CCAI Newsletter August-22

WHERE SERVICE AND DEDICATION JOIN HANDS

From the Editor’s Desk

Be it the soaring heatwave across India’s northern plains in the summer,unprecedented droughts in China drying up the Yangtze River or the more recentfloods in Pakistan that have ravaged more than 1000 people and drowned billionsin loss, the worsening climate impacts in the region is out in the open urging Asianthought leaders and decision makers to push harder for a ‘just transition’ in fuelusage.

Burning of fossil fuel, especially coal that is available in abundance in this part ofthe world and are happily lapped up both for power generation and industrialproduction, is considered to be a major obstacle towards a climate-resilient futurefor Asia. Amid long-standing global push to embrace renewables as a primarysource of power generation, India, a leading producer and user of coal does notwant to be left far behind, but at the same time lowering dependence on the dryfuel is emerging to be a constant struggle, especially amid the country’s growingpower demand.

With a series of lucrative measures like 100% FDI under the automatic routefor renewable energy and setting up of project development cell for facilitatinginvestments, the Indian government aims to attract domestic and internationalinvestors. However, taking a lesson from the grappling power shortage in April-May earlier this year as well as the plight of several European nations who decidedto completely shun coal, India has also set a target to produce nearly 1.3 billion mtthermal coal domestically by 2025.

It is known that in a growing economy like India, sustainable and affordable fuellike coal has a powerful future and the country with such abundant reserves iswilling to cash in. In a bid to ramp up its production, Coal India has plannedfor operationalising 14 mines including both opencast and underground projectsthrough the engagement of mine developer and operators (MDOs). The Governmenthas allowed 20 abandoned mines to restart in partnership with private companieson a revenue sharing basis with Coal India Ltd. It is also making sustained effortsto attract more private entrepreneurs including foreign investors into mineralexploration and focusing on capacity addition through Greenfield and BrownfieldProjects.

The current trajectory shows that for coal-rich nations India and China, the declinein coal import demand is not going to be because of ascendency of green energy butbecause of their Governments’ drive for self-sufficiency in the fuel sector. Despitemore capacity addition in green energy, long-term demand of coal in SoutheastAsia is going to rise for another decade. For instance, Malaysia’s coal power plantshutdowns may be offset by the growth from Vietnam and Thailand.

A number of analysts believe that India’s efforts to increase coal production isdirectly related to lower imports, given how prices remain robust for most of theyear. while others feel that it is because the government’s own understanding thatdependence on renewables-based power generation is still a bit too far-fetched fora huge nation like India.

However, keeping in mind the sustainable development goals, India’s powergeneration mix is rapidly shifting towards a more significant share of renewableenergy and the Government is on the right track to achieve the renewables capacityof 500 Giga Watt by 2030. Amid growing demand for power, participation of allstakeholders will be crucial to maintain the right balance in India’s energy-mix.

CONTENT

Vol. LI No. 05 August 2022

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

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CONSUMERS’ PAGE

India’s overall coal production has dipped slightly in August ’22 (58.33 MT) compared to July (60.42 MT). However, production has grown by more than 8% on a y-o-y basis. Country’s main coal producer and national miner CIL’s production in August ’22 has been 46.22 MT, nearly 8.5% higher than same month last year (42.60 MT).

Overall coal despatch figures in August ’22 (63.43 MT) has also gone down compared to last month due to ongoing monsoon. But compared to August last year, overall coal despatch has gone up by 5.5%. Country’s overall despatch of coal has been 355.77 MT so far in this fiscal (Apr-Aug ’22) which is close to 12% higher than the despatch figure of same period in last FY (317.87 MT).

1. Submission regarding refund against ungraded coal supplied before the issuance of CIL notification to identify below grade coal slabs:

CIL has issued a notice in July’22 regarding the price of raw coal with GCV 1500 to 2200 Kcal/kg into two slabs by identifying them as below grade coal. While the new notification may pave the path for better reconciliation against coal below G17 grade, it is unclear what would be the process of refund against ungraded coal supplied before issuance of the notification as it has been issued on a prospective effect.

Earlier, for supply of coal below G17 grade or GCV less than 2200 Kcal/Kg, coal companies are to pay refund considering coal price at the rate of Rs.1/- per tonne to the consumer as per Power Sector FSA.

Request has been made to CIL to either process the refund against supply of below G17 grade of coal as per previous rate (Rs.1/tonne) or issue the new price notification for below grade coal on a retrospective effect.

2. Request to Include Producer Gas Plant in FSA Categories for Coal Linkage:

Amid significant growth in coal based power generation which is increasing the apprehension about its impact on the environment, India needs urgent application of clean coal technologies to be able to harness its huge coal reserves as energy source and feedstock for the industry in an environmental friendly manner. This will also help India to achieve the targets set during COP21 to reduce Greenhouse emissions by 30%, by 2031.

As of now, more than 300 Producer Gas Plant (PGP) are installed and out of them more than two- third of them are either non-operational or running under throttling conditions which is primarily due to nonavailability of consistent coal supply.

Request has been made to MoC and CIL so that coal linkage can be availed under the category of Producer Gas Plant (PGP) in the upcoming auctions. As this would help to promote Green Technologies and to utilize the chemical energy embedded in coal by way of Gasification and also to convert coal to chemicals.

3. Request for not deducting GST amount in case of forfeiture of EMD:

As per GST Circular No. 178/10/2022-GST dtd 03.08.2022, applicability of GST on liquidated damages, compensation and penalty arising out of breach of contract or other provisions of law is certified. The circular states that earnest money deposit by the buyer of coal is a mere flow of money which is not a consideration for any supply and hence it should not be taxable.

Request has been made to CIL that GST should not be deducted in case of forfeiture of EMD due to shortlifting by the consumer.

4. Submission by Power Sector consumers regarding carry forward of rakes:

Utilities procuring coal from SECL are often receiving of less than their stipulated quantity due to a significant demand-supply mismatch caused by production issue and Railway constraints. As a result, the backlog of carry forward rakes from SECL to the power houses continue to accumulate. The power houses cannot re-indent the carry forward rakes every month due to huge blockage of funds and operational issues at the plant ends.

As per the SOP laid down by CIL with regard to non-

lapsing of rakes for Power Sector, it is interpreted that if the carry forward rakes are not re-indented within the given time-frame then it is considered as deemed delivered quantity which attracts penalty below trigger level. However, if the power houses are unwilling to re-indent the carry forward rakes due to nonsupply by SECl or other Subsidiary, then that quantity should not be considered as deemed delivery as it would allow more quantity to be available for supply to other plants in need.

Request has been made to CIL so that the dispensation of carry forward rakes, not supplied during the time of allotment due to production issues / Railway constraints, may only be implemented for willing customers.

5. Submission requesting supply of coal as per ACQ instead of trigger level and increasing number of rakes to NRS FSA consumers:

NRS Linkage Auction consumers are still being allocated coal at trigger level (75% of ACQ) by the CIL Subsidiaries mostly via road mode. However, this 75% capping has been defined in the Fuel Supply Agreement (FSA) to determine the threshold of Compensation for short delivery/lifting in case of crisis for a few months by either side (buyer/ seller). This should not be considered as a final scale for allocation of coal for a longer period. Also, only a handful number of rakes are being allotted to the NRS consumers still now.

Request has been made to MoC and CIL to enable supply of coal as per ACQ instead of restricting it to the trigger level.

As critical coal stock situation in country’s power plants have improved relatively, request has been made to MoC and CIL to immediately increase supply rakes to NRS including CPPs so that coal supply via Rail mode may be commensurate with their normative requirement.

6. Submission by NRS Consumers for immediate issuance of pending RDOs especially from SECL:

To mitigate the supply crisis via rail mode to the Industries, temporary Road sources against respective Railway sidings have been identified by SECL for conversion from Rail to Road mode for supply to the NRS consumers. However, issuance of Road Delivery Or-

ders (RDOs) from a number of SECL collieries including Gevra, Kusmunda, Jampali and Baroud are pending since May 2022, in Chirimiri OCP from January and in Raniatari from March 2022. It is perceived that coal is available in these mines as Spot e-auctions are being conducted from various collieries of SECL intermittently including some of the collieries mentioned above,

Request has been made to SECL and CIL to allow issuance of pending RDOs urgently. Where coal is not available both from the Secondary and Tertiary Sources, a suitable policy may be formulated in order to solve the ongoing impasse for a very long period.

7. Submission by Industries (including CPPs) for improvement in coal supply situation:

In spite of steady growth in coal demand among NRS consumers, only 10-12 rakes have been despatched per day to the Industries by CIL since the last few months, which is significantly lower than their daily requirement. Supply of coal via Road mode is also restricted to trigger level (75% of ACQ). As a result, many Industries are compelled to rely on coal from imported sources despite high global coal prices while continuous process plants are compelled to purchase power from the exchange while keeping their CPP units almost idle.

Request has been made to MoC and CIL to immediately increase rake supply to NRS, especially to plants located at long distance. It is also requested that coal quantity equivalent to ACQ may be supplied to the CPP-integrated plants as it would help the CPPs to generate at full capacity and excess power produced by the CPPs can be transmitted to the grid which would help meet growing power demand.

8. Submission to amend methodology in National Coal Index:

Strong linkage added to the imported coal pricing has impaired the National Coal Index, weakening the very purpose of computing and using this index to develop and strengthen commercial coal mining in India as the unprecedented rise in global coal prices has led to exorbitant increases in Statutory Payments, Performance Security Bank Guarantees and Monthly Payments. As hike in imported coal price is not permanent, it should not impact the very purpose of a

strategic initiatives like commercial coal mining.

Request has been made to MoC to revisit the mechanism of computing NCI and reduce linkage to the prices of imported coal.

9. Submission by NRS FSA consumers for not taking fresh advance of more than one month MSQ:

A number of CIL Subsidiaries are allowing the industries to book monthly quantities via rail mode by depositing coal value advance equivalent to one month MSQ to the concerned Railways. However, ECL is not allowing re-indenting of arrear rakes without further deposition of fresh coal value advance every month. Thus, advance amounts equivalent to Scheduled Quantity of multiple months are stuck with ECL.

Request has been made to ECL and CIL to ensure that advance payment to be made by NRS consumers to the Railways may not be higher than coal value equivalent to MSQ of one month for movement of rakes as per the CIL directive.

10. Submission by NRS consumers requesting immediate release of longpending e-Auction rakes from SPURI& II sidings of MCL:

NRS Consumers procuring coal from SPUR – I & II sidings of MCL are struggling due to non-supply of a significant number of e-Auction rakes for more than one year. Some rakes are kept pending despite being higher on the indent seniority list. Thus, a huge amount of funds of these consumers are stuck with the coal company in the form of coal value advance for a prolonged period, limiting their resources to book coal from other (CIL auction/open market/imported) sources.

Request has been made to MCL and CIL to prioritise supply of long-pending rakes from MCL for NRS consumers at the earliest possible

Electricity consumption in India will double by 2040: Minister

Pralhad Joshi

Union Minister for Parliamentary Affairs Shri Pralhad Joshi pointed out that the International Energy Agency estimated that electricity consumption in India would double by 2040.

“While the consumption of electricity is 12,071KW per hour in the United States of America, it is 4,475KW/ hour in China, while the figure is 1,171KW/hr in India.

Life without electricity was unimaginable to children and youngsters, and the transformation that its invention had wrought in the world could not be expressed satisfactorily in words,” he said.

The Minister rued that more than 18,000 villages in the country were without electricity even 75 years after Independence. “Under the Deendayal Upadhyay Gram Jyoti Yojana, 18,374 villages have been supplied electricity,” he said.

High demand to breathe life into private coal power plants integration

A third of the private sector coal-based generation capacity, estimated at about 25,000MW (megawatt), are expected to get a fresh lease of life in the current financial year as renewable capacity addition proves inadequate to meet the pace of expansion in electricity consumption. MAL

A Crisil Ratings report said the plant load factor, PLF or the run rate, of India's coal-fired power plants will improve by 3 percentage points to a five-year high of 62% in the current fiscal, fuelled by strong demand growth and limited capacity addition in the thermal sector.

To put things in perspective, a large number private coal-fired plants have been languishing in the face of rapid expansion in renewable capacity, currently at 1,01,532 MW estimated and availability of more affordable energy on the power exchanges due to lower demand till 2020. The annual coal-based capacity addition at 2% in the past five years against annualised demand growth of 3.4%. The capacity addition is expected to be 3.5% (7,000MW) this fiscal.

Clear your power dues, PM Modi reminds states; here is what they owe

Prime Minister Narendra Modi has urged state governments to pay the money they owe to power distribution companies (discoms) and generating companies (gencos). He added that the outstanding dues that stretch over several months threaten the financial stability of these discoms and gencos.

According to the data from the power ministry, the states and the union territories (UTs) together owe over Rs 1 trillion to the gencos as of March 31, 2022. The total money owed to the discoms stands at Rs 1.3 trillion. Maharashtra owes a maximum of Rs 21,500 crore to the gencos. Tamil Nadu follows in second place with Rs 20,990 crore of dues to gencos, while Andhra Pradesh owes the third highest, Rs 10,109 crore. On the other hand, Telangana owes the maximum to the discoms, with Rs 11,935 crore worth of dues. Maharashtra owes the second highest at Rs 9,131 crore, and Andhra Pradesh comes a close third with dues towards discoms at Rs 9,116 crore.

The delay in payments causes a shortfall in revenue for the power companies. The money that could have been used in upgrading the infrastructure of the distribution channel to reduce the wastage can then only be used to cover the operational costs. In India, the average transmission losses stand at over 20 per cent compared to 5-8 per cent in developed countries.

State gencos not keen on importing coal for blending purpose

State gencos were not too keen on imports because of the huge differential between domestic and in-

ternational coal prices. Close to 3.03 million tonnes (mt) of coal imported by State generation companies (gencos) for blending purposes is lying at various ports in India as on August 17. Of this, public sector power utility NTPC alone accounts for nearly 73 per cent of the total stock at close to 2.2 mt.

The Power Ministry had earlier directed generating companies to import at least 10 per cent of their total coal requirement for blending purposes in lieu of an anticipated shortfall in domestic supplies amid a sharp surge in demand. However, in early August, the Power Ministry relaxed the order for blending in the wake of improving supplies and left it to the discretion of gencos and independent power producers to import coal as per their requirement and decide on the percentage of blending they would like to do.

The recent ban on import of Russian coal into Europe has pushed up thermal coal prices in the international markets. It is believed that some of the metallurgical coal from Australia is also being diverted to thermal coal due to the price economics. There is a huge price differential between domestic and international coal which is discouraging gencos from importing coal. Moreover, production and supplies by Coal India has been pretty robust and this has helped tide over any possible shortfall that could have happened during the peak monsoon months.

Govt allows 10 state discoms to buy and sell electricity on spot market

The power ministry on Saturday allowed three more states – Tamil Nadu, Madhya Pradesh and Rajasthan – to sell and buy electricity at the spot market after they cleared their dues to the power generators. Only three states – Karnataka, Jammu and Kashmir, and Mizoram -- are now barred from trading in the spot electricity market. These three states together have an outstanding of R801 crore.

Jammu and Kashmir owes a maximum R 552 crore followed by Karnataka (Rs 223 crore) and Mizoram R26 crore. Power System Operation Corporation (POSOCO), a national grid operator invoking the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 barred 27 discoms from 12 states and one UT from trading in power exchanges in India on account of non-payment on 18 August 2022.

These states included Andhra Pradesh, Tamil Nadu, Telangana, Manipur, Mizoram, Karnataka, Bihar, Rajasthan, Jharkhand, Jammu and Kashmir, Madhya Pradesh, Maharashtra, and Chhattisgarh. Together they owe Rs 5085 crore to the power generators.

Proposed power bill will lead to ethical rivalry: DVC

The Electricity (Amendment) Bill 2022, if passed, will lead to “healthy and ethical competition” in the industry, said DVC chairman Ram Naresh Singh at an MCCI interactive session last week.

Under the proposed Electricity (Amendment) Bill 2022, the Central government envisages to bring in the principle of open access by allowing consumers the right to choose their electricity provider, regardless of who controls the physical infrastructure. According to Singh, this would lead to the development of a consumer-driven market.

The bill its presence in the T&D (transmission and distribution) infrastructure. The utility, which has so far been focusing on industrial users, is looking to attract residential consumers within its command area moving forward.

Kishtwar in J-K Set To Become Major Power Generation Hub of North India

Jammu and Kashmir’s Kishtwar district is set to become a major power hub in north India, as it will generate nearly 6,000 megawatt of power after the completion of the ongoing power projects, an official spokesman said.

He said 1000 megawatt (MW) Pakal Dul Project, 624 MW Kiru Project, 540 MW Kwar Project and 930 MW Kirthai Project are all located in close vicinity of each other, along with 850 MW Ratle Project which has been revived as a joint venture between the Centre and the union territory.

Pakal Dul HE Project (1000MW) is under active construction after river diversion was carried out. The project will generate 3230 MWs annually and expected to be completed by July 2025, the spokesman said. He said Kiru HE Project (624 MW) is also under construction. The river diversion was carried out recently and after completion it will generate 2272 MWs annually. The project is expected to be completed by July 2025.

Ladakh is all set to get India’s first geothermal power project soon to tap the potential of natural geysers dotting the Puga area, 170 km east of Leh and in Changthang plains.

State-run explorer Oil and Natural Gas Corporation (ONGC) has embarked upon a journey to generate electricity on a utility scale by tapping steam gushing from the earth’s bowels at Puga, a remote valley located at an altitude of over 14,000 feet, off the road to Chumar on the de-facto border with China.

Puga, and Chumathang area in general, are deemed as the most promising geothermal prospects. ONGC last week started drilling its first well for the project and encountered high-pressure steam at 100 degrees Celsius with a discharge rate of 100 tonne geothermal energy per hour. This has made the crew confident about the project’s viability. In the first phase, the company will drill 1,000-metre-deep wells to run a one-megawatt power plant as a pilot.

REC arm hand over project specific SPV to PowerGrid

REC's wholly owned subsidiary REC Power Development and Consultancy Limited (RECPDCL) handed over the project specific SPV (Special Purpose Vehicle) formed for construction of Transmission Project viz., ‘Neemuch Transmission Limited’ to Power Grid Corporation of India Limited.

With the handing over of the above SPV, RECPDCL has thus far successfully handed over cumulatively 40 transmission projects costing around Rs 54,300 crores. The SPV has been handed over by Shri R. Lakshmanan, CEO, RECPDCL & Shri T.S.C. Bosh, ED & Jt. CEO, RECPDCL to Sh. A K Singhal, Executive Director from M/s Power Grid Corporation of India Limited in the presence of other senior officials of RECPDCL, PGCIL & CTUIL.

Power Grid Corporation of India Limited emerged as the successful bidder of the Inter-State Transmission Project of the Ministry of Power, Government of India, and RECPDCL as the Bid Process Coordinator.

Sale of Fly Ash matter: NGT directs MoP not to enforce its advisory allowing auction

The National Green Tribunal (NGT) on Saturday directed the Ministry of Power (MoP), the Government of India, not to implement its advisory dated February 22, 2022, directing all the Thermal Power Plants

India’s First Geothermal Power Project at 14,000 Feet to Light up Rural Ladakh Soon

to provide fly ash to end users through a transparent bidding process.

The Tribunal Bench of Justice Arun Kumar Tyagi and Dr Afroz Ahmad in an order passer on August 25, 2022 said that the Power Ministry advisory shall not be enforced and would be kept abeyance till further orders by this Tribunal to the contrary and the interim application is disposed of accordingly.

It is said that the MoP advisory dated 22.02.2022 is not only against the environment laws but is also in violation of its full bench order dated 18.01.2022 whereby the full bench of NGT had stayed the earlier advisory of MoP which granted the power to Thermal Power Plants to auction their fly ash. The advisory is also counterproductive in promoting 100 per cent utilization of fly ash. Fly ash is consumed by user segment such as cement, concrete or brick manufacturers.

In its reply, the Ministry of Power submitted that over the period of time from 1999 to 2021 in the period of 22 years, fly ash has now become a valuable commodity and it was felt necessary to monetize the sale of fly ash so that the tariff of electricity is kept as low as possible.

Centre issues fresh norms on bidding to procure power from grid-connected RE projects

Power Ministry has announced guidelines for a tariff-based competitive bidding process for procuring power from grid-connected RE power projects. Under the fresh norms, the ministry notified that the bids will be designed in terms of a package with a minimum size being 50 MW. Further, the RE Power Generators are free to operate their plants after the expiry of the PPA period in case the arrangements with the land and infrastructure owning agencies. The PPA period is notified to be not less than 25 years from the scheduled commissioning date.

In its Gazette notification, the ministry said, the minimum size of a package should be 50MW, in order to have economies of scale. The bidder has to quote for an entire package.

As per the guidelines, the procurer is allowed to invite the bids in (a) Power Capacity (MW) terms or (b) Energy Quantity (kWh or million units i.e. MU) terms.

While procuring electricity, the ministry notified, that ‘Tariff as Bidding Parameter’ shall be applicable. Explaining further, the ministry said, the procurer may select either of the following kinds of tariff based Bidding: (a) fixed tariff in rupees per kWh for the term of

PPA or (b) escalating tariff in rupees per kWh with the pre-defined quantum of annual escalations fixed in rupees per kWh and number of years from which such fixed escalation will be provided.

RENEWABLES

By 2030, 50% of power capacity will be from non-fossil source, India tells UN

India has submitted its updated Nationally Determined Contribution (NDC) - climate action targets - to the UN climate change body, promising that the country would achieve about 50% cumulative electric power installed capacity from non-fossil fuelbased energy resources by 2030. The updates are aimed at keeping India on track of its long-term goal of carbon neutrality by 2070. India’s other updated quantitative target under the new submission is to reduce emissions intensity (emission per unit of GDP) by 45% by 2030 from 2005 level.

The NDC does not bind it to any sector-specific mitigation obligation or action, saying India’s goal is to reduce overall emission intensity and improve energy efficiency of its economy. The country’s submission has total eight goals which include three updates including its commitment to propagate a healthy and sustainable way of living based on "traditions and values of conservation and moderation", including through a mass movement for LIFE -lifestyle for Environment as a key to combating climate change.

India’s submission shows that the country’s target of achieving 50% cumulative electric power installed capacity from non-fossil fuel-based energy will be a sort of conditional as it will be contingent on international support. India underlined that the country would achieve that target “with the help of transfer of technology and low-cost international finance including from Green Climate Fund (GCF)

Concerted efforts Needed from All Sectors, States to Achieve 500 GW Renewable Energy Capacity: Union minister

Concerted efforts from all sectors and states are vital for India to achieve the target of 500-gigawatt renewable energy capacity by 2030, Union Minister of

State for New and Renewable Energy and Chemicals and Fertilizers Bhagwanth Khuba has said.

He lauded the role played by the states in the renewable energy sector by saying that their joint efforts with the Centre resulted in the country achieving the goal of 175 GW of clean energy capacity this year itself.

The minister laid emphasis on the initiatives being taken by the Ministry of New and Renewable Energy for achieving the ambitious target of 500 GW by 2030 and the various product-linked incentive schemes it was going to roll out. He also lauded the efforts by AREAS in this sector by saying that because of it. .

India adds record 7.2 GW solar capacity in Jan-Jun 2022: Mercom India

Solar capacity installations in the country rose by 59 per cent to record 7.2 gigawatt (GW) during first half of 2022, according to Mercom India Research. In January-June or H1 of 2021, the country had added 4.5 GW solar capacity, the research firm's 'Q2 2022 India Solar Market Update' said.

The solar installations in April-June period of 2022 also increased by 59 per cent to over 3.9 GW compared to 2.4 GW installed in second quarter of 2021. India's cumulative installed solar capacity now stands at 57 GW.

Cumulative large-scale solar PV installations in Rajasthan reached almost 13 GW as of June 2022, and the state accounted for almost 27 per cent of the total installations in the country. In the first half of 2022, Rajasthan and Gujarat were the top states for large-scale solar, accounting for 53 per cent and 14 per cent of installations, respectively, followed by Maharashtra with 9 per cent.

Supply chain issues and higher component costs and the basic customs duty took a toll on the market in the second quarter. Rooftop project costs have risen for six quarters in a row. But the economic case for rooftop solar is stronger than ever, and we expect the market to show strength going forward, said Raj Prabhu, the CEO of Mercom Capital Group. The government has imposed a 40 per cent basic customs duty on solar modules and 25 per cent on solar cells with effect from April 1, 2022.

As per the report, Gujarat was the top state for cumulative rooftop solar installations, followed by Maharashtra and Rajasthan.During the quarter, around 50 per cent of installations were in the industrial segment, followed by 35 per cent, 13 per cent, and 2 per cent in commercial, residential, and government segments, respectively..

Rooftop solar capacity installations in the country fell by 25 per cent to 389 MW during April-June 2022 compared to the year-ago period, according to Mercom India Research. In the second quarter of 2022, the rooftop solar accounted for 10 per cent of total solar installations. India's cumulative rooftop solar capacity was over 7.9 GW at the end of Q2 2022, the research firm's 'Rooftop Solar Market Report Q2 2022' said.

India can add another 23.7GW of wind energy capacity in the next five years, according to a study by Global Wind Energy Council and MEC Intelligence (MEC). The wind energy outlook suggests that the country can add another 23.7 GW of capacity within the next five years, provided necessary enabling policies, facilitative instruments, and the right institutional interventions are put in place.

To seize this enormous opportunity, India must focus on three areas: a dialogue between the central government and the states to foster consensus building; delivery to help match timelines and targets, and the potential for India to be a destination for the global wind manufacturers and suppliers, as per the study.

Wind power constituted the majority of the renewable energy mix in India, with 37.7 per cent of cumulative installed capacity as of March 2022. However, the overall estimated potential dwarfs the current installed capacity. There is over 600 GW of onshore capacity at 120m hub height, with another 174 GW of fixed-bottom and floating offshore wind potential. These statistics demonstrate that there is a huge untapped wind energy potential that will be crucial for advancing the country’s clean energy transition which is pivotal for achieving COP26 goals.

Rooftop solar installations fall 25 pc to 389 MW in Apr-Jun: Mercom India

India can add another 23.7GW wind energy capacity in next five years: Study

DOMESTIC

Coal stock position will be comfortable after monsoon: CIL Chairman

Coal stocks at power plants will be in a comfortable position post-monsoons this year and a crisis like last year's is unlikely, Coal India chairman Pramod Agrawal said At the beginning of August, power plants had 30 million tonnes (mt) of stocks, he said recently.

The highest level of stocks ahead of monsoons at 45 MT was seen in FY20 beginning, but that was in the midst of Covid when coal demand plunged due to lockdown and there was a general slowdown in industrial activity. Apart from the high stocks at plants' end, around 12 MT of stock is available at private washeries, goods sheds, ports, and at CIL's sidings awaiting shipment.

Coal requirement from CIL to power utilities is pegged at 137 MT for the July-September quarter, entailing a supply of 1.49 MT on an average per day while CIL is so far supplying 1.52 MT per day. Higher supplies ensured the generating plants build up their inventory to the tune of 1.04 lakh tonnes per day - a stock surge of above 3 MT in the month. The high coal output expansion at the start of the year has brought down the asking growth rate for the remainder of the year to 8% from 12.4% at the beginning of the year.

Coal India to engage MDOs in 14 mines

In a bid to ramp up its production, Coal India is implementing a plan for operationalising 14 mines

through the engagement of mine developer and operators (MDOs), a top official said. These mines have a combined capacity of 165.58 million tonne per annum.

Coal India Chairman and Managing Director Pramod Agrawal said, these mines would contribute in sizable quantities towards production in the coming years. Of these, 10 are opencast projects with a total projected capacity of 161.50 million tonne per annum and four underground projects with a total capacity of 4.08 million tonne a year. A letter of acceptance has been issued to six of the successful bidders for these MDO projects, having a total capacity of 96.74 million tonne per annum.

Tenders for seven more projects (five opencast and two underground) with a combined capacity of 58.84 million tonne per annum have been floated, Agrawal said. Coal India has set a target of 700 million tonne production in the 2022-23 fiscal and proposed a capital expenditure of Rs 16,500 crore.

It had undertaken 117 coal projects with a sanctioned capacity of 918.86 million tonne and a capital of Rs.1, 32,634 crore. These are in various stages of implementation. Out of which, 75 projects are on schedule and 42 are delayed, the company said in its annual report for 2021-22 (FY’22).

Coal ministry signs 16 agreements with successful bidders of coal mines

Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi said on Monday that in the near future more than 107 coal blocks will be made available for auction by the Ministry of Coal.

The Minister said that during the last four months Coal India Ltd has set new record by producing around 207 million ton coal. Ministry of coal is targeting production of 900 million tonne this financial year and the target of CIL comes to 700 million tonne. By the year 2030 India’s coal requirement will be of 1.5 billion ton, the minister stated.

The total annual revenue generation from these three tranches of commercial auction is estimated at Rs.4286.53 crore considering production at aggregated Peak Rate Capacity level of 23.77 million tonne per annum. Once fully operational, these coal mines are expected to generate employment for 31,954 persons directly & indirectly, a coal ministry statement said.

A total investment of Rs.3565.50 crore will be incurred to operationalise these mines. The 16 mines for

which coal mine/ block production and development agreements executed are Beharaband North Extn, Gondbahera Ujheni East, Tokisud Block II, Bankhui, Bijahan, Brinda & Sasai, Koilajan, Garampani, Majra, Namchik Namphuk, Utkal C, Chinora, Utkal B1 & Utkal B2 and Gare Palma IV/6.

India’s plan to auction abandoned coal mines is met with scepticism

India’s plan to auction abandoned coal mines to private firms to meet rising energy demand has brought little cheer to the industry as running the mines poses financial, technological and safety risks companies are reluctant to take on, analysts said.

Grappling with unprecedented energy and power demand caused by scorching heatwaves in April and May, the government announced the reopening of 20 coal mines and called on private operators to run them, with a bidding process now underway.

But energy experts have called the plan short-sighted and out of touch with the green and fair transition the country should be aiming for, saying renewable sources would be a cheaper and quicker fix for India’s needs. Boosting production from underground coal mines will take several years, while potential bidders are worried about the financial viability of the plan, critics say.

Indian companies swapping dollar for Asian currencies to buy Russian coal

Indian companies are using Asian currencies more often to pay for Russian coal imports, according to customs documents and industry sources, avoiding the U.S. dollar and cutting the risk of breaching Western sanctions against Moscow. Russia became India's third-largest coal supplier in July, with imports rising by over a fifth compared with June to a record 2.06 million tonnes.

In June, Indian buyers paid for at least 742,000 tonnes of Russian coal using currencies other than the U.S. dollar, according to a summary of deals compiled by a trade source based in India using customs documents and shared with Reuters, equal to 44% of the 1.7 million of tonnes of Russian imports that month.

Indian steelmakers and cement manufacturers have bought Russian coal using the United Arab Emirates dirham, Hong Kong dollar, yuan and euro in recent weeks, according to customs documents

India buys discounted Venezuelan petcoke to replace coal

Indian companies are importing significant volumes of petroleum coke from Venezuela for the first time, as the OPEC nation boosts exports not specifically targeted by U.S. sanctions.

India's growing appetite for Venezuela's petcoke is being driven by a scramble for inexpensive fuel to power industries as global coal prices have surged. This could boost cash flow for the South American producer, where state and private companies have increased exports of petrochemicals and oil byproducts, and the more competitively-priced Venezuelan supplies could displace cargoes from traditional suppliers.

Indian cement companies imported at least four cargoes carrying 160,000 tonnes of petroleum coke from April to June. Another 50,000-tonne cargo is expected to reach the port of Mangalore on India's south western coast in the coming days while a 30,000-tonne shipment is scheduled to depart later in August, the data showed.

Green nod for 10 expansion projects of Coal India

State-owned CIL's 10 coal mining projects have got green nod so far for their expansion which would lead to additional capacity of 9.65 million tonne, Parliament was informed on Monday. The government had earlier eased the norms for coal mine expansion in the wake of supply crunch in summer months.

While in five coal mining expansion projects, environment clearances (EC) was given in May, in the remaining five cases the nod was given in July. While granting EC to these projects, which are falling within and outside the severely polluted area, additional environmental safeguards have been provided as part of EC condition. This special dispensation was given to only those mines which have already obtained 40 per cent dispensation based on earlier reforms.

The Centre had on May 7 issued an office memorandum, "regarding special dispensation for consideration of Environment Clearance (EC) from 40 to 50 per cent expansion in coal mining projects, within the existing premises/mine lease area, without additional land acquisition."

National miner CIL has projected coal production of 840 MT for 2023-24.In order to ramp up domestic production of coal, several steps have been taken including MDO models, Capacity addition through Greenfield and Brownfield Projects etc.

To increase production through MDO model, Coal India Ltd. has identified 15 MDO Projects having combined capacity of 168.6 Million Tonne per year while capacity addition through Greenfield and Brownfield Projects in CIL has led to 289 MTY through approval of new and expansion PRs. Advanced Technologies like surface miners, etc. for open cast mining and Power supported Longwall (PSLW), high wall Mining, continuous miner etc. for underground mines are being deployed tor efficiency and higher production of coal.

CIL has also taken steps to upgrade mechanised coal transportation and loading system through CHP/Silo under 'First Mile Connectivity' Projects. This will facilitate faster evacuation of coal.

Singareni sets 100 million tonnes of coal production per annum in five years

The Singareni Collieries Company Limited has set a target of producing 100 million tonnes of coal per annum by opening 10 new projects across the country in the coming five years period, said N Sridhar, the chairman and managing director of Singareni.

He said that the Singareni was playing a crucial role in the development of the country by supplying coal to over 2,000 industries in South India. Further increasing the production would ensure a Rs 50,000 crore turnover and profits of over Rs 3,000 crore.

Similarly, the Singareni was also contributing for the nation’s growth by generating the thermal and solar power, he stated. Already, the Singareni was generating 1200 MWs of thermal power in the state, he said and added that the government had issued instructions to open another 800 MWs of thermal power plant, which would be taken up very soon

Expedite coal auctions to ease prices- requests power project developers

Power project developers have sought expediting

CIL target for Coal production 840 MT for 2023-24

exclusive coal auctions for 13 GW of plants that neither get coal supplies from Coal India nor have power-purchase agreements.

Developers said operationalisation of the plants can help ease prices in power exchanges that are currently hovering near the ceiling rate of 12 per unit in peak hours. The average price on the exchanges is 4-5 a unit.

A senior coal ministry official said Coal India was giving coal to all projects in contract with the company. "The power ministry has to suggest about these projects which do not have power and coal contracts," he said.

The exclusive auctions under clause B(viii)(a) of the coal supply policy (Shakti) were announced by the coal ministry in March this year, when the Cabinet Committee on Economic Affairs (CCEA) approved a single spot e-auction window by coal companies for all consumers

STEEL

India turns net steel importer in July

India turned net steel importer in July as exports plunged to a three-year low, weighed down by the 15pc export tax. Imports of finished steel in July rose by 8.4pc on the year to 444,000t, provisional data from the steel ministry's Joint Plant Committee show, while exports declined by 75pc on the year and by 41pc on the month to 380,000t.

This is the first time since January 2021 that the country's finished steel imports have exceeded exports. July exports are also the lowest since June 2019. Finished steel comprises alloyed and nonalloyed steel. Finished steel exports during April-July dropped by 49.3pc on an annual basis to 2.57mn t, while imports during the same period rose by 3.1pc to 1.62mn t.

The 15pc export duty on steel products imposed by the government in late May has cut down shipments owing to unviability and weak international demand. Imports on the other hand have recently picked up, especially from Russia, as cheaper steel has piqued domestic buyers' interest

Steel players' hopeful of export duty withdraw; okay with capex plans

The export duty imposed on certain steel products recently will not force steel makers to review their capital expenditure plans as top producers expect it to be a "short-term" move to stabilise inflation.

On May 21, the government hiked the duty on exports of iron ore by up to 50 per cent and for a few steel intermediaries to 15 per cent. It also waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry.

The Indian Steel Association had said India may lose export opportunities and the decision may also impact the overall economic activity in the country. According to the steel ministry, the sector's exports in FY22 increased by 25.1 per cent to 134.94 lakh metric tonnes (LMT), while imports dipped 1.7 per cent to 46.69 LMT.

Senior industrialists hoped that export duty will be a short-term measure by the government and will be withdrawn once inflation moderates. They said prolonging this duty even after steel prices have settled at much lower levels is detrimental to the profitability of the industry.

The Ministry of Steel publishes steps to reduce steel prices

In a written reply to the Rajya Sabha, Shri Faggan Singh Kulaste, Minister of State for Steel, detailed the government's efforts to make raw materials and steel more affordable.

To regulate the now-deregulated sector, the government has taken a number of measures to mitigate the effects of demand and supply; global market conditions; trends in raw material prices; logistic costs; power costs; fuel costs; and so on:

(i) Reduction in Custom Duty on Semis, Flat and Long products of non-alloy, alloy and stainless steel to 7.5%, in Union Budget 2021-22.

(ii) Extension of exemption in Custom Duty on steel scrap up to 31.3.2023 along with revocation of AntiDumping Duties (ADD) and Countervailing Duties (CVD) on steel products, in Union Budget 2022-23.

(iii) Modifications in tariffs on raw materials of steel and other steel products vide notification dated 21.05.2022 wherein the import duty on Anthracite/ Pulverized Coal Injection (PCI) Coal, Coke, Semicoke and Ferro-Nickel has been reduced to zero.

SAIL plans to raise crude steel production capacity to 35 MT per annum

The current crude steel production capacity of Steel Authority of India Ltd.(SAIL) is 20.63 Million Tonne per annum. In line with the envisaged enhancement of crude steel production to 300 Million Tonne by 2030, SAIL has planned to raise their crude steel production capacity to 35 Million Tonne per annum by 2030-31.

The proposed scale of indicative investment by SAIL to reach the capacity of around 35 Million Tonnes per annum of crude steel will be around Rs 1,10,000 crore.

The projects for expansion of capacity for SAIL are financed through a combination of debt and equity which is normally in the ratio of 1:1. The project planning has to go through the preparatory stage before arriving the stage of execution, where the expenditure is incurred. Since these projects are at preparatory stage, expenditure towards execution of these projects has not incurred. The land bank study is in progress. However, preliminary study indicates availability of land for the expansion project envisaged in the first phase.

loading this financial year. Notably, the ministry’s internal target for the year is 1700 mt, roughly 20 per cent more than what it achieved in 2021-22..

Freight rates firm up, transporters’ liquidity improve

With fuel prices easing up in a few states and freight availability improving, transporters have seen a month-on-month increase in cash flows, says a latest report by Crisil Research. In other words, transporters have better liquidity to invest in new vehicles and upgrade their fleet.

According to the report, freight availability was healthy for agri-products, auto carriers, fast-moving consumer goods/durables (FMCG/FMCD), parcel/ loose goods, and textiles. Commodities such as petroleum tankers, steel, cement, mining products (largely coal) and container applications saw slightly lower freight availability, but was still better than in June.

Railways freight transport up 8% in July as it carries coal nationwide

Indian Railways transported 122.14 million tonnes (mt) freight in July, marking an 8.25 per cent increase against the same period last year as it ferries coal to power plants.

The year-on-year (YoY) growth of 9.3 MT was largely due to a near one-fourth increase in coal supply, which was railways its top priority during the fuel crisis in the country. Indian Railways has achieved an incremental loading of 11.54 MT in Coal, followed by 1.22 MT in Balance other goods, 0.56 MT each in Cement & Clinker and Containers and 0.47 MT in POL (petroleum products), a statement by the railways ministry showed.

The ministry said that loading of coal (both domestic and imported) to thermal power plants increased by 13.2 mt in July, with 47.98 coal being moved to powerhouses as against 34.74 mt last year. That is a growth of 38 per cent.

With the July volumes, the transporter has recorded a near 11 per cent increase in cumulative freight

Tamil Nadu freight rates largely mirrored pan India freight rates with marginal difference in certain periods. Pan India freight index peaked in April 2022 at 129 while for TN the index was at 134 during the same period. The index value for pan India and TN is 123 and 128 in July 2022 respectively.

Railways shelves plan to move imported coal from ports

The Indian Railways has put in abeyance the logistics plan drawn up to transport imported coal from ports during the peak demand months, even as the dry fuel's stock improved at power plants. The decision came after the power ministry asked coalfired electricity generation companies to halve the blending percentage of imported coal in their total mix to 5%.

As the availability of coal improved at power plants, it was decided that state government-owned gencos and independent power plants may decide the blending percentage after assessing the availability of domestic coal supplies.

In another advisory on August 1, the power ministry asked NTPC and Damodar Valley Corporation to bring down the blending percentage to 5% at their generation units and keep monitoring the situation closely.

RAILWAYS & SHIPPING

GLOBAL

The energy crisis has seen Beijing shift its political discourse and proclaim energy security as a more urgent national mission than the green energy transition. Now, the government is investing in a new wave of coal-fired power stations to try to meet demand.

In the first quarter of 2022 alone, China approved 8.63 gigawatts of new coal plants and, in May, announced C¥ 10 billion (A$2.1 billion) of investment in coal power generation. What's more, it will expand the capacity of a number of coal mines to ensure domestic supply as the international coal market price jumped amid Rus-

China is responsible for around a third of global carbon dioxide emissions, which makes this latest rebound to fossil fuels a climate change emergency.

In 2021, China's CO₂ emissions rose above 11.9 billion tonnes—their highest level in history and dwarfing those of other countries. And according to the International Energy Agency, rapid GDP growth and electrification of energy services caused China's electricity demand to grow by 10% in 2021. This is faster than its economic growth at 8.4%. China had been attempting to reduce its dependency on coal for decades, with the growth of coal consumption gradually flattening from 2014.

China's energy crisis sees the world's top emitter investing in more coal

sia's invasion of Ukraine.

China Daily Average Coal Output

Jumped 19.4% YoY during August 1-17

According to the National Energy Administration, from August 1st to 17th, the national coal output was 210 million mt, with an average daily output of 12.33 million mt, a year-on-year increase of 19.4%. Power plants held more than 170 million mt of coal inventory, allowing coal-fired power units to run at full capacity.

From January to July, the national coal output was 2.56 billion mt, a year-on-year increase of 11.5%. Among the 23 coal-producing provinces and regions, 18 provinces and regions achieved an increase in production. The four key coalproducing provinces, namely Shanxi, Inner Mongolia, Shaanxi and Xinjiang, increased their production by a combined 240 million mt, accounting for 91% of the increase across the country.

Indonesia to raise coal and gold royalty rates next month

The world's top thermal coal exporter Indonesia will raise its royalty rates for some coal miners starting Sept. 14, with a progressive system based on mine types, coal benchmark prices and calorific value, according new rules made public on Friday. Indonesia will charge a range of rates from 4% to 13.5%, according to the regulation, up from a 2% to 7% range under previous rules.

The Indonesia Coal Miners Association executive director Hendra Sinadia said the new royalty rates will be applicable to holders of coal mining licenses known as IUP and the group is studying the impact of rate changes to businesses.

The resource-rich country has introduced several rules this year to get bigger revenues from the commodity sector amid an upward cycle in prices. It has already raised coal royalty tariffs for holders of older coal mining permits.

The regulation also showed authorities would waive royalty payments for coal used in its downstream sector. Under the new regulation, Indonesia will also hike the ceiling for the gold royalty tariff to 10% when the price of the precious metal hits at least $2,000 per ounce.

Indonesia revokes thousands of mining permits covering over 3 million hectares – wants ‘new entrepreneurs’

Indonesia’s investment minister said more than 2,000 mining permits for various minerals have been revoked amid efforts to tighten the sector’s governance and plan for land redistribution.

The ministry has revoked 2,065 permits covering more than 3.1 million hectares (7.66 million acres) of land across the country, Investment Minister Bahlil Lahadalia told reporters on Friday.

President Joko Widodo in January ordered thousands of mining, plantation and forest-use permits to be revoked due to non-compliance or because they had not been used.

Of the total number of permits that have been revoked, 306 were coal mining permits, 307 were for tin mining, and over 100 were for nickel mining, Bahlil said, adding that dozens of bauxite, copper and gold mining licenses have also been revoked.

Vietnam to increase coal imports in 2025-2035 period: Ministry

Vietnam’s coal imports are forecast to rise to meet domestic production demand, according to a draft strategy for developing the coal industry in Vietnam recently introduced by the Ministry of Industry and Trade (MoIT).

Accordingly, Vietnam will import about 50-83 million tons of coal per year during the period from 2025 to 2035, with the volume gradually falling to about 32-35 million tons by 2045.

The data from the MoIT shows domestic coal consumption increased rapidly from 27.8 million tons in 2011 to 38.77 million tons in 2015, and about 53.52 million tons in 2021.

The volume of coal consumed at present has more than doubled compared to 2011, mainly for electricity production. The demand for primary energy, including coal, will continue to increase, possibly peaking in the 2030-2035 period, the ministry said.

Vietnam's coal demand will be around 94-97 million tons in 2025, and peak at 125-127 million tons in 2030, mainly due to the increase in demand for power generation, and the cement, metallurgy and chemical industries

Chinese-owned producer Yancoal has diverted Australian coal sales from India to Europe and Asia, with market conditions allowing it to sell its lower-grade coals to destinations that typically take only high-calorie thermal coal.

Yancoal's sales to India fell to 9pc of the total in January-June from 23pc in the year-earlier period, while sales to Europe rose to 9pc from 1pc and sales to Vietnam gained to 7pc from 3pc, according to the firm's half-year financial report.

Adani mine ramps up production amid surging coal, energy prices

The Adani Carmichael coal mine in central Queensland has ramped up to commercial production just as surging coal and power prices send earnings soaring for the ASX’s energy sector.

Financial accounts for the mine’s owner, Adani Mining Pty Ltd, report that the group sold $32.5 million worth of coal up to March 31 this year, having made its first coal shipment in January. The company said these sales represent “test production revenue generated prior to the commencement of commercial production of the mine. The Carmichael Mine is ramping up to export in the order of 10 million tonnes per annum.”

Earnings season has provided some jawdropping results from the ASX’s biggest energy groups with Whitehaven Coal reporting a 215 per cent rise in revenue for 2022 to $4.9 billion, and a 2,300 per cent rise in net profit to $1.95 billion.

Yancoal cut its sales of metallurgical coal to 2.4mn t in January-June from 3.1mn t in JulyDecember 2021 and from 2.7mn t in JanuaryJune 2021, as it focused on higher margin high-grade thermal coal over metallurgical coal production where feasible. Yancoal last month cut its coal production guidance for 2022 to 31mn-33mn t from 35mn-38mn t. But the firm is on track to make record profit this year, driven by high coal prices. Yancoal expects changes in trade flows, as a result of European buyers seeking alternatives to Russian supply on the back of the embargo following the invasion of Ukraine.

Australian and Indonesian thermal coal tread contrasting price paths: Russell

The spot price of benchmark Australian thermal coal is continuing to hold near record highs above $400 a tonne, but the price for Asia's other main type of the coal used to generate electricity isn't performing nearly as well. Singapore-traded contracts for Indonesian thermal coal with an energy value of 4,200 kilocalories per kg (kcal/kg) ended at $75.47 a tonne on Wednesday.

Yancoal diverts high-ash Australian coal from India

Contracts for Newcastle coal with a calorific value of 6,000 kcal/kg ended at $412.60 a tonne on Wednesday on the ICE exchange. This is below the all-time high of $440 a tonne reached on March 2 in the wake of Russia's Feb. 24 invasion of Ukraine, however, the price is 170% higher than it was at this time in 2021 and some 770% above the level from the same day in 2020.

Prior to the invasion of Ukraine, Indonesian coal was at $76.96 a tonne, a discount of 67.6% to the $237.70 for Newcastle futures. Even adjusting for the difference in energy value still shows a massive gap between the two grades of coal, with Indonesian coal coming in at $17.97 per 1,000 kcal/kg, while Newcastle is at $68.77.

Thungela, a leading South African coal exporter said Europe was competing with Asia for South African coal.

Met coal discounts spur Australian switch to thermal

Australian producers of hard coking coal and pulverised coal injection (PCI) grades are joining semi-soft coking coal mining firms in switching to thermal coal output, taking advantage of the extraordinary price premium for the power generation fuel.

Hard coking and PCI coal prices fob Australia from the start of June slipped below that of high-grade thermal coal fob Newcastle. This extremely unusual met coal discount to thermal has continued to widen on weaker demand for met coal and scarcity of non-Russian thermal coal, with thermal coal now priced at around double that of premium hard coking coal.

Premium hard coking coal has historically often been double the price of high-grade thermal coal, offsetting the higher cost of mining and washing the metallurgical coal. Even at price parity mining firms will often receive a bigger margin for selling unwashed coal as thermal rather than carrying out processing to make coking coa.

The Netherlands, Germany, Poland, Denmark, France, Italy and Ukraine are among European countries were importing growing quantities of coal from South Africa. In the first five months of this year, European countries imported more than 3 million tonnes of coal from South Africa. This is over 40% more than the total volume in 2021.

The figures from. South Africa’s Richards Bay Coal Terminal (RBCT) showed it delivered 3,240,752 tonnes of coal to European countries by end-May this year, 15% of RBCT’s overall exports, up from 2,321,190 (4%) in 2021.

European coal demand boosts Exxaro profit despite rail woes

South Africa's Exxaro Resources reported a 26% rise in half-year profit driven by higher coal prices, but rail capacity problems limited its ability to take advantage of strong European demand.

Exxaro said demand from Europe, which started to rise in late 2021 as customers switched from expensive natural gas to coal, had intensified after Russia's invasion of Ukraine in February and ahead of a ban on Russian coal, which came into effect this month.

South Africa: EU imports of coal surge eight-fold, replacing Russian fossil fuels

European countries, which previously imported 45% of their coal from Russia and have been switching away from expensive natural gas to coal, ahead of the ban, started to source the fossil fuel from other countries. That has included Colombia, Australia and the United States and also South Africa.

Europe's share of Exxaro's exports grew five-fold during the second half of 2021 to 32% in the first half of 2022, becoming the company's single biggest export market. South Africa's coal sales to Europe rose eight-fold during the first half of 2022 compared with last year, leading exporter Thungela Resources said. However, South African coal miners' capacity to export has been limited by deteriorating rail infrastructure.

Despite the higher export prices, Exxaro exported 2.5 million tonnes of coal in the first half, down from 4.1 million tonnes a year earlier. However, the average export price rose to $262 per tonne from $117, resulting in a 48% jump in revenue to 22.3 billion rand ($1.34 billion).

European countries poised to use more coal in winter

Many European countries plan to burn more coal this winter due to the energy crisis, according to the Secretary-General of the European Association for Coal and Lignite (Euracoal) Brian Ricketts.

Ricketts told Anadolu Agency that many European countries, including Germany, France, Italy, Spain, the Netherlands, Austria, Poland, Hungary, Czechia, Greece and the UK have the potential to generate electricity from coal, given that they can either reopen coal power plants or extend their operating period.

Uncertainties caused by the Russia-Ukraine war have given rise to unprecedented gains in natural gas and electricity prices and coal prices have not escaped, quadrupling over the last year to as high as over $400 per ton.

Ricketts anticipates that coal prices for September future contracts in European markets, which are currently trading at $405 per ton from $100 in this period last year and $60 a year earlier, would not sustain at this level.

Russia was the country that supplied the most coal to EU countries, marking about 25% of its coal exports. The EU was dependent on Russia for 45% of its coal imports and 70% of its thermal coal supplies.

tonnes on the week, according to data compiled by Montel.

Despite buoyant German coal-fired plant demand – as generation margins remain attractive for utilities – barge operators have had to reduce the volume of coal carried along the waterways as hot weather depleted river levels, thereby resulting in swelling port stocks.

Although levels had recently recovered somewhat, the main waterway indication point at Kaub, on the Rhine, was expected to drop from nearly 130 centimetres at present to just 93cm by the weekend, according to Germany’s Electronic Waterways Information Service

Germany to prioritise coal and oil freight amid energy crisis

The German government has approved legislation that will require train operators to prioritise carrying mineral-oil products and hard coal destined for power generators over other freight and passengers.

The legislation – drawn up by the economy ministry – is in response to an Energy Supply Assessment that warned of possible disruptions in supplies to coal power stations, which have been exacerbated by transport waterways drying up due to recent droughts.

EU coal terminal stocks rise to near 3-year high

Coal inventories at northwest European ports have risen 2% on the week to their highest since October 2019 amid continued restrictions to inland barge shipping and an influx of seaborne arrivals, data showed on Tuesday.

Combined inventories at four key Amsterdam, Rotterdam and Antwerp (ARA) terminals were assessed this week at 7.17m tonnes, up 0.13m

Around a third of Germany's coal imports travel through the River Rhine, but barge loads have had to be reduced – sometimes by up to threequarters – to reduce the weight and avoid vessels running aground.

Disruptions have already occured. Earlier this week, a ship transporting coal to Germany became stuck in the River Waaldue to low water levels, the second time this has happened in a matter of days. The government’s energy supply assessment commented: "Due to reduced domestic shipping, accumulated coal stocks could quickly fall

Mined Anthracite Coal Market to Reach US$ 74.3 Bn by 2031, Observes TMR Study

In 2021, the value of global mined anthracite coal market stood at US$ 61.5 Bn. The global market is likely to develop at a CAGR of 1.97% during the forecast period, from 2022 to 2031. The global mined anthracite coal market is anticipated to attain value of US$ 74.3 Bn by 2031.

A radical movement in the anthracite coal mining market for natural resources can be seen in how suppliers and producers are shifting supplies to local consumers and focusing on imports. Steel is often produced using anthracite coal owing to its affordable price and high carbon content. This is expected to drive future of mined anthracite coal market.

The increase in use of anthracite coal in the construction, industrial, and infrastructure sectors is a key factor influencing growth of the market for mined anthracite coal. The mined anthracite coal market for mined anthracite coal is also being boosted by the steel industry's tremendous rise in anthracite coal consumption. Since anthracite coal has a similar carbon content to coke and is less expensive, steel producers are concentrating on utilizing it more frequently than coke. This is likely to lead to more production of cost-effective steel, thereby driving market demand for mined anthracite coal.

Saudi Arabia as suppliers.

The Venezuelan exports have hovered around US $220 per tonne, some 5 to 10 percent below market price, as Caracas seeks international trade partners while heavily targeted by US sanctions.

India uses an estimated 27 million tonnes of petcoke per year and is the world’s largest consumer. Indian corporations Ramco Cements, JSW Cement and Orient are among the main purchasers of Venezuelan coke. The estimated 300,000-400,000 tonne-per-month petcoke sales provide some relief as the country’s crude production stagnates under the weight of crushing US sanctions.

US coal exports rise in Q2'22 amid global energy crisis

U.S. coal exports rose in the second quarter as demand and prices remained elevated amid a global energy crisis. Shipment volumes increased 14.8% quarter over quarter to 21.6 million tonnes and climbed 4.6% year over year, according to S&P Global Market Intelligence data.

Venezuela Increases Petcoke Exports to India

Venezuela has significantly ramped up its petroleum coke (petcoke) sales to Indian companies.

According to Reuters, cement companies in India received 160,000 tonnes of petcoke between April and July, with cargoes of at least 80,000 more expected in August. The Asian giant started importing Venezuelan petcoke in 2022 after previously relying on the US and

Asia and Europe received the most coal shipments from the five largest ports in the U.S.: Norfolk, Va.; Baltimore; New Orleans; Mobile, Ala.; and Seattle. Other destinations for U.S. coal exports included South America and Africa. All coal shipped through Seattle during the second quarter went to Asia.

Seven of the top 10 U.S. ports for coal exports recorded higher shipments year over year, while coal exports from eight ports grew from the previous quarter. Exports from Norfolk, which ships more coal abroad than any other U.S. port, increased 5.8% year over year and jumped 6.4% compared to the first quarter. The ports in Buffalo, N.Y., and Cleveland booked significant increases quarter over quarter, soaring 254.6% and 419.3%, respectively.

IN PARLIAMENT

GOVERNMENT OF INDIA MINISTRY OF COAL

LOK SABHA

Q. No. 482. COKING COAL PRODUCTION 20.07.2022

SHRI RAHUL RAMESH SHEWALE:

SHRI CHANDRA SEKHAR SAHU: SHRI GIRISH BHALCHANDRA BAPAT:

Will the Minister of Coal be pleased to state: (a) the details of raw coking coal produced during the financial year 2021-22 in the country, coal mine-wise; (b) the details of coal supply to the coal sector during the said period as compared to corresponding period of previous year;

(c) whether the Central Government proposes to operationalise some more washeries in the near future to meet the demand of Steel and Power Sectors in the country;

(d) if so, the details in this regard; and (e) the details of the coal production likely to be increased by 2030 by Coal India Limited and the steps taken in this direction?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a): Details of raw coking coal produced during the financial year 2021-22 in the country, coal mine-wise is at Annexure-A.

(b): Total raw coal supply to different priority sectors during the year 2021-22 was 818.99 Million Tonnes (MT) in comparison to 690.88 MT in 2020-21.

(c) & (d): The details of upcoming washeries for the coal sector are at Annexure –B.

(e): Coal India Limited (CIL) has envisaged to enhance its coal production from the level of about 600 MT to 1 Billion Tonne (BT) by the year 2024-25. CIL has taken the following initiatives for achieving 1 BT production which is under implementation:

i. Capacity addition through approval of new & expansion PR: CIL has approved 52 projects during FY 2021 & FY 2022. These projects will add additional

capacity of about 278 MT per annum and projected to contribute additional production of about 102 MT by FY 2025.

ii. Capacity addition through special dispensation in EC under clause 7(ii) of EIA 2006: This is an ongoing process and CIL is enhancing its capacity through efficiency enhancement under the special dispensation of EIA Act.

iii. Capacity addition in smaller subsidiaries: Smaller subsidiaries like ECL & BCCL are enhancing its capacity through marginal schemes and OC patches.

iv. Capacity augmentation through deployment of MDO: CIL has already initiated process for operating 15 numbers of mines through MDO having an ultimate capacity of about 169 MT per annum. All tenders shall be awarded by March’ 23.

v. Use of Mass Production Technology (MPT) in Under Ground (UG) mines wherever feasible: CIL is implementing the application of more and more MPT in UG mines wherever feasible to enhance its UG production capacity.

vi. Improving evacuation efficiency & capacity: Through First Mile Connectivity (FMC) 1 & 2, CIL is in the process of eliminating inefficient and polluting road transport in favour of 44 Coal Handling Plants (CHPs), Silos through rail transport

(Figures in Million Tonnes)

Coal India Limited Mines

vii. Procurement of Heavy Earth Moving Machinery (HEMM): Order value worth Rs. 8300 Crs have been placed for procurement of HEMM in CIL in 2019-20 & 2020-21. Equipment supply has been started during 2020-21 and will be followed during the subsequent years for enhancement of departmental production capacities.

viii. Enhancement in evacuation facility from the mines to destination: CIL has also invested heavily in evacuation and transport facility such as rail lines, roads & sidings and CHPs.

ix. Out sourcing mining contracts: All outsourcing mining contracts for subsequent year are identified well in advance and firm actions are being initiated well in advance.

x. IT initiatives: CIL has taken initiatives for improvement in productivity by enhancing efficiency of its mines with the introduction of Digitization of operation and introduction of ERP in two phases.

Annexure – A

The details of Coking coal production mines wise are as under:-

Captive & others

Mine Production Mine Production Mine

Hariajam 0.01

Rocp 1.09 ISSCO (Chasanlla)

Damoda 0.45 NTST-Jeenagora 3.80 ISSCO (Jitpur)

Muraidih-Satabdih 1.42 Bhowrah(S) OCP 0.26 ISSCO (Ramnagore)

Phularitand 0.06 ASP 0.41 SAIL (Tasra)

ABOCP 3.70 Basantimata-Dahibari 0.07 Tata (Jharia) (Jamadoba)

NAKC 0.50 Damagoria 0.10 Tata (Jharia) (Bhelatand)

ABGC 0.24 Moonidih Project 0.59 Tata (Jharia) (Sijua)

Jogidih 0.02 Rajrappa 0.88 Tata (Jharia) (Digdadih)

Kharkharee 0.003 Topa 0.44

Maheshpur 0.03 Kedla 0.01

A.G.K.C.C. 0.03 Tapin North 1.50

Salanpur 0.02 Tapin South 0.85

A.K.W.M.C. 4.20 Jharkhand 0.50

Basdeopur 0.21 Parej East 0.40

Kankanee 0.03 Bokaro 0.14

Tata (Jharia) (6 & 7 pits Colliery)

Tata West Bokaro (West Bokaro Query AB)

Tata West Bokaro (West Bokaro Query SE)

Tata West Bokaro (West Bokaro Query E)

Nichitpur 1.73

Karo-I 2.75

S.Bansjora 1.21 AKK 4.24

Tetulmari 0.24 AAD 1.93

ADIC 0.55 S. D. OC 1.95 E.Bassuriya 0.16 Dhori Khas 0.13

BGKKC 1.65 Kathara 0.14

NGKAC 1.02 Jarangdih 0.37 Ena 0.99 Govindpur 0.03 Gopalichuck 0.23 Govindpur Ph-II 0.88 Bastacolla 1.41 Tandsi 0.16

Kuya 2.59 Katkona 1&2 0.23

(Note: The figures (Provisional) are rounded off to two digit)

Annexure –B.

Details of upcoming washeries for the coal sector are as given under:

Name Subsidiary Capacity (MTPA) State

Madhuband BCCL 5.0 Jharkhand Patherdih-II BCCL 2.5 Jharkhand Bhojudih BCCL 2.0 West Bengal

Moonidih New BCCL 2.5 Jharkhand

Kathara (New) Washery CCL 3.0 Jharkhand

Basantpur – Tapin CCL 4.0 Jharkhand New Rajrappa CCL 3.0 Jharkhand Dhori CCL 3.0 Jharkhand Sawang (New) CCL 1.5 Jharkhand Topa CCL 4.0 Jharkhand

Q. No. 494. COAL MINING CAPACITY 20.07.2022

SHRI SISIR KUMAR ADHIKARI:

Will the Minister of COAL be pleased to state:

(a) the details of Coal mining capacity in the country since the last three years; (b) whether there is any Government order of allocation of coal mining units for the end-user sectors like Power, Steel etc and if so, the details thereof; (c) whether these allotments are maintained as per

the quality grade and expected timelines thereof; and (d) if so, the details thereof and if not, the reasons therefor?

ANSWER MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a): The details of Coal mining capacity in the country since the last three years are as below: (in Mt)

Coal PSUs 2019-20 2020-21 2021-22

CIL 732.19 725.01 768.69

SCCL 69.73 69.90 71.58

NLCIL 0.00 1.25 4.00

Captive/ Commercial Mines 125.57 149.07 161.13

(b): After the launch of commercial mining scheme in June 2020, all mines are allocated under commercial mining scheme of auction. However, before launch of commercial mining scheme, end use details of 85 allocated mines are as under:

Mode of Allocation End Use “Power” End Use “NRS” Old Scheme of commercial mining allotted to PSU

Auction 5 20 0

Allotment 42 2 16

Total 47 22 16

(c) & (d): Allotment of a mine of a respective grade is made as per requirement and availability of quality grade. Further, as per provisions contained in the Allotment Agreement signed between the Government and Allottee, Allottee has to adhere to the timelines provided in the Agreement for different milestones including Mine Opening Permission which are monitored by the Government.

Q. No. 2810. DOMESTIC DEMAND OF COA 03.08.2022

SHRI PATEL HASMUKHBHAI SOMABHAI:

Will the Minister of COAL be pleased to state:

(a) whether the Government planned to increase production to meet domestic demands of coal in the country during the last five years; (b) if so, the details thereof State/UT-wise; and (c) the steps taken/being taken by the Government to decrease the demand – supply gap of coal in the country?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL

AND MINES (SHRI PRALHAD JOSHI)

(a)&(b): Coal is the main stay of Indian Energy system and about 80 % of coal production is supplied to power sector and the rest goes to other industrial uses .With “Make In India’ initiatives and higher growth projection of the economy, the demand for coal for both power sectors and other industrial uses has been growing. In order to meet the demand of coal, the Government has planned to increase coal production by 7-8 % per year to reach 1.3 Billion Tonne by 2024-25.

The details of Coal production State-wise during last five years are given below:-

(in Million Tonnes)

State 2017-18 2018-19 2019-20 2020-21 2021-22

Assam 0.028

Chhattisgarh

Jammu & Kashmir 0.011

Jharkhand

Madhya Pradesh 112.127 118.661 125.726 132.531 137.953

Maharashtra 42.219 49.818 54.746 47.435 56.529

Meghalaya 1.529

Odisha 143.328 144.312 143.016 154.151 185.069

Telangana 62.010 65.160 65.703 52.603 67.233

Uttar Pradesh 18.309 20.275 18.030 17.016 18.073

West Bengal 29.240 33.136 33.614 30.463 29.070

Total Coal 675.400 728.718 730.874 716.083 778.190

(c): The Government has taken several steps to ramp up domestic coal production. 100% Foreign Direct Investment is allowed for commercial mining. An InterMinisterial Committee has also been constituted in 2020 for the purpose of coal import substitution. Except allowing for very essential import like coking coal and other higher grade coal which are presently non-substitutable, effort are being taken to substitute import of lower grade coal by increasing domestic production. Some of the Major initiatives taken to increase domestic production of coal are as follows:

₂ Single Window Clearance portal has been launched for the coal sector to speed up the operationalisation of coal mines. It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India.

₂ Mines and Minerals (Development and Regulation) Act, 1957 amended to allow sale up to 50% of their annual production after meeting the requirement of the end use plant.

₂ Commercial auction of coal blocks on revenue sharing basis and allotment of specific coal blocks for captive end use.

₂ A Monitoring Committee has been constituted under the Chairmanship of Secretary (Coal) with Chief Secretaries from respective Host States, Secretary (MoEF& CC), Coal Controller Organization (CCO) & CMPDIL as members of the Committee to conduct regular reviews and to expedite the development of blocks.

₂ To increase production through MDO model, Coal India Ltd. has identified 15 MDO Projects having

combined capacity of 168.6 Million Tonne per year (MTY) of which Six MDO Projects have already been awarded with capacity of 96.74 MTY.

₂ Capacity addition through approval of new & expansion PR: CIL has approved 52 projects during FY21 & FY 22. These projects will add additional capacity of more than 250 MTY and projected to contribute additional production of about 102 Mt by FY 25.

₂ Advanced Technologies like surface miners, etc. for open cast mining and Power supported Longwall (PSLW), High wall Mining, continuous miner etc. for underground mines are being deployed tor efficiency and higher production of coal.

₂ To improve evacuation efficiency, 44 First Mile Connectivity (FMC) projects are being implemented to consolidate CIL’s effort towards upgradation and expansion of coal evacuation infrastructure and minimize transportation of coal through road mode in the first mile.

₂ CIL has also invested in the construction of 7 critical new rail line projects for its expansion Brownfield mining projects and Greenfield projects in Chhattisgarh, Odisha and Jharkhand with an estimated capital investment of Rs 20,000 Cr.

Q. No. 2954. COAL STOCK 03.08.2022

SHRI VINCENT H. PALA:

Will the Minister of Coal be pleased to state:

(a) the details of the total estimated untapped coal

stock in the North-Eastern States (NERs) of the country, State wise including district wise details for the State of Meghalaya, (b) the details of the total number of operational and non-operational mines in the NERs, (c) the total number of coal block allocations done in the North-Eastern coalfields, (d) whether illegal mining has affected the coal revenue in the region; and (e) if so, the steps taken to prevent these activities?

ANSWER MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a): The estimated coal resources in the North Eastern States of the country as per Coal Inventory of India published by Geological Survey of India (GSI) as on 01.04.2021 is 1739.37 million tonne and the Statewise distribution are given below:

State-wise break-up of coal Resource of North Eastern States (Resource in MT) (Provisional)

State MeasuredIndicated Inferred Total

MEGHALAYA 89.04 16.51 470.93 576.48

ASSAM 464.78 57.21 3.02 525.01

NAGALAND 8.76 21.83 415.83

SIKKIM 0.00 58.25 42.98 101.23

ARUNACHAL PRADESH31.23 40.11 18.89 90.23

Total 593.81 193.91 951.65 1739.37

District-wise data of coal resource is not maintained. However, coalfield-wise coal resources in the state of Meghalaya as per Coal Inventory of India published as on 01.4.2022 is given in the following tableCoal Field wise Coal Resources in the state of Meghalaya (Resource in MT) (Provisional)

Coal Field Measured Indicated Inferred Total (mt)

BALPHAKRAMPENDENGURU 0.00 0.00 107.03 107.03

SIJU 0.00 0.00 125.00 125.00

MAWLONG-SHELLA 2.17 0.00 3.83 6.00

BAPUNG 11.01 0.00 22.65 33.66

JAYANTI HILLS (MINOR CF) 0.00 0.00 2.34 2.34

WEST DARANGGIR 65.40 0.00 59.60 125.00

EAST DARANGIRI 34.19 34.19

LANGRIN 10.46 16.51 106.19 133.16

KHASI HILLS (MINOR CF) 0.00 0.00 10.10 10.10

TOTAL FOR MEGHALAYA 89.04 16.51 470.93 576.48

(b): As on date, one coal mine of Coal India Limited, i.e. Tikak Extension OCP of Tikak Colliery is operational mine and one coal mine of Coal India Limited, i.e Tirap OCP, is non-operational mine.

(c): There is no coal mine whose allocation order has been executed in North eastern states (viz.

Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim). However, Government has recently finished auction process under third round of commercial auction scheme where following mines situated in North-eastern states were auctioned:

S.no. Mine State Successful Bidder

1 Koilajan Assam Assam Mineral Development Corporation Limited

2 Garampani Assam Assam Mineral Development Corporation Limited

3 Namchik Namphuk Arunachal Pradesh Platinum Alloys Private limited.

(d): Illegal mining has affected the revenue in the form of Royalty, Cess, Taxes etc. to be collected by the State.

(e): The action being taken to stop theft/illegal mining of coal are as follows:

₂ Joint operations with the state police against illegal coal mining.

₂ Patrolling of vulnerable areas by AISF.

₂ In North Eastern Coalfields, the DGR Sponsored Security Agency, M/S 5279/ Manohar Shivram Shinde Security Agency is engaged for deployment of Secu-

rity personals at strategic points.

₂ Installation of CCTV cameras at strategic points including coal dump area.

₂ Strict control at Colliery gates.

₂ Person involved in pilfering coal are apprehended and handed over to local Police.

₂ There are cases of illegal mining of coal which when detected is promptly reported to local police and/or state forest department.

The details of complaints regarding illegal mining reported by CIL during the last four years and current year are as follows:

SHRI PATEL HASMUKHBHAI SOMABHAI:

SHRI SUMEDHANAND SARASWATI: DR. MANOJ RAJORIA: SHRIMATI RANJEETA KOLI:

Will the Minister of Coal be pleased to state:

(a) whether the Coal India Limited (CIL) is prepared to meet the increasing coal demands of the power sector;

(b) if so, whether CIL is focussing on augmenting the production to increase supply of coal to coal based power plants;

(c) whether a large percentage of coal based generation of power in the country depends on the supply of coal by the CIL and if so, the details thereof; (d) whether there is enough coal reserves in the coal mines of the CIL and if so, the details thereof; and (e) the efforts being made by the Government to ensure enough coal supply to the coal based power plants?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

(SHRI PRALHAD JOSHI)

(a) & (b): Yes Sir. In the year 2022-23, CIL has planned to dispatch coal to the tune of 700 Million tonnes (MT), out of which 565 MT is earmarked for Power Sector. Out of the above target, CIL has dispatched 152.49 MT of coal to Power Sector in the first quarter of the current year achieving a growth of 19% over last year.

CIL has envisaged to enhance its production to reach the level of 1 Billion Tonnes (BT) coal by the year 2024-25 from its current production level of about 600 MT in order to meet the demand of coal indigenously and to eliminate non-essential import of coal in the country.

CIL has already identified all resources required that will contribute to its 1 BT production plan and its related issues/enablers like requirement of EC/FC, land, evacuation constraints etc.

(c): Most of the requirement of coal in the country is met through indigenous production/supply and CIL contributes more than 80% of the indigenous produc-

tion/supply in the country including supply to power sectors.

(d): Yes, there is enough coal reserves in the country as well as in the coal mines of CIL.

As per Geological Survey of India, as on 01.04.2021, the in-situ geological resources of coal in India upto a depth of 1200m is 352.16 BT which includes proven, indicated and inferred resources. Out of this, the proven resources are 177.18 BT.

As per UNFC Classification of CIL Blocks as on 01.04.2021, a total of 62.66 BT of geological resources have been projectized in CIL blocks with a total mineable resource of 40.63 BT and total balance mineable resource of 29.96 BT. The estimated coal resources in the blocks of Coal India command area is about 173 BT.

(e): To address the issues of coal supplies to power sector, an Inter-Ministerial Sub Group comprising of representatives from Ministries of Power, Ministry of Coal, Ministry of Railways, CEA, CIL and SCCL meet regularly to take various operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal stock position in power plants. In addition to this, an InterMinisterial Committee (IMC) has been constituted comprising of Chairman, Railway Board, Secretary, Ministry of Coal, Secretary, Ministry of Environment, Forest and Climate Change and Secretary, Ministry of Power to monitor augmentation of coal supply and power generation capacity. Secretary, Ministry of New and Renewable Energy and Chairperson, CEA are co-opted as Special Invitees as and when required by the IMC. Coal dispatch from the captive coal blocks is also being monitored regularly.

Q. No. 1634. ILLEGAL STORAGE AND MINING OF COAL 27.07.2022

SHRI JUGAL KISHORE SHARMA:

SHRIMATI RITI PATHAK:

SHRIMATI GEETA KORA:

SHRIMATI NAVNEET RAVI RANA:

MS. LOCKET CHATTERJEE:

SHRI JYOTIRMAY SINGH MAHATO:

SHRI DILESHWAR KAMAIT:

SHRI CHANDAN SINGH: SHRIMATI RAMA DEVI:

Will the Minister of Coal be pleased to state:

(a) whether the Government has conducted any assessment/survey regarding the illegal storage and mining of coal;

(b) if so, the State-wise/UT-wise details thereof particularly in respect of Maharashtra and West Bengal;

(c) whether the Government has taken cognizance of illegal mining/theft/illegal possession of coal by the coal mafias in the country and if so, the details thereof;

(d) whether the Government is aware of coal theft in the districts of Maharashtra including Amravati Parliamentary Constituency and if so, the details thereof;

(e) the action being taken by the Government to stop the theft and illegal mining; and

(f) whether the Government has taken any steps to check the illegal coal mining activities and to strengthen the information system related thereto and if so, the details thereof?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a) During the course of coal production by Coal India Limited, all statutory provisions under various Acts, Rules and Regulations are observed for conducting various activities. As such, there is no illegal mining in the lease-hold areas of Coal India Limited. However, illegal mining of coal is reported to be carried out mainly from abandoned mines, shallow coal seams situated at remote/isolated places. It is a Law & Order problem which is a State subject, hence primarily; falls under the domain of the State/District administration to take necessary deterrent action to stop/ curb illegal mining of coal. Surprise raids/checks/inspection are conducted by security personnel as well as jointly with law and order authorities of the concerned State Government.

(b) First Information Reports (FIRs) are lodged whenever any incident of Illegal mining of coal comes to the notice of the coal companies. Number of FIR lodged in cases of illegal mining of coal during 2021-22, company-wise and State-wise is given below:

Sub Total 0

MCL Odisha 0

NEC Assam 1

Coal India Limited 11

(c) Theft/pilferage/illegal mining of coal are carried out stealthily and clandestinely. As per raids conducted by security personnel of CIL as well as joint raids with the law and order authorities of the concerned State Government, the quantity of coal recovered and its approximate value during 2021-22 in the subsidiary companies of Coal India Limited is as under:

Theft/Pilferage of coal (Provisional)

Co. State 2021-22

Qty. Recovered (te) Approx. Value (Rs. Lakh)

ECL WB 9840.32 590.450

Jharkhand 5245.72 314.680

Sub Total 15086.04 905.130

BCCL Jharkhand 11096.58 301.244 WB 18.14 0.430

Sub Total 11114.72 301.675

CCL Jharkhand 1755.65 42.844

NCL MP 0.00 0.000

UP 25.05 0.561

Sub Total 25.05 0.561

WCL Maharashtra 311.68 11.354 MP 0.00 0.000

Sub Total 311.68 11.354

SECL MP 67.77 1.683 Chhattisgarh 0.05 0.005

Sub Total 67.82 1.688

MCL Odisha 132.56 4.182

NEC Assam 0.00 0.000

Coal India Limited 28468.47 1266.872

Illegal mining of coal (Provisional)

Company State 2021-22

Qty. recovered (te) App.Value (Rs.Lakh)

ECL WB 13.19 0.780

Jharkhand 123.42 7.400

Sub Total 136.61 8.180

BCCL Jharkhand 0.00 0.000 WB 0.00 0.000

Sub Total 0.00 0.000

CCL Jharkhand 29.00 0.904

NCL UP/MP 0.00 0.000

WCL Maharashtra 0.00 0.000

MP 0.00 0.000

Sub Total 0.00 0.000

SECL MP 0.00 0.000

Chhattisgarh 0.00 0.000

Sub Total 0.00 0.000

MCL Odisha 0.00 0.000

NEC Assam 0.00 0.000

Coal India Limited 165.61 9.084

(d) Theft/pilferage of coal are carried out stealthily and clandestinely. As per raids conducted by security personnel of CIL as well as joint raids with the law and order authorities of the concerned State Government, the quantity of coal recovered and its approximate value during 2021-22 in the subsidiary company of Coal India Limited in the state of Maharashtra is as under:

Co. State 2021-22

Qty. Recovered (te) Approx. Value (Rs. Lakh)

WCL Maharashtra 311.68 11.354

However, there is no report of coal theft in Amravati Parliamentary Constituency as per available records.

(e) Theft/pilferage/illegal mining of coal is a Law & Order problem which is a State subject, hence primarily; falls under the domain of the State/District administration to take necessary deterrent action to stop/curb theft/pilferage/illegal mining of coal.

The Management of subsidiary companies lodges FIR with local Thana to take necessary action.

Following Steps taken to check theft / pilferage of coal:

o RFID based Boom Barriers and CCTV camera at weighbridges, GPRS based vehicle tracking system with geofencing and CCTV camera at strategic locations installed in mines.

o Regular FIRs are lodged by the Colliery Manage-

ment and CISF with local Thana. A close watch on the activities of criminals is being kept by CISF.

o Interaction and liaison with District officials at regular intervals and holding meeting with Officials of the State Administration.

o Challans for coal transportation by trucks outside the district are being issued after fixing hologram and putting signatures of authorized officials of CISF to check pilferage.

o Armed Guards have been deployed at Railway sidings.

o Escorting of coal rakes in coordination with RPF upto weighbridge, is arranged in pilferage prone areas.

o Surprise re-weighment of coal loaded trucks is done at weighbridges.

o Surprise checks / raids are conducted by flying squads of CISF/security department.

o Regular patrolling is conducted in and around the mine including OB dumps.

o Joint patrolling with local police is also being carried out in pilferage prone areas.

o Check posts have been established at entry / exit points where all coal laden vehicles are physically checked.

o Security at coal dumps has been strengthened by fencing, proper illumination and round the clock

guarding.

Following steps taken to check Illegal mining of coal:

₂ Concrete walls have been erected on the mouth of the abandoned mines to prevent access and illegal activities in these areas.

₂ Surprise raids/checks being conducted jointly by security personnel and law and order authorities of the concerned State Government.

₂ Dumping of the overburden is being done on the outcrop zones.

₂ Installation of check-posts at vulnerable points.

₂ Training of existing security/CISF personnel, refresher training and basic training of new recruits in security discipline for strengthening the security setup.

₂ Maintaining close liaison with the State authorities.

₂ Committee/task force has been constituted at different level (block level, sub-divisional level, district level, state level) in some subsidiaries of CIL to monitor different aspects of illegal mining.

₂ The Government of India has launched one mobile app namely “Khanan Prahari” and one web app Coal Mine Surveillance and Management System (CMSMS) for reporting unauthorized coal mining activities so that monitoring and taking suitable action on it can be done by Law & Order authorities.

(f) Besides the above mobile app ‘Khanan Prahari’ and web app ‘CMSMS’, status of CCTV Surveillance & GPS based VTS System – Subsidiary-wise of CIL are given below:

Subsidiary company

Total CCTV Cameras implemented at - a. Vulnerable locations viz Weighbridges, Sidings, Workshop, Offices & Stores b. Coal Stocks

Number of vehicles deployed with GPS based VTS System

MCL 989 2714

Q. No. 32. RECURRENCE OF COAL SHORT

SHRI AYODHYA RAMI REDDY ALLA: Will the Minister of Coal be pleased to state:

(a) whether Government has undertaken any study to identify the reasons for recurring coal shortages, if so, the details thereof and if not, the reasons therefor; (b) whether Government has taken any long term steps to tackle the recurring coal shortages, if so, the details thereof and if not, the reasons therefor; and (c) whether any steps have been taken to ensure proper planning and coordination among the Ministries involved such as the Ministry of Power and the Ministry of Railways, if so, the details thereof and if not, the reasons therefor?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

(SHRI PRALHAD JOSHI)

(a) & (b): There is no shortage of coal in the country. The all India coal production in the year 2021-2022 was 778.19 Million Tonne (MT) in comparison to 716.083 MT in the year 2020-2021. Further, in the current financial year (upto June'22), the country has produced 204.876 MT of coal as compared to 156.11 MT during the same period of last year with a growth of about 31%.

However, following steps has been taken by Government to boost coal production in the country:

A. Coal India Limited (CIL) has envisaged to enhance its coal production to 1 Billion Tonne (BT) by the year 2024-25 by taking the following initiatives which is under implementation:

i. Capacity addition through approval of new & expansion Projects: CIL has approved 52 projects during FY 2021 & FY 2022. These projects will add additional capacity of about 278 MT per annum and projected to contribute additional production of about 102 MT by FY 2025.

ii. Capacity addition through special dispensation in EC under clause 7(ii) of EIA 2006: This is an ongoing process and CIL is enhancing its capacity through efficiency enhancement under the special dispensation of EIA Act.

iii. Capacity addition in smaller subsidiaries: Smaller subsidiaries like ECL & BCCL are enhancing its capacity through marginal schemes and OC patches.

iv. Capacity augmentation through deployment of MDO: CIL has already initiated process for operating 15 numbers of mines through MDO having an ultimate capacity of about 169 MT per annum. All tenders shall be awarded by March’ 23.

v. Use of Mass Production Technology (MPT) in Under Ground (UG) mines wherever feasible: CIL is implementing the application of more and more MPT in UG mines wherever feasible to enhance its UG production capacity.

vi. Improving evacuation efficiency & capacity: Through First Mile Connectivity (FMC) 1 & 2, CIL is in the process of eliminating inefficient and polluting road transport in favour of 44 Coal Handling Plants (CHPs), Silos through rail transport

vii. Procurement of Heavy Earth Moving Machinery (HEMM): Order value worth Rs. 8300 Crs have been placed for procurement of HEMM in CIL in 2019-20 & 2020-21. Equipment supply has been started during 2020-21 and will be followed during the subsequent years for enhancement of departmental production capacities.

viii. Enhancement in evacuation facility from the mines to destination: CIL has also invested heavily in evacuation and transport facility such as rail lines, roads & sidings and CHPs.

ix. Out sourcing mining contracts: All outsourcing mining contracts for subsequent year are identified well in advance and firm actions are being initiated well in advance.

x. IT initiatives: CIL has taken initiatives for improvement in productivity by enhancing efficiency of its mines with the introduction of Digitization of operation and introduction of ERP in two phases.

B. The following actions have been taken by the Government to further increase the coal production from captive mines are as below:

i. Regular Monitoring: A Monitoring Committee has been constituted under the Chairmanship of Secretary (Coal) with Chief Secretaries from respective Host States, Secretary (MoEF& CC), Coal Controller Organization (CCO) & CMPDIL as members of the Committee to conduct regular reviews and to expedite the development of blocks.

ii. Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021: The Act provides that captive mines owners (other than atomic minerals) may sell up to 50% of their annual mineral (including coal) production in the open market after meeting the requirement of the end use plant linked

with the mine in such manner as may be prescribed by the Central Government and on payment of such additional amount. This step is an attempt to stimulate the coal block allocattees to commence coal production early.

iii. Project Management Unit (PMU) : Project Management Unit has been appointed by Ministry for handholding of coal block allottees for obtaining various approvals / clearances for early operationalisation of coal mines. Upon completion of tenure of current PMU, Ministry is currently under process of appointment of new PMU through transparent process and bringing more coal mines under its ambit. Appointment is expected to complete shortly.

iv. Single Window Clearance: The Union government has launched Single Window Clearance portal on 11.01.2021 for the coal sector to speed up the operationalisation of coal mines. It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India. Now, the complete process shall be facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approvals or clearances. It includes already operational module for approval of mining plan and mine closure plan in a time bound manner and integration with Parivesh Portal, digital acceptance of objection under Section 8 (1) of Coal Bearing Areas (Acquisition & Development) Act, 1957, Consent Management System of Telangana & West Bengal. Further Ministry of Coal has added in its kitty of SWCS Project Information & Management Module which was launched on 14.06.2022 which is likely to facilitate project proponent as well as Ministry and State officials in monitoring and expeditious implementation of coal mines.

(c): To address the issues of coal supplies to power sector, an Inter-Ministerial Sub Group comprising of representatives from Ministries of Power, Ministry of Coal, Ministry of Railways, CEA, CIL and SCCL meet regularly to take various operational decisions to en-

hance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal stock position in power plants. Coal dispatch from the captive coal blocks is also being monitored regularly. In addition to this, an Inter-Ministerial Committee (IMC) has been constituted comprising of Chairman, Railway Board, Secretary, Ministry of Coal, Secretary, Ministry of Environment, Forest and Climate Change and Secretary, Ministry of Power to monitor augmentation of coal supply and power generation capacity. Secretary, Ministry of New and Renewable Energy and Chairperson, CEA are co-opted as Special Invitees as and when required by the IMC.

Q. No. 33. ANNUAL CONSUMPTION OF COAL 18.07.2022

MS. SAROJ PANDEY:

Will the Minister of Coal be pleased to state: (a) the current annual consumption of coal in the country, in million tonnes and its annual production with respect to demand, alongwith the quantum of coal being imported from other countries₂ and (b) the steps taken by Government to reduce the consumption and increase the production of coal in the country?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

(SHRI PRALHAD JOSHI)

(a): The details of the current annual consumption of coal in the country and annual production with respect to demand along with the quantum of coal being imported are as under :-

* Upto April, 2022

(b): Coal India Limited (CIL) has envisaged to enhance its coal production from the level of about 600 MT to 1

Billion Tonne (BT) by the year 2024-25. CIL has taken the following initiatives for achieving 1 BT production which is under implementation:

i. Capacity addition through approval of new & expansion PR: CIL has approved 52 projects during FY 2021 & FY 2022. These projects will add additional capacity of about 278 MT per annum and projected to contribute additional production of about 102 MT by FY 2025.

ii. Capacity addition through special dispensation in EC under clause 7(ii) of EIA 2006: This is an ongoing process and CIL is enhancing its capacity through efficiency enhancement under the special dispensation of EIA Act.

iii. Capacity addition in smaller subsidiaries: Smaller subsidiaries like ECL & BCCL are enhancing its capacity through marginal schemes and OC patches.

iv. Capacity augmentation through deployment of MDO: CIL has already initiated process for operating 15 numbers of mines through MDO having an ultimate capacity of about 169 MT per annum. All tenders shall be awarded by March’ 23.

v. Use of Mass Production Technology (MPT) in Under Ground (UG) mines wherever feasible: CIL is implementing the application of more and more MPT in UG mines wherever feasible to enhance its UG production capacity.

vi. Improving evacuation efficiency & capacity: Through First Mile Connectivity (FMC) 1 & 2, CIL is in the process of eliminating inefficient and polluting road transport in favour of 44 Coal Handling Plants (CHPs), Silos through rail transport

vii. Procurement of Heavy Earth Moving Machinery (HEMM): Order value worth Rs. 8300 Crs have been placed for procurement of HEMM in CIL in 2019-20 & 2020-21. Equipment supply has been started during 2020-21 and will be followed during the subsequent years for enhancement of departmental production capacities.

viii. Enhancement in evacuation facility from the mines to destination: CIL has also invested heavily in evacuation and transport facility such as rail lines, roads & sidings and CHPs.

ix. Out sourcing mining contracts: All outsourcing mining contracts for subsequent year are identified well in advance and firm actions are being initiated well in advance.

x. IT initiatives: CIL has taken initiatives for improvement in productivity by enhancing efficiency of its mines with the introduction of Digitization of operation and introduction of ERP in two phases. The following actions have been taken by the Government to further increase the coal production from captive mines are as below:

i. Regular Monitoring: A Monitoring Committee has been constituted under the Chairmanship of Sec-

retary (Coal) with Chief Secretaries from respective Host States, Secretary (MoEF& CC), Coal Controller Organisation (CCO) & CMPDIL as members of the Committee to conduct regular reviews and to expedite the development of blocks.

ii. Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021: The Act provides that captive mines owners (other than atomic minerals) may sell up to 50% of their annual mineral (including coal) production in the open market after meeting the requirement of the end use plant linked with the mine in such manner as may be prescribed by the Central Government and on payment of such additional amount. This step is an attempt to stimulate the coal block allocattees to commence coal production early.

iii. Project Management Unit (PMU): Project Management Unit has been appointed by Ministry for handholding of coal block allottees for obtaining various approvals / clearances for early operationalisation of coal mines. Upon completion of tenure of current PMU, Ministry is currently under process of appointment of new PMU through transparent process and bringing more coal mines under its ambit. Appointment is expected to complete shortly.

iv. Single Window Clearance: The Union government has launched Single Window Clearance portal on 11.01.2021 for the coal sector to speed up the operationalisation of coal mines. It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India. Now, the complete process shall be facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approvals or clearances. It includes already operational module for approval of mining plan and mine closure plan in a time bound manner and integration with Parivesh Portal, digital acceptance of objection under Section 8 (1) of Coal Bearing Areas (Acquisition & Development) Act, 1957, Consent Management System of Telangana & West Bengal. Further Ministry of Coal has added in its kitty of SWCS Project Information & Management Module which was launched on 14.06.2022 which is likely to facilitate project proponent as well as Ministry and State officials in monitoring and expeditious implementation of coal mines.

Q. No. 831. COMMERCIAL COAL MINING 25.07.2022

DR. AMEE YAJNIK:

Will the Minister of Coal be pleased to state: (a) Whether it is a fact that the supply of coal is not keeping up pace with the increase in demand₂

(b) if so, whether Government is planning to move rapidly towards commercial mining to bring more coal in the market to bridge the demand-supply gap₂ (c) Whether Government will consider to increase domestic production of coal through the allocation of more coal blocks, pursue with States for assistance in land acquisition, and coordinate efforts with Railways for movement of coal₂ and (d) if so, the details thereof?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

(SHRI PRALHAD JOSHI)

(a) & (b) : There is no shortage of coal in the country. The all India coal production in the year 20212022 was 778.19 Million Tonne (MT) in comparison to 716.083 MT in the year 2020-2021. Further, in the current financial year (upto June'22), the country has produced 204.876 MT of coal as compared to 156.11 MT during the same period of last year with a growth of about 31%.

Coal India Limited, the largest supplier of coal in the country, has dispatched 177.59 MT of coal in the first quarter of the current fiscal achieving a growth of 10.7% over last year same period. Similarly, Singareni Collieries Company Limited (SCCL) has dispatched 17.31 MT of coal in the first quarter of the current fiscal achieving a growth of 3.7% over the last year same period.

(c) & (d): Measures are being taken to bring more coal to the market to meet the growing demand. Methodology for auction of coal and lignite mines/blocks for sale of coal/lignite on revenue sharing basis has been issued on 28.05.2020 and modified vide order dated 24.11.202l. More coal blocks will be offered for commercial coal mining in future. Auction of coal blocks for sale of coal would make maximum coal available in the market at the earliest.

Further, matter regarding land acquisition, etc are regularly being discussed with officials of State Govt. for early clearance. Project Management Unit has been appointed by Ministry for hand holding of coal block allottees for obtaining various approvals / clearances for early operationalisation of coal mines.

Ministry of Coal acquires coal bearing land under Coal Bearing Areas (Acquisition & Development) Act (CBA Act), 1957 for Government companies like Central PSUs and State PSUs, only. Grievance Redressal Committees headed by District Magistrate/ District Collector have been formed in the coal bearing states to address grievances relating to land acquisition done under CBA Act, 1957 for coal projects and Rehabilitation of land outstees.

Coal supplies to power sector, is being monitored by an Inter-Ministerial Sub- Group comprising of representatives from Ministries of Power, Ministry of Coal,

Ministry of Railways, CEA, CIL and SCCL. In addition to this, an Inter-Ministerial Committee (IMC) has also been constituted comprising of Chairman, Railway Board, Secretary, Ministry of Coal, Secretary, Ministry of Environment, Forest and Climate Change and Secretary, Ministry of Power to monitor augmentation of coal supply and power generation capacity.

Q. No. 829. SHORTAGE OF COAL 25.07.2022

SHRI BRIJLAL:

Will the Minister of Coal be pleased to state: (a) whether Government has paid attention to the increasing demand for electricity and shortage of coal in the country and if so, the details thereof₂

(b) whether Government has amended the procedure for utilization of coal allocated to the States by private power generation stations and if so, the details thereof₂

(c) the measures taken by Government to ensure more efficient utilization of domestic coal₂ and (d) the other measures taken by Government to meet the high demand of electricity in the States/ UTs during the summer season?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a): In 2022-2023 (April, 2022 to June, 2022), all India average gap between the Energy Requirement and Energy Supplied was only 1%. Gap between energy demand and supply is generally on account of factors other than inadequacy of power availability in the country, e.g. constraints in distribution network, financial constraints, commercial reasons, forced outage of generating units, etc. There is no shortage of coal in the country. The all India coal production in the year 2021-2022 was 778.19 Million Tonne (MT) in comparison to 716.083 MT in the year 2020-2021. Further, in the current financial year (upto June'22), the country has produced 204.876 MT of coal as compared to 156.11 MT during the same period of last year with a growth of about 31%.

(b): The Government on 4th May, 2016 allowed States to use their coal in any private generating stations (IPPs) selected through e-bidding process and take equivalent power. The methodology named flexibility in utilization of domestic coal (Case-4) has been issued on 20th February, 2017 by Ministry of

Power.

(c): Adoption of technologies for Efficiency Improvement: Supercritical technology and Ultra Super-Critical Technology for thermal power generation having improved efficiency of thermal power stations have already been adopted. This will lead to reduction in fossil fuel consumption and thereby reducing CO2 emissions.

As per Government approval, Annual Contracted Quantity (ACQ) per Mega Watt (MW) entitlement of all power plants, irrespective of age or technical parameters, shall be calculated based on normative station heat rate with upper ceiling of 2600 kcal/kwh. Accordingly, in view of efficient utilization of coal in efficient units, normative coal requirement of less efficient power plants with heat rate above 2600 Kcal/Kwh has been limited to coal corresponding to 2600 kcal/kwh. (d): To address the issues of coal supplies to power sector, an Inter-Ministerial Sub Group comprising of representatives from Ministries of Power, Ministry of Coal, Ministry of Railways, CEA, CIL and SCCL meet regularly to take various operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal stock position in power plants. In addition to this, an InterMinisterial Committee (IMC) has been constituted comprising of Chairman, Railway Board, Secretary, Ministry of Coal, Secretary, Ministry of Environment, Forest and Climate Change and Secretary, Ministry of Power to monitor augmentation of coal supply and power generation capacity. Secretary, Ministry of New and Renewable Energy and Chairperson, CEA are coopted as Special Invitees as and when required by the IMC. Coal dispatch from the captive coal blocks is also being monitored regularly.

Coal India Limited, the largest supplier of coal in the country, has dispatched 152.49 MT of coal to Power Sector in the first quarter of the current fiscal surpassing all the previous highs of the same period and achieving a growth of 19% over last year same period. Similarly, Singareni Collieries Company Limited (SCCL) has dispatched 14.43 MT of coal to Power Sector in the first quarter of the current fiscal achieving a growth of 4.1% over last year same period. As per Central Electricity Authority (CEA), coal stock at the power plants has improved from the level of 25.6 MT as on 31.03.2022 to 28.3 MT on 18.07.2022. Ministry of Power vide OM dated 28.04.2022 has advised power plants to import coal for blending purposes during 2022-23 to meet requirement at 10% (by weight) of the total requirement.

Q. No. 1633. EXPANSION OF COAL MIN

ES

Shri B. Lingaiah Yadav:

Will the Minister of Coal be pleased to state:

(a) whether Government has eased environmental approvals for coal mine expansion to boost output amid fuel shortages that have triggered hours-long blackouts; and (b) if so, the details thereof/present status thereof/ corrective steps being taken?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

(SHRI PRALHAD JOSHI)

(a) to (b): In order to enhance the coal production to meet the country’s energy requirement, Ministry of Coal requested MoEF&CC to consider expansion of mine without public consultation upto 50% of their production capacity. Considering this request, MoEF&CC issued an OM dated 7th May, 2022 regarding special dispensation for consideration of Environment Clearance (EC) from 40% to 50% expansion in coal mining projects, within the existing premises/ mine lease area, without additional land acquisition. This special dispensation was provided to only those mines, which have already obtained 40% dispensation based on earlier reforms provided by MoEF&CC. Under the said OM, 10 Environmental Clearances have been granted so far, which results to add additional capacity of 9.65 MTPA. List of these project is placed at Annexure.

While granting the ECs to these projects, which are falling within and outside the severely polluted area, following additional environmental safeguards have been provided as part of EC condition-

i. Transportation of coal by rail/conveyor belt

ii. Encourage use of cleaner fuels for trucks, If the roads required to be widened upto nearest railway siding, the same be constructed to avoid traffic congestion.

iii. Installation of continuous monitoring station for ambient air quality and also for continuous effluent quality in Effluent Treatment Plant. Data so generated shall be linked with respective SPCB and CPCB websites.

iv. Reuse/recycle of treated wastewater shall be implemented as feasible with latest technology. Zero liquid discharge concept may be adopted.

v. Increase green belt cover by 40% of the total land area beyond the permissible requirement of 33%, wherever feasible.

vi. Greenbelt outside the project premises such as plantation in vacant areas, social forestry, etc. to be implemented.

vii. Assessment of carrying capacity of mine & road

transportation as per the State Plan/instructions.

viii. A detailed water harvesting plan to be prepared for water augmentation.

ix. Installation of Sewage Treatment Plant (STP) for generated domestic wastewater and should meet for discharge standards.

x. Implementation of more stringent norms for management of hazardous waste like oil container, ETP sludge etc.

xi. Submission of Certified Compliance Report of the EC granted for total 40% expansion within six months alongwith additional capacity beyond 40% (i.e 10 % increase) on PARIVESH portal. Accordingly, Ministry shall ascertain the adequacy of the proposed environmental safeguards.

xii. Environmental quality parameters arising out of proposed expansion shall be within the prescribed norms and the same shall be maintained as per prescribed norms

xiii. Necessary prior consent for enhanced capacity from State Pollution Control Board under Air and Water Act

Further, prior to OM dated 7th May, 2022, MoEF&CC separately has issued another OM dated 11th April, 2022, wherein Expansion in production capacity in phased manner upto 50% expansion projects wherein relaxation was given to prepare EIA-EMP without process of public consultation upto 40% expansion and with public consultation for capacity expansion from 40% to 50%.

Annexure

List of Environment Clearance granted under OM dated 7th May, 2022 regarding special dispensation for consideration of Environment Clearance (EC) from 40% to 50% expansion in coal mining projects –

Sr. No. Project Name Company State EC Granted on Project in MTPA EC granted for (MTPA)

1 Manikpur Opencast Expansion Project

South Eastern Coalfields Limited Chhattisgarh 26-05-2022

2 Expansion of Singhori opencast coal mining project Western Coalfields Limited Maharashtra 25-05-2022

3 Dinesh (MakardhokraIII) opencast coal mining project (Phase-I) Western Coalfields Limited Maharashtra 26-05-2022

4 Lakhanpur Opencast Expansion Project Mahanadi Coalfields Limited Orissa 30-05-2022

5 Kulda Expansion Opencast Project Mahanadi Coalfileds Limited Orissa 25-05-2022

From 4.9 to 5.25 MTPA 0.35

From 1.12 to 1.20 MTPA 0.08

From 4.2 to 4.52 MTPA 0.32

From 21 to 22.5 MTPA 1.5

From 19.6 to 21 MTPA 1.4

6 Bhubaneswari OC Mahanadi Coalfileds Limited Orissa 11.07.2022 28 to 30 2

7 Amlohri OC Northern Coalfields Limited Madhya Pradesh 11.07.2022 14 to 15 1

8 Khadia OC Northern Coalfields Limited Uttar Pradesh 09.07.2022 14 to 15 1

9 Nigahi OC Northern Coalfields Limited Madhya Pradesh 09.07.2022 21 to 22.5 1.5

10 Krishnashila OC Northern Coalfields Limited Uttar Pradesh 09.07.2022 7 to 7.5 0.5

Total 9.65

South Africa6000 NARUSD 324,00 INR 25852 -4.00

South Africa5500 NARUSD 242.46 INR 19346 -13.63

Australia 5500 NARUSD 196.71 INR 15695 -0.65

Indonesia 5000 GARUSD 106.11 INR 8466 -21.80

Indonesia 4200 GARUSD 75.00 INR 5984 -8.27

Indonesian Coal News:

*Indonesian thermal coal is treading contrasting price paths with its Australian counterpart, analysts say. Indonesia is the world's largest exporter of thermal coal and the discount between its benchmark price and that for Australian Newcastle coal has widened to almost 82%. Singapore-traded contracts for Indonesian thermal coal with GCV 4200 kcal/kg ended at $75.47 a tonne this week while Newcastle coal with GCV 6000 kcal/kg ended at $412.60 a tonne. It shows that unlike Australia, Indonesian coal has not seen much change in valuation at all, despite a scramble for coal from major Asian buyers such as India, Japan and China, as well as Europe.

*Indonesia's coal mining grew 4.25percent as foreign demand rose amid Europe’s decision to ban Russian imports of the combustible black rock. In April, the European Commission agreed to impose a full ban on all forms of Russian coal following its invasion

of Ukraine. Theban will take effect on August 10, adding the prospect of even higher demands. BPS announced that Indonesia's mining sector rose 4.01 percent in April-June 2022.This is slightly higher than the 3.82 percent growth rate in the first quarter of this year.

Australian Coal News:

*Australia's renewable energy ambitions are dwarfed by coal and LNG juggernaut, experts say. Exports of metallurgical coal in Australia were valued at A$ 58 billion in 2021-22 and the government expects they will decline to A$41 billion by 2023-24 as the global price softens. Thermal coal exports were valued at A$39 billion in 2021-22, and are forecast to decline to A$31 billion by 2023-24.The combined export value of both grades of coal may be around A$72

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billion in 2023-24. But still the idea that Australia can compensate ending the export of coal and liquefied natural gas (LNG) by boosting output of energy transitions seems presently unrealistic.

*Australian producers of hard coking coal and pulverised coal injection (PCI) grades are joining semisoft coking coal mining firms in switching to thermal coal output, taking advantage of the extraordinary price premium for the power generation fuel. Hard coking and PCI coal prices FOB Australia from the start of June slipped below that of high-grade thermal coal FOB Newcastle. This extremely unusual met coal discount to thermal has continued to widen on weaker demand for met coal and scarcity of nonRussian thermal coal, with thermal coal now priced at around double that of premium hard coking coal.

South African Coal News:

*Europe is competing with Asia for South African coal, as per miners from that country. South Africa’s coal imports to Europe jump five-fold since the Russian Ukraine conflict. Netherlands, Germany, Poland, Denmark, France, Italy and Ukraine are among European countries importing growing quantities of coal from South Africa. In the first five months of this year, European countries imported more than 3 million tonnes of coal from South Africa. This is over 40% more than the total volume in 2021. The figures from South Africa’s Richards Bay Coal Terminal (RBCT) showed it delivered 3,240,752 tonnes of coal to European countries by end-May this year, 15% of RBCT’s overall exports, up from 2,321,190 (4%) in 2021.

*South Africa will require $250bn by 2050 to finance its energy transition, including $125bn to replace coal energy with wind and solar, with the rest needed for storage, transmission and support for impacted communities. The Just Energy Transition Partnership (JETP) – a new deal between South Africa and G7 countries the US, UK, France, Germany and the EU, will help the country towards green energy transition from coal-fired energy production, by mobilising $8.5bn, including from private sector sources.

European Coal News:

*Coal inventories at northwest European ports have risen 2% on the week to their highest since October 2019 amid continued restrictions to inland barge shipping and an influx of seaborne arrivals, data showed this week. Combined inventories at four key Amsterdam, Rotterdam and Antwerp (ARA) terminals were assessed this week at 7.17m tonnes, up 0.13m tonnes on the week. Despite buoyant German coalfired plant demand – as generation margins remain attractive for utilities – barge operators have had to reduce the volume of coal carried along the waterways as hot weather depleted river levels, thereby resulting in swelling port stocks.

*European Union has clarified that it has prohibited the nations under its umbrella to purchase, import, or transfer, directly or indirectly, coal and other solid fossil fuels from Russia as its proposed sanctions against the country come into effect. Also, involvement of an EU entity in the carriage of Russian coal to any destination whatsoever and whether inside or outside the EU would be in breach of EU sanctions. It has also noted that any entity subject to the jurisdiction of the EU is not allowed to provide insurance and reinsurance for the carriage of Russian coal and other solid fossil fuel cargoes regardless of their destination.

US Coal News:

*U.S. coal exports rose in the second quarter as demand and prices remained elevated amid a global energy crisis. Shipment volumes increased 14.8% quarter over quarter to 21.6 million tonnes and climbed 4.6% year over year. Asia and Europe received the most coal shipments from the five largest ports in the U.S.: Norfolk, Vancouver; Baltimore; New Orleans; Mobile, Alberta and Seattle. Other destinations for U.S. coal exports included South America and Africa. All coal shipped through Seattle during the second quarter went to Asia. Seven of the top 10 U.S. ports for coal exports recorded higher shipments year over year, while coal exports from eight ports grew from the previous quarter.

*The amount of electric power produced from coal

has been steadily declining in the United States over the past 10 years. Although U.S. coal-fired generation increased by 16% to 898,679 GWh in 2021, the forecast continued a move away from coal. To be more competitive in the electric power market, some coal-fired plants are adding natural gas-fired generation to their coal-fired capacity. The decline in U.S. coal-fired generation has mostly been a result of coal-fired plants becoming uneconomical compared with other sources of fuel. This loss of competitiveness has resulted in nearly one-third of the U.S. coal-fired fleet retiring since 2008, leaving about 205,000 megawatts (MW) in operation as of June 2022.

Pet Coke News:

*Indian companies are importing significant volumes of petroleum coke from Venezuela for the first time, trade sources and shipping data show, as the OPEC nation boosts exports not specifically targeted by U.S. sanctions. India's growing appetite for Venezuela's petcoke - a byproduct from oil upgrading and an alternative to coal - is being driven by a scramble for inexpensive fuel to power industries as global coal

prices. Indian cement companies imported at least four cargoes carrying 160,000 tonnes of petroleum coke from April to June.

Shipping Update:

*There has been a relief among ship operators in Europe as water levels on the river Rhine in Germany have risen after recent rain but are expected to fall again with mostly dry weather forecast in coming days. Shallow water compelled some freight vessels to sail only about 25% full in August, increasing costs for cargo owners who needed more vessels to get supplies delivered. However, water levels are expected to drop sharply again, which may jeopardize operations of about 100 cargo vessels on the Rhine in coming weeks.

*The International Maritime Organization is set to revise its target related to the shipping industry's emissions responsible for 3% of global greenhouse gas emissions in 2023. As the sector transitions, Mexico, South Africa and Indonesia are set to be key leaders and beneficiaries of the shift to sustainable shipping. Full sector decarbonization could be worth over$1 trillion, but it requires international cooperation and supportive regulation. The International Maritime Organization (IMO), through its initial Greenhouse Gas Strategy, aims to halve shipping emissions by 2050, compared with 2008 levels.

Sl.

FY-23FY-22

1ECL2.362.1211.3213.3812.209.57

3CCL4.734.2810.5125.9721.2722.10

Overall

9SCCL4.104.96-17.4924.3025.40-4.34

10

Sl.