

Thermal59%HydroNuclear2%12%RES27% INSTALLED CAPACITY SHARE APR '22 Thermal Nuclear Hydro RES

CCAI ANNUAL REPORT, 2021-22 35 PAN-INDIA SECTOR-WISE INSTALLED CAPACITY (MW) OF POWER STATIONS (FY 2021-22) Mode Generationof Thermal Renewable Regions Coal Lignite Gas Diesel Total RegionalShare(%) Nuclear Hydro RES Total RegionalShare(%) GrandTotal RegionNorthern 55420 1580 5781 0 62782 26.59 1620 20632 27563 48194 30.49 112596 RegionWestern 74573 1400 10806 0 86780 36.76 1840 7563 34228 41790 26.44 130410 RegionSouthern 46205 3640 6492 434 56771 24.05 3320 11820 47314 59134 37.41 119225 RegionEastern 27250 0 100 0 27350 11.59 0 4764 1756 6520 4.12 33870 RegioneasternNorth 631 0 1720 36 2387 1.01 0 1944 501 2445 1.55 4832 All India 204080 6620 24900 470 236 069 100 6780 46723 111361 158083 100 400932 *Source: CEA

PAN India total installed capacity of power including renewable is 400GW out of which thermal power plants total capacity is 236GW about 59% of total installed capacity. India’s commitments in COP26 in Glasgow in 2021was that 50 percent of its energy requirements will come from renewable energy by 2030. For fulfilling this dream the installed capacity of renewable power plants has to be increased by approximately threefold of the present level of 164GW Coal based generation still holds the lion-share of India’s total generation program while RES contributes to nearly 27% of total generation. India’s nuclear generation is at just 2%.

languishing

2012-13

2013-14

CAPACITY ADDITION IN LAST 10 YEARS (2011-12 TO 2020-21) Year Central Sector State Sector Private Sector Total 2011-12

2018-19 2070.00

2019-20

2016-17 4310.50

*Source CEA 2011-122012-132013-142014-152015-162016-172017-182018-192019-202020-21 SECTOR-WISE CAPACITY ADDITION IN LAST 10 YEARS Central Sector State Sector Private Sector

2015-16

2017-18

2020-21 4380.00

CCAI ANNUAL REPORT, 2021-22 36

2014-15 4395.21

SECTOR-WISE 4770.00 3761.00 11971.00 20502.00 5397.30 3977.00 11257.50 20631.80 2574.01 3367.00 11884.00 17825.01 4886.10 13285.00 22566.31 3775.60 7070.00 13131.00 23976.60 5177.30 4722.00 14209.80 3560.00 1960.00 3985.00 9505.00 2879.75 972.00 5921.75 4240.00 2780.00 45.00 7065.00 957.15 99.00 5436.15

*Source CEA

CCAI ANNUAL REPORT, 2021-22 37

Year Total Generation including renewable ( In BU ) % of growth 2009-10 808.498 7.56 2010-11 850.387 5.59 2011-12 928.113 9.14 2012-13 969.506 4.46 2013-14 1,020.20 5.23 2014-15 1,110.39 8.84 2015-16 1,173.60 5.69 2016-17 1,241.69 5.8 2017-18 1,308.15 5.35 2018-19 1,376.10 5.19 2019-20 1,389.10 0.95 2020-21 1,381.83 -2.49 2021-22 1.491.859 7.96

TOTAL GENERATION AND GROWTH OVER PREVIOUS YEAR IN THE COUNTRY DURING 2009-10 to 2021-22

Power generation continuously increasing during the period 2009-10 to 2021-22 only in 2020 it recorded a negative growth because of the effect of pandemic.

OVERALL to 2021-22)

0 7.56 5.59 9.14 4.46 5.23 8.84 5.69 5.8 5.35 5.19 0.95 -2.49 7.9610-2-402468 808.498 850.387 928.113 969.506 1,020.20 1,110.39 1,173.60 1,241.69 1,308.15 1,376.10 1,389.10 1,381.83 1.491.859 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

GENERATION GROWTH TREND (2009-10

Sector-wise PLF (%) % Central State Private 2009-10 77.5 85.5 70.9 83.9 2010-11 75.1 85.1 66.7 80.7 2011-12 73.3 82.1 68 69.5 2012-13 69.9 79.2 65.6 64.1 2013-14 65.6 76.1 59.1 62.1 2014-15 64.46 73.96 59.83 60.58 2015-16 62.29 72.52 55.41 60.49 2016-17 59.88 71.98 54.35 55.73 2017-18 60.67 72.35 56.83 55.32 2018-19 61.07 72.64 57.81 55.24 2019-20 55.99 64.21 50.24 54.64 2020-21 53.37 61.78 44.68 54.27 2021-22 58.87 69.71 54.5 53.62

PLF % Overall PLF % Central PLF % State PLF % Private

CCAI ANNUAL REPORT, 2021-22 38

Year PLF

Overall PLF% has come down from the level of 77.5% in the year 2009 to 58.9% in the year 2021-22. The reason behind this average low PLF is primarily because of gradual increase of installed capacity of the thermal power plants and poor capacity utilization.

FY 2009-10 to 2021-22

*Source CEA

PLF in the country from 2009-10 to 2021-22

350300250200150100500

PLANT LOAD FACTOR OF COAL & LIGNITE BASED PLANTS

DemandPeak PeakMet Surplus(+)/Deficts(-)

(MU) (MU) (MU) (%) (MW) (MW) (MW) (%)

CCAI ANNUAL REPORT, 2021-22 39

POWER SUPPLY POSITION DURING 2009-10 TO 2021-22 Energy Peak

Year Requirement Availability Surplus(+)/Deficits(-)

2016-17 11,42,929 11,35,334 -7,595 -0.7 1,59,542 1,56,934 -2,608 -1.6 2017-18 12,13,326 12,04,697 -8,629 -0.7 1,64,066 1,60,752 -3,314 -2

2018-19 12,74,595 12,67,526 -7,070 -0.6 1,77,022 1,75,528 -1,494 -0.8 2019-20 12,91,010 12,84,444 -6,566 -0.5 1,83,804 1,82,533 -1,271 -0.7 2020-21 12,75,534 12,70,663 -4,871 -0.4 1,90,198 1,89,395 -802 -0.4 2021-22 13,79,812 13,74,024 -5,787 -0.4 2,03,014 2,00,539 -2,475 -1.2

2009-10 8,30,594 7,46,644 -83,950 -10.1 1,19,166 1,04,009 -15,157 -12.7 2010-11 8,61,591 7,88,355 -73,236 -8.5 1,22,287 1,10,256 -12,031 -9.8 2011-12 9,37,199 8,57,886 -79,313 -8.5 1,30,006 1,16,191 -13,815 -10.6 2012-13 9,95,557 9,08,652 -86,905 -8.7 1,35,453 1,23,294 -12,159 -9

*Source CEA

0-2-4-6-8-10-12-100,000-90,000-80,000-70,000-60,000-50,000-40,000-30,000-20,000-10,0000 Surplus(+)/Deficit(-) trend of Energy in India Surplus(+)/Deficts(-) MU Surplus(+)/Deficts(-) %

2013-14 10,02,257 9,59,829 -42,428 -4.2 1,35,918 1,29,815 -6,103 -4.5 2014-15 10,68,923 10,30,785 -38,138 -3.6 1,48,166 1,41,160 -7,006 -4.7

2015-16 11,14,408 10,90,850 -23,558 -2.1 1,53,366 1,48,463 -4,903 -3.2

Gen. in 2020-21 Gen. in 2021-22

SECTOR-WISE GROWTH IN POWER GENERATION

*India’s nuclear generation for FY 2021-22 was 47112.06 MW which is more than 8.5% higher than the previous years’ figure.

Category Programme(MU) Actual (MU) ShortfallExcess(+)(-)/ % Programmeof

1032513.54 43029.08 150299.52 1225842.141114714.48 47112.06 151627.33 1313453.87 THERMAL NUCLEAR HYDRO OVERALL

Actual Gen. Growth (%) Compared to Prev. Yr Thermal 1155200.00 1114714.48 -40485.52 96.50 7.37 Nuclear 43020.00 47112.06 4092.06 109.51 8.67 Hydro 149544.00 151627.33 2083.33 101.39 0.88 Bhutan Imp 8236.00 7493.20 -742.80 90.98 -16.98 Total 1356000.00 1320947.07 -35052.93 97.41 6.54

CCAI ANNUAL REPORT, 2021-22 40

*Source: CEA

*Amid the recent spike in Power demand, India’s thermal power generation for FY 2021-22 was 1114714.48 MW against the scheduled monthly program of 1155200 MW, which is more than 7% higher than the last financial year. However, there has been a shortfall in thermal power generation 40485.52 MU in the fiscal.

OVERVIEW OF ALL INDIA ENERGY PROGRAM AND GENERATION

*Hydro generation in 2021-22 has stayed more or less at par with the previous fiscal. India’s overall generation has grown by a significant 6.54% compared to FY 2020-21.

STATE WISE COAL RESERVE in mil. tn.

TELANGANA 10475 8576 2651 21702

PRADESHARUNACHAL 31 40 19 90

PRADESHUTTAR 884 178 0 1062

ASSAM 465 57 3 525

WEST BENGAL 14156 12869 4643 31668

NAGALAND 9 0 402 411 SIKKIM 0 58 43 101

25%26%18% 10%9% 7% 4%0% TOTAL COAL RESERVE ( MILL. TE) BIHARANDHRAMAHARASHTRATELANGANAMADHYAWESTCHHATTISGARHODISHAJHARKHANDBENGALPRADESHPRADESH

JHARKHAND 45563 31439 6150 83152

PRADESHANDHRA 0 1149 432 1581

BIHAR 161 813 392 1366

CCAI ANNUAL REPORT, 2021-22 41

MAHARASHTRA 7178 3074 2048 12300

CHHATTISGARH 20428 34576 2202 57206

PRADESHMADHYA 11958 12154 3875 27987

MEGHALAYA 89 17 471 577

Source: Geological Survey of India

Total: 148788 139165 31070 319023

As a result of exploration carried out up to the depth of 1200 mtr. by the GSI, CMPDI, SCCL and MECL etc, a cumulative total 319.02 Billion Tonnes of Geological Resources of Coal have so far been estimated in the country as on 1.4.2018. The details of state-wise geological resources of Coal are given as under:

State Proved Indicated Inferred Total

ODISHA 37391 34165 7739 79295

Overall Coal Demand 956 906 980 1029 1134 1313 1448 of CokingwhichCoal 102 95 84 97 111 137 148 Non Coking 853 811 896 932 1023 1176 1300

Overall coal demand will cross 1 Billion Mark by 2024. The domestic coal production has to be ramped up for meeting this coal demand. 1313 1448

Coking Coal 52 51 51 56 62 68 75 Non Coking 197 164 159 130 110 105 95 *Source CEA

MEDIUM TERM DEMAND OF COAL PROJECTIONS ( in Million Tonnes )

Imported Coal 249 215 210 186 172 173 170

2019-202020-212021-222022-232024-252027-282029-30 OVERALL COAL DEMAND (IN MILL. TN)

Year 2019-20 2020-21 2021-22 2022-23 2024-25 2027-28 2029-30

956 906 980 1029 1134

CCAI ANNUAL REPORT, 2021-22 42

Overall Coal Demand 956 906 980 1029 1134 1313 1448 of Demandwhichfor Coal in Power 695 621 700 735 810 938 1034 Demand for Coal in Non Power 261 285 280 294 324 375 414

CIL 582 574 608 700 1000 1090 1130 SCCL 62 49 66 70 80 90 100 Captive and other Mines 63 69 91 204 224 276 281

Domestic Coal Supply 707 691 765 974 1304 1456 1511

IMPORT OF COKING & NONCOKING COAL PROJECTION

CCAI ANNUAL REPORT, 2021-22 43 It is estimated that domestic coal supply will increased to the level of 1.3 Billion Tonnes by 2024. Out of this 1.3 Billion Tonne total 1 Billion Tonne is estimated to be supplied from different coal companies of CIL. 150012009006003000 2019-202020-212021-222022-232024-252027-282029-30

COAL SUPPLY PROJECTION FROM DIFFERENT SOURCES

CIL SCCL Captive and other Mines Total Domestic Coal Supply OVERALL DOMESTIC COAL SUPPLY PROJECTION 2019-20 2020-21 2021-22 2022-23 2024-25 2027-28 2029-30 200150100500

Coking Coal Non-Coking Coal

CCAI ANNUAL REPORT, 2021-22 44

GRAPHICAL REPRESENTATION OF RENEWABLE ENERGY GROWTH

ALL INDIA SUMMARY OF RENEWABLE ENERGY GENERATION FY-2021-22 (Fig in MW)

Among generation has been the highest in the last one year followed generation. generation by

has increased

21.6% and wind by 14.1% in the last Amongfiscal. all renewable energy sources, biomass based generation has registered a decline in FY 21-22 as compared to the previous fiscal. 01000020000300004000050000600007000080000 SmallBiomassWindSolarBagasseHydroOthers RE Generation Apr'20-Mar'21 RE Generation Apr'21-Mar'22

RE Source 21.65 3513 -0.85 11303 11.24 10258 2.00

Installedcapacity(MW) GenerationREApr’21-Mar’22 GenerationREApr’20-Mar’21 Growth (%) Wind 40358 68640 60150 14.11 Solar 53997 73484 60402

*Source

Biomass 10206 3483

India’s solar based

renewable energy sources, solar energy

by wind based

CEA

Small Hydro 4849 10464

Bagasse 12574

Others 477 2268 1621 39.31 Total 109885 170912 147248 16.07

Sector Weight 132012- 142013- 152014- 162015- 172016- 182017- 192018- 202019- 212020- MarApr- 202021 MarApr- 202122*

YEARLY INDEX & GROWTH RATE OF EIGHT CORE INDUSTRIES BASE YEAR:INDEX2011-12=100

Fertilizers 2.6276 96.7 98.1 99.4 106.4 106.6 106.6 107 109.8 111.6 111.6 112.4 Steel 17.917 107.9 115.8 121.7 120.2 133.1 140.5 147.7 152.6 139.4 139.4 163

Natl. Gas 6.8768 85.6 74.5 70.5 67.2 66.5 68.4 69 65.1 59.8 59.8 71.3

OverallIndex 100 103.8 106.5 111.7 115.1 120.5 125.7 131.2 131.6 123.2 123.2 136

Ref. Prod. 28.038 107.2 108.6 108.8 114.1 119.7 125.2 129.1 129.4 114.9 114.9 125.2

*Source DIPP (Provisional)

Sector Weight 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2020-21Apr-Mar 2021-Apr-Mar22*

Crude Oil 8.9833 99.4 99.2 98.4 97 94.5 93.7 89.8 84.5 80.1 80.1 77.9

Crude Oil 8.9833 -0.6 -0.2 -0.9 -1.4 -2.5 -0.9 -4.1 -5.9 -5.2 -5.2 -2.6 Natl. Gas 6.8768 -14.4 -12.9 -5.3 -4.7 -1 2.9 0.8 -5.6 -8.2 -8.2 19.2

Cement 5.372 107.5 111.5 118.1 123.5 122 129.7 147 145.7 130 130 157.1 Electricity 19.853 104 110.3 126.6 133.8 141.6 149.2 156.9 158.4 157.6 157.6 169.9

*Source DIPP (Provisional) YoY is calculated over the corresponding financial year of previous year

Coal 10.334 103.2 104.2 112.6 118 121.8 124.9 134.1 133.6 131.1 131.1 142.3

GROWTH RATES (ON Y-O-Y BASIS IN PER CENT)

CCAI ANNUAL REPORT, 2021-22 45

Coal 10.3335 3.2 1 8 4.8 3.2 2.6 7.4 -0.4 -1.9 -1.9 8.5

Ref. Prod. 28.0376 7.2 1.4 0.2 4.9 4.9 4.6 3.1 0.2 -11.2 -11.2 8.9 Fertilizers 2.6276 -3.3 1.5 1.3 7 0.2 0.03 0.3 2.7 1.7 1.7 0.7 Steel 17.9166 7.9 7.3 5.1 -1.3 10.7 5.6 5.1 3.4 -8.7 -8.7 16.9 Cement 5.372 7.5 3.7 5.9 4.6 -1.2 6.3 13.3 -0.9 -10.8 -10.8 20.8 Electricity 19.853 4 6.1 14.8 5.7 5.8 5.3 5.2 0.9 -0.5 -0.5 7.8 GrowthOverall 100 3.8 2.6 4.9 3 4.8 4.3 4.4 0.4 -6.4 -6.4 10.4

Apr-21 113.5 78.5 66.7 123.4 88.3 160 159 174 132

*Source DIPP (Provisional)

Nov-21 149.2 76.6 72.2 131.9 121.4 157.4 127.3 147.9 131.8

MONTHLY INDEX & GROWTH RATE OF EIGHT CORE INDUSTRIES

Jun-21 112.1 78.2 70 113.2 116.9 153.1 148.2 169.1 127.2

Weight 10.3335 8.9833 6.8768 28.0376 2.6276 17.9166 5.372 19.853 100

Jan-22* 174.8 79.1 71.4 135.8 115.2 174.2 176.7 165.6 144.8 Feb-22* 174.7 71.6 64.9 124.9 102.4 165.5 169 160.8 137.3 22*Mar- 210 79.6 72.6 142.6 107.7 181.6 198.6 188.8 157.3

CCAI ANNUAL REPORT, 2021-22 46

3.8 2.6 4.9 3 4.8 4.3 4.4 0.4 -6.4-6.4 10.4 Y-O-Y GROWTH (% ) OF EIGHT CORE INDUSTRIES

Jul-21 119.2 80.3 72.8 122.2 120.1 155.2 154.3 184.7 134.7

Sep-21 113.8 77 73.3 112.7 113.6 160.5 141.1 167.9 128 Oct-21 140.4 79.2 76.3 127.5 122.9 167.6 161.9 167.3 137.8

Sector Coal OilCrude GasNatural ProductsRefinery Fertilizers Steel Cement Electricity IndexOverall

Mar-21 210.3 82.4 67.5 134.4 93.4 175.2 182.5 180 150.8

May-21 117.1 76.8 68.7 117.7 102.5 149.4 131.1 161.9 125.4

Dec-21 164.3 79.1 72.7 134.4 121.1 169.9 168.8 162.5 141.7

Aug-21 118.4 79.4 73.7 115.5 117 161.1 148.8 188.7 134.2

Growth Rates (on Y-o-Y basis in per cent) Apr-Mar 2021-22* Growth Rates (on Y-o-Y basis in per cent) Apr-Mar 2020-21

content taken

Data and statistics used in the CCAI Annual report for FY 2021-22 have been collated from a credible sources like MoC, CEA, CCO, National Power Portal, DIPP etc. Material in the report is not to be in any form without the permission of CCAI. Association does not take responsibility for the from 3rd Parties.

The

**************2021.

Year on year overall growth of eight core industries have hovered between 3-5% from FY 2012-13 to FY 2018-19, before registering a steady dip in 2019-20 to 0.4%. In the following two fiscals growth rates further slumped to negative as pandemic caused havoc across the globe and India. However, overall growth of the Industries has reached the decade highest 10.4% in FY 2021-22.

-1.9 -5.2 -8.2 -11.2 1.7 -8.7 -10.8 -0.5 -6.4 8.5 -2.6 19.2 8.9 0.7 16.920.8 7.8 10.4

GROWTH RATES (%) (ON Y-O-Y BASIS)

reproduced

The cumulative growth rate of Index of Eight Core Industries (ICI) during April-March 2021-22 was 10.4% (provisional) as compared to the corresponding period of last Financial Year. The combined Index of Eight Core Industries stood at 157.3 in March 2022, which increased by 4.3 per cent (provisional) as compared to the Index of March

4, India Exchange Place, 7th Floor, Kolkata- 700001

Phone: 033-2230 4488 / 033-4008 2776 Email: info@ccai.co.in/sec.ccai@gmail.comWebsite:www.ccai.co.in

COAL CONSUMERS’ ASSOCIATION OF INDIA