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Vol. XLVIII No. 01 Published on : 28.04.2019

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From the Editor’s Desk

Power plants in the country are continuing with healthy coal stock at present. Like oth er years, Coal India Limited is putting all endeavours to me et the summer demand. The subsidiaries are also trying har d to increase the Coal supply to the Power Plants. In compar ison to the last Financial Yea r improvement in coal supply to Non-power sector has also reduced the coal crisis of the industries as well.

Coal impor t by state governme nt-run power producers in Gujarat, Andhra Pradesh and Tamil Nadu in FY 2018-19 was 1.4 times higher than previo us year may be due to mism atc h in demand and supply of coa l from indigenous sources.

In future to cope with the dem and graph, special attention may be given to auction of cap tive coal blocks and its succes s would open many avenues of fair competition in the coal sector culminating in better job opportunities and overall growth of the nation.

Though union Government has pushed to conver t all CIL mines into profit mode but due to poor cost effectiveness of underground operations many UG mines are leading toward s closure across subsidiaries.

Slack demand in April has hit the global coal exporters as seaborne volumes dropped fro m the previous month, but overall picture of the industry so far this year is not quite as gloomy as it may appear.

Adding to its growth stories, additional cargo of 62 millio n tonnes have been loaded by Ind ian Railways and coal contin ues to occupy the major chunk of incremental cargo moved by the national transporter.

Happy reading......

4 | CCAI Monthly Newsletter April 2019

Content Vol. XLVIII No. 01 April, 2019

06 Consumers’ Page

Official Organ of the Coal Consumers’ Association of India. Disseminates News and Views on Coal and all other sources of Energy.

4, India Exchange Place - 7th Floor Kolkata - 700 001 Landline : +91 33 22304488 / 22621516 E-mail : sec.ccai@gmail.com Website : www.ccai.co.in

08 Power

Editor : Subhasri Nandi

12 Domestic

Annual Subscription Rs. 400/(including postage) MO/DD to be made in favour of “Coal Consumers’ Association of India” CCAI do not necessarily share or support the views expressed in this Publication.

18 Global

21 |Energy Generation Report

22 |Monthly Summary Of Domestic Coal 23 |Monthly Summary Of Imported Coal &

Petcoke

25 |Overall Domestic Coal Scenario 26 |Production And Offtake Performance Of Cil And Subsidiary Companies

CCAI Monthly Newsletter April 2019

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CONSUMERS’ PAGE Present Coal Scenario CIL has produced 45.29 million tonnes of coal in April 2019 posting only a growth of 1% compared to the same month last year. The miner produced 44.86 million tonnes coal in April 2018.

Coal offtake by CIL was 52.35 million tonnes in April 2019 compared to 51.02 million tonnes in the same month of 2018, a little growth of 2.6%.

Consumers’ Concern 1. Coal Stock Position Not a single power station in the country is in critical or supercritical coal stock situation at present. With the onset of peak summer, Coal India is also putting efforts to increase coal supply to power plants. The state-run miner is planning to supply nearly 530 million tonnes of coal to the power sector in 2019-20.

Coal supply to Non-power Sector has improved as well in the last few months though number of rakes are still pending.

2. Coal Quality issues Inspite of best effort and continuous monitoring done by CIL & Subsidiaries, coal consumers are still facing the problem of quality variance in the grades allocated to them from Subsidiary Coal Companies of CIL. Though the quality has improved compared to the previous condition, consumers have expressed discontent over the grade variance mainly from ECL, BCCL, Garjanbahal & Samleswari OCP of MCL and Mahan II OCM of SECL. This problem causes financial loss due to receipt of lower grade coal in comparison to the billed grades. Therefore, coal consumers have requested the Coal Controller, CIL & its Subsid-

06 | CCAI Monthly Newsletter April 2019

iaries to kindly intervene into the matter so that actual grade of coal may be received as per the contracts from a few sources where grade slippages are occurring regularly.

3. Request to formulate suitable methodology and implement the approval of MoP regarding Nonlapsing of short supplies of coal to Power Plants in the lapsable category Power sector consumers have requested Coal Ministry, Railway Board and CIL for formulation of suitable methodology and implementation of the MoP approval (notice dated 08.03.2019) regarding Non-lapsing of short supplies of coal so that these consumers can maintain safe coal stock level at their plants and eventually be prepared for such difficult situation in future as well.

4. Request for timely issuance of Referee Analysis Report and Credit/ Debit Notes Consumers are experiencing inordinate delay upto 6-8 months in getting Referee Analysis Report. Reports are yet to be issued for entire FY 2018-19 at

CCL (Magadh - Amrapali Area) & ECL (Sonepur Bazari). Issuance of Credit Notes is still pending at SECL even after receipt of Referee Analysis Reports. Credit/debit notes are yet to be issued for entire FY’201819 at SECL (Raigarh Area), CCL (Magadh - Amrapali Area), ECL (Sonepur Bazari) and MCL (Basundhara Area & Lakhanpur Area). Though the rail mode consumers of WCL have already received respective credit notes but road mode linkage auction consumers are not getting their Credit/Debit notes in time and even no confirmation regarding credit notes has been received by such consumers from WCL so far.

Therefore, coal consumers have requested for timely issuance of Referee Analysis Report and Credit/Debit Notes.

BIS covering 25% of total trucks loaded under road mode for a day.

8. Increase in Reserve Price of Coal pertaining to different e-Auctions of MCL MCL has increased the reserve price of coal from 10% to 20% in Exclusive and Special Forward e-Auction and from 20% to 30% in Spot e-Auction over CIL notified price from April ’19 to Sep ’19 or till finalization of next rates which will have serious financial impact on MCL customers across the board. Consumers have requested CIL and MCL to revisit and reduce the reserve price as per previous rates.

5. Short receipt of coal from Pandaveswar Area of ECL

9. Request for extension of exemption in advance payment of coal value

Power Sector consumers have communicated their grievance regarding short receipt of coal from Pandaveswar Area of Eastern Coalfields Limited in the tune of 5 to 6 %.

Due to pendency of coal rakes, CIL has advised its Subsidiary Coal Companies to extend the exemption in advance payment of coal value from April 2019 onwards. Except SECL other Subsidiaries have not provided the said relief so far. Therefore, industries have requested Subsidiary Coal Companies for extension of exemption pertaining to advance payment from April, 2019 for survival of the industrial sectors.

6. Request from consumers for dispensation of Compensation Cess on coal Imposition of Compensation Cess on supply of coal has lead to an increase in cost of coal to a great extent. Therefore, consumers in both Power and Non-power Sectors have requested Coal Secretary, Revenue Secretary and GST Council for removal of Compensation Cess levied on supply of coal or ad valorem in rate of tax or allowing credit of Cess against GST liabilities other than Cess also.

7. Dissatisfaction over coal sample collection procedure for 3rd Party Sampling & Analysis Present procedure of coal sample collection and preparation for Third Party Sampling & Analysis is inadequate to get an accurate representative sample for a particular consignment. Therefore, it should be as per IS: 436 (Part 1/Section 1), 1964. As per BIS norms, in case of sampling from loaded wagons 25% of the total wagons are to be covered under sampling but as per FSA only 10% of total wagons are being considered for sampling for supply through rail mode. Third Party Agencies engaged for sampling are following the procedures as per FSA. Consumers opine that if BIS norms are adopted in case of 3rd Party Sampling, there will be less variation in the analysis results. In road mode also about 13% of the loaded trucks are covered under sampling as 3rd Party Agencies are taking samples from every 8th truck. Similarly consumers have requested that samples may be collected based on random table of

10. Framing of policy for making coal available in case of non-availability of contracted grade of coal from both the primary and secondary sources Industries under Non-Regulated Sector are adversely affected due to non-availability of contracted grade of coal from both the primary and secondary sources. Therefore, they have urged CIL for making necessary amendments in the existing and future Fuel Supply Agreements (FSAs) so that coal can be made available from other available sources based on mutual consent in case of non-availability of contracted grade of coal from both primary and secondary sources.

11. Highest premium charged by CIL Subsidiaries for conversion of Rail to Road/RCR mode Though CIL has allowed the conversion of linked and auction quantity from Rail to Road/RCR mode on a monthly basis for better evacuation but Subsidiary Coal Companies are adding clause to CIL notice according to which they shall charge the highest premium of any sub-sector in the last 2 concluded tranches under NRS Linkage Auction, for allowing Change of Mode. Consumers have urged that for Change of Mode from Rail to Road/RCR due to huge backlog in loading of rakes, the premium fixed during initial agreement should only be charged instead of additional premium being levied on the auction consumers.

CCAI Monthly Newsletter April 2019

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POWER Elections add to heat as power demand touches record high Peak power demand of the country touched a record high of 176.5 gigawatt (GW) as temperatures soared with the onset of summer. Given the election season, states are also determined to minimise power cuts till the polls.

Power demand in Karnataka was up 30% from the same day a year ago. Other major states registering high growth in consumption were Odisha (23.1%), West Bengal (18.9%), Bihar (17.7%), Uttar Pradesh (17.1%), Madhya Pradesh (15.2%), and Gujarat (12.6%). As FE reported in March, states had started making arrangements to tie up with power suppliers on a short-term basis for election months at prices much higher what than they normally pay.

While the average all-India price at which states procured non-renewable power in FY18 was Rs 3.53 per unit, the price range for these bilateral power deals ranged between Rs 4.45 per unit and Rs 8.5 per unit.

In the auctions for such power supply agreements, states including Maharashtra, Bihar, Chhattisgarh, West Bengal and Haryana sought to tie up a cumulative 6,000 MW capacity for the election months to avoid power cuts. The rise in power demand co-

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incides with the addition of 2.62 crore household connections under the government’s Saubhagya scheme. According to government’s meteorological department, the highest maximum temperature of 46.6 degree Celsius was recorded at Khargone in Madhya Pradesh.

CERC’s final tariff regulation for FY20-24 largely in line with draft guidelines: India Rating and Research The Central Electricity Regulatory Commission’s tariff regulation for FY2020 to FY2024 is largely in line with the draft guidelines, India Rating and Research (IndRa) said.

The CERC had brought the draft tariff regulation in the December 2018 for a block period of five years from April 1, 2019 to March 31, 2024.

The final the CERC guidelines for the FY2020 to FY2024 block period are favourable for power generators, as they are largely in line with the draft guidelines, Ind-Ra said in a statement.

The CERC has maintained status quo on two of the key parameters: return on equity at 15.5 per cent and

debt:equity at 70:30, it added.

Although Ind-Ra had estimated a decline in the annual fixed cost (AFC) as per the draft FY2020 to FY2024 guidelines, the CERC has allowed higher operations and maintenance expenses in the final guidelines.

Power exchanges to get nod for electricity exports Saddled with surplus power generation and lower demand from the utilities, the government is looking at throwing open a short-term power market to the consumers in the neighbouring countries by allowing them access to Indian power exchanges for meeting day-to-day requirements.

Sources privy to the development said that power regulator Central Electricity Regulatory Commission (CERC) is vetting a proposal to allow cross-border power trading in the short-term market. Once the proposal is finalised, it will issue necessary regulations allowing power exchanges to tap the new customers.

“The cross-border trading of electricity may become a reality soon with the CERC in the last lap of issuing the new regulations,” said a government official privy to the development.

As part of its efforts to develop a robust and dynamic electricity market, the government has been toying with the idea of also involving exchanges in export and import of power.

In fact, in December, the Centre issued new guidelines for export and import of electricity and power trading with neighbours, replacing the earlier guidelines of 2016.

Though the guidelines provide for trading, it is restricted to export and import of power under bilateral agreements. With the CERC regulations, even exchanges would become a platform for such trading, even for supplying electricity for meeting short-term needs of the neighbours.

Lower coal prices could help lossmaking state electricity boards Virtually every village in the country is electrified but the irony of the situation is there isn’t enough affordable power to go round. The amount of power con-

sumed in 2018-19 is estimated at just roughly 4% more than that in 2017-18. Plagued by losses, the distribution companies (discoms) are unable to procure enough power even as a clutch of private sector generating companies (gencos), that are unregulated, struggle to stay afloat in the absence of adequate coal or gas. A good many have become stressed assets for their lenders; the Samadhan scheme has had very limited success in finding buyers for these. The supply of coal to power plants by Coal India, in the eleven months to February, was about 9.4% higher than in the corresponding period of 2017-18 but that was still lower than the allotted quantity. The quantity of gas made available was barely 29-31% of the allocation promised.

The root of the problem remains the discoms that, over the years, have run up large losses. While their operational and financial data is not available beyond 2015-16, their dues to gencos are believed to have increased sharply over the last few months. On average, according to Kotak Institutional Equities, their payables to generators are overdue by about four months. State Electricity Boards are tipped to make losses of over `1 lakh crore in 2018-19 and also in 2019-20.

While the UDAY scheme could have made things better, it hasn’t helped as much as hoped. The key to a more robust performance was lower AT&C losses but these are now at close to 20% as compared to the targeted 15%; in some states, the level is closer to 25%. Also, the progress of smart metering of lines— aimed at improving efficiencies—has been tardy and at 5.34 lakh, it is still less than 2.2% of the targeted 24.1 million metres.

India’s weak power demand points to more slowdown India is witnessing a listless growth in electricity demand, possibly signaling more slowdown in Asia’s third-largest economy.

Electricity requirement from distribution utilities in February rose 1.3 percent from a year earlier and barely changed from January’s 1.1 percent, the weakest growth in two years, according to the power ministry’s Central Electricity Authority. Data for power generation, a proxy for demand, showed the weakness continued into March.

CCAI Monthly Newsletter April 2019

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The trend points to a lack of appetite among factories and commercial firms -- who consume about half the country’s electricity -- ahead of government data on industrial production for February that’s due. Uncertainty about the outcome of a national election beginning, weak domestic demand and a global slowdown have clouded India’s economy.

Economic growth slowed to 6.6 percent in the three months to December, the weakest pace in six quarters. The International Monetary Fund cut the nation’s growth outlook for this year to 7.3 percent from 7.5 percent seen in January.

“The industry is not growing at a fast pace,” said Devendra Kumar Pant, chief economist, at India Ratings and Research, the local unit of Fitch Group. “All leading indicators suggest sluggishness in industrial activities will continue for some time.”

India’s core infrastructure sector, which constitutes 40 percent of total industrial production, grew 2.1 percent in February, marginally improving from January’s 19-month low of 1.8 percent when electricity generation and production of refinery products contracted.

Rs 42k-cr burden: Discoms’ dues to power cos rise 20% While power generation units with combined capacity of 40 gigawatts (GW) are stressed and the sector is still grappling with the fall-out of several years of muted demand growth, state-run discoms’ dues to the power producers continue to rise.

According to data available with the power ministry’s ‘praapti’ portal, the discoms’ dues to 17 generators stood at `41,707 crore at February 2019-end, up a fifth from the level a year ago and 15% higher than at the end of August 2018. Of these dues, over half — `23,879 crore to be precise — are termed “over-dues” due to payment default of 60 days or more. The dues include those to independent power producers (about 57% of the total) and state-run utilities like NTPC, DVC and NHPC. If the so-called regulatory dues of over Rs 17,000 crore are included, the outstanding amounts by the discoms to independent power producers alone would be a staggering Rs 40,770 crore. To make matters worse, private power producers are still waiting for payment of another Rs 6,865 crore from discoms

10 | CCAI Monthly Newsletter April 2019

as costs pass-through under the ‘change in law’ provision approved by the regulators.

Payment backlogs have been a perennial issue which continues to haunt the power generation industry as it waits to reap the benefits of the Union government’s actions to mitigate the woes of the stressed sector. Despite the UDAY scheme bringing in some improvement in the finances of discoms, most of them are still to abandon the practice of unduly delaying payments to power producers.

The situation has not improved in spite of the power ministry requesting the chief secretaries of all the states to direct discoms to clear their dues. Experts have pointed out that discoms frequently ask for renegotiation of the terms of power purchase agreements to find ways to escape penalties and late payment surcharges.

UDAY: Discoms cut down on fresh borrowing State-run electricity distribution entities (discoms), which had saved a substantial Rs 34,000 crore on interest costs due to the UDAY scheme in the two years ended December 2018, seem to be on a belttightening mode. According to data reviewed by FE, fresh borrowings by discoms of 12 major states in the 18 months ended Match 31, 2018 was only Rs 1.2 lakh crore, one-fifth lower than anticipated by the Union power ministry.

Borrowings were expected to be higher given these discoms’ combined accumulated losses of Rs 66,436 crore (which is usually financed entirely via fresh borrowings) during the period and the allowed working capital limit of Rs 87,595 crore (banks and financial institutions could lend only 25% of a discom’s revenue in the previous year as working capital).

States’ reluctance to fund losses of discoms is also said to be a reason for distribution companies cutting down on borrowings, as they are unsure of sovereign backing for post-UDAY losses. On a pan-India basis, discoms continue to lose 35 paisa on every unit of electricity sold (ACS-ARR gap), as they failed to meet the UDAY target to eliminate the ACS-ARR by FY19.

“The state governments having taken over the initial debt as part of restructuring are now reluctant to take on the subsequent years’ losses,” Kameswara Rao,

partner, PwC, told FE. “While the central schemes fortunately meet their capital expenditure needs, the operating losses will hurt the discoms’ ability to maintain viability.”

Of course, reining in of costs of electricity generation at state-owned power plants, UDAY-enabled tariff hikes and digital billing/collection have contributed to higher revenue generation for discoms. The UDAY states have already completed 100% feeder metering in urban and rural areas. An improvement of 1% billing efficiency leads to additional revenue of about `5,400 crore across India.

include cutting emissions relative to GDP by a third by 2030 from 2005 levels.

Power companies challenge GST on green certificates Are renewable energy certificates, bought by power companies, goods or services?

Neither. And so, must be out of the indirect tax ambit, according to power companies which have suffered higher costs because of the Goods and Services Tax (GST).

Government’s solar park push is running into land acquisition and transmission challenges

The power companies that buy these certificates to comply with the environmental norms challenged the levy through a writ petition filed in the Delhi High Court.

Big targets get people talking. That is precisely what happened in June 2015 when the Narendra Modi government quintupled the target for solar power. By March 2022, the government said, India would have 1,00,000 MW of solar capacity.

Power companies buy these certificates from renewable energy exchanges to abide by government norms that mandate that a certain percentage of power generated should be through renewable sources.

With this, the country placed a big bet on a future where clean energy would play a crucial role. While some called it wishful thinking, others said the target was not unrealistic.

The certificates are derivatives based on the power generated in green route. Most power generators buy renewable energy from their green peers, sometimes based abroad. These certificates also work as a source to buy the balance quantity of renewable energy that cannot be bought or generated directly by the power firms.

A couple of years later, the government upped another target: installed capacity in solar parks. The government said there would be 40,000 MW capacity in solar parks by March 2022, twice as high as the earlier target.

These two targets mean solar parks alone would contribute to 40% of India’s installed solar capacity in three years. But given the slow progress in setting up solar parks — owing to land acquisition issues and challenges in evacuating the power generated in these parks — that seems highly unlikely. So does meeting the 1,00,000 MW target by March 2022.

The solar power sector has lost some of its momentum in recent months. This is worrying, given that solar power is crucial to the government’s plan to double the share of renewable energy in India’s installed electricity generation capacity to 40% by 2030.

“The taxability of renewable energy certificates has been challenged as these are securities which are excluded from both goods and services. These scrips are traded every on IEX (Indian Energy Exchange) and PXIL (Power Exchange India), the two exchanges for the trading purposes,” said Abhishek A Rastogi, partner, Khaitan and Co. According to the power companies, a government circular that came out in June last year added to their woes. It talked about the applicability of GST on the renewable energy certificates at 12%. “It is hereby clarified that Renewable Energy Certificates (RECs) and Priority Sector Lending Certificates (PSLCs) and other similar documents are classifiable under heading 4907 and attract 12% GST,” it read.

The target is part of India’s commitments under the 2015 Paris Agreement on climate change, which also

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DOMESTIC Coal ministry to help private operators raise output The coal ministry plans to give special attention to private captive coal block operators to help increase output, which has frequently failed to meet targets.

This has put tremendous pressure on Coal India, which has been struggling to meet the nation’s demand for coal. “This year, the focus among other things would be on private captive block operators,” said a coal ministry official. “They have been facing a host of issues in terms of operationalising their blocks and we need to help them expedite the process, so that production from this segment rises at a faster pace.” Captive blocks have suffered because of delay in land acquisition and various clearances as well as issues such as rehabilitation and resettlement. In 2018-19, captive mines produced an estimated 33 million tonnes. In the previous years, they produced about 36 million tonnes, including 18 million tonnes

by Sasan Power Ltd and 6.2 million tonnes by Tata Steel. The official said some blocks that were not operational should start production. “This is expected to bring down pressure on Coal India as coal demand from these companies would reduce and ease coal stock position at power plants,” he said.

India’s coal imports surge 40% owing to washery shortage Coal India’s (CIL) delays in setting up coking-coal washeries inflated the country’s coal imports by $3

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billion or over 40% in FY18, steel companies have estimated. The firms have warned that imports of the fuel, which could drive up India’s goods trade and current account deficit, could rise further if adequate number of domestic washeries are not set up in the public and private sectors. In letters sent to steel and coal ministries, the Indian Steel Association (ISA) has pointed out that if the situation does not improve, import bills would rise exponentially as the country strives to achieve the ambitious steel production target of 300 MTPA by FY31. The letters, reviewed by FE, said capacities of CIL washeries are grossly underutilised and become obsolete because they were primarily designed to handle coal with ash content much lower than what is currently mined. Since unwashed coking coal with high ash content can’t be used by the steel industry, it is being diverted to power plants.

“At present, if coking coal being sold to power plant is washed, there is potential to cut approximately 40% of import at current level of production (saving about $3 billion),” the letter from ISA added.

Modi govt adds more to coal output in 5 years than UPA’s 10 years The Narendra Modi government has raised India’s coal production by over 144 million tonne (mt) in the five years it has been in power, overshooting by 5% the 138mt added to the country’s output in the 10 years of UPA rule between 2004 and 2014. Production by Coal India (CIL), the state-run miner accounting for nearly 90% of domestic supplies, stood at a

CCAI Monthly Newsletter February 2019

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little over 462mt when the Modi government took over in May 2014. Five years since then, production by the country’s largest coal miner stands at 607mt in 2018-19, coal ministry data shows. In contrast, CIL’s production stood at 324mt in 2004-05 when the UPA1 government came to power and rose to 404mt by 2008-09, indicating an addition of 80mt in the fiveyear period. In the subsequent five years, the UPA-2 government added 79mt to take the total production to 607mt. Data shows coal offtake too largely keeping pace with production, indicating improved evacuation and transportation due to greater synergy between the coal and railway ministries. Quick decisions and clearances for mine expansions have also contributed to the sharp rise in production.

Coal shipments at major ports rise 11 per cent to 161 MT in FY19 Coal shipments handled by India’s 12 major ports saw a 10.81 per cent rise to 161.34 million tonne (MT) in the previous financial year, according to ports’ body IPA. These top ports under the control of the Centre had handled 145.59 MT of coal cargo in 201718. Shipments of thermal or steam coal and coking coal rose 9 per cent and 14.25 per cent, respectively, during 2018-19. The Indian Ports Association (IPA) said the major ports handled 103.84 MT of thermal or steam coal during the financial year, compared with 95.26 MT in the previous fiscal. IPA in its latest report said the major ports handled shipments of 57.50 MT of coking coal during 2018-19, against 50.33 MT in the previous fiscal. Thermal coal is the mainstay of the country’s energy programme as 70 per cent of power generation is dependent on the dry fuel, while coking coal is used mainly for steel-making. India is the third-largest producer of coal after China and the US and has 299 billion tonne of resources and 123 billion tonne of proven reserves, which may last for over 100 years. Overall, these ports recorded 2.90 per cent growth in total cargo handling at 699.04 MT in the previous financial year. The growth at these ports, which had handled 679.37 MT cargo in 2017-18, was driven mainly by higher handling of coal, fertilisers and containers.

CIL shuts underground mining with Centre push to convert all mines profitable The Centre’s push to convert all Coal India Ltd (CIL) mines as profit-making mines has resulted in the closure of underground mines across subsidiaries since underground operations are not cost-effective. The

14 | CCAI Monthly Newsletter April 2019

government has opted for low-cost operation to keep margins at ease and except for Eastern Coalfields Ltd (ECL), underground coal production has witnessed a negative growth in all other subsidiaries. ECL has registered positive growth in production from underground mines for the seventh consecutive year, Niladri Roy, general manager, ECL, said.

Coal import rises 9% to 234 MT in FY19 India’s coal import increased by 8.8 per cent to 233.56 million tonnes in 2018-19, according to a report. Coal imports were at 214.61 MT in 2017-18, according to provisional data by mjunction services, based on monitoring of vessels’ positions and data received from shipping companies. “India’s coal and coke imports during 2018-19 through 31 major and non-major ports are estimated to have increased by 8.83 per cent to 233.56 million tonnes (MT) (provisional) as compared to 214.61 MT (revised) imported in 201718,” it said. Non-coking coal imports were at 164.21 MT in FY2018-19, about 13.25 per cent increase over 144.99 MT recorded in FY2017-18. Coking coal import was almost flat at 47.73 MT compared to 47.22 MT in 2017-18

RAILWAYS

Railways hauls highest-ever load of 1,223 mt in FY19 Indian Railways loaded an additional cargo of 62 million tonnes (mt) in the year ended March 31, over the previous year, as per initial estimates, according to multiple Railway sources. With this, the Railways has hauled 1,223 mt cargo during the year, against 1,161.66 mt loaded last year. The freight loaded last fiscal is likely to be the maximum loaded ever. Coal continued to occupy the major chunk of incremental cargo moved by the national transporter. Of the 62 mt extra load, the largest chunk or close to 80 per cent was from coal. The Railways loaded 603 mt of coal in 2018-19, against 555 mt loaded in the previous fiscal, according to an official. To ward off competition from other modes, including large trucks moving goods on roads and coastal cargo, the Railways entered into long-term agreements with customers, and had also tweaked tariffs by introducing discounts to customers who were willing to load traffic in directions that usually do not find customers (termed empty flow direction), among others.

India shifts to net steel import- India’s steel consumption to er in 2018/19, first time in three cross psychological 100-million years tonne mark in 2019 India was a net importer of steel during the 2018/19 fiscal year, the first time in three years, as the country lost market share among its traditional steel buyers and imports jumped on demand for higher-quality steel domestically. The country’s finished steel exports fell by 34 percent in the fiscal year that ended in March to 6.36 million tonnes, according to preliminary government data given to Reuters on Friday. During the same period, finished steel imports rose 4.7 percent to 7.84 million tonnes. India’s exports during the fiscal year declined after rival steelmakers in China, Japan, South Korea and Indonesia, blocked from markets in the United States and Europe by tariffs and other protectionist measures, ate away at the country’s markets in the Middle East and Africa, according to an Indian government official with close knowledge of the matter.

CEMENT

Industry divided over reason for rise in cement prices As cement prices across India head north after displaying softness for over a year, consumer associations and infrastructure experts remain divided on the reason behind the increase: Supply controls or sustained revival in demand. A property-industry association in south India attributed the price increase to coordinated supply controls, an alleged monopolistic practice that has earlier drawn the attention of the federal competition panel. “The companies are indulging in cartelisation, which is evident as the demand has also not dramatically gone up,” said WS Habib, president of Confederation of Real Estate Developers Association of India (Credai), Chennai. According to research reports, cement prices in February increased

by Rs 24-25 per bag of 50 kg, but the increase was more pronounced in south India, where prices increased by more than Rs 60 per bag since January after manufacturers raised prices twice last month.

Prices typically are soft in the peninsula through the winter months because the region receives northeast monsoons, preventing construction.

STEEL

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India’s steel consumption is poised to cross the psychological 100-million tonne mark in 2019, a forecast by Indian Steel Association an industry body comprising domestic steel producers has said. The consumption growth is tipped to be driven by an expected 7.1% growth in domestic steel demand in calendar year 2019, the ISA said adding that demand is likely to grow marginally in the next calendar year 2020 by 7.2%. For financial years 2019-20 and 202021, however, the forecast for steel demand growth is 7.2%. “Consumption growth is expected to improve driven by measures for farmers, unorganized sector and government employees. Cumulatively, the Indian economy is likely to maintain above 7% growth in next couple of years,” the statement said. While the economy witnessed a strong growth of above 8% during first half of 2018, it slowed down in the second half of 2018, primarily due to the weaker rural sector. In addition, high oil prices combined with a weakening rupee dampened the demand in general

SAIL posts 8 per cent growth in crude steel production in FY19 Steel Authority of India Limited (SAIL) produced 16.3 million tonnes (mt) crude steel in FY19, registering a growth of 8% over the previous year and clocking the best ever saleable steel production during the year.

This was matched by SAIL’s highest ever total steel despatch at 14.86 mt during FY’19 due to a dedicated logistics set-up created by it recently. In line with its improved performance, the company managed to improve its turnover by 16% to Rs 66,100 crore, an official statement said. SAIL reported a growth of 10%, 8%, 14% and 13% in respect of production of Hot Metal, Crude Steel, Saleable Steel and Sales respectively in the fourth quarter of FY19. The country’s largest public sector steel producer said production from new mills of its steel plants recorded marked improvement in FY’19, resulting in an enriched product basket. During the year, it posted the highest ever production of 9.85 lakh tonnes of UTS 90 Rail. The production of rails gained momentum in the second half of FY19, with 5.66 lakh tonnes of rails being produced, up 35% over the first half.

Anil Kumar Chaudhary, chairman, SAIL said FY19 was marked by the company’s turnaround in various parameters like production, techno-economics, cost of production, higher production of value added products apart from a ramp up in production from new mills and sales. The challenge for FY20 is much higher, he added, with a plan of 21% increase in production of crude steel and a similar growth in sales.

With Best Compliments From:

Sharda Ma

( )

COAL MERCHANTS, IMPORTERS & HANDLING AGENTS INDIA SOUTH AFRICA INDONESIA SINGAPORE HONG KONG NIGERIA

UGF 1& 2, Kanchenjunga Building, 18 Barakhamba Road, New Delhi-110001, India P : +91 11 23354046/47 F : +91-11-23354047 E : corporate@shardamaa.com W : www.shardamaa.com

GLOBAL Australian coal at risk from China move, warns government report

The government expects the coal price to fall from $US108 per tonne in 2018 down to $US76 a tonne in 2021.

A new government report warns China’s restrictions on coal imports is the number one risk for Australian coal this year and could lead to a significant price slump.

China’s Australian coking coal imports double in March from Feb

Since February, China has been placing increasingly onerous import restrictions on Australian thermal coal.

Some ships carrying Australian coal are now being diverted to other countries such as India or Vietnam rather than deal with Chinese customs.

“Developments in China’s thermal coal market remain the key risk to the outlook for thermal coal prices, due to the sheer size of the domestic coal market and ongoing uncertainty over its import policy,” the report said.

“Supply disruptions are likely to be the primary story in the short-term, with demand changes increasingly important the further we look out,” the Department of Industry, Innovation and Science’s chief economist Mark Cully said in the latest Resources and Energy Quarterly report.

“Lower Chinese imports could potentially push prices even lower.”

18 | CCAI Monthly Newsletter April 2019

China’s imports of Australian coking coal nearly doubled in March from a month earlier, customs data showed on Thursday, as a flurry of shipments were accepted after being delayed at customs clearance for more than a month.

Arrivals of Australian coking coal were at 2.23 million tonnes last month, up 92 percent from 1.16 million tonnes in February, according to data released by the General Administration of Customs on Thursday.

That compares to 1.33 million tonnes in March 2018.

Traders reported extended inspections of Australian supplies, including a ban on Australian coal vessels docking at port, in the past two months. Meanwhile, lengthy customs clearances remain across ports in the country.

Indonesian thermal coal prices hold steady

Indonesian thermal coal prices were little changed in a thinly traded market, with most participants waiting for the results of large Chinese utility tenders.

down all coal power plants by 2022, particularly if the supply situation remained stable in 2022 compared with the current level.

Chinese state-controlled power utility Huaneng has issued two tenders to buy imported thermal coal totalling around 1.2mn t for its coastal utilities with a laycan between late April and the end of May. The utility is seeking to buy four Panamax cargoes in US dollars on a fob basis, as well as 17 cargoes or 893,000t of coal at prices in yuan on a cfr basis with value-added tax (VAT) included. It is seeking coal with calorific value (CV) in a NAR 3,800-NAR 5,250 kcal/kg range.

It said plant closures could start in 2022 and should be gradual. It added that all the generators could cease production in 2022 if French power demand were to remain stable, and if EDF’s new EPR nuclear reactor in Flamanville; a new gas-fired power plant; and a high-voltage power interconnector between Britain and France, were operational by then.

Fellow state-controlled power utility Guodian has also issued a tender to buy 345,000t of imported thermal coal for its power plants in southern China’s Fujian province for delivery in May. The utility did not indicate the origin of the coal but the cargoes are likely to be from Indonesia. The coal should have a CV of no less than NAR 5,000 kcal/kg. It is also seeking two 14,000t cargoes for delivery to Quanzhou or Fuzhou port from 1-31 May. Most market participants are waiting for details of the tender results to emerge to get a clearer sense of price direction.

French government sticks to targets for closing coal power plants The French government is sticking to its previously announced target of shutting down France’s remaining coal power plants by 2022 as a report by grid operator RTE confirmed it could do without the coal generators under certain conditions.

The government asked the power systems operator in January to carry out additional analysis of France’s supply security situation without the power plants.

The French government plans to halt the remaining coal power plants with a total capacity of around 3,000 megawatts, operated by state-controlled utility EDF and Germany’s Uniper, as part of its efforts to curb carbon emissions.

“We can confirm the 2022 deadline given the recent elements related to the security of supply that RTE has provided,” Ecology Minister Francois de Rugy told.

However, he added that it would not be a straight road and there could be some constraints along the way.

US 2019 coal production expected to fall 9.2% on year to 684.1 million st: EIA The US will likely produce 684.1 million st of coal in 2019, the US Energy Information Administration said Tuesday, cutting its estimate from a month ago by 1.6%.

The 2019 production would be 9.2% lower than the 753.7 million st produced in 2018, while 2020 production is estimated at 640.1 million st, the EIA said in its April Short-Term Energy Outlook.

The 684.1 million st expected in 2019 would be the lowest production since 670.16 million st was produced in 1978.

Power sector coal consumption is projected to be 553.3 million st in 2019 and 512.1 million st in 2020, compared with 636.5 million st in 2018.

Total consumption, including by petcoke plants and retail, is estimated at 602.5 million st in 2019 and 560.4 million st in 2020, down from the 2018 consumption of 688 million st.

Coal is expected to make up 24.3% of US power generation in 2019 and 22.3% in 2020, down from 27.4% generated from coal in 2018.

Power generation from natural gas is estimated at 36.8% in 2019 and 38% in 2020, up from 35.1% in 2018. The increase is largely from cheaper gas prices and a boost in dry gas production, which is forecast to average 91 Bcf/d in 2019 and 92.5 Bcf/d in 2020, up from 83.33 Bcf/d averaged in 2018.

By 2020, coal production and consumption are expected to drop 41.6% and 44.1%, respectively, from 2011 values, while natural gas production is estimated to increase by 47.5% during the decade.

RTE said in the report that taking into account a base case scenario, it was possible for France to shut CCAI Monthly Newsletter April 2019

| 19

April to be momentous in transition from coal to renewables in US The future of the U.S. electricity generation industry may have arrived, and it is not good news for struggling coal-fired generating plants.

This month, for the first time ever, the renewable energy sector (hydro, biomass, wind, solar and geothermal) is projected to generate more electricity than coal-fired plants, which totals about 240 gigawatts (GW) of still-operating capacity.

According to data published this month in the Energy Information Administration (EIA) Short-Term Energy Outlook, renewables may even trump coal through the month of May as well.

US court slams Trump administration’s coal mining policy A US federal court has suspended a government plan to open up coal mining on federal lands, claiming that it did not adequately consider the environmental im-

20 | CCAI Monthly Newsletter April 2019

pacts of the proposal.

The ruling is a blow to President Donald Trump’s plans to promote coal mining on federal lands.

In his ruling, US District Judge Brian Morris in Montana stated that the Interior Department did not adequately consider the environmental impact of mining before lifting a moratorium on coal mining on public lands.

In 2017, Trump revoked the ban imposed by his predecessor Barack Obama to remove restrictions on the coal mining industry. Agitated by the policy change, several environmental groups approached the court seeking a reversal of the policy.

The judge observed that the Interior Department avoided an environmental review of the 2017 action by claiming it “a mere policy shift”. However, he found fault with this claim, stating that such a “major federal action” warrants a detailed analysis of its environmental impacts.

The National Environmental Policy Act of 1970 (NEPA) mandates the administration to undertake necessary measures and precautions before making decisions on permit applications.

CCAI Monthly Newsletter April 2019

| 21

76.37

NUCLEAR

14

Source CEA

TOTAL

BHUTAN IMP

65.09

64.71

13

APR-2019

1330000

67.73

64.54

15

ACTUAL SAME MONTH 2017-18

5

23.31

7556.81

3306.44

93004.29

16 76.37

63.99

65.09

64.71

17

ACTUAL*

7

1046.59 104.85

96.96

146.79

96.1

101.52

139.41

116.28

86.51

67.73

64.54

18

ACTUAL SAME PERIOD 2017-18

APRIL 2019 - APR 2019

PROGRAM

6 95.41

112348

175

9539

3673

98961

8

PROGRAM

108930.07

243.96

11092.39

3177.65

94416.07

9

ACTUAL*

10

103890.85

23.31

7556.81

3306.44

93004.29

PERIOD : april 2019

96.96

139.41

116.28

86.51

95.41

11

104.85

1046.59

146.79

96.1

101.52

12

% OF % OF LAST PROGRAM YEAR (9/8) (9/10)

ACTUAL SAME PERIOD 2017-18

% OF LAST YEAR (4/5)

ACTUAL SAME MONTH 2017-18 % OF PROGRAM (4/3)

APRIL 2019 -APR 2019

GENERATION (GWH) apr-2019

AN OVERVIEW

108930.07 103890.85

243.96

11092.39

3177.65

94416.07

4

ACTUAL*

PLANT LOAD FACTOR (%)

112348

175

9539

136932

6218

3673

98961

3

PROGRAM

44720

ACTUAL*

63.99

HYDRO

2

1142130

PROGRAM

278392.07

0

THERMAL

Category

TOTAL

BHUTAN IMP

45399.22

6780

NUCLEAR

HYDRO

226212.85

1

Monitored Target Capacity Apr 2018 to (MW) Mar 2019

THERMAL

Category

SUMMARY- ALL INDIA

ENERGY GENERATION REPORT

MONTHLY SUMMARY OF DOMESTIC COAL Comparative Price of Domestic Coal: Power/Non-power. *The price shown in the Chart below is without: (a) Surface Transportation Charges. (b) State specific taxes. (c) Coal company or area wise charges if any. (d) Evacuation Facility Charges INR 50 per tonne w.e.f. 00:00 of 20.12.2017 GCV (Kcal/kg) (Mid-value)

G3-6400-6700

G5-5800-6100

G7-5200-5500

G10-4300-4600

G11-4000-4300

G12-3700-4000

Basic ROM price (Rs./te)

3144/ 3144

2737/2737

1926/2311

1024/1228

955/1145

886/1063

Tentative Ex-Mine Price*

4447/4447

3941/3941

2932/3411

1809/2063

1724/1959

1638/1858

coal Despite registering a 7 percent growth in production and 4.8 per cent rise in offtake, CIL has fallen short of its target of 610 million tonne (mt) for FY-19 marginally — by 3 mt and 2 mt, respectively. CIL produced around 607 mt of coal during 2018-19, a volume increase of close to 39.5 mt against the previous year’s production of 567.37 mt.

India’s coal import increased by 8.8 per cent to 233.56 million tonnes in 2018-19, according to a report.

Coal imports were at 214.61 MT in 2017-18, according to provisional data by mjunction services, based on monitoring of vessels’ positions and data received from shipping companies.

The coal ministry plans to give special attention to private captive coal block operators to help increase output, which has frequently failed to meet targets. This has put tremendous pressure on Coal India, which has been struggling to meet the nation’s demand for coal. “This year, the focus among other things would be on private captive block operators,” said a coal ministry official.

The South Eastern Coalfields Ltd (SECL) has become the first company in the country to have crossed coal production figure of 150 million tonnes in a financial year. The SECL achieved the record during the 2018-19 fiscal and crossed the 150 million tonnes mark on March 20.

RAIL State-run Indian Railways carried 605.82 million mt of coal during fiscal 2018-2019 (April-March) compared with 555.20 million mt a year ago, registering a growth of 9%, according to latest data by the Directorate of Economics and Statistics. Of the total coal volumes transported by the railways in the last fiscal year, 502.46 million mt constituted domestic coal, up almost 8.7% on the year, while 103.36 million mt was imported coal, up 11% on the year. Domestic coal volumes transported to thermal power stations went up by 4% to 235.75 million mt during the 12-month period, while imported coal deliveries to thermal power stations stood at 21.99 million mt, up 22.5, the data showed.

Indian Railways has taken various steps in the past to boost its freight traffic. It has also set a goal to increase the modal share of freight transport from 33% to 45% by 2022. Dedicated Freight Corridors and novel Freight Convoy System is further expected to boost freight loading going forward. While the Indian Railways has recorded an increase of 15.6% in freight loading in the FY18-19, the contribution of the South Central Railway loaded 122.6 million tonnes (MT) of freight traffic during the period which is 19% more than the previous year 2017-18 (103 MT). It’s also a record highest for the zone from the time of its formation.

power Saddled with surplus power generation and lower demand from the utilities, the government is looking at throwing open a short-term power market to the consumers in the neighbouring countries by allowing them access to Indian power exchanges for meeting day-to-day requirements.

22 | CCAI Monthly Newsletter April 2019

India is witnessing a listless growth in electricity demand, possibly signaling more slowdown in Asia’s third-largest economy. Electricity requirement from distribution utilities in February rose 1.3 percent from a year earlier and barely changed from January’s 1.1 percent, the weakest growth in two years, according to the power ministry’s Central Electricity Authority. Data for power generation, a proxy for demand, showed the weakness continued into March.

In the rush to meet the target of 1.75 lakh MW of renewable energy capacity by 2020, the Centre and several states have issued tenders totalling 30,549 MW. Of this, only 4,000 MW are wind power projects, 1,800 MW are hybrid (solar+wind) and balance 24,749 MW are solar power projects. The bids for these projects are due in next three months. If concluded on time, these projects should be commissioned by March 2020.

CEMENT The Indian government’s infrastructure drive is leading to a shift in demand for cement. The last few years have seen cement demand for the infrastructure sector advance by five per cent with the share of the housing sector in total cement consumption falling, according to the Business Standard. Infrastructure now accounts for 20 per cent of cement demand, according to HM Bangur, managing director at Shree Cement. “State and central government road projects and other infrastructure like ports have spurred demand for cement,” Mr Bangur added.

steel India’s steel consumption is poised to cross the psychological 100-million tonne mark in 2019, a forecast by Indian Steel Association an industry body comprising domestic steel producers has said.

The consumption growth is tipped to be driven by a expected 7.1% growth in domestic steel demand in calendar year 2019, the ISA said adding that demand is likely to grow marginally in the next calendar year 2020 by 7.2%. For financial years 2019-20 and 2020-21, however, the forecast for steel demand growth is 7.2%.

India’s finished steel exports fell by 34 percent in the fiscal year that ended in March to 6.36 million tonnes, according to preliminary government data given to Reuters. During the same period, finished steel imports rose 4.7 percent to 7.84 million tonnes.

MONTHLY SUMMARY OF IMPORTED COAL & PETCOKE Coal Price Index COAL

(kcal/kg)

Monthly Price - FOB

Monthly Price - FOB

South Africa South Africa Australia Indonesia Indonesia USA

6000 NAR 5500 NAR 5500 NAR 5000 GAR 4200 GAR 6900 NAR

USD 69.51 USD 56.43 USD 60.10 USD 52.34 USD 38.18 USD 59.47

INR 4822 INR 3915 INR 4169 INR 3631 INR 2649 INR 4125

PET COKE

Sulphur

India-RIL(Ex-Ref.) Saudi Arabia (CIF) USA (CIF)

-5% + 8.5% - 6.5%

Price INR 8050 INR 6382 ($92) INR 6660 ($96)

Monthly Change (USD) -10.43 -2.19 1.50 -3.55 -0.54 -2.10

Exchange Rate

Change (Monthly)

USD/INR 69.373

-0.03

Coking Coal Price: Semi Soft

Low Vol PCI

Mid Tier PCI

FOB Aus

Premium Low Vol CFR China

FOB Aus

HCC 64 MID Vol CFR China

FOB Aus

FOB Aus

FOB Aus

CFR India

MET COKE 62% CSR FOB N China

203.16

202.31

177.48

188.31

100.85

127.42

126.42

312.38

298.63

CCAI Monthly Newsletter April 2019

| 23

South Africa: Broke state power utility Eskom is losing billions of rands by paying different prices to suppliers for the same quality coal. The result of this is a loss of R1.4billion, at worst, on two contracts alone. Eskom is paying one supplier, Glencore, double the price it is paying another, smaller supplier for the same quality coal.

Australia: A new government report warns China’s restrictions on coal imports is the number one risk for Australian coal this year and could lead to a significant price slump. Since February, China has been placing increasingly onerous import restrictions on Australian thermal coal. Some ships carrying Australian coal are now being diverted to other countries such as India or Vietnam rather than deal with Chinese customs.

Australia-listed thermal coal miner Yancoal has maintained its attributable 2019 salable coal production guidance from its Australian assets at 35 million mt following a lift in volumes in the JanuaryMarch quarter, the company said.

Indonesia: Indonesian government has set the coal benchmark price (HBA) for April at $88.85 per tonne, energy ministry document released showed. The April’s price is lower compared to March’s $90.57 per tonne and marked an eighth monthly drop. It is the lowest price since August 2017, according to Eikon Refinitiv data.

Indonesian thermal coal prices are likely to remain firm in coming weeks as Chinese utilities lap up cargoes while supply typically tightens during Ramadan, market sources said this week. The price of Indonesian 4,200 kcal/kg GAR coal has jumped 4% to date in April amid a spate of Chinese tenders seeking lower grade coal. It was assessed at $38/mt FOB Kalimantan.

USA: The US will likely produce 684.1 million st of coal in 2019, the US Energy Information Administration said, cutting its estimate from a month ago by 1.6%. The 2019 production would be 9.2% lower than the 753.7 million st produced in 2018, while 2020 production is estimated at 640.1 million st, the EIA said in its April Short-Term Energy Outlook. The 684.1 million st expected in 2019 would be the lowest production since 670.16 million st was produced in 1978.

24 | CCAI CCAI Monthly Monthly Newsletter Newsletter January April 2019 2019

A US federal court has suspended a government plan to open up coal mining on federal lands, claiming that it did not adequately consider the environmental impacts of the proposal. The ruling is a blow to President Donald Trump’s plans to promote coal mining on federal lands. In his ruling, US District Judge Brian Morris in Montana stated that the Interior Department did not adequately consider the environmental impact of mining before lifting a moratorium on coal mining on public lands.

Pet Coke: Indian traders are closely watching the market for imported petcoke following a 10% cut in Indian domestic petcoke prices that has slashed delivered prices. A south India-based trader heard domestic Indian domestic 7,500 kcal/kg NAR petcoke has been reduced from INR 8,950 to INR 8,050. He said the impact on US petcoke will be bearish and seaborne prices will have to come down to match the domestic market.

There was a mix of price signals in the global seaborne petcoke market this week, as sources said demand has weakened in most markets, though Indian offers were said to be higher out of concern about US supply. Trading activities in India for US 7,500 kcal/ kg NAR petcoke were thin as a wide bid-offer gap put a lid on optimism for seaborne trades, according to market sources. A west India-based trader said US petcoke offers were $97-$98/mt CFR India, up $3-$4/ mt from last week.

Shipping: Demurrage costs for Australian coal ships facing delays at Chinese ports have started to decrease from $3-$4/mt a week or two ago, as the number of ships queuing off China’s coast have started to come down, said market sources. Offer prices for May-loading Australian 5,500 kcal/kg NAR Capesize cargoes edged $1/mt higher in Asia trade to $61$62/mt FOB Newcastle, but buying interest has yet to reach $60/mt, a source said.

NMPT traffic rises 1% in 2018-19. New Mangalore Port Trust (NMPT) handled 42.5 million tonnes (mt) of traffic in 2018-19 as against 42.05 mt in 2017-18, recording a growth of 1.07%. The coal cargo handled by the port came down by 3.01 per cent during 201819. NMPT handled 6.46 mt of coal during 2018-19 as against 6.66 mt in the previous fiscal. Of this, the share of coal handled for UPCL (Udupi Power Corporation Ltd) stood at 2.19 mt (2.49 mt) during the period.

Overall Domestic Coal Scenario Coal Production (in MT) % Growth

April 2018March, 2019

April 2017March, 2018

% Growth

72.3

9.5%

606.9

567.4

7.0%

7.4

-12.2%

64.4

62.0

3.9%

Company

March, 2019

March, 2018

CIL

79.2

SCCL

6.5

Overall Offtake (in MT) Company

March, 2019

March, 2018

% Growth

April 2018– March, 2019

April 2017– March, 2018

% Growth

CIL

59.6

55.3

7.9%

608.1

580.3

4.8%

SCCL

6.4

6.4

0.4%

67.7

64.6

4.7%

Coal Despatch to Power (Coal and Coal Products) (in MT) Company

March, 2019

March, 2018

% Growth

April 2018– March, 2019

April 2017–March, 2018

% Growth

CIL

46.1

42.7

8.1%

488.0

454.2

7.4%

SCCL

5.4

5.3

0.2%

55.4

53.5

3.6%

Spot E-auction of Coal (in MT) Company

Coal Qty. Allocated March, 2019

Coal Qty. Allocated March, 2018

Increase over notified price

Coal Qty. Allocated April 2018March, 2019

Coal Qty. Allocated April 2017March, 2018

Increase over notified price

CIL

4.18

3.79

75%

34.34

55.17

92%

Special Forward E-auction for Power (in MT) Company CIL

Coal Qty. Allocated March, 2019

Coal Qty. Allocated March, 2018

Increase over notified price

Coal Qty. Allocated April 2018 March, 2019

Coal Qty. Allocated April 2017 March, 2018

Increase over notified price

1.12

0.00

20%

27.14

28.93

72%

Exclusive E-auction for Non- Power (in MT) Company

Coal Qty. Allocated March, 2019

Coal Qty. Allocated March, 2018

Increase over notified price

Coal Qty. Allocated April 2018 March, 2019

Coal Qty. Allocated April 2017 March, 2018

Increase over notified price

CIL

1.93

0.33

39%

11.36

11.11

58%

Company

Coal Qty. Allocated March, 2019

Coal Qty. Allocated March, 2018

Increase over notified price

Coal Qty. Allocated April 2018 March, 2019

Coal Qty. Allocated April 2017 March, 2018

Increase over notified price

CIL

-

-

-

3.58

0.70

72%

Special Spot E-auction (in MT)

CCAI CCAI Monthly Monthly Newsletter Newsletter January April 2019 2019

| 25

PRODUCTION AND OFFTAKE PERFORMANCE OF CIL AND SUBSIDIARY COMPANIES COAL PRODUCTION (Figs in Mill Te) APR’19

SUB CO.

ACTUAL THIS ACTUAL SAME PERIOD YEAR LAST YEAR

% GROWTH

ECL

4.04

3.81

6.1

BCCL

2.27

2.45

-7.4

CCL

3.17

3.61

-12.2

NCL

8.72

7.96

9.5

WCL

4.22

3.4

24.1

SECL

11.11

12.86

-13.6

MCL

11.74

10.72

9.5

NEC

0.03

0.05

-33.3

CIL

45.29

44.86

1

OFFTAKE (Figs in Mill Te) APR’19

SUB CO.

ACTUAL THIS ACTUAL SAME PERIOD YEAR LAST YEAR

% GROWTH

ECL

4.52

4.18

8.1

BCCL

2.82

3.06

-7.6

CCL

6.38

5.99

6.5

NCL

8.2

8.16

0.5

WCL

4.94

4.42

11.9

SECL

12.88

13.03

-1.1

MCL

12.53

12.11

3.5

NEC

0.07

0.08

-10.4

CIL

52.35

51.02

2.6

26 | CCAI Monthly Newsletter April 2019

REGISTERED

28