CCAI Newsletter - April-23

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From the Editor’s Desk

Coal is one of the key driving factors of the mining sector in the country. India has huge opportunities for increasing the capacities of coal mines. The government has designed a roadmap that aims to achieve Aatmanirbhar Bharat by accentuating coal production combined with enhancing production efficiency with new technologies, policy initiatives, and a vision to promote a model in which coal production and environmental protection are in sync. With a slew of measures, the government, CIL, and other stakeholders are making an effort to promote underground mining and create means for the development of such mines in the country.

Although underground mining is more advantageous as they offer better coal grades and has proven to be less impactful on the environment, the process of such mining is a challenge for the country. In India, the unavailability of large areas of continuous coal deposits underground, lack of resources, and inadequate machinery have been deterrents to underground mining. To promote environment-friendly underground coal mining and overcome hurdles, the government and various companies are paving the way for safe, smart, and sustainable mining. There is a sense of commitment from the government and all the stakeholders to cater to the safety standards that entail disaster management, safety management & response drills, and many more. The government is also incentivizing the private players to revive abandoned coal mines of Coal India on a revenue sharing model with land given on a long term lease.With abundant coal availability, seamless production methods, and a plethora of mining initiatives taken by the government, it is to be seen if the country can contribute substantially to the mining sector in the coming days.

Meanwhile, the captive mining sector in India has given an outstanding performance this year, with production crossing over 100 million tonnes. The production from captive or commercial coal mines for FY 23- FY 22 up to March increased by nearly 30%. The production grew by almost 6 % in FY 22- FY 23, compared to FY 21- FY 22.

The government feels positive that the production from captive blocks will be more than 112 million tonnes this year. State-run NTPC and a few other companies have also shifted their focus to captive mines and are ramping up the production from these mines to build coal reserves.

The auction of abandoned mines has been another notable measure, and about 10 mines have already been allocated. There is another set of abandoned mines for offer lined up by CIL. This initiative is likely to increase coal output as the mines have extractable reserves. The auction will let Coal India get coal on a revenue- sharing basis, and it can sell the coal through auction in the open market and not in the notified segment.

India’s role in the production of essential minerals is significant. Coal being one of the top minerals has a considerable impact on environmental sustainability, social inclusion, and economic development. Now it is for us to witness how the coal producers both public and private and the policy framers strike a balance between the seamless production of coal with efficient and effective mining and at the same time meet the sustainable development goal by keeping the mining processes environment friendly.

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06 Consumers' Page

10 Power

18 Domestic

24 Global

34 Monthly Summary of Imported Coal & Petcoke

37 Overall Domestic Coal Scenario

CONSUMERS’ PAGE

Present Coal Scenario:

In the new fiscal, India’s overall coal production has gone up by 8.85% compared to April last year. However, overall production of coal has reduced to 73.14 MT from 107.84 MT last month. Coal India Limited has produced 57.57 MT coal in April, 7.6% higher compared to the same month last year. While, coal production by SCCL have gone up by 8.53%. Coal production by captive mines this month have gone up by 18.93%. on a y-o-y basis. Overall coal despatch in India has gone up by 11% compared to April ’22 which is high than the average growth in coal despatch in the last fiscal (7.09%). Coal despatch by CIL has also gone up by nearly 9%.

1. Submission regarding high deviation between third-party and referee results of coal supplied to Power Sector by ECL:

Power Sector consumers have been suffering due to significantly high variance between the referee Analysis results and third-party analysis results of the coal samples taken from ECL’s Salanpur area (SLS1) followed by Mugma, SonepurBazari, Bankola, Pandaveswar, Kajora etc. during FY 2020-21. The referee analysis results of most of the samples challenged by the coal company show the coal grade to be 1-4 grades higher than the third-party analysis results of the same samples.

In many instances, the referee results are abysmally higher than the analysis results by the third-party sampling agency. However, as per BIS standard, precision for repeat ability of the analysis of the same samples in two different labs should not be more than 65 kcal/ kg. Therefore, such high instances of variation between the referee and third-party results is creating uncertainty over determining the actual grade of coal delivered to the Utilities.

Submissions have been made to the Hon’ble Ministry of Coal, CCO, CIL and third party agency CSIR-CIMFR to intervene and take up the matter with ECL in order to resolve the issue of such high-grade variation between the referee analysis results and the reported results of the third-party sampling agency.

2. Submission by Power Sector consumers to issue proforma invoice on daily coal despatch/lifting via Road mode under Usance LC mode of payment:

As per the point A-5 of Methodology extending Usance LC for the coal supplies under the FSAs issued by SECL / CIL it is mentioned that, the pro-forma invoice shall be raised on rake to rake basis in case of rail despatches and on daily basis in case of despatch by other modes. However, SECL has started taking bulk payment from its customers under the LC mechanism before issuing (in case of other than Railways) sale orders to initiate the actual supply of coal from February ’23 onwards.

Request has been made to SECL to issue proforma invoice/payment invoice on daily despatch/lifting via Road mode as in the Usance LC SOP for extending LC mode of payment facility to the Power Sector consumers.

grade determination of unsampled coal quantity as per FSA and process coal value reconciliation:

According to the terms of the tripartite agreement, third-party sampling needs to be done for any quantity of coal supplied to the Power Sector. However, a significant amount of coal supplied from SECL to the Power Sector has been delivered without conducting third-party sampling during FY 2022-23. Even joint sampling was not conducted for the delivered quantity in case the third-party sampling is not done as per the FSA provision.

As a result, many Utilities received a considerable amount of unsampled coal for which reconciliation against grade slippage could not be done. As per the FSA, if coal samples are not collected from a source/despatch point the weighted average of the most recent results available in any preceding month against respective source and coal grade shall be adopted for such dispatches.

Request has been made to SECL and CIL so that grade determination of the unsampled quantity supplied by SECL may be finalised as per FSA provision, based on which Coal value reconciliation may be carried out for the delivered quantity and credit/debit notes may be issued accordingly.

4. Submission by Power Sector consumers requesting refund of differential GST amounts along with reimbursement for idle freight:

A number of CIL Subsidiaries – MCL, SECL & WCL are not providing refund of differential GST amounts while providing reimbursement for idle freights while some of the other subsidiaries such as ECL and CCL are providing underloading-refund along with GST components. Therefore, the consumers procuring coal from the Subsidiaries which are not refunding the

3. Submission by Power Sector for

GST amounts are being affected financially despite no fault from their side.

Request has been made to CIL for providing refund of differential GST amounts from all the subsidiary coal companies uniformly while providing reimbursement on account of underloading of rakes.

5. Submission to expedite NRS Linkage Auction under Tranche – VI for Captive Power Plants (CPPs) by Coal India Ltd:

Demand of coal in the Industries including their CPP units has also accelerated in recent months. Though supply to the NRS has increased in the past few months, coal despatch is still insufficient compared to their requirement. This has led them to purchase coal from the open market by paying a hefty premium and import coal from different sources, putting huge financial burden especially on the Captive Power Plants.

Request has been made to MoC and CIL to conduct the Tranche- VI NRS Linkage Auction for CPP Sub-sector at the earliest possible.

6. Submissions by consumers from Cement Sub-Sector regarding offer of coal under Tranche-VI NRS Linkage Auction:

There has been a substantial increase in the capacity of cement plants across the region resulting in high coal demand for the industries. Considering the rise in demand, consumers from Cement Sub-sector have pointed out that offer of coal by CIL under Tranche-VI NRS Linkage Auction has been inadequate.

Request has been made to MoC and CIL that a minimum of 10 million tonnes should be allotted for the cement sub-sector in Tranche VI.

It is also requested that the timeline for Tranche VI NRS Linkage Auction may be extended by at least 15 days in order to complete the required formalities.

In Tranche-VI, offer of coal via rail mode is meagre. As offtake of coal via road mode becomes financially unviable for plants located at a longer distance from the mines, it is requested that offer of coal via rail mode may be substantially increased.

North-eastern and Eastern cement plants have stressed that offer has not been provided from Eastern Coalfields Ltd (ECL) under the upcoming linkage auction. It is therefore requested that adequate quantity may be offered from ECL as well considering the demand from consumers of that region.

7. Submission by NRS consumers to include CPPs in the fair distribution guideline of coal

As per fair distribution guideline of coal issued by the Ministry available domestic coal shall be distributed amongst the central and state GENCOs and IPPs procuring via rail mode in a fair and transparent manner. However, the Captive Power Plants (CPPs) are not included in the fair distribution guideline

As the CPPs add to the total generating capacity of the country and contribute directly or indirectly to meet the increasing power demand in the high demand scenario, it has been requested to MoC to include CPPs procuring coal via rail and RcR mode in the fair distribution guideline of coal as well.

POWER THERMAL

Govt prepared to meet summer demand with assured and affordable electricity: Power Minister R K Singh

The government has put in place measures for meeting the country’s power demand, which in FY23 grew at over 10 per cent Y-o-Y, Power and New & Renewable Energy Minister RK Singh said. Singh emphasised that his confidence comes from the reforms unleashed by the government which have strengthened the financial and operational capabilities of the sector.

In FY24, power demand is likely to hit 229-230 gigawatts (GW). Though summers have been mild, barring a few days and not touching 40 degrees, it is expected to go up and demand to be in range of 225 GW. It’s the government’s duty to provide affordable and assured power supply.

Talking about the dues of discoms, he said the Centre has made energy accounting compulsory and laid norms for corporate governance and also analyse whether states are following the prescribed trajectory. The discoms not following rules will not get loans from PFC and REC nor get assistance from any central scheme, or the extra 0.5 per cent borrowing space. These

steps are that tariffs have to be up to date and cost reflective. Secondly there are no regulatory assets and subsidy payments are kept up-todate.

Pooling of electricity from old plants to go live across India from July

The Ministry of Power has issued an order instructing all states, distribution companies (discoms), and generating companies (gencos) to implement a new scheme for pooling electricity from old power plants owned by the Centre, which are also known as Central Generating Stations. This scheme is set to begin on July 1 of this year. At present, the annual electricity demand and the peak demand in the country is around 1,400 billion units (BUs) and 215 GW, respectively, and the peak demand is growing at an annual rate of around 6 percent.

To meet India’s increasing electricity demand, the government is trying to first unlock its old and underutilised energy resources instead of building new ones. This is because setting up a new power generating station takes much longer and is more capital-intensive. At least 14 such power plants with a total capacity of 15,386 megawatts (MW) are likely to be tapped once the scheme comes into force.

As per the government's April 20 order, the beneficiaries who participate in the scheme will have to enter a PPA of minimum of 5 years. Discoms not finding value in pooling will be able to opt-out from the pool after 5 years..

India explores power links with Saudi, UAE

India is considering linking its power grid to those of Saudi Arabia and the United Arab Emirates through undersea cables, with India’s power ministry circulating Cabinet notes for interministerial consultation to initiate the process to expand access to reliable power and enhance the country’s energy security.

Further, India is also in talks with Singapore to link the city state with its power grid via an undersea cable link, Raj Kumar Singh, Union minister for power and new and renewable energy, said in an interview.

Once approved by the Union cabinet, bilateral agreements will be signed with Saudi Arabia and the UAE for the mega projects, which will be bid out after detailed project reports are created, Singh said, adding that the countries will assess the viability of each project before proceeding.

Rain cools down demand for power; coal stocks higher

The recent wet spells and comparatively cooler patches in April in north India, led to lower-thanexpected power demand on average. This lowered the fuel depletion rate at coal-based power plants, bringing much-needed relief to the stressed supply chain. Coal stock with power plants at the beginning of April was 36.9 million metric tonnes, including import, which fell to 35.8 million tonnes as on April 22. The depletion would have been higher if the weather hadn't turned cooler, said two senior government officials.

Temperature is expected to remain moderate for the rest of the month this year. Peak demand touched a record of 215.9 GW on April 17, coal consumption shot up and stock at power plants started reducing compared with an increase in the first week of April. It was anticipated that the demand would continue to increase.

The power ministry had earlier said it expects a peak demand of 231 GW in April. However, with the weather getting cooler, power demand dropped with peak demand at 184 GW as of April 23. The price at the day-ahead market of Indian Energy Exchange was at 5 per unit compared with 7.1 per unit as of April 21. Prices hovered between 3.5 and 4.7 a unit in the first seven days of the month due to favourable weather conditions.

Power plants use rail-sea-rail route to source coal

Power producers in western and northern states are using rail-sea-rail (RSR) route to get their coal supplies from eastern India to avoid rail congestion and also to reduce coal imports, an official in the coal ministry said. The three ministries of coal, power and railways are jointly guiding the gencos to develop their capacity of rail-sea-rail movement so that coal from relatively congested areas in Chhattisgarh and Odisha can be made available.

While the coastal route is expensive than the railways, coal procured through RSR still works out much cheaper than the imported coal. Typically, the cost of coal including transportation from Odisha to Gujarat is around 4,700 per tonne, coal via RSR is7,000 per tonne and imported coal of same grade is about Rs 12,000 a tonne, the officer said. As a result it will be more beneficial for consumers during peak demand seasons.

NTPC has started transporting coal from Paradip to two of its thermal power plants at Jhajjar in Haryana and Dadri in Uttar Pradesh. Bids for power plants in Kudgi in Karnataka and Unchahar in Uttar Pradesh are being finalised. Even Rajasthan, Gujarat and Maharashtra have also undertaken bids and are in different stages of approval. Whenever needed this additional capacity from MCL and South Eastern Coalfields (SECL) can be put to use, the official has explained.

Power Min asks states to withdraw any tax on generation of electricity, calls it illegal

Ministry of Power has asked states not to levy or impose tax or duty on generation of electricity especially from hydro projects for it being illegal and also exhorted them to withdraw any such levies promptly. "It has come to the notice of Government of lndia (Gol) that some state

governments have imposed taxes / duties on generation of electricity. This is illegal and unconstitutional," said a power ministry communique to chief secretaries of all states and Union Territories.

The ministry said any tax / duty on generation of electricity, which encompasses all types of generation viz. thermal, hydro, wind, solar, nuclear, etc. is illegal and unconstitutional. In the light of constitutional provisions, the ministry stated that "no taxes or duties may be levied by any state - under any guise on generation of electricity and if any taxes or duties have been so levied, it may be promptly withdrawn."

Entry-53 of List-II (State List) authorizes states to put taxes on consumption or sale of electricity in its jurisdiction. This does not include the power to impose any tax or duty on the generation of electricity. This is because electricity generated within the territory of one state may be consumed in other states and no state has the power to levy taxes or duties on residents of other states, the ministry pointed out.

Ministry of Power Introduces Revised Day-Ahead National Merit Order Dispatch Mechanism to Reduce Electricity Prices

The Ministry of Power has finalized a revised structure of Day-Ahead National level Merit Order Despatch Mechanism with a view to lower the overall cost of electricity generation, which will translate into lower electricity prices for consumers. As per the revised mechanism, the Merit Order for cheapest generating resources across the country to meet the system demand, would be, finalized a day in advance as against 1.5 hours in the existing system. This will result in better planning for generating units and cost optimization.

The existing mechanism of merit order dispatch at real time was made operational in April 2019. This optimized the total variable cost of genera-

tion pan-India, while meeting technical and grid security constraints. The existing mechanism resulted in reduction of variable cost on panIndia basis to the tune of 2300 Crore and these benefits were being shared with generators and their beneficiaries ultimately reducing the cost of electricity to consumers.

The gains out of the proposed Day-Ahead National Merit Order Dispatch Mechanism would be shared between generating stations and their consumers. This will result in increased annual savings for the electricity consumers. The Day-Ahead National Merit Order Dispatch Mechanism will be implemented by CERC through necessary regulatory process and it will be operated by GRID –INDIA at national level.

Power Ministry approves Rs 5200 Cr for J&K under RDSS to improve infra

The Union Power Ministry has sanctioned Rs 5200 crore for the Union Territory under Revamped Distribution Sector Scheme (RDSS), almost equally distributed between Jammu and Kashmir divisions, to improve power infrastructure to ensure that distribution of power doesn’t suffer during summer in Jammu and winter in the Valley. Official sources told the Excelsior that the RDSS will be valid for a period of three years and Jammu and Kashmir has been treated as Special Category State by the Union Power Ministry while granting a hefty amount of Rs 5200 crore.

“The amount will be specifically used for strengthening power infrastructure in Jammu and Kashmir including 33KV and 11 KV stations/HT/LTs and other equipment’s which form part of infrastructure,” official sources told the Excelsior. They said laying underground cabling has also been proposed in the RDSS but present focus of the Department is to strengthen existing infrastructure to avoid losses and ensure regular supply to the consumers.

Strengthening of infrastructure will reduce power losses, they said, adding it has been observed that infrastructure suffers mostly during summer in Jammu and winter in Kashmir when demand for electricity supply is at its peak in the two divisions.

RENEWABLES

India to triple renewables auctions as 2030 green target looms

India will more than triple the capacity of auctions used to allocate renewable energy projects as the nation seeks more progress toward a 2030 clean power target. A new federal government timeline outlines plans to strike agreements on installations of a total of 50 gigawatts of solar and wind projects during the year through March 2024. That compares with an average of 15 gigawatts auctioned annually in the last five fiscal years, according to BloombergNEF. The nation is accelerating project installations to hit a goal to have 500 gigawatts of clean energy generation capacity in 2030, which will also include hydro and nuclear plants.

Delivering more renewables projects will also require sufficient land to locate the installations and long-term buyers for electricity generated, said RohitGadre, a BNEF analyst. Those factors are “critical to the success of the plan, failing which the tenders will likely end up being undersubscribed,” Gadre said. Rising energy demand is creating an incentive for some states to consider new long-term renewable power deals to supplement existing coal-fired capacity, while there’s also growing interest in contracts from the commercial and industrial sector.

According to the government’s calendar, India plans to auction 15 gigawatts of projects in each of the first two quarters of the fiscal year that began this month, with about 10 gigawatts offered in both of the subsequent quarters. State-run power companies Solar Energy Corp. of India Ltd., NTPC Ltd., NHPC Ltd. and SJVN Ltd. will be conducting the auctions for the government. The schedule “will give developers visibility,” said SubrahmanyamPulipaka, chief executive officer of the National Solar Energy Federation of India, an industry group. “There’s bound to be greater traction.”

SECI records over 59% jump in RE power trading volume during FY 2022-23

Solar Energy Corporation of India Limited (SECI) has traded over 35 Billion Units, a jump of over 59% in its Renewable Energy power trading volume during FY 2022-23 over the previous year. Likewise, the revenue from power trading has crossed Rs. 10,000 Crore mark for the first time since its inception.

India is witnessing an energy transition towards sustainable sources at an unprecedented pace and SECI is striving hard to have the maximum contribution in nation’s journey towards 500 GW of non-fossil fuel by 2030, as announced by Hon’ble Prime Minister. Entire team of employees and management of SECI is tirelessly working towards this goal.

Solar Energy Corporation of India Limited (SECI) is a Miniratna Category-I Central Public Sector Enterprise (CPSE) incorporated in the year 2011, SECI is the primary implementing agency of the Ministry of New and Renewable Energy, Govt. of India for Renewable Energy schemes/projects towards fulfilment of India's international commitments.

Till date, SECI has awarded Renewable Energy (RE) project capacities of over 56 GW. SECI is also active in setting up of projects through its

own investments as well as for other public sector entitites as Project Management Consultant (PMC). SECI enjoys highest credit rating of AAA by ICRA

MP’s Sanchi set to become first solar city of India next month

Sanchi, a world heritage site located in the Raisen district of Madhya Pradesh near Bhopal is all set to become the first solar city of India in May.

Madhya Pradesh Chief Minister Shivraj Singh Chouhan reviewed the ongoing works in the Sanchi town to transform it into a solar city. He said the use of solar energy is being continuously promoted in MP and many solar power projects are operational across the state.

At a review meeting in Bhopal yesterday, the chief minister was informed that the completion of various works to transform Sanchi into a solar city was almost complete and by next month Sanchi, a world heritage site of Buddhist Stupas, would be known as the country’s first solar city.

Goa’s solar portal one greener step ahead: PM Narendra Modi

PM NarendraModi on Sunday lauded Goa for launching the solar rooftop online portal goasolar.in, developed by the Goa Energy Development Agency (GEDA), in collaboration with the department of new and renewable energy and the electricity department. “Good step towards harnessing solar energy and furthering sustainable development,” said the PM, sharing Goa chief minister PramodSawant’s tweet announcing the launch of the portal.

While announcing the new initiative, Sawant tweeted, “The entire process of application, processing of application, installation of solar project, and the release of subsidy will be done online through the portal”. Any consumers who want to avail a rooftop solar connection for their premises can now apply online through this new

portal, by simply entering information available in their monthly electricity bill. The portal provides the consumer with the quantum of solar power that can be generated within the premises, along with the subsidy.

“I congratulate ‘Aha Solar’ of Ahmedabad, Gujarat, for the development and training of GEDA personnel to use the portal. I am sure the portal will be useful to people and organisations who shall adopt rooftop solar power generation.

3,110 MW hydro power units to go on stream this fiscal

India will add 3,110 MW hydro power generation capacity built at an investment of about Rs 45,000 crore this fiscal, expanding the current installed capacity of 46,850 MW by 6.6%, an official said. These hydropower projects are in Uttarakhand, Himachal Pradesh, Arunachal Pradesh and Kerala. Uttarakhand has two central sector projects – Tehri pumped storage project (PSS) of 1,000 MW and Naitwar Mori of 60 MW. Subansiri Lower 2,000 MW project in Arunachal Pradesh, of which 1,000 MW will be commissioned this fiscal, is the oldest project kicking off in FY24. It was started about decades ago and faced issues related to displacement.

Himachal Pradesh is likely to see one central project (Parbatti-II of 800 MW) and one private project (Tidong-I of 150 MW) coming up this year. Kerala has two state sector projects – Pallivasal (60 MW) and Thottiyar (40 MW). Hydropower projects generally take 6-8 years for completion but usually get delayed due to agitations related to land acquisition. But once constructed, it is one of the cheapest source of green energy and is not intermittent.

The country’s biggest hydropower station of 600 MW (Kameng in Arunachal Pradesh) was inaugurated by Prime Minister NarendraModi last November. India stands fourth globally in renewable energy, including large hydro.

India looking to merge hydro power units to create single company –Minister

The Indian government is considering selling state-owned NTPC Ltd's two hydro power firms to NHPC Ltd to create a single hydro power company that would improve efficiency and cut costs, power minister R K Singh told Reuters. One large hydro power company would help meet high demand at night when solar projects do not run, he said. Solar power projects meet nearly a-fifth of India's peak-hour energy demand during the day.

NTPC, the country's largest power producer, acquired the two hydro companies -- THDC India Ltd (THDCIL) and NEEPCO -- three years ago for about $1.34 billion under a consolidation plan by the Indian government. The power ministry's proposal to create a single company is aimed at better management and expertise, besides reducing costs and managing related challenges. Hydropower plants in India take decades to come on stream as they face opposition from environment and religious groups.

Hydro power's share of India's energy has fallen to 11% from 49% 15 years ago due in part to protests by different groups and land clearances. The combined entity after the merger of THDCIL and NEEPCO with NHPC would have 20 GW of hydro assets. NHPC, which is also stateowned, currently has 12 GW of hydro assets. Solar and wind power plants are intermittent and need support from thermal, nuclear or hydropower plants.

Gas-based power plants ready to meet peak demand

Gas-based power plants are ready to meet any power deficit during the peak demand period this summer, and availability of natural gas is being ensured by state-owned GAIL India and country’s top gas importer Petronet LNG Ltd. Both GAIL and Petronet have issued several

tenders to import liquefied natural gas (LNG) for deliveries in May and June. Sector analysts believe the underutilised gas-based power plants will be used to fill any shortage.

“Idea is to improve the energy generation so as to meet the spike in the energy demand that we are anticipating because of the heat wave… You may see some improvement in capacity utilisation of gas-based power plants. “To meet the peak deficit, respective utilities can tap this (gas) power on high price day ahead basis from the power exchange market,” said GirishkumarKadam, senior vice president and co-group head, ICRA.

India’s electricity demand saw an all-time of 218 GW last week on April 18, of which the power sector could meet record demand of 216 GW, leaving a deficit of 2,021 MW. Last year, the highest demand met was 212 GW on June 10.

EVs account for 4.4% of 2-wheeler registrations, shows VAHAN data

The penetration of electric two-wheelers in the country has hit 4.4 per cent in FY23, a 2.5x jump over the previous year, when it was at 1.74 per cent, thus heralding the inflexion point for a quick takeoff of the segment that EV makers were hoping for. Data from VAHAN, the government’s e-portal for automobile registration and other services, reveals that in FY23 (till March 31), 670,000 electric two-wheelers were registered — an over threefold growth from 220,000 in FY22.

Over 60 per cent of the registrations in March came from Ola Electric, TVS, and Ather Energy. In the four-wheeler market, the penetration of EVs in FY23 has crossed 1 per cent market share for the first time. At present it is at 1.1 per cent, with 39,445 registrations, compared to only 0.61 per cent in FY22 . This segment is dominated by the Tatas, which commands over 79 per cent of the market share. MG Motors comes at a distant second, with 11 per cent

share.

Ola Electric, with 22 per cent of the total market (151,294 units) is far ahead of its rivals, with no one even crossing the 100,000 mark in FY23. In FY22, the company was fifth in the pecking order, with a registration share of 6.5 per cent. What’s more, nearly a third of its registrations have taken place in the first three months of 2023. In FY 22 Hero Electric dominated the segment, with a 30 per cent share of the electric two-wheeler market. The two companies have been facing challengers as they are being audited for alleged violations of localisation norms on the basis of which subsidies are given. In fact, the government has suspended subsidies to these two firms.

Statiq wins order from HPCL for 500 EV chargers in 12 states

EV charging network provider Statiq on Monday said that it has won a contract from public sector oil marketing firm HPCL for setting up over 500 EV chargers across 12 states. As per the contract, the firm will install over 500 chargers, for all types of electric vehicles including two and four-wheelers, at HPCL's outlets spread across Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu and West Bengal, the company said in a statement.

Of the total 500 chargers, over 400 chargers will be of 3.3 kw capacity each while a few more than a hundred chargers will be of 7.7 kw capacity each, it stated. "With HPCL undertaking a major and country-wide exercise in terms of setting up EV charging stations at their petrol pumps, we have won this tender and become a part of their EV infrastructure building-up journey," said AmanRehman, head of government relations at Statiq.

Statiq last year had installed nearly 200 chargers some 130 chargers of 3.3 kw and 75 chargers of 7.7 kw capacity at HPCL's outlets in cities such as Gorakhpur, Kanpur, Lucknow, Patna, Agra, Meerut, Dehradun, and Varanasi.

DOMESTIC

Coal stock at power plants 64% higher

The coal stock at the thermal power stations stood at about 35 million tonne (MT) on Sunday, 64% higher than previous year, coal secretary AmritLalMeena said.This allays the fears that coal stocks might fall to precarious levels like last year, leading to power outages in many parts of the country, as the summer peaks.

Even the pithead stocks with Coal India (CIL) was 13.6% higher at 65.65 MT on April 23, up from 57.8 MT last year. Overall stock, comprising of the stocks at coal mine end, thermal pow-

er plant end and in transit, is 117.46 MT, which is 37% higher than the corresponding stock of 85.73 MT on April 23, 2022.

The government expects coal production to grow at 11-12% for the next few years. The coal production target for FY24 is set at 1,012 MT, 11% higher than the previous year target of 911 MT, of which 892 MT was achieved. He further stated that the country aims to substitute 90100 MT of imported coal. Of the total 220-230 MT of annual coal imports, 120-130 MT are of those grades that are not available in India and hence will continue to be imported.

Timely Availability of Land and Clearances Crucial for Early Production of Coal”-Coal Secretary

Amrit Lal Meena

Secretary, Ministry of Coal Shri AmritLalMeena said that the Coal ministry will be initiating all possible steps to further fast pace domestic coal production and evacuation process as timely availability of land and other clearances are of paramount importance in ensuring early production of coal from newly allocated blocks. He said the Ministry is in the process of developing a portal for timely monitoring and resolution of issues in this regard.

Additional Secretary & Nominated Authority of the Ministry, Shri M Nagaraju highlighted the policy-level initiatives carried out by the Ministry to increase coal production and facilitate ease of doing business to make the coal sector more appealing. He also underlined the key reforms which have been introduced and implemented by the Ministry in various tranches of commercial coal mines auction in order to make the auction regime more appealing and rewarding

52 coal projects to power 1-bntonne goal by 2026: CIL CMD Pramod Agarwal

National miner Coal India Limited (CIL) has set 2025-26 as the target year to achieve the ambitious 1 billion-tonne (BT) coal production target. Responding to the increasing power demand, the company has stepped on the gas. From approving the highest ever mine projects to enhanced mechanisation and outsourcing, CIL is aiming to boost production while keeping its cost in check, Pramod Agarwal, chairman and managing director of CIL said.

Systemic improvement measures initiated some time back helped in overcoming the daunting target of 700 million tonne (MT). There was support from the government in obtaining environment and forest clearances including land-related issues. Firming up contracts, subdelegating powers to managements of our sub-

sidiary companies for quicker decision making, flexibility in contracts of coal production and overburden, persistent coordination with state authorities and ministries of railways, power, environment, and forests in identifying potential bottlenecks and levelling them were some of the other catalytic measures, he said.

We have approved 52 coal mining projects (the highest so far) which will incrementally contribute an aggregate 378 million tonnes per annum in a phased manner. Of these 13 are new and the balance are expansion projects. In pursuit of the 1 BT, these will contribute incremental projected production of 102 MTs in FY 2025-26, Agarwal said.

Captive mining contributed 13.7 percent to India’s total coal production in FY23

Captive mining contributed 13 percent to India’s total domestic coal production, and by the end of the current decade, this is expected to rise to 20 percent. The increase is expected to improve availability and efficiencies, but not hurt Coal India’s prospects, analysts said. Increased captive mining is expected to partially replace imported coal. This rise also faces two challenges — one is higher pricing due to auction premiums and the second is dirty-coal financing related woes.

India produced 893.08 million tonnes (MT) of coal in the last financial year. Of this, 13.7 percent or 122.72 MT was produced through captive and other means, according to Coal Ministry data. According to the experts, Output growth from captive and commercial mines will remain strongest at 4.5 percent between 2023 and 2050.

CIL’s price competitiveness has a role to play as sale or supply from captive and commercial mines will continue to remain costlier than CIL’s supply. While the increase in captive mining augurs well for improved domestic availability, Garg from IEEFA warned that if companies (that have energy requirements) invested in captive coal mines, such a move will inhibit their ability to raise funds both from international and domestic markets.

CIL Sets Roadmap for Development of Underground Coal Mines in India

Coal India Ltd. recently organized a Stakeholders Meet at its headquarters in Kolkata, focusing on the promotion of underground coal mines in India and the roadmap for the development of such mines in the country.

Shri Agrawal emphasized the need for enhancing production and productivity from existing mines and planning for new underground mines, particularly in areas where the quality of coal is good. He also stressed the importance of building an ecosystem that supports the growth of underground mining in India.

Dr. B. Veera Reddy, Director Technical CIL, urged all stakeholders to collaborate in achieving the target of 100 million tonnes of coal production through underground mining by 2027-28, utilizing advanced underground mining technologies. He highlighted that an excellent work culture, quick decision making, and indigenization of equipment manufacturing are crucial for the success of underground mining.

Train crunch to spur coal imports by Indian industries

Indian manufacturers, including aluminium smelters and paper mills, are set to boost thermal coal imports for a second consecutive year due to a shortage of trains, even as staterun Coal India plans to increase output. Higher demand from industry for seaborne coal will thwart efforts by India, the world’s second largest producer and importer of the fuel, to cut its dependence on shipments from mines in Indonesia, Australia and South Africa.

India’s demand for seaborne coal is set to peak during the summer season beginning this month, just as neighbouring China’s coal imports have jumped with the world’s No. 2 economy, supporting global prices. Logistical challenges could boost overall Indian thermal coal imports

by 3% in 2023 to 169 million tonnes, said consultancy Wood Mackenzie.

Indian Railways, which delivers most of the miner’s coal on trains, will likely fail to keep up with manufacturers’ demand as it prioritises power plants and as addition of new trains has not kept pace with demand, industry officials say. Train supply to Coal India for delivering fuel to industries declined every month in the last fiscal year. This summer, India could face a daily shortage of at least 50 trains capable of carrying about 200,000 tonnes of coal for both utilities and industries, said a senior coal ministry official said

India's coking coal imports from Russia to accelerate this year

India is set to step up its purchases of Russian coking coal this fiscal year to cash in on lower prices and diversify its imports as Indian firms are keen to capitalise on lower Russian coking coal prices and faster deliveries, trade and industry officials said.

Coking coal imports from Australia, New Delhi's biggest supplier of the key raw material for steelmaking, have traditionally constituted 75% to 80% of India's annual shipments. But during the first 11 months of the previous fiscal year to March 2023, Australia's share dropped to 54% due to higher imports from the United States and Russia.

Recent Russian coking coal prices were 15% to 30% lower than Australian metallurgical coal supplies that averaged around $350 per tonne. Russian supplies are likely to continue to be cheaper during the June quarter. Moscow emerged as the fourth-biggest coking coal supplier to India between April 2022 and February 2023, by exporting 3.9 million tonnes, more than double than a year earlier and may emerge as the second-biggest supplier this year, analysts said

Govt to introduce policy on coal gasification by June

The Government of India is set to introduce a new policy on coal gasification by June, aimed at boosting the country's domestic coal gas production and reducing its dependence on imports.

According to sources, the policy will include several incentives to encourage private sector participation in coal gasification projects. These include exemptions from revenue sharing, capital support in the form of viability gap funding (VGF), tax incentives, and assured availability of coal.

To encourage companies to adopt this technology, the new policy will provide exemptions in revenue sharing for the first few years of operation. This will help reduce the financial burden on companies and encourage them to invest in this technology, as the cost of producing gas would be around 19$ per MGBTU, which is high. So, needed financial assistance for producing gas from coal. Currently, the spot is trading around 12$ per MGBTU, which reached 57$ last year. Furthermore, the policy will also provide tax incentives to companies adopting coal gasification technology

India’s Steel Sector Booming Amidst Global Shift from West to East

Minister of Civil Aviation and Steel, Jyotiraditya

M. Scindia highlighted India’s rapid growth in the steel industry. The minister disclosed that India’s steel production has grown by 6% CAGR in the last decade, and experts anticipate an 1112% increase in the coming years.

India ranks second in global steel production, with per capita consumption rising from 57kg to 78kg over nine years. Scindia said it shows the country’s mandate to boost manufacturing and raise the steel industry’s GDP share from 2% to 5%. The minister attributed the sector’s growth to four key factors: government-industry collaboration, strengthening of national infrastructure,

focus on green steel production, and adoption of new technologies.

The government has recently signed 57 MoUs with 27 companies under the Production Linked Incentive (PLI) Scheme for speciality steel, expected to generate an investment of about Rs. 30,000 Crores, create an additional capacity of 25 Million Tonnes of speciality steel within the next five years, and provide over 60,000 job opportunities. Centre has formed two Advisory Committees. Moreover, one is for Integrated Steel Producers, and the other is for Secondary Steel Producers, to ensure stakeholder participation in decision-making.

Govt not keen on imposing higher import duty on steel

The Centre is unlikely to relent to the domestic steel industry's demand for increasing basic customs duty (BCD) on the import of steel, or levy any additional safeguard duty on the alloy, in the near term, said two officials in the know. The government believes that such an intervention could result in the crucial alloy getting more expensive in the domestic market.

The Indian Steel Association (ISA), a group representing the interests of manufacturers such as Tata Steel and JSW Steel, has made multiple representations to the government seeking intervention against alleged predatory pricing of overseas steelmakers. It has sought measures like increasing the BCD on steel to 12.5% from 7.5% currently for flat steel products, and 10% for long products from 7.5% at present.

The industry body has also sought 25% safeguard duty on steel imports from countries that have a free-trade agreement with India, thus bypassing the BCD. Such countries account for more than 60% of steel imports into India. The industry body has also sought 25% safeguard duty on steel imports from countries that have a free-trade agreement with India, thus bypassing the BCD. Such countries account for more than 60% of steel imports into India.

India’s total steel imports went up by 45% in FY23 to 7 million tonnes, preliminary data from

Joint Plant Committee show. Countries such as South Korea, Japan, Russia, China and Vietnam are the top exporters of steel to India.

Steel sector PLI may include capital goods

The government is considering widening the scope of the production-linked incentive (PLI) scheme for steel manufacturing to include more products under it, a senior industry official said.

Capital goods companies that manufacture machinery for the steel industry could be one of the segments that can be included within the ambit of the PLI scheme for steel, the official said. It currently covers only specialty, or valueadded, products in the steel sector. The steel ministry has asked industry representatives for their opinion on what they think should be included and sought their responses by the end of May, he said.

The production-linked incentive scheme was launched in 2020, initially targeting only a few sectors. It has now been extended and covers as many as 14 sectors, including specialty steel. The government has earmarked 6,322 crore for speciality steel under PLI scheme for five years to promote local manufacturing of these grades of steel. These products include coated and plated steel products, high-strength steel, specialty rails, alloy steel products and electrical steel that are used in sectors like automobile, defence and power.

Cement Demand Seen Rising 8-9% In Current Financial Year

Continued government push to build infrastructure will drive cement demand further this fiscal by 8-9 per cent on top of a 9 per cent growth in FY22, which will help the sector see some recovery in profitability, a report said.Recovery in profitability despite the inflationary pressure

and healthy balance sheets will keep the sector in good stead despite the large capex pipeline. Softening fuel cost to drive recovery in operating margins even as the industry is likely to increase prices only in low single digit. The agency expects operating margins to recover to Rs 950-1,000/MT in FY24 on the back of softening power and fuel cost. Downside risks could arise from a rebound in coal and petcoke prices, though.

However, the large expansion plans will keep capacity utilisation below 70 per cent, up from 65 per cent in FY23. It expects 75 per cent of the announced expansion of around 150 million tonnes is actually likely to come on stream during FY23-25.

India’s cement makers announce capacity expansions

Indian cement firms have added about 7mn t/ yr of manufacturing capacity during the past month as part of their broader expansion plans. Higher cement output typically raises demand for petroleum coke and thermal coal, the two key fuels for cement makers.

India's largest cement maker private-sector Ultratech recently commissioned an additional cement grinding capacity of 2.2mn t/yr at its unit in the eastern province of Bihar. The company aims to raise its cement capacity to 200mn t/yr by 2030 through organic and inorganic expansions. Private-sector cement maker Dalmia Bharat added capacity of 2.5mn t/yr at its unit in the eastern province of Jharkhand. Fellow private-sector producer JK Cement raised its capacity by 2mn t/yr to 20.67mn t/yr in late March. It had announced plans to expand capacity by 5.5mn t/yr in November 2022 over two years through brownfield and greenfield projects.

The cement sector is likely to witness increased consolidation in the near-to-medium term, given the widening gap between larger and smaller players given a tough environment, India Ratings added. The aggressive medium-term capacity targets of large players are unlikely to be achieved organically

RAILWAYS

Indian Railways plans to operate 600 trains daily to transport 75 MT of coal in June

Anticipating increased demand for power in the coming summer, Indian Railways has created a roadmap to use nearly 600 freight trains per day only to transport coal to thermal power projects by June.

"We expect peak coal demand to rise to 75 million tonnes (MT) by June and have created a roadmap according to which we are increasing the freight trains being used for coal transportation by 35-40 trains every month," a senior railways ministry official adding that Indian Railways is on course to add nearly 4,000 wagons or 80 freight trains by June to carry coal.

In case demand rises any more, the Railways has created a plan to allot another 3,000 wagons or 60 freight trains to be used for coal transportation in June and July.

Consumers seek tariff rationalisation on dedicated freight corridor

Stakeholders using the Dedicated Freight Corridor (DFC) are calling for rationalising tariff to attract more consumers on to the railway network. Container train operators and port players say while the DFC has lowered the time taken for moving goods and ensures predictability, the cost is an impediment to adoption.

APM Terminals, a unit of Danish shipping giant Maersk, is seeking the rationalisation. Their Pipavav terminal on the Gujarat coast has immediate access to key markets in northwest India and the largest sea food export belt in India through road and rail, including direct electrified access to the Western Dedicated Freight Corridor.

Commenting on the need to rationalise rail tar-

iffs, Manish Puri, president, Association of Container Train Operators (ACTO) said, "Rail is more expensive than road in the light cargo category. This is because charging is done directionally in road. So light cargo in export direction on road is cheaper than the rail route."

SHIPPING

India's major ports handled highest ever cargo of 795 million tonne in FY23: Sarbananda Sonowal

India's major ports handled the highest ever cargo at 795 million tonne in 2022-23, registering an increase of 10.4 percent over the previous year, Union Minister SarbanandaSonowal said. major ports recorded the highest ever output per day of 17,239 tonne in last fiscal year, a growth of six percent as compared to 2021-22. The minister also said that 21,846 vessels were handled last financial year by major ports.

India has 12 major ports namely, Deendayal (Kandla), Mumbai, Mormugao, New Mangalore, Cochin, Chennai, Ennore (Kamarajar), Tuticorin (V O Chidambaranar), Visakhapatnam, Paradip and Kolkata (including Haldia) and Jawaharlal Nehru Port. Sonowal said that by leveraging data analytics and artificial intelligence, India can optimise operations and make its ports more efficient.

According to Sonowal, major ports are being developed as hydrogen hubs for handling, storage and transportation of green hydrogen. Under National Hydrogen Mission, green hydrogen / ammonia bunkers and refuelling facilities are to be established in all major ports by 2035, he added. Deendayal, Paradip and VO Chidambaranar ports are developing infrastructure for establishment of hydrogen bunkering.

Noting that the development of smart ports is crucial for the growth of India's economy, Sonowal said about 95 percent of India's trading by volume and 70 percent by value is done through maritime transportation.

GLOBAL

Indonesian Coal Exports Surge 32% on Strong Asia Demand

Indonesian seaborne coal exports rose partly due to improved economic conditions in China and an increase in energy demand. During the first four months of 2023, Indonesian coal exports to China are estimated to have risen 65% y/y. The Chinese economy is performing significantly better than last year, when strict COVID restrictions were in place. As a result, industrial activity has increased, boosting coal demand.

Coal supply has also improved as Indonesian coal exports have not been restricted by an export ban which was in place in January 2022.

The surge in coal exports is supporting rates for panamax and supramax ships which transport 85% of Indonesian coal. Earnings in both segments remain higher than pre-COVID levels but have weakened significantly compared to 2022. Indonesian coal exports account for 19% and 11% of all cargo transported by panamax and supramax ships respectively. The higher coal volumes have helped offset weaker grain and minor bulk volumes. However, due to shorter coal hauls, freight rates for the two segments have still been impacted negatively.

Higher demand for Indonesian coal has also been seen in other smaller economies in East and Southeast Asia. Coal prices have started to

cool from record high levels in 2022, improving its attractiveness in price sensitive economies such as the Philippines and Vietnam. Additionally, spillover effects of China’s economic recovery have been seen in South Korea. Chinese demand for South Korean industrial goods has increased, leading to higher South Korean coal imports. India is the second largest destination for Indonesian coal, but unlike other destinations, exports from Indonesia have slightly decreased so far this year.

Indonesia’s PLN, IEA sign pact on emissions reduction

Indonesia's state-owned power generator PLN has entered into an initial agreement with the Paris-based IEA to further its plans to reduce its carbon footprint. PLN aims to leverage IEA's expertise in finalising the Just Energy Transition Partnership Investment and Policy Plan (JETP IPP), which aims to accelerate Indonesia's coal energy phase out and speed up investments in renewable energy infrastructure. Indonesia will receive an initial $20bn over the next 3-5 years from its international partners such as the US, the EU, Japan and Canada under the JETP. The planned funding will consist of a mix of concessional loans, market-based loans, grants, guarantees and investments from public and private-sector entities.

The latest partnership with IEA is part of Indonesia's broader plan to reach net zero by 2060. The pact paves the way for PLN to utilise IEA's Global Energy and Climate model to generate sectorby-sector long-term plans to reduce emissions, the power utility said. The initial agreement with the IEA will help in better categorisation of existing PLN power plants for either continuing operations or accelerated decommissioning, the utility said.

Under a business-as-usual scenario with existing efforts to reduce emissions, PLN expects

the power generation sector to produce up to 433mn t of carbon emissions by 2030. But Indonesia has outlined emissions from the power generation industry to be fall to 335mn t by 2030 under PLN's electricity supply business plan (RUPTL), which aims to reduce 1.6bn t of carbon dioxide emissions over the next 25 years

Ship from Indonesia becomes largest to dock at Bangladesh port

A 229 metres long ship with a 12.5 metres draught that brought coal to Matarbari for a power plant has become the largest to dock at any Bangladeshi port. The vessel, OWUSU MARU bearing the flag of Panama, arrived at the jetty built for the Matarbari power plant. The docking was confirmed by AbulKalam Azad, the executive director (project) of Coal Power Generation Company Bangladesh Limited.

The ship arrived via Singapore with coal from Indonesia’s Tarahan, which is the first ship to bring coal for a coal-fired power plant. The authority had berthed more than 120 ships at the jetty, said Rear Admiral M Shahjahan, the chairman of the Chattogram Port Authority, or CPA, during the 136th founding anniversary ceremony of Chattogram Port.

“Today, the biggest ship to ever visit Bangladesh has arrived at Matarbari's coal jetty,” Rear Admiral Shahjahan said. “Once the Matarbari terminal is completed, it will enable deep draft vessels, including commercial ships with a depth of 16 meters or more, to access the area.” The vessel has a capacity of 80000 tonnes. However, the ship brought a total of 63000 tonnes of coal, according to Azad. He added that unloading the coal from the ship may take around six to seven days, while even bigger ships can dock here in the future.

China takes Australian thermal coal as India declines

China has usurped India as the premier importer of lower-grade Australian thermal coal, but there are questions as to whether the shift is structural or driven by temporary price factors. China's imports from Australia of the fuel used to generate electricity are estimated by commodity analysts Kpler at 4.44 million tonnes in April, more than double March's 2.21 million and the most since China ended its unofficial ban on Australian coal earlier this year. The April volumes are also largely in line with what China, the world's biggest coal importer, was buying prior to the imposition of the ban in mid-2020, which subsequently saw arrivals from Australia drop to zero by early 2021.

To be sure, China's imports of thermal coal from Australia, the world's second-biggest coal exporter, still lag well behind the 19.29 million tonnes in April from top supplier Indonesia.

Australian thermal coal has to be price competitive with domestic supplies, something that has been the case in the past few months, but also a situation that may be coming to an end. Australian coal with a 5,500 kilocalorie per kg (kcal/ kg) energy content, as assessed by commodity price reporting agency Argus, ended at $117.81 a tonne in the week to April 21. This was slightly higher than the previous week's $116.65, which was the lowest price since January last year

Asian met coal could ease in Q2 on higher supply, mixed Chinese demand outlook

Asian metallurgical coal prices are expected to soften in the second quarter as supply disruptions in Australia are set to ease on warmer weather, while China’s demand outlook is mixed amid uncertain steel requirements and the country resuming Australian coal imports after

a near two-and-a-half-year pause. The benchmark Platts premium low-volatile hard coking coal prices, on FOB Australia basis, averaged $343.91/mt in Q1, up from $278.13/mt in the previous quarter, showed data from S&P Global Commodity Insights.

Chinese steelmakers have indicated that they would be open to buying more Australian material in Q2, but added that it would depend on a workable arbitrage emerging between seaborne and domestic PLV as domestic prices have been under pressure since March. Chinese mills’ appetite for coking coal imports will depend largely on steel demand and prices. Margins for steel saw increased pressure in early-April amid production that grew on the year over January-March and a slow recovery in demand.

Met coal output in Australia is likely to increase in Q2 amid forecasts for warmer-than-median temperatures over most of the country in AprilJune. The latter part of the forecast period is also expected to see El Nino conditions, typically associated with hot and dry weather that are ideal for mining operations

Super funds in Australia is investing billions into new coal and gas

Australia's 15 biggest super funds have more than $25 billion invested in companies that are expanding coal, oil and gas production, analysis by the Australian Conservation Foundation has revealed. That's despite international experts agreeing that new fossil fuel projects risk blowing out ambitions to keep global temperature rise as close as possible to 1.5 degrees. The analysis found nearly a fifth of the total amount was invested in Australia's top three biggest

polluters - Woodside, Santos, and Chevron.

ACF corporate campaigner Jonathan Moylan says Australia's biggest super funds have enormous influence when it comes to driving Australia's clean energy transition, or blocking it. "By the choices they make about how they invest our retirement savings, super funds can transform Australia from the world's largest exporter of climate pollution to a country that manufactures low or zero emissions materials here with our abundant wind and sunshine," Mr Moylan said.

He pointed to efforts by Vision Super and HESTA, and now possibly the Australian Retirement Trust, to pressure Woodside towards genuine climate action as examples of super funds using their muscle to push companies they invest in to cut emissions. "A growing number of Australians don't want their retirement savings locking in greenhouse emissions with new projects when they could be building clean energy infrastructure for the twenty-first century," Mr Moylan said.

$280m in construction announced for coal terminal in Australia

Dalrymple Bay Infrastructure in Australia has announced it will design and construct a new ship loader and reclaimer for its coal terminal in Queensland. The company’s wholly owned subsidiary Dalrymple Bay Infrastructure Management is to proceed with plans for the new machinery under its non-expansionary capital expenditure (NECAP) program at Dalrymple Bay Terminal.

The new ship loader and reclaimer will replace existing machinery at the terminal. The projected costs of the projects are around $165 million and $116 million, respectively. DBI managing director and CEO Anthony Timbrell said the NE-

CAP program would ensure terminal capacity remains available. “To ensure that the Dalrymple Bay Terminal continues to accommodate metallurgical coal exports from the Bowen Basin for use in steel production that will enable the world’s transition to a low carbon future, DBI will focus on its investment in the pipeline of NECAP projects required at DBT over the coming years,” he said.

DBI expects the projects to be funded through a combination of existing debt capacity and internal funds from operations. Design and construction are scheduled to commence this year and take around three or four years to complete.

Re-opened Wilkie Creek coal mine in Australia, clears the way to start off operations

The reopened Wilkie Creek coal mine is expected to start exporting in a few months after the project ticked off a string of critical milestones, clearing the way for the start of full operations. The project near Dalby, about 250km west of Brisbane, is forecast to produce about 2.4 million tonnes a year of high-quality thermal coal, destined for markets in Asia. The open cut mine was previously operated by Peabody Energy and has been in care and maintenance since 2014.

Peabody Energy sold it to New Wilkie Energy in July 2021, which kick started its revival in a climate where there is speculation on the future of new coal mines. The company’s managing director Gary Williams said a significant milestone has been reached with Queensland Rail receiving Ministerial approval and has signed the Access Agreement to enable the first shipment of NWE coal early in the second half of the year, using the West Moreton Coal rail system servicing the Port of Brisbane.

Australia, one of the world’s largest coal exporters, is now committed to cutting carbon emissions by 43 per cent by 2030 from 2005 levels, on

a path to reaching net-zero emissions by 2050. There is speculation that there will be no new coal mines in Australia and in March the federal government blocked a planned coal mine by billionaire Clive Palmer because it would endanger the Great Barrier Reef. Australia's best business newsletter. Get the edge with AM and PM briefings, plus breaking news alerts in your inbox.

Australia's South32 cuts output across divisions, shares slump

Australian diversified miner South32 Ltd cut output guidance for several operations hit by wet weather and other issues in the third quarter, which sent its shares down nearly 10%.The Perth-headquartered miner said however it expected to benefit from higher volumes and prices in the June quarter. Its shares slid as much as 10% to A$4.00, sharply underperforming a 2.2% drop in the mining sector .AXMJ.

Wet weather and temporary disruptions at the Appin metallurgical coal mine led to a 21% drop in metallurgical coal production in the March quarter from a year earlier and a 7% cut in output guidance for the year. The division is its most lucrative, comprising a third of earnings during the first half.South32 said it now expects to produce 6.5 million tonnes of Illawarra metallurgical coal for the year to June 2023, down from a forecast of 7.0 million tonnes.

South 32 also cut output guidance at MozalAluminium by 8% to 340,000 tonnes and Cannington payable zinc equivalent production by 6% to 195,900 tonnes. It lowered its nickel production forecast by 7% to 40,500 tonnes. However, the company said it remains on-track to meet its full year production guidance at most of its operations.

Australia closes oldest coal plant, pivots to renewable

Australia's oldest coal-fired power plant will shut down as the country, a once-notorious climate straggler, prepares for a seismic shift towards renewable energy. The Liddell power station, about three hours' drive north of Sydney, is one in a series of ageing coal-fired plants slated to close in coming years. Built in 1971, Liddell provides about 10 percent of the electricity used in New South Wales, Australia's most populous state.

For decades, coal has provided the bulk of Australia's electricity, but University of New South Wales renewable energy expert Mark Diesendorf told AFP that stations such as Liddell were fast becoming unreliable "clunkers". Besides being inefficient, highly polluting and expensive to repair, the continued widespread use of coal-fired power plants would make Australia's climate targets almost impossible to meet. Australia has long been one of the world's largest coal producers and exporters, and under a series of governments of all stripes it has resisted pressure to scale back the industry.

But the Centre-left government elected last year on the promise of climate action has pledged that 82 percent of the country's electricity will come from renewable sources by 2030. This demands a drastic overhaul while world leaders such as Norway produce more than 90 % of their power through renewables, Australia currently sits around 30 percent. "The plans are for a fairly rapid phase-out," Diesendorf told AFP. Under growing public pressure to address the climate crisis, many Australian fossil fuel companies increasingly prefer to shutter old coal plants than keep them online.

SOUTH AFRICA

Blackout-beset South Africa may delay closing coal stations

South Africa may delay shutting down many

of its highly polluting coal-fired power stations, President Cyril Ramaphosa said, a move that could stem a crisis of daily electricity blackouts but would slow a shift to greener energy sources. South Africa is Africa's most developed economy but is experiencing rolling nationwide blackouts, sometimes for more than 10 hours a day, because of an electricity shortfall. The blackouts, which have become worse over the past year, have been deeply damaging to the economy and to the popularity of Ramaphosa's government ahead of national elections next year.

Under the new plan, which Ramaphosa outlined only broadly in his weekly letter to the nation, South Africa will consider a delay in the decommissioning of some of its 14 coal plants to help ease the electricity cuts, known as “load-shedding.” About 80% of South Africa's electricity is provided by coal. The nation is the world's 16thlargest emitter of greenhouse gases overall, at about 1.13% of global emissions, and 45th per capita based on 2019 data, according to ClimateWatch.

The blackouts are cutting electricity to South African homes and businesses and its 60 million people several times a day, usually in two-hour blocks. Ramaphosa wrote that South Africa was still committed to the world’s climate targets but had to balance that with its energy security requirements and the immediate priority of ending, or at least reducing, the power cuts. He pointed out that South Africa wasn't the only country leaning on coal to address short-term energy supply problems.

South Africa’s ANC approves plan to extend use of coal plants despite climate concerns

South Africa’s governing party has approved plans by the Electricity Minister KgosientshoRamokgopa to extend the use of Eskom

Holdings SOC Ltd.’s coal-fired plants earmarked for decommissioning, in a bid to stave off an escalation in power cuts. KgosientshoRamokgopa, South Africa’s electricity minister, addresses employees during a visit to the Eskom Holdings SOC Ltd.Ramokgopa presented his plan to ease rolling blackouts, known locally as load shedding, before the African National Congress’s highest decision-making body.

“The NEC supports the approach that as we prioritize load shedding we will need to re-visit our decommissioning schedule to balance energy security and our climate commitments,” President Cyril Ramaphosa said in his closing address to the ANC’s National Executive Committee. Africa’s most-industrialized nation has been hobbled by an energy crisis that’s slowing economic growth and increasing costs for companies. The plan to keep using the dirtiest fuel for longer may also delay transition to cleaner fuels and access to $8.5 billion of funding by rich nations for closing coal plants.

The updated schedule will be determined by a number of factors including modeling to estimate projected future capacity from various sources as commissioned by the National Energy Crisis Committee of Minister. Other factors to be considered will include, research on the decarbonization trajectory to be conducted by the Presidential Climate Commission, as well as a feasibility study on the refurbishing of power stations which has been commissioned by the National Treasury.

South Africa driving reforms in electricity sector

Speaking at the South Africa–Finland Roundtable Business Forum held in Menlyn, east of Pretoria, President Ramaphosa said South Africa is in the grip of an energy crisis. “We are implementing the national Energy Action Plan to increase the current supply of energy and to achieve energy security in the long-term,” President Rama-

phosa said. President Cyril Ramaphosa says South Africa is driving reforms in the electricity sector to enable private investment in electricity generation and accelerate the procurement of new generation capacity, including solar, wind, gas and battery storage.

“We are implementing the national Energy Action Plan to increase the current supply of energy and to achieve energy security in the longterm,” President Ramaphosa said. Speaking at the South Africa–Finland Roundtable Business Forum held in Menlyn, east of Pretoria, on Tuesday, President Ramaphosa said South Africa is in the grip of an energy crisis. The Business Forum was attended by government representatives and business leaders from the two countries.

“Even as we work to improve the performance and efficiency of our existing coal-fired power stations to address energy shortages, we remain committed to a just energy transition, and to our target of achieving net zero emissions by 2050. “A just transition to a low carbon, climateresilient, greener economy forms part of South Africa’s global climate change commitments. We believe that there is alignment between our objectives and Finland’s goals,” President Ramaphosa said. On the economic front, President Ramaphosa said South Africa is ready for a partnership with Finnish companies willing to do business in South Africa.

UNITED STATES

U.S. coal shipments increased slightly in 2022 as power plants replenished stockpiles

The amount of coal received by power plants in the United States has largely declined over the past decade as coal-fired electricity generation

has fallen and many coal-fired power plants have closed. However, slightly more coal was shipped to U.S. power plants in 2022 than in 2021 even though coal-fired generation fell by nearly 8% in 2022. The 8-million-ton increase in coal shipments came as power plants replenished their coal stocks, which had been drawn down in 2021.

Coal-fired plants stockpile coal to ensure they have enough fuel supply on-site; they build up inventory to prepare for periods of greater electricity demand and draw from the stockpile as needed. Most coal is supplied through longterm contracts between utilities and coal producers that specify the amounts of coal to be delivered at set intervals, although some contracts allow flexibility in delivery volumes. Plants also supplement their coal supply with spot purchases of coal as needed. Coal stockpiles at U.S. power plants declined in 2021 because plants drew from stocks to meet increased electricity demand. In 2021, U.S. coal-fired generation increased for the first time since 2014, driven by growth in electricity demand and a stronger competitive position given rising natural gas prices.

The increased coal burn and large stockpile draws came at a time when limited coal supply made it difficult for some plants to rebuild their stockpiles. As U.S. coal mines ramped up production in 2022, coal shipments increased as plants worked to replenish stockpiles. In 2022, 459 million short tons of coal were delivered to power plants in the United States

Exporting Alabama Coal, Growing Alabama Jobs

It’s no secret that Alabama’s economy is booming, and so is business at your Port. In 2021 alone, the Port was responsible for $85 billion dollars of economic impact and created nearly one-in-seven jobs state-wide. On top of that, our economic activity sent more than $2 billion

in tax revenue back to state and local governments. What you may not know, however, is that our state’s coal industry is a key driver in this success. Alabama’s coal is sought after worldwide, and Alabama’s port is the fastest way to get it there.

Alabama’s coal is special. It is different from thermal coal, which has long been burned for energy. Instead, our coal is metallurgical, or “met” coal, a key component in steel making. The chemical makeup of Alabama’s met coal is recognized industry-wide as some of the finest met coal in the world. From ships to scalpels, met coal is used to produce high-grade steel.

With major coal industry expansions underway in the Birmingham and Tuscaloosa areas, exports are expected to double in the next five years. Alabama’s port needs to be ready. That’s why Gov. Kay Ivey recommended $25 million in her budget request to support much-needed upgrades at McDuffie. This investment will complement improvements the Port is already making and speed up the modernization of our coal-handling equipment. With the State’s assistance, McDuffie will reach its full potential of more than 20 million tons exported annually, ensuring the Port offers the efficiency needed to keep up with the growing demand for Alabama coal.

EUROPE

EU coal terminal inventories rise to 9-week high

Coal stocks at northwestern European import terminals have risen 4% on the week to a nineweek as seaborne vessel arrivals persist despite diminishing generation demand, port data showed .Combined inventories at four key terminals in Amsterdam, Rotterdam and Antwerp (ARA) were assessed last at 5.83m tonnes, up

by 0.23m tonnes from a week ago, according to Montel estimates. The figure was the highest since the week beginning 20 February and 1.37m tonnes higher than the same period last year.

A source at Rotterdam’s key EMO terminal said that although vessel arrivals were “busy” for the time of year, reloadings onto barges for shipment to inland plants were “normal”. And stocks could rise further, with deliveries to Rotterdam and Amsterdam provisionally seen this week at a combined 0.53m tonnes, compared with 0.21m tonnes last week, according to DBX estimates.

Muted generator demand and ample supply was weighing on European coal prices, with the front-month API 2 contract last seen down USD 3.75 on settlement at USD 131.50/t, on Ice Futures.Of the ARA stock total, inventories at EMO were seen this week at 3.9m tonnes, up 0.2m tonnes on the week, while Amsterdam’s OBA terminal, the second-largest ARA coal import hub – reported a decrease of 0.04m tonnes to 1.37m tonnes.

German coal burn may fall by 19%YoY this summer

German hard coal-fired generation might fall year on year this summer, if recent trends of weaker overall power demand, renewables build-outs and a coal-gas fuel switch incentive continue. Hard coal-fired generation over 1 April–30 September could slip by 19pc on the year and 5pc below the 2018-22 average to 4.8GW, under a scenario where overall electricity generation is on average 4.1pc lower on the year in April-September, according to Argus calculations.

This is in line with the 4.1pc drop in German power demand over 2022-21, which was primarily the result of industrial and household demand erosion associated with high prices, policy and behavioural changes in energy consumption

stemming from the fallout of the Russia-Ukraine conflict. A 19pc drop in hard coal-fired generation would equate to 1.9mn t less NAR 5,800 kcal/kg coal burn across the six-month period.

This scenario assumes that wind and solar power generation grow by 7pc and 5pc respectively year on year, and that lignite generation declines by 5pc year on year, in line with the percentage drop in output over the first quarter. Germany is planning to phase out 1.9GW of lignite capacity by July, so there is further downside risk to the lignite outlook. Oil-fired generation, which plays a minimal role in the power mix, is assumed to be flat to last summer, while hydropower, biomass-fired power, imported power and other forms of generation are forecast in line with seasonal trends.

Russia Eyes Asian Markets For Its Coal Exports

Russia is now looking at expanding its coal exports to the Asian market, said Deepak Kannan, Global Head of Coal Pricing, S&P Global Commodity Insights as Europe taps other markets for its coal exports. Kannan explained that the coal trade flows have changed drastically since the war between Russia and Ukraine broke out last year. “As Europe stopped coal imports from Russia, it was cut short of fuel and had no gas supplies. There was a shift in demand for Asian coal, and Europe started scrambling for cargoes from wherever they could get. They tapped Colombia, South Africa, Australia and even Indonesia,” said Kannan.

With this shift in European demand, Kannan said that Russia did not have a home for its coal exports and started offering cargoes at a discount to whoever was buying. Among the countries that are now buying Russian coal are China, India, and South Korea. “Two years ago, Russian coal imports by India were around 4 million tonnes, today it is around 17-18 million tonnes. That is a big leap you see here for Russian coal,” Kannan stated.

Kannan also delved into other markets in Asia, such as Vietnam, which today is buying nearly two-three million tons of coal per month compared to one million tonnes of coal per annum a few years back. Citing the lack of indigenous production in Southeast Asian and Northeast Asian markets, Kannan said they all have to depend on imported coal

UK’s biggest power generator

Drax ends coal burning operations

British power generation firm Drax has announced the end of coal burning operations at its plant in Yorkshire, northern England. With four of the plant’s six generators now burning biomass, the power station has become largest generator of renewable power in the UK. The plant kept its final two coal-fired units until now as a contingency, following energy supply concerns after the invasion of Ukraine. Drax are now converting the remaining two coal elements into combined cycle gas turbines alongside 200MW battery storage.

Drax Group CEO Will Gardiner stated: “By converting the plant to use sustainable biomass we have not only continued generating, but we have also played a significant role in enabling the UK’s power system to decarbonise faster than any other in the world. “We’re now planning to go further by using bioenergy with carbon capture and storage (CCS) to permanently remove millions of tonnes of carbon dioxide from the atmosphere each year.”

However, the UK government has reportedly denied Drax access to subsidies in order to push forward its CCS project. In 2020, Drax provided 11% of the UK’s power, the largest of any generator. Initially commissioned in 1974 as a state-owned coal plant Drax has had the largest capacity for power generation since then. The plant began co-firing biomass in 2008. Drax currently benefits from government energy subsidies that expire in 2027, casting the future of its biomass operations into doubt.

MONTHLY SUMMARY OF IMPORTED COAL & PETCOKE

Indicative Imported Coal Price

Indicative Pet Coke Price

Indicative Coking Coal Price

Indonesian Coal News:

Indonesian seaborne coal exports are expected to soar in the coming days. The rise is a result of an increased energy demand from China. The first four months of 2023, saw an estimated rise in Indonesian coal exports to China by 65% Y-O-Y. High demand for Indonesian coal was also seen in smaller economies in the East and Southeast Asia due to a drop in coal prices. The supply side witnessed an improvement as exports have not been restricted by an export ban like last year.

Indonesia's Energy and Mineral Resources

Ministry has projected that 695 million tonnes (mnt) of coal will be produced in 2023 out of which around 518 mnt will be exported. Indonesian coal is mainly thermal or steam coal, and a part of the thermal coal production is consumed domestically-mainly for power generation-while the major portion is shipped abroad. Indonesia is also on the verge of becoming a major supplier of metallurgical (met) coke due to hefty investments by Chinese companies. As per estimates, over 17 million tonnes (mnt) of coke production capacity is coming on stream in Indonesia and will play a key role in supporting the growing steelmaking needs of the region.

Australian Coal News:

The Australian government has indicated that thermal coal exports are likely to increase over the next three years in a fluctuating global market. Japan, South Korea and Taiwan are the nations that import the highest calorific value thermal coal making up a considerable portion of Australian exports. As per data, Australian thermal coal made up 17% of global trade in 2022 and is expected to rise in three years by 20%. The price of coal will also be a key factor in determining the stability of the coal market.

In Australia, the government might decide on whether to approve up to 28 coal mine developments. The approval of mines would make it harder to meet targets set under its newly approved climate policy as per an analysis. According to a report all 28 coal projects that have been referred to go ahead as proposed. It would add up to 16m tonnes to the country’s annual carbon dioxide emissions. In addition to the coal projects, there are several proposed gas developments seeking approval under the Environment Protection and Biodiversity Conservation Act.

South African Coal News:

Thermal coal exporters in South Africa like Thungela Resources expect the demand for coal to stay strong although prices have dropped drastically from the record highs of 2022. The firm's annual profit jumped 97% in 2022, boosted by the rise in coal prices. The firm stated that it will be purchasing both thermal and metallurgical coal assets amid worsening logistical challenges in the country. Coal prices surged last year as Russia's invasion of Ukraine worsened an energy crisis that started late in 2021.

South Africa is planning to reform the electricity sector to enable private investment in electricity

generation. The country is also implementing policies to expedite the procurement of new generation capacity that entail solar, wind, gas and battery storage. To combat the current energy crisis, the national Energy Action Plan will be implemented by the government to increase the current supply of energy and to achieve energy security in the long-term.

European Coal News:

Russia is looking at boosting coal exports to China. SUEK, Russia’s largest exporter of coal, is preparing to significantly increase sales to China in 2023. Company officials stated that the Chinese market is very important for them. Last year, Russia ramped up coal exports to China by 11.2%. The move was part of Moscow’s efforts to reorient its trade following the EU’s ban on Russian coal, introduced amid Ukrainerelated sanctions last year. China is increasing its coal consumption, and consequently its coal imports, as its industrial activity bounced back after the lifting of Covid-19 restrictions.

Germany's imports from Russia dropped by 91% compared to last year. Coal imports from the country dropped by 92.5% this year, while imports of coal-based coke products and mineral oil products decreased by 91.4%. Meanwhile, German exports to Russia dropped by 60.5% compared to the €2.1 billion figure from February 2022.As per statistics, Germany was importing a few energy products only from Russia in the beginning of this year.

US Coal News:

The prices of thermal coal mined from northern Appalachia and the Illinois Basin in the US have fallen more than half since September. Even after the decline in coal prices, varieties

produced in the eastern U.S. cost $3.10 to $3.55 per million BTUs, according to the Energy Information Administration. This suggests that coal prices might have to fall further to regain competitiveness with natural gas. Coal also faces increased competition in the country from renewables, including wind, solar, hydropower, and biomass.

In the US, the Biden administration is offering $450 million for solar farms and other clean energy projects across the country at the site of current or former coal mines. Five projects nationwide will be funded through the 2021 infrastructure law, with at least two projects set aside for solar farms, the White House said. The White House also will allow developers of clean energy projects to take advantage of billions of dollars in new bonuses being offered in addition to investment and production tax credits available through the 2022 Inflation Reduction Act.

Pet Coke News:

Bandar Abbas Oil Refinery in Iran is planning to transform itself into a petro-refinery and become a major petroleum coke producer, said company sources. The construction of 15 new processing units, estimated to cost $2.5 billion, has started in the refining complex and is expected to become operational in two

years. As per company officials, the objective of the project is to help reduce the amount of sulfur in mazut from 3.5% to less than 0.5% and convert it to higher value-added products, including sponge coke that is the typical grade of petroleum coke used in steel production..

Shipping Update:

The Baltic Exchange’s main sea freight index edged up as higher rates for capesizes outweighed declines in smaller vessel segments. The overall index, for shipping vessels carrying dry bulk commodities, rose to 26 points, it’s highest in almost three weeks. Average daily earnings for capesizes, typically carrying commodities like coal and iron ore increased. The panamax index fell 27 points, it’s lowest since March-end.

Expanding economic activity in China followed by dry bulk market weakness at the beginning of the year has led to increased demand for coal, iron ore and some minor bulks in the year till date. Total dry bulk loadings were 2% higher compared to the same period last year due to increased coal loadings improving against a low base caused by the Indonesian coal export ban in 2022. The loadings were also higher due to increased iron ore loadings, while grain and minor bulk loadings were down. The reopening of China’s foreign policies have boosted demand in various sectors like manufacturing, infrastructure, property and the green economy, despite the global geopolitical turmoil.

OVERALL DOMESTIC COAL SCENARIO

APR’23)