CCAI Newsletter August-2018 by Sheikh Murad

Price: 40/W H E R E S E R V I C E A N D D E D I C AT I O N J O I N H A N D S

Vol. XLVI No. 17 Published on : 28.08.2018 CCAI Monthly Newsletter August 2018

JSPL DEVELOPS HEAVY CRANE RAILS OF UPTO 150 KG PER METER

RAIL TRACKS

PARALLEL FLANGE BEAMS & COLUMNS

ANGLES

PLATES

FABRICATED SECTIONS

TMT REBARS

CUT & BEND

HOT ROLLED COILS

Our wide range of products demonstrates our capability to consistently add value in line with evolving customer aspirations, and be a part of the nationâ&#x20AC;&#x2122;s socio-economic development. Our products are a result of pioneering initiatives that have been made possible by deploying futuristic technologies blended with a culture of consistent innovation.

jsplcorporate

Jindal Steel & Power Ltd.

jsplcorporate

From the Editorâ&#x20AC;&#x2122;s Desk Coal supply to the power sector has increased as rake loading per day to all consumers jumped high in last few months. Coal stock position at thermal power plants grew in August, 2018 and the number of plants with critical coal stocks have also dropped. Though Coal India has fixed 1 billion tonne production target by 2020 but due to multiple challenges on both production and evacuation of supply to power plants it may take another 3-4 years to achieve the target. The objective of the Government had always been to minimise import of coal in order to boost the economy by reducing Current Account Deficit (CAD). Increase in domestic coal production may eliminate dependence on import of expensive thermal coal. Inspite of best efforts made by CIL & Subsidiaries, coal supply by rail to power intensive industries is adversely affected and their interest is hurt due to the same. Opening of coal mines for commercial purpose would prove to be beneficial for all the sectors across the board. We all hope that it brings forth competition & efficiency in coal production.

4 | CCAI Monthly Newsletter August 2018

Content Vol. XLVI No. 17 August 2018

06 |Consumers’ Page

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

08|Power

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

12|Domestic

Editor : Subhasri Nandi

16|Global

Annual Subscription Rs. 400/(including postage) MO/DD to be made in favour of “Coal Consumers’ Association of India”

20 |In Parliament

CCAI do not necessarily share or support the views expressed in this Publication.

32 |Monthly Summary of Domestic Coal 34 |Energy Generation Report 36 |Monthly Summary of Imported

Coal & Petcoke

40 |Production and Offtake Performance of CIL and Subsidiary Companies

41 |Overall Domestic Coal Scenario CCAI Monthly Newsletter August 2018

CONSUMERSâ&#x20AC;&#x2122; PAGE Present Coal Scenario Production of Coal India Limited has climbed 3.2 percent to 38.8 million tons in August, 2018. Output for the April-August period increased 12 percent to 216.23 million tons. Coal offtake for the same month grew 3.4 percent to 45.22 million tons and offtake for the period of April-August rose 9.5 percent to 246.90 million tons.

Consumersâ&#x20AC;&#x2122; Concern 1. Coal Stock Position Coal supply to the power sector has increased almost 13 percent in the five months to August to 197 million tons and total rake loading per day to all consumers jumped 5.8 percent to 227 rakes. Coal stock position at thermal power stations stood at 14.69 million tons as of August end and the number of plants with critical stocks dropped to 11at present.

2. Power Companies with and without PPAs have urged to start Auction under Shakti Scheme Power Plants without assured coal supply but with PPAs could not take part in Auction due to various reasons, have urged to commence Auction to provide them the opportunity to win long term supply assurance. Similarly, non-PPA holders have also requested for commencing Auction for them as per provisions of Shakti Scheme.

06 | CCAI Monthly Newsletter August 2018

3. Request for incorporation of NCL and various collieries of SECL for the Linkage e-Auction Tranche-IV by Rail mode for CPP Sub Sector As the Auction of Linkage for CPP Sub Sector in Tranche IV is commencing soon, consumers have requested to offer adequate quantity from SECL and incorporate NCL and various collieries of SECL in the said Auction so that CPP units can procure the desired quantity to operate their plants.

4. Request to expedite coal supply by rail from BCCL and MCL Companies both in the Power and Non-power Sectors are not getting adequate coal supply from Bharat Coking Coal Limited (BCCL) and Mahanadi Coalfields Limited (MCL) by rail mode.

Considering this, they have requested CIL to advise BCCL and MCL for providing relief in this regard

5. Request for resuming normalcy in coal supply by rail from SECL,CCL & ECL Coal consumers are facing shortage of coal due to scanty supply by rail mode from Dipka, Gevra, Kusmunda, Korba and Korea Rewa region of South Eastern Coalfields Limited (SECL), RCM and KDH siding of Central Coalfields Limited (CCL) and Pandaveswar Dalurbandh siding of Eastern Coalfields Limited (ECL). Therefore, they have requested to establish a balanced supply mechanism otherwise abrupt demand would jeopardize the supply plan of the Subsidiaries.

it is done in case of debit notes.

9. GCV slippage repeatedly found Power Consumers are repeatedly complaining of GCV slippage from different areas of ECL and BCCL. In spite of Third Party Sampling & Analysis, consumers are not satisfied with the quality specially from these two Subsidiary Coal Companies resulting in loss to the Power Plants.

10. Under loading of coal in rakes Under loading even in the tune of 300 to 400 tonne of coal resulting in idle freight is a direct load to the consumers. Before 2009, it had been compensated by the coal companies as under loading rebate but now this has been restricted to stencil carrying capacity only.

6. Non-supply of coal from Jam- 11. Overloading penalty have to pay penalty for overloading and pali and Baraoud Mines of SECL Customers that is quite higher than the normal freight. ThereCoal is not supplied from Baraoud and Jampali mines in last few months as certain grades are not available in Jampali and there is hardly any production in Baraoud mines and advance payment is deposited with SECL for two months or more. Therefore, consumers have requested for not accepting any advance payment till the offtake starts from these mines and to expedite the return of amount already been deposited by them.

fore loading should be done as per the chargeable carrying capacity fixed by the Railways.

12. CHP or SILO loading For ensuring time bound efficient loading of coal, both Power and Non-power Sectors have requested CIL & Subsidiaries for loading only through Silo or rapid loading mechanism. Advanced Coal Handling Plants (CHP) should be put in place.

7. Reconciliation at regular inter- 13. Consumers urge WCL to vals is needed for refund or ad- conduct Exclusive e-Auction for Non-power Sector including CPPs justment of balance amount Reconciliation against advance payment should be done at regular intervals otherwise it takes inordinate time to get back the adjusted amount.

Consumers in the Non-power sector are unable to run their plants smoothly due to shortage of coal as they have not been offered sufficient quantity in Spot e-Auction.

8. Delay in issuance of credit notes against GCV slippage

Therefore, they have urged WCL to offer more coal to Non-power Sector consumers by conducting Exclusive e-Auction.

In case of GCV slippage in different subsidiaries, inordinate delay in issuance of credit note is resulting in stuck up of funds. Therefore, coal consumers are requesting Subsidiary Coal Companies for timely release of credit notes as CCAI Monthly Newsletter August 2018

| 07

POWER India to become power surplus nation in FY19: Central Electricity Authority The Central Electricity Authority (CEA) has pegged energy and peak power surplus at 4.6 per cent and 2.5 per cent, respectively, this financial year, indicating that India will be a power surplus country in 2018-19. Last year, the CEA in its load generation balancing report (LGBR) had also projected that India would become a power surplus nation in 2017-18. But the peak power deficit was 2.1 per cent while overall electricity deficit was 0.7 per cent across the country in 2017-18. In April-June quarter this financial year, peak power deficit was 0.7 per cent while overall electricity deficit stood at 0.6 per cent. A power sector expert said, “India is a power surplus state because its installed generation capacity is around 344 GW against the peak demand of not more than 170 GW so far. The deficit in supply is primarily because of discoms’ reluctance to buy power. Either they don’t have funds to buy power or they are afraid of under-recovery of power bills.” The other reason for power deficit is limitation of

08 | CCAI Monthly Newsletter August 2018

transmission and distribution networks particularly in remote and hilly areas, the expert opined. According to the report, surplus energy is anticipated of the order of 1.9 per cent, 14.8 per cent and 22.9 per cent in the western, northern and north-eastern regions, respectively.

Power ministry directs regulator to pass on changes in duties to consumer tariffs In a rare move, the government has issued a direction to power regulator Central Electricity Regulatory Commission (CERC) to allow changes in any central or state government duties to be passed in electricity tariffs to consumers post bidding. The industry welcomed the government’s move and said it will expedite procedures, helping a big chunk of power projects stuck due to such regulatory issues. Association of Power Producers director general Ashok Khurana said, “APP welcomes the directions issued by power ministry. This will expedite the cases relating to pass-through of additional cost due to change in law events, and help in early resolution of regulatory dues of about Rs 18,000 crore. On an average, the necessary orders for Change in Law

pass-through took 3-4 years.” He also said adding this will also lead to reduced litigations. This is one of the rare cases where the government has invoked its powers under section (107) of the Electricity Act to issue direction of such magnitude to the independent power regulator.

Telangana leads southern Indian states in power sector demand growth Power utilities in Telangana met a record peak demand of 10,429 mw even as the state was leading the southern region in accelerated demand growth, particularly after the launch of 24/7 free supply to agriculture last year. Currently, the per capita consumption in Telangana is 33 per cent higher than the national average, and is an important index of the development, Rao said. After the free power scheme was upgraded to 24/7 supply in June, the power demand in Telangana jumped 33 per cent to 9,326 mw (July 31, 2017) from a peak summer demand of over 7000 mw in May last year. This had taken Telangana to the second spot in the region, next only to Tamil Nadu (14,260 mw), as it surpassed the demand of 9000 mw registered in Karnataka while leaving its sibling AP state, which had a peak demand of around 7000 mw, far behind.

Financial distress in India’s thermal power sector The thermal power sector accounts for $40-60 billion of potentially stranded assets that are continuing to trouble the Indian banking sector. Fifteen GW out of the stressed 40 GW has not yet been commissioned, as identified in the report of the Standing Parliamentary Committee on Energy earlier this year. Some 16.2 GW of coastal power plants designed to operate on up to 100 per cent imported coal are severely affected by the doubling of prices since 2016. Another 6 GW of gas-fired projects are stranded as India’s limited domestic gas production is not able to cater to the plants to operate at the required viable utilisation rates. Just like coal, imported LNG is an extremely expensive option best reserved for peaking power generation.

Delays in project implementation due to challenges such as land acquisition, approval of required permits and environmental clearances have all resulted in cost overruns. Another key underlying issue that is common across these stranded assets is the unavailability of coal linkages or affordable domestic gas. About 80 per cent of India’s coal production comes from a concentrated region of central-eastern India. Given that coal transportation often forms a prohibitive part of the delivered price, finding a suitable linkage for the power plants remains a huge challenge.

Power sector is seeing a revival in demand: NTPC India’s power sector, guilty in the past of adding significantly to the pile of bad loans, is seeing a revival in demand with growth in power consumption every month, the chairman of the country’s biggest power producer said. “Power demand is coming back...it is an optimistic scenario,” National Thermal Power Corporation (NTPC) chairman Gurdeep Singh said. “It is not only that power is going into the houses that are electrified but the industry has also started picking up.” Singh, however, said that production of coal, which feeds thermal power plants, needs to keep pace with the growth in demand. Growth of power consumption in July stood at 7.94%, according to the latest data. In the first quarter of the current fiscal, consumption growth stood at 7.5%. This could further increase.

Upgrading power projects may lead to savings of $3 bn: GE New capacity addition in India’s thermal power sector may be hurt by the problems in the beleaguered sector but there is a huge opportunity in upgrading existing projects, which could potentially lead to savings of $3 billion in power bills and reduce emissions, Andrew DeLeone, managing director of engineering major GE’s India power business told. The Indian thermal power sector has been crippled by a lack of power purchase agreements, which has rendered projects stranded, many other power units are running below capacity and some are facing delays in payments. Private sector companies are reeling under heavy debt and while the government has CCAI Monthly Newsletter August 2018

| 09

taken measures to revive the health of state-run power distribution companies, industry players don’t see recovery in the foreseeable future.

Safeguard duty could jeopardize growth of solar power in India: TERI Finance Ministry’s recent decision to impose safeguard duty on solar imports is likely to increase the cost of power for discoms and end consumers, resulting from a spike in solar tariffs, the energy and resources institute (TERI) has said. The decision could put at risk, the achievement of India’s solar capacity addition targets, it said. India has set itself a target of achieving 175 GW capacity from renewable energy sources by 2022. This target was recently revised to 227 GW, with over 100 GW expected to come from solar projects. “Levying of safeguard duties may not help the domestic industry. It would on the other hand, increase cost of solar power, making it less attractive to the buying utilities, and thus jeopardising the pace of growth of development of solar power,” said Ajay Mathur, director general, TERI. Over 90% of solar panels and modules used in India come from China and Malaysia, and the proposed safeguard duty seeks to revive the domestic industry facing the onslaught on these imports. The finance ministry notified the Directorate General of Trade Remedies’ recommendation for imposition of 25% safeguard duty on solar panels for one year. The quantum of duty will reduce to 20% for next six months and then to 15% for the following six months. The duty came into effect on July 30.

Gujarat leads India in approved capacity of solar parks Gujarat has emerged has as the top state in terms of approved generation capacity in various solar parks. Out of the total 26,449MW capacity approved in 45 solar parks in 22 states, Gujarat has received the nod from the Union ministry of new and renewable energy (MNRE) for developing the maximum 6,200MW capacity spread across three solar parks.

10 | CCAI Monthly Newsletter August 2018

The state has so far received approval for three solar parks, which include India’s largest 5,000MW park at Dholera near Ahmedabad, 700MW at Radhanesada and 500MW at Harshad. Both Radhanesada and Harshad parks are being developed in Banaskantha district. Gujarat is followed by Rajasthan with approved capacity of 4,331 across six solar parks and Andhra Pradesh with 4,160MW (four solar parks), states a report prepared by the Union ministry. Gujarat government has already set the ball rolling for its biggest solar power project in Dholera Special Investment Region (DSIR). The bids for setting up the first 1,000MW power projects are likely to be invited this month.

India to test gas-fired power generators as plants to address high demand India will test a plan to operate its underutilized natural gas-fired power generators as “peaker” plants that can switch on quickly when there’s high demand, according to the country’s power planning body. The project will start with four NTPC Ltd. plants with a combined capacity of 2.3 gigawatts that will run only in the evenings, Central Electricity Authority Chairman Pankaj Batra said in New Delhi. The agency envisions 20 gigawatts of gas-fired capacity being used as peaking stations to even out supply fluctuations from a large amount of renewable energy that’s set be built by 2022, he said. India has an ambitious goal of installing 175 gigawatts of renewable energy by 2022, or a little more than the country’s current peak demand, as part of its Paris climate pledge to cut carbon emissions. Gasfired power plants can play a role balancing the grid by maintaining uninterrupted electricity supply, especially when solar-fired generation peters out in the evenings and coal plants take time to ramp up.

DOMESTIC Coal India likely to get a five-year breather on production target Faced with multiple challenges on both production and evacuation of supply to power plants, government behemoth Coal India (CIL) might get a five-year breather for the ambitious one billion tonnes a year production target by 2020, given to it in 2015. That would have nearly eliminated dependence on thermal coal import. However, CIL’s output last year was no more than 567.4 million tonnes (mt), a bit more than half-way through. CIL officials, previously enthusiastic on meeting the coal ministry’s vision, are now terming the given targets “aspirational”. And, talk of “producing as per demand”. A key concern for Coal India is logistical bottlenecks at remote mines and availability/loading of railway rakes. A document the company adopted in this regard had named railway links and wagon availability as a primary concern, needing to be addressed. Synergy and unified effort from Coal India, the railways and coal-bearing states, it had said, was crucial to meeting the 1-bn tonnes yearly target. In 2017-18, marred by low coal availability at central government-owned power plants, against a target of loading 247 tail rakes a day, Coal India loaded 229.2. Three of its subsidiaries — Eastern Coalfields (ECL), Northern Coalfields and Western Coalfields – outdid

12 | CCAI Monthly Newsletter August 2018

their targets. However, two crucial entities — Mahanadi Coalfields (MCL) and South-Eastern Coalfields — missed their target by seven and 15.4 per cent, respectively. And, year-on-year, rake loading for these two subsidiaries declined by 1.1 per cent and 0.5 per cent, respectively.

Coal India may invite global firms to extract coal bed methane State-run Coal India is considering outsourcing coal bed methane production to global operators and will set aside Rs 3,000 crore to part-finance the initiative, company executives said. As part of the plan, Coal India’s subsidiaries undertaking the projects will invite global tenders and the lowest bidder will be appointed as MDO, provided the company meets the technical parameters for the project. Invitation of bids would be preceded by project report preparation and a series of prebid meets to iron out the process of selection of third-party operators. Coal India has turned attention to coal bed methane (CBM) projects after the Cabinet Committee of Economic Affairs this year waived the need for a separate licence from the ministry of petroleum and natural gas for extracting this form of natural gas trapped in coal seams in its leasehold areas. The notification allows Coal India to undertake such projects either in a joint venture or in collaboration with an experienced operator

Aluminium industry demands resumption of coal supply The power intensive aluminium industry, hurt by the government’s decision to allocate more coal-bearing railway rakes to the electricity generation sector, has demanded resumption in regular fuel supply as per their contracted quantity. The Aluminium Association of India (AAI) has written to the Prime Minister’s Office (PMO) intimating about the critical coal shortage situation after supplies were reduced without notifying the industry in advance. AAI pointed coal rakes allocated to this segment has not been more than 15% since July, 2017. It was less than 9% in June, 2018. Out of the 63 MT requirement, the aluminium sector had received 40 MT in FY18. Captive power consumers, who mainly run their generation units to cater to own industrial production demand, have fuel supply agreements contracted with Coal India. The coal ministry had clarified in 2016 that non-power users should be allocated 25% of the fuel. Power constitutes about 40% of the production cost of aluminium, where one tonne of the refined metal requires about 14,500 units of electricity generated from burning 11.7 tonne of coal. The aluminium industry has set up about 9,500 MW of captive power capacity.

Government considering views of sub-group on revision of royalty rates on coal The government is considering the recommendations of a sub-group with regard to revision of present royalty rates on coal, Parliament was informed. “The Study Group has submitted its recommendations which is under consideration with the government,” Coal Minister Piyush Goyal said in a written reply to Lok Sabha. The Centre had earlier set up a sub-group under the Chairmanship of Coal Additional Secretary for examining the issue of revision of royalty rates on coal and lignite, the minister said. The Odisha government had earlier in the year asked the Centre to revise the coal royalty.

2015, it had said. In a separate reply, the minister said in the last three financial years and in 2018-19 (till July 31), two mines -- Marki Mangli-I and Majra in Maharashtra -- have been auctioned to Topworth Urja and Metals and Jaypee Cement Corp, respectively.

India bans pet coke import for use as fuel India banned the import of pet coke for use as fuel, but said shipments for use as feedstock in some industries was allowed. Usage of pet coke, a dirtier alternative to coal, in the energy-hungry country has come under scrutiny due to rising pollution levels in major cities. “Import of pet coke is allowed for only cement, lime kiln, calcium carbide and gasification industries, when used as the feedstock or in the manufacturing process on actual user condition,” the Directorate General of Foreign Trade said. As the world’s largest consumer of pet coke, India imports over half its annual pet coke consumption of about 27 million tonnes, mainly from the United States. Local producers include Indian Oil Corp, Reliance Industries and Bharat Petroleum Corp. India is the world’s biggest consumer of petroleum coke, which is a dark solid carbon material that emits 11 per cent more greenhouse gases than coal, according to the CarnegieTsinghua Center for Global Policy.

STEEL Steelmakers to raise prices as input costs rise on rupee depreciation Domestic steelmakers are set to increase prices from next month as a historical currency erosion drives up costs of imported raw material.

Stating that the royalty on coal was last revised in April 2012, Odisha government said the royalty rate should be revised every three years.

The increase is also the result of attempts by manufacturers to plug the gap between domestic and international steel prices. Currently, Indian steel prices are at a 5-8% discount to the prevailing rate overseas.

Therefore, the coal royalty revision is due since April,

The price of imported coking coal, a key raw material

CCAI Monthly Newsletter August 2018

| 13

in steelmaking, has increased 14% since June (on a year-on-year basis). Prices of graphite electrodes, including those that are imported, have increased 16%. Prices of iron ore, largely produced domestically, have gone up 11% and iron ore fines prices by merchant miners in Odisha rose by Rs 900 per tonne. The industry expects a price rise of Rs 1,500 per tonne for both hot rolled coils in flat products as well as downstream products. For long products, the increase may be more

The board also approved the re-appointment of TV Narendran as Managing Director and Chief Executive Officer for five years with effect from September 19, the last day of his present contract

CEMENT

SAIL scouting for location in 3 Birla Corporation to set up greenstates to set up Rs 5,000 crore field cement plant in Maharashtra for Rs 2450 crore autograde steel plant Steel PSU SAIL is considering locations in three states of Gujarat, Andhra Pradesh and Maharashtra to set up Rs 5,000-crore autograde steel plant in joint venture with ArcelorMittal, Steel Minister Chaudhary Birender Singh said. “SAIL people say that there are three places they can consider for putting up that plant. One is Maharashtra, another one is in Gurajat and third is in Andhra (Pradesh),” the steel minister said. The proposed plant would be set up in one of these three states, he told reporters after the release of the corporate sports policy for central public sector enterprises under the steel ministry. The auto-grade steel plant project with a capacity of 1.5 million tonnes per annum (MTPA) will be scaled to 2.5 MTPA, he added

Tata Steel net profit doubles to Rs. 1,934 cr on better realisations Tata Steel reported that its consolidated net profit in the June quarter more than doubled to Rs. 1,934 crore ( Rs. 921 crore) on the back of lower base, fresh revenue from Bhushan Steel (holding company Bamnipal Steel) and better realisations in India. The total revenue was up 22 per cent at Rs. 37,434 crore ( Rs. 30,780 crore). The company has made a provision of Rs. 344 crore for various claims against Rs. 617 crore logged in last year. The board of directors at the meeting approved a proposal to raise Rs. 12,000 crore through issue of non-convertible debentures on private placement basis in one or more tranches. The fund will be primarily deployed towards capex, repayment of debt and general corporate purposes, said the company in a statement.

14 | CCAI Monthly Newsletter August 2018

Birla Corporation Ltd said that its wholly owned subsidiary RCCPL has decided to set up a 3.90 million tonne greenfield integrated cement plant at Mukutban in Maharashtra with a 40 mw captive power plant and a 10.60 mw heat recovery system. The company in a BSE filing said that the RCCPL board has approved setting up the new cement plant, which will take up its capacity from present 5.58 million tonne per annum (mtpa) to 9.48 mtpa. The project will entail an investment of Rs 2,450 crore. The greenfield project will be financed by a mix of debt and internal accruals. The move will catapult the MP Birla group’s cement production capacity to 19.5 mtpa within financial year 2021-22 from 15.5 mtpa now. The company in the BSE filing said, it has already acquired land and has mineral concessions required for the project. The proposed plant has already recieved environment clearance. The company is also expected to get fiscal incentive from the Maharashtra government since Maharashtra is a cement deficit state.

Ultratech gets CCI nod to acquire Century cement business Aditya Birla Group firm UltraTech said it has received an approval from the fair trade regulator Competition Commission for the acquisition of the cement business of Century Textiles and Industries. The company said the CCI has given its approval for the share swap deal between the companies, Ultratech said in a regulatory filing. On May 20, UltraTech said it would acquire the cement business of BK Birla Group company Century Textiles and Industries through a share swap deal, a move which would further consolidate its position as market leader in the segment.

However, the copy of the CCI order is awaited, it added. The board of directors of UltraTech Cement on May 20, 2018 approved a scheme of arrangement amongst Century Textiles and Industries and its respective shareholders and creditors, the Aditya Birla Group firm said in a statement

RAILWAYS Supplying rails to Railways like a ‘dream come true’: Naveen Jindal Supplying rails to Indian Railways is like a “dream come true”, Naveen Jindal, the Chairman of Jindal Steel and Power Ltd (JSPL) which became the first private company to supply rails to the railways, said. JSPL bagged 20 per cent of Rs 2,500 crore global tender by Indian Railways to supply long rails. “It was a very emotional and proud moment. It was like a dream come true. A dream which we had seen some 20 years back. I had always dreamt of supplying rails to our national transporter,” Jindal told in an interview. JSPL had set up a rail mill at its Raigarh plant in 2003 to become the second player after SAIL to produce rails in India. Until now, under a Memorandum of Understanding, SAIL was exclusively supplying rails to the Railways from its Bhilai Steel Plant in Chhattisgarh. JSPL operates a 1 million tonne per annum (MTPA) rail mill at its 3.6 MTPA steel plant at Raigarh, Chhattisgarh. When asked if he sees the Railways’ order as an end to the SAIL’s monopoly in rail segment in India, Jindal said, “SAIL can supply only up to a limit.”

Coal clogs up Indian ports as railways, car shortage slows deliveries India’s harbors have become clogged up with coal as imports to power an expanding economy outpace railroad capacity to transfer the fuel to consumers. Stockpiles rose by 15 percent in seven weeks to 19.2 million metric tons, according to data from 18 ports compiled by CoalMint in a July 30 report. Inventory at Vishakhapatnam Port Trust in the eastern state of

Andhra Pradesh is near the limit because a rail-car shortage is slowing distribution, Deputy Chairman P.L. Haranadh said in a phone interview. That’s “pretty much all we can hold,” Haranadh said. His port gets about 10 of the wagon clusters known as rakes each day to send coal to consumers, against a requirement of 16. A rake comprises about 60 opentop wagons with total capacity of some 4,000 tons. The port blockages reflect the inability of India’s infrastructure to cope with an expanding economy and consumption. Freight and passenger trains jostle for space on the same tracks, and goods carriers often have to make way for passenger traffic, prolonging the turnaround time for carriages to haul coal, the mainstay of power generation in the country.

Core sector grows 6.7% in June as refinery, coal, cement output rises India’s infrastructure sector growth gathered pace in June posting an increase of 6.7 per cent year-on-year riding on increased production of refinery products, coal and cement. Other core infrastructure sectors with higher production include steel, electricity and fertilisers. The two sectors, where production fell are crude oil and natural gas. In May, growth in the eight core infrastructure industries had slowed down to a 10-month low of 3.6 per cent, while in the previous month growth of the core sectors was 4.6 per cent. The eight core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP) and the higher number this month may reflect positively on the IIP figures as well. IIP growth could be above 5 per cent in June 2018, Sabnavis said. In the April-June 2018-19 period, core sector production increased by 5.2 per cent over the corresponding period of previous year. Petroleum refinery production (weight of 28.04 per cent) increased by 12 per cent in June, 2018 over June, 2017. Cumulatively, production increased by 6.6 per cent in the April-June, 2018-19 period over the corresponding period of previous year. Coal production (weight of 10.33 per cent) increased by 11.5 per cent in June, while in the first quarter of the fiscal, its production increased by 13.2 per cent compared to the April-June period of the previous fiscal. CCAI Monthly Newsletter August 2018

| 15

GLOBAL Indonesia sets August HBA ther- Indonesian coal prices show mal coal price at 6 year high of signs of stabilising USD 107.83 per mt An aggressive sell-off in Indonesian thermal coal Indonesiaâ&#x20AC;&#x2122;s Ministry of Energy and Mineral Resources set its August thermal coal reference price, also known as Harga Batubara Acuan or HBA, at a 6 year high of IDR 107.83 per mt, recording a rise of 3% MoM and 28.4% YoY. The ministry had set the price for July at USD 104.65 per mt, and for August 2017 at IDR 83.97/mt. The HBA was last set higher in March 2012 at IDR 112.87/mt. The HBA is a monthly average price based 25% each on Platts Kalimantan 5,900 kcal/kg GAR assessment, Argus-Indonesia Coal Index 1, Newcastle Export Index and global COAL Newcastle. In July, the daily Platts FOB Kalimantan 5,900 kcal/ kg GAR coal assessment averaged IDR 82.96/mt, down from IDR 83.46/mt in June, while the daily 7-45 day Platts Newcastle FOB price for coal with a calorific value of 6,300 kcal/kg GAR averaged IDR 120.74/mt, up from IDR 117.22/mt in June. The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products and calculating the royalty producers have to pay for each metric ton of coal sold.

16 | CCAI Monthly Newsletter August 2018

markets appears to have abated, with some Chinese buyers returning to the market. But prices were little changed, with bids and offers at similar levels. September-loading geared supramax GAR 4,200 kcal/kg (NAR 3,800 kcal/kg) cargoes were bid at around $38-40.25/t, with bids from Indian buyers at the lower end of this range. By comparison, bids for similar cargoes were heard in a slightly wider range of $38-41.25/t. A September-loading supramax GAR 4,200 kcal/kg cargo was offered at $41.50/t, up slightly from a late-August/early-September delivery cargo that was offered at $41/t. Argus last assessed fob Indonesia prices of this coal at $41.86/t on 3 August. Elsewhere, an Indian buyer bid for an August-loading supramax cargo of Indonesian GAR 3,400 kcal/ kg coal at $26/t against offers at $27.50/t. Demand for this type of coal has weakened slightly following the recent price declines for higher quality GAR 4,200 kcal/kg and GAR 3,800 kcal/kg types of coal, traders said

Indonesia leaves coal DMO, do-

mestic price cap unchanged Indonesia’s President Joko Widodo has decided to keep the current price cap on domestic thermal coal procurement and is against revoking the domestic market obligation policy, a senior government official said. The Indonesian government had proposed to revoke the current coal domestic market obligation policy and instead apply a levy on exports, and a decision was expected to be taken at a cabinet meeting. The coal DMO volume has been decided by the energy and mineral resources ministry, and the coal price capped at $70/mt FOB for domestic purchases by state-owned utility PLN will continue as per government’s regulation, Jonan said. Under the existing regulation, coal companies have to allocate at least 25% of their annual coal production for the domestic market. Indonesia applied the DMO in March to ensure that domestic needs are met after more coal cargoes were diverted to the seaborne market because of higher price realization. Given the high seaborne prices this year, the government introduced the cap of $70/mt on domestic procurement to ease PLN’s financial burden as the utility is not allowed to increase the electricity tariff until 2019 when the presidential election takes place. Coal accounts for almost 50% of PLN’s total power generation.

Graft and government policy keep Indonesia burning coal while sidelining renewables A far-reaching corruption scandal centered on a proposed power plant in Indonesia has cast a shadow over the country’s risky reliance on coal as a supposedly cheap source of energy. Antigraft investigators arrested nine people in July, including a member of the national parliament, over allegations of bribery in connection with the awarding of contracts for the $900 million Riau-1 coal-fired plant, on the island of Sumatra. Investigators have also charged the country’s social affairs minister, Idrus Marham, for his alleged involvement (the sting where the bribe was transacted in July took place at his home). They have questioned the head of state-owned utility PLN, Sofyan Basir, who is ultimately responsible for sanctioning the

project. PLN has since suspended the 600-megawatt project. Riau-1, though, is only one of dozens of coal-fired power plants planned for construction throughout Indonesia as part of the government’s ambitious push to add 35,000 megawatts of power generation to the national grid in the coming years. (The initial target date was 2019, but the government now says it may take until 2024 to get that full capacity online.) There are at least 18 similar plants at various stages of development—from licensing and land acquisition to the procurement of technology—that are also suspected to have been tarnished by corruption, according to the NGO Association of Ecological Action and People’s Emancipation (PAEER). In particular, socalled mine-mouth plants like Riau-1, which are built close to the coal mines that supply their fuel and for which PLN awards contracts less transparently, are particularly prone to corruption, says a coalition of environmental NGOs

US shovels more coal exports into Asia U.S. coal exports to Asia surged in 2017, and there is an argument to be made for America to become an even bigger global supplier of the fuel, a Nikkei Asian Review study has found. By volume, U.S. coal exports to Asia doubled last year, compared with 2016. The total reached 32.8 million short tons -- a short ton being the equivalent of 907kg. Asia-bound exports of steam coal used for power generation, in particular, more than tripled. “These export increases have nothing to do with policy, and everything to do with economics,” said Elias Johnson, coal analyst for the U.S. Energy Information Administration. With the use of coal diminishing in the U.S., the country’s shipments to Japan grew 68%, the equivalent of an additional 3.1 million short tons. To put the extra amount in perspective, imagine piling all that coal into the shape of a tower. The result would be as tall as the 634-meter Tokyo Skytree broadcasting tower, while measuring 68 meters wide and deep. South Korea imported twice as much American coal in 2017 than the year before due to Seoul’s decision to distance itself from nuclear power, Johnson said. “The country has also added coal fire capacity for electricity generation.” Formed into a hypothetical

CCAI Monthly Newsletter August 2018

| 17

cube, the additional coal would run 168 meters on each length and reach three-fifths of the way up the 264-meter Samsung Tower Palace building in Seoul. India, the largest importer of U.S. steam coal, brought in three times its 2016 volume, mainly to feed its growing electricity demand. The extra coal could fill a box as long and wide as the Taj Mahal garden while nearly reaching the palace’s height of 73 meters

US coal cargoes speed to China to beat new tariffs At least four cargoes of US coal worth $30 million are headed to China as Beijing prepares to hit imports with hefty 25 per cent tariffs, threatening a niche supply of the fuel even as China’s appetite for foreign coal shows no sign of abating. The vessels, carrying a combined 335,000 tonnes of coal, are the only confirmed cargoes in transit from the United States to China, and are scheduled to land in time to avoid the new duties. The Ministry of Commerce published its final list of US items worth $16 billion in imports that will incur the additional tariff, including coal. The penalties will come into effect on August 23 after Washington plans to start collecting duties on Chinese products of the same value. Coal was also in the draft list issued in June. China’s coal imports have soared as domestic output has flagged, while searing summer temperatures have fuelled demand from utilities. Data showed arrivals hit their highest in more than four years in July

Coal helped make America great. Now it’s holding us back The Environmental Protection Agency announced new rules to eliminate President Barack Obama’s signature Clean Power Plan. The decision was unsurprising, given President Trump’s devotion to promoting coal and coal miners and promising to restore them to their glory days. This move, however, is shortsighted and dangerous. It ignores the fact that although coal played a significant role in pushing the United States toward global predominance in the 19th and 20th centuries, it simultaneously did crippling environmental damage — damage that must be stopped before it is too late.

18 | CCAI Monthly Newsletter August 2018

As a nation, our objective should be to leverage the advantages that our coal wealth bestowed upon us to make an economically and environmentally beneficial transition to desperately needed clean-energy resources. While water power and wood-fired steam were the United States’ most important early energy sources, Pennsylvania anthracite began to make inroads after canals were dug in the 1820s and 1830s, allowing coal delivery to industrial towns along the Atlantic seaboard. Factories quickly emerged in the iron, glass, paper and textile industries, with coal-fired steam driving the specialized machines critical to the success of these manufacturing works. Steam-powered cities such as Boston, Providence, Buffalo, New York, Baltimore, Philadelphia and Pittsburgh propelled the national economy.

Increased South African coal exports boost Transnet’s revenues South African Logistics Company Transnet said that increased coal export volumes in the year ending March 31 helped boost its revenues for the period. 77 million mt of export coal railed in year to March 31. Plans to increase coal export line to 81 million mt/ year. The company said it reported an 11% increase in revenues to Rand 72.9 billion ($5 billion), partly driven by a 4.3% rise in railed export coal volumes to 77 million mt. This was helped by a record monthly throughput of 7.2 million mt in September. The report said Transnet subsidiaries Transnet Freight Rail and Transnet Engineering had stated in the year under review announced a plan to build 2,500 coal containers to service Eskom power stations. Transnet said it invested Rand 2.8 billion ($192 million) in the year to March 31 expanding capacity on the export coal line to 81 million mt/year. According to a South African mining source, stocks at Richards Bay Coal Terminal stood at 5.1 million mt, largely unchanged

Trump set to roll back Obama-era regulation on coal emissions The Trump administration is set to unveil a proposed replacement for Obama-era climate change rules that will impose looser, state-based regulations on

coal-fired power plants rather than pushing them towards closure. The new plan is likely to escalate greenhouse gas emissions, compared with its predecessor, at a time when scientists have warned drastic cuts are required to avoid dangerous runaway climate change that would ravage the lives of Americans and people around the world. The Environmental Protection Agency (EPA) is set to propose that individual states should decide how, or even if, they should stem carbon dioxide emissions from coal plants. Donald Trump, who has pledged to end what he calls the “war on coal”, is expected to unveil the plan at an event in West Virginia, a major coal-producing state.

China July coal imports highest in years as heatwave fuels demand China increased its coal imports in July by 14 percent to their highest in 4-1/2 years, official data showed, as rising temperatures boosted demand for coal-fired power to run air conditioners in the world’s top buyer of the fuel. Arrivals came in at 29.01 million tonnes last month, the General Administration of Customs said. That is the highest since January 2014. Imports rose 23.9 percent from 25.47 million tonnes in June and climbed 49.1 percent from 19.46 million tonnes in July 2017.

Thermal coal prices for delivery in September CZVU8 were up 0.1 pct to 614.2 yuan per ton before the lunchtime break after earlier hitting 623.2 yuan, the highest since July 13.

Thailand’s July coal imports jump 57% on year to 2.3 mil mt Thailand imported nearly 2.3 million mt of coal in July, surging 56.5% from the same month in 2017, according to latest customs data released. Of the total, 782,903 mt was bituminous coal, up 41.6% year on year, with the cargoes mainly from Australia -- 438,067 mt, 53.2% higher year on year and Indonesia -- 343,880 mt, up 29.4%. Imports of other coals shot up 66.6% year on year to 1.5 million mt in July. They were imported mostly from Indonesia -- 1.45 million mt, up 61.4% from a year earlier, and Russia with 45,706 mt, up from none last year. Thailand imported 21,106 mt of anthracite coal in the month, up 12.8% year on year. In the first seven months, Thailand imported 14.57 million mt of coal, up 12% year on year, comprising mainly bituminous coal -- 4.64 million mt, down 23.9% year on year. Other coals accounted for 9.83 million mt, up 44.7% from the same period in 2017. Indonesia and Australia remained key suppliers.

Electric power loads on the transmission grid in parts of China soared late last month because of high temperatures, with southern areas of the Hebei province that surrounds Beijing reporting record demand and the State Grid Corporation of China [STGRD.UL] warning of power shortages. The China Meteorological Administration has been issuing regular heat alerts over the past few weeks. It warned regions in western and southern China could see temperatures reaching as high as 40 degrees Celsius (104°F), which would continue to support demand for coal-fired electricity. Increased buying of foreign shipments has also been spurred by curbs on domestic output as Beijing increases checks on heavy industry to clear air pollution. CCAI Monthly Newsletter August 2018

| 19

IN PARLIAMENT GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA Q. No. 107. COAL IMPORTS 25.07.2018 SHRI A.ARUNMOZHITHEVAN: Will the Minister of COAL be pleased to state: a) whether the coal imports have increased due to transport constraints; (b) if so, the details thereof; (c) whether the trend of coal imports is expected to continue as power, cement and steel industries are expected to witness improvement in demand and capacity utilisation; and (d) if so, the details thereof and the steps taken by the Government in this regard? ANSWER MINISTER OF RAILWAYS, COAL, FINANCE & CORPORATE AFFAIRS (SHRI PIYUSH GOYAL) (a) to (d): A statement is laid on the Table of the House.

20 | CCAI Monthly Newsletter August 2018

STATEMENT IN REPLY TO STARRED QUESTION NO. 107 ANSWERED ON 25.07.2018 ASKED BY SHRI A.ARUNMOZHITHEVAN REGARDING “COAL IMPORTS”. (a) & (b): Coal imports have constantly reduced from 217.78 MT in 2014-15 to 190.95 MT in 2016-17. However, during 2017-18, coal imports increased to 208.27 MT due to increase in demand by the consuming sectors. There is no official report to suggest that coal imports have increased due to transport constraints. In fact, coal imports by power plants has reduced from 80.58 MT in 2015-16 to 56.41 MT in 2017-18. The annual average rakes provided by Railways for coal despatch from Coal India Limited (CIL) has increased constantly from 194.5 (rakes/day) in 2014-15 to 229.2 (rakes/day) in 2017-18. (c) & (d): Coal is imported to bridge the gap between domestic demand and domestic supply. Niti Aayog has estimated a higher coal demand for Power, Cement and Steel in 2018-19 as compared to 2017-18.

In order to increase domestic supply, CIL has been given a higher aspirational production and despatch targets, which are being reviewed regularly. It may be mentioned that in the first quarter of 2018-19, CIL produced and despatched 136.87 MT and 153.43 MT which shows a growth of 15.2% and 11.7% respectively. The growth in dispatch of coal to power sector has helped coal based generation to achieve positive growth of 5.3% in the 1st quarter 2018-19. This is 101.3% of programme generation for coal based power. CIL has been directed to work out a definite action plan to ensure higher production and offtake in future. CIL has also been directed to ensure that necessary clearances for the existing coal mines are in place which will help in increasing the coal production in the short/medium term and also operationalizing the newly allocated coal mines for further increasing production in the medium term. New rail lines are being laid for smooth evacuation of increased coal production from the mines of growing coalfields of South Eastern Coalfields Limited, Mahanadi Coalfields Limited and Central Coalfields Limited.

Q. No. 290. STRESSED COAL BASED POWER PLANTS 19.07.2018 SHRI K. ASHOK KUMAR: Will the Minister of POWER be pleased to state: (a) whether NTPC has floated a tender to acquire commissioned stressed coal based power plants, if so, the details thereof; (b) whether at present out of 40 GW stressed coal based power generation capacity, about 12 GW capacity worth around Rs. 50,000 crore was commissioned after April 1, 2014 and is eligible under this tender; and (c) if so, the details thereof? ANSWER THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY ( SHRI R. K. SINGH ) (a) to (c) : NTPC has invited Request for Proposal (RFP) on 25.11.2017 from interested parties i.e. Promoters/Lenders or Authorized Financial Intermediaries of the Power Generation Companies/Independent Power Producers/ Developers to offer their operating domestic coal based thermal power assets in India meeting the specified criteria in RFP.

Any power asset, having Commercial Operation Declaration (COD) date between 01.04.2014 and date of notification of RFP, was eligible to participate in the RFP, besides meeting other qualification requirements. Out of 40 GW stressed capacity project (as per information provided by Department of Financial services), a total of 12690 MW capacity projects have COD between 01.04.2014 and the date of notification of RFP by NTPC.

Q. No. 314. COAL BASED METHANOL AS ALTERNATIVE FUEL FOR VEHICLES 19.07.2018 DR. HEENA VIJAYKUMAR GAVIT: SHRIMATI SUPRIYA SULE: SHRI DHANANJAY MAHADIK: SHRI SATAV RAJEEV: SHRI MOHITE PATIL VIJAYSINH SHANKARRAO: SHRI P.R. SUNDARAM: DR. J. JAYAVARDHAN: Will the Minister of ROAD TRANSPORT AND HIGHWAYS be pleased to state: (a) whether the Government is working on a proposal to run diesel guzzling heavy commercial vehicles like trucks and buses on coal based methanol; (b) if so, the details thereof and the purpose behind the move; (c) whether running commercial vehicles on coal based methanol is cost effective, if so, the details thereof; (d) whether the Government has shortlisted the potential districts for setting up of coal based methanol plants in the country; and (e) the time by which these coal based methanol plants are likely to be set up and made operational? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI MANSUKH L. MANDAVIYA) (a) and (b) NITI Aayog has set up an Apex Committee and five Task Forces for carrying out R&D and developing roadmap for implementing Methanol Economy in India. Task Force on Production of Methanol using High Ash Coal is one of them. The Government has notified G.S.R 490(E) dated 24.05.2018 regarding Mass emission standards for flex-fuel Methanol M15

CCAI Monthly Newsletter August 2018

| 21

or M100 and Methanol MD 95 vehicles. (c) India imported 212.7 Million Tons of Crude oil in 2016-2017. It is estimated that a 15% methanol blending can result in replacement of around 31.9 million tons of crude oil. With crude oil price of 54 $ per barrel it can result in significant savings for India. Further the CO and HC emission reduction for M 15 as compared to neat gasoline by approximate 40 % is an added benefit. Further CO2 and evaporative emission benefits are also envisaged. (d) No, Madam. (e) No timelines have been fixed as the work is in preliminary stage.

Q. No. 442. COAL SHORTAGE IN POWER PLANTS 19.07.2018 SHRI SUSHIL KUMAR SINGH: Will the Minister of POWER be pleased to state: (a) whether presently there is a shortage of coal in the various power plants of the country particularly in Badarpur, Jhajjar and Dadri power plants; (b) if so, the details thereof; (c) whether a possibility of power crisis has been predicted in many States of the country particularly in Delhi, due to shortage of coal; and (d) if so, the details of the effective steps taken by the Government to tackle this problem? ANSWER THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY ( SHRI R. K. SINGH ) (a) & (b) : As on 12.07.2018, the total coal stock available at 117 power plants monitored in Central Electricity Authority (CEA) on daily basis, was 15.2 Million Tonnes (MT) which is sufficient to run the power plants for an average of 10 days. The status of coal stock available at the Badarpur, Jhajjar and Dadri thermal power plants, as on 12.07.2018 is given at Annex. (c) & (d) : As the growth in supply of coal to power sector by domestic coal companies including captive mine have been around 16% during the current year 2018-19 (upto May 18), the power plants have been able to meet the electricity demand in the country and also improve the coal stock from 7.26 MT as on 19.10.2017 to 15.2 MT as on 12.07.2018. Thus, at present, no power crisis has been predicted in the

22 | CCAI Monthly Newsletter August 2018

country. The coal supply to the power plants and coal stock position is regularly monitored by Ministry of Power (MoP), Ministry of Coal (MoC) & Ministry of Railways (MoR) at the highest level. Secretary (MoP), Secretary (MoC) and the Member (Traffic), Ministry of Railways monitor the coal supply position. Hon’ble Minister of State (I/C) of Power & NRE has also taken meetings to review the coal supply position. An Inter-Ministerial Sub-Group comprising representatives of Ministry of Coal, Ministry of Power, Ministry of Railways, CEA, Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) monitors the coal supply position on a weekly basis. Based on the decisions taken in the meeting, CIL/SCCL augment supply of coal and the Railways supply adequate number of rakes to the power plants having less coal stock. ANNEX REFERRED TO IN REPLY TO PARTS (a) & (b) OF UNSTARRED QUESTION NO. 442 TO BE ANSWERED IN THE LOK SABHA ON 19.07.2018. Daily coal requirement and coal stock available at the Badarpur, Jhajjar and Dadri thermal power plants, as on 12.07.2018 Daily Requirement (in ‘000T)

Stock (in ‘000T)

Stock (in Days)

Badarpur

6.05

22.79

Jhajjar

12.87

89.3

Dadri

19.46

46.98

Plant Name

Q. No. 805. COAL BED METHANE 23.07.2018 SHRI SHARAD TRIPATHI: Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state: (a) the steps taken by the Government for the solution of issue of regulation of Coal Bed Methane (CBM) and for exploitation of this new source of energy; (b) the details of CBM blocks allocated to various companies in the fourth round of bidding, location-wise; and (c) whether the Government proposes to review its CBM policy and if so, the details thereof?

ANSWER ( MINISTER IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN) In order to harness CBM potential in the country, the Government of India formulated CBM Policy in 1997. Till date 33 CBM Blocks have been awarded after four rounds of CBM bidding under the CBM Policy. Following steps have also been taken to expedite development of CBM blocks:To increase the area under CBM exploration, Government has issued a notification in November, 2015 and re-notified the same on 08.05.2018, allowing Coal India Limited and its subsidiaries to exploit CBM from the coal mining lease areas held by them. On 08.02.2017, Government has formulated a Model Co-development Agreement for simultaneous coal mining and CBM operations in overlapping areas. On 11.04.2017, Government has issued Policy Framework for Early Monetization of CBM providing marketing and pricing freedom to the contractors of CBM blocks to sell the CBM at Arm’s Length Price in the domestic market. The details of CBM blocks allocated to various companies in the fourth round of bidding location-wise are as under:S. No.

Block Name

State

Operator

ASCBM-2008/IV

Assam

Dart Energy

MG-CBM2008/IV

Tamil Nadu

Great Eastern Energy Company Limited

RM(E)-CBM2008/IV

Jharkhand

Essar Oil and Gas Limited

Odisha

Essar Oil and Gas Limited

Odisha

Essar Oil and Gas Limited

3 4

TLCBM-2008/IV IBCBM-2008/IV SP(NE)-CBM2008/IV

Madhya Pradesh & Chhattisgarh

Essar Oil and Gas Limited

STCBM-2008/IV

Madhya Pradesh

Dart Energy

Government of India reviews its policies pertaining to oil and gas exploration from time to time for intensifying exploration activity and investment therein. In the year 2016, Government has approved a new policy called Hydrocarbon Exploration and Licensing Policy (HELP). Under HELP unified license is given for exploration of both conventional and unconventional oil and gas resources including CBM.

Q. No. 1164. COAL PRODUCTION 25.07.2018 SHRI P.R. SUNDARAM: SHRIMATI V. SATHYA BAMA:

Will the Minister of COAL be pleased to state: (a) the current status of coal production, supply and use for the ongoing projects and for the newly proposed projects of Coal India Limited (CIL) and its subsidiaries as well as NLC India; (b) whether the Government has taken adequate measures to reduce carbon footprints by reducing the production, supply and use of coal in various industries in the country; (c) if so, the details thereof; and whether the CIL and its subsidiaries had given any specific reply to the Government in this regard and if so, the details thereof? ANSWER MINISTER OF RAILWAYS, COAL, FINANCE AND CORPORATE AFFAIRS ( SHRI PIYUSH GOYAL ) (a): The current status of coal production of ‘ongoing projects’ of CIL as on Mar,2018 is as follows-

Subsidiary

Total Proje cts

Total Sanctioned Capacity (MTY)

Coal Production 2017-18 (MT)

ECL

22.92

15.72

BCCL

12.95

3.03

CCL

57.72

22.56

NCL

50.00

39.80

WCL

45.16

24.95

SECL

202.66

83.43

MCL

167.83

80.80

NEC

1.20

0.78

Total CIL

114

560.43

271.07

CCAI Monthly Newsletter August 2018

| 23

Sector wise coal supply from CIL during 2017-18 (upto Mar’18) is as under: (in Million tonnes) Sectors Power

Actual Dispatch 2017-18 (Provisional) 454.22

Fertilizer

1.88

Steel

3.14

CPP

40.08

Cement

4.83

Sponge Iron

8.07

Others

69.24

Total

581.47

The current status of coal production of ‘ongoing projects’ of NLCIL is as follows: NLCIL, at present operates 3 lignite mines (28.5 MTPA) linked to 4 pit head power stations at Neyveli (2990), one lignite mine (2.1 MTPA ) linked to pit head power station at Barsingsar, Rajasthan (250 MW). NLCIL uses the Lignite produced in its mines to the linked pit head power plants. Also a small quantity of lignite is being sold to an Independent power producer and small scale industries. New mining projects of NLCIL are: Expansion of Mine-I 10.50 MTPA (Area Expansion) & Expansion of Mine- IA (From 3.0 MTPA To 7.0 MTPA) Hadla Lignite Mine (1.9 MTPA) and Bithnok Lignite Mine (2.25 MTPA) at Rajasthan. Mine-III project at Neyveli (11.5 MT per Annum) South of Vellar at Tamilnadu (11.5 MT per Annum) –(as a replacement for Mine-I&II) Pachwara South in Jharkhand (11 MTPA) –allocated on 25.07.2013. Talabira-II & III in Orissa (20 MTPA) – allocated on 02.05.2016. (b) to (d): Government of India has already taken several initiatives to improve the efficiency of coal based power plants and to reduce its carbon footprint. All new, large coal-based generating stations have been mandated to use the highly efficient supercritical technology. Renovation and Modernization (R&M) and Life Ex-

24 | CCAI Monthly Newsletter August 2018

tension (LE) of existing old power stations is being undertaken in a phased manner. About 144 old thermal stations have been assigned mandatory targets for improving energy efficiency. Coal beneficiation has been made mandatory. Introduction of ultra-supercritical technology, as and when commercially available is part of future policy. Besides, stringent emission standards being contemplated for thermal plants would significantly reduce emissions. To promote cleaner and alternate use of coal, CIL is pursuing initiatives for setting up plants for gasification of coal and its further processing into downstream chemicals. In this direction, CIL has formed a JV company along with RCF, GAIL and FCIL namely; Talcher Fertilizers Limited (TFL) to set up a coal based Ammonia-Urea plant at Talcher, Odisha, through Surface Coal Gasification route.

Q. No. 1265. DECLINE OF COAL PRODUCTION IN PRIVATE SECTOR 25.07.2018 PROF. CHINTAMANI MALVIYA : Will the Minister of COAL be pleased to state: (a) whether the production of coal has declined in the private sector in the country; (b) if so, the production of coal in each of the coal mine in private sector in the country during each of the last three years and the current year; and (c) the percentage of coal produced by private sector in the country? ANSWER MINISTER OF RAILWAYS, COAL, FINANCE & CORPORATE AFFAIRS (SHRI PIYUSH GOYAL) (a) to (c): No, Madam. Coal production by private sector has increased from 32.55 MT in 2015-16 to 34.75 MT in 2017-18. The details of coal produced by private sector (company-wise/mine-wise) during the last three years and current year is given below:

COMPANY WISE RAW COAL PRODUCTION DURING 2015-16 to 2017-18 [Quantity in Million Tonnes] Company

Name of Captive Block

2018-19 [Up to May 2018] (Provisional)

2017-18 (Provisional)

2015-16

2016-17

TISCO

6.228

6.316

6.256

1.022

Meghalaya

3.712

2.308

0.671

HIL Total

Gare Palma IV/4, IV/5 and Kathautia

0.069

2.000

2.499

0.317

JPVL

Amelia North

2.800

0.948

SIL

Belgaon

0.165

0.153

0.270

0.036

BALCO

Chotia

0.120

0.180

0.000

SPL

Moher & Moher Amlori Extn

17.022

16.997

18.003

2.714

CESC

Sarshatali

1.877

1.742

1.832

0.404

GMR

Talabira I

0.560

0.151

0.270

0.000

RCCPL

Sial Ghogri

0.000

0.025

0.063

0.012

TUML

Marki Mangli I

0.000

0.445

0.054

Total Private

32.553

34.076

34.746

6.178

All India

639.23

657.87

676.48

184.42

% Produced by Private Sector

5.1

5.2

5.1

3.3

Q. No. 2358. MINE ALLOCATION TO ANSWER COAL INDIA LIMITED 01.08.2018 MINISTER OF RAILWAYS, COAL, FINANCE AND CORM. UDHAYAKUMAR: Will the Minister of COAL be pleased to state: (a) whether the Government has set up a panel to identify additional mines for allocation to Coal India Limited (CIL); (b) if so, whether the said panel has come out with any report or suggestion for allocating additional coal mines to CIL; and (c) whether Coal India requires additional mines to achieve its target of producing one billion tonne of coal and if so, the details thereof?

PORATE AFFAIRS (SHRI PIYUSH GOYAL) (a) to (c): In pursuance of Rule 3 (2) of the Coal Blocks Allocation Rules, 2017 (CBA Rules, 2017) framed under the Mines and Minerals (Development and Regulation) Act, 1957 [MM(DR) Act, 1957], a Committee has been constituted on 20.12.2017 under the chairmanship of Additional Secretary, Ministry of Coal to identify additional coal/lignite blocks for allocation and one of the Terms of Reference (ToR) of that Committee is to identify the coal blocks for allocation under the provisions of MMDR Act, 1957 and CBA Rules, 2017 to Coal India Limited (CIL)/its subsidiaries, keeping in view their long term production commitments. The Committee has so far held four meetings. CCAI Monthly Newsletter August 2018

| 25

Coal India Ltd. (CIL) had requested the Government for allotment of additional coal mines so as to make its 3 subsidiaries viz. Eastern Coalfields Ltd. (ECL), Bharat Coking Coal Ltd. (BCCL) and Western Coalfields Ltd. (WCL), 100 MT plus per annum coal producing subsidiaries as these 3 subsidiaries do not have adequate coal reserves at present. Considering the request of CIL, 11 coal mines have been allocated to CIL. Addition of these 11 coal mines will add about 225 MT of coal in its annual production capacity. The details of these 11 coal mines are at Annexure.

to power sector; (d) whether the Government has taken any steps and directed CIL and State to import coal to bridge the gap between the demand and supply and if so, the details thereof for the last three years; (e) if so, the price at which coal is being imported from external agencies; and (f) whether the private companies or captive miners have been allowed selling coal in open market and if so, the details thereof? ANSWER

Sl. No

Name of Coal Mine Location

Amarkonda Murgadangal

Jharkhand

Brahmani

Jharkhand

Chichro Patsimal

Jharkhand

4-5

Rampia and Dip side of Rampia

Odisha

6-7

Ghogharpalli and Dip Extension of Ghogharpalli

Odisha

Mandar Parvat

Bihar

Dhulia North

Jharkhand

Mirzagaon

Bihar

Pirpainti- Barahat

Jharkhand

Name of Subsidiary company of CIL

ECL

WCL

BCCL

Q. No. 3473. SHORTAGE OF COAL 08.08.2018 SHRI VENKATESH BABU T.G.: DR. MANOJ RAJORIA: SHRI KAMAL NATH: SHRI JYOTIRADITYA M. SCINDIA: ADV. NARENDRA KESHAV SAWAIKAR: Will the Minister of COAL be pleased to state: (a) the requirement of coal by various power plants and supply made to them during each of the last three years and the current year, plant/State-wise (b) whether there is coal shortage in the country which is likely to persist for the next 2-3 years; (c) if so, the details thereof and the steps taken to enhance production of coal and improve supply of coal

26 | CCAI Monthly Newsletter August 2018

MINISTER OF RAILWAYS, COAL & FINANCE AND CORPORATE AFFAIRS (SHRI PIYUSH GOYAL) (a): Plant-wise and State-wise coal supplies for the last three years and the current year from Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) are at Annexureâ&#x20AC;&#x201C;I and Annexure-II respectively. (b) & (c): There is no shortage of coal for the Power Sector. In the beginning of 2018-19, Coal India Limited (CIL) had a pithead stock of 55.55 Million Tonne (MT) and stock at power house end was 16.27 MT. In the 2018-19 (up to 05.08.2018), CIL dispatched 167.86 MT (provisional) coal to Power Sector, thereby achieving a growth of 15% over the dispatch in the corresponding period of last year. The growth in dispatch of coal to Power Sector has helped coal based generation to achieve positive growth of 5.3% and 101.3% of the programme in the 1st Quarter of 2018-19. This is despite the fact that generation from imported coal based plants was 66% of the programmee in the first quarter of 2018-19. This shows that shortfall in generation from imported coal based plants was also compensated by increased power generation from plants based on domestic coal. The progress of production and offtake of CIL is reviewed regularly. New rail lines are being laid for smooth evacuation of increased coal production from the mines of growing coalfields of SECL, MCL and CCL. Further, coal supplies to Power sector is monitored regularly by an Inter-Ministerial Sub Group comprising representatives of Ministries of Power, Coal, Railways, Shipping, Central Electricity Authority, NITI Aayog, CIL etc. A committee of Secretary (Coal), Secretary (Power) and Member (Traffic), Railway Board has also been jointly reviewing the coal trans-

portation and supply on a regular basis. (d) and (e): Ministry of Power has advised on 30.05.2018 to Energy Department of State Governments to assess their requirement in respect of import of coal and plan accordingly. Considering the demand projection of power sector by CEA and production plan of CIL, no shortage of domestic coal in power sector is anticipated in the coming years. For the Financial Year 2018-19, Ministry of Power has projected annual domestic coal requirement 615 MT (525 MT from Coal India Limited, 53 MT from SCCL and 37 MT from Cap-

tive mines). This requirement is being met by supply of coal from domestic sources. Due to these efforts of enhanced domestic coal supply to power plants, the coal import by power plants has been reducing during last three years. The coal imported for blending purposes during 2015-16, 201617 and 2017-18 have been 37.1 Million Tonnes (MT), 19.8 MT and 17.0 MT respectively. Coal and coke, being under Open General License as per import policy of the Government, are imported by various traders and consuming industries as per their requirements. However, the gap between

demand and domestic supply of coal cannot be bridged completely as there is insufficient availability of coking coal and power plant designed on imported coal will continue to import coal for their production. (f): The methodology for auction of coal mines/blocks for sale of coal under the provisions of the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957 has been approved by the Government. No coal mines have so far been auctioned under this methodology.

Annexure -I POWER HOUSE/STATE WISE DESPATCHES FROM CIL SOURCES FOR THE LAST THREE YEARS AND CURRENT YEAR (UP TO JULY 2018) (in Lakh Tonnes) 2015-16 Name of TPP

2016-17

2017-18

2018-19 (till Julyâ&#x20AC;&#x2122;18) Despatch

FSA Qty

Despatch

FSA Qty

Despatch

FSA Qty

Despatch

Prorata FSA Qty

SANTALDIH BANDEL

11.16 16.00

26.57 8.57

11.16 16.00

23.57 11.89

11.16 16.00

15.81 10.15

3.61 5.17

7.84 3.38

KOLAGHAT

53.00

51.09

53.00

44.71

53.00

32.01

17.14

14.30

BAKRESWAR

44.10

47.78

44.10

47.49

44.10

42.64

14.26

11.32

SAGARDIGHI

16.50

22.01

16.50

31.03

16.50

31.87

5.34

6.29

FARAKKA/NTPC BUDGE BUDGE CESC

93.12 17.45 0.50

82.49 16.49 0.00

93.12 11.70

95.76 15.80

93.12 7.95

83.69 13.37

30.11 2.57

31.84 3.19

CESC/SOUTH GEN

2.50

2.48

2.50

2.79

2.50

1.94

0.81

0.69

TITAGARH DPL

5.50 22.00

3.89 14.50

5.50 18.40

0.89 13.14

5.50 18.40

0.00 14.85

1.78 5.95

0.00 5.73

DVC/DURGAPUR

10.00

7.18

10.00

3.79

10.00

3.69

3.23

1.93

DVC/MEJIA

56.00

86.86

56.00

81.90

58.23

83.68

18.11

24.94

DURGAPUR STEEL TPP DVC RAGHUNATHPUR HALDIA ENERGY Total WEST BENGAL MUZAFFARPUR BARAUNI NTPC BARH

37.25

32.96

37.25

46.10

37.25

41.78

12.04

16.03

23.64 408.72 11.60 11.00

4.51 19.13 426.53 6.23 0.00

25.70 400.93 11.74 11.00

4.10 23.77 446.73 7.02 1.53

18.65 25.70 418.06 17.11 11.00

5.89 23.17 404.54 13.77 0.61

12.70 8.31 141.13 8.97 3.56

6.41 7.61 141.50 5.41 0.14

103.12 -

32.13 117.39 0.08

109.18 2.00

37.17 125.88 1.10

113.12 14.54

35.31 126.36 6.74

36.58 8.08

6.86 39.14 4.19

NTPC KAHALGAON NTPC NABI NAGAR

CCAI Monthly Newsletter August 2018

| 27

FSA Qty

Despatch

FSA Qty

Despatch

FSA Qty

Despatch

PATRATU/JSEB TENUGHAT

10.00 20.00

3.52 21.51

10.00 20.00

3.50 11.40

10.00 20.00

0.00 14.17

2018-19 (till Julyâ&#x20AC;&#x2122;18) Prorata Despatch FSA Qty 3.23 0.00 6.47 4.49

BOKARO

30.00

13.89

30.00

11.14

49.70

21.44

16.09

7.17

CHANDRAPURA/DVC MAITHON POWER LTD.

27.30 36.34

33.84 39.46

27.30 36.34

29.65 36.92

27.30 36.34

19.45 36.40

8.83 11.75

5.57 13.21

KODERMA (DVC)

37.10

24.22

37.03

23.96

37.03

34.69

11.97

16.94

ADHUNIK POWER Total JHARKHAND TTPS TTPS/STPS

160.74 25.00 173.00

9.39 145.83 29.05 158.98

IB VALLEY /OPGC STERLITE ENERGY

27.00 56.56

27.00 39.78

160.67 27.65 176.38 27.00 25.70

2.37 118.94 31.43 181.24 28.59 22.45

180.37 30.00 178.00 27.00 25.70

0.04 126.19 30.72 185.15 25.83 15.75

58.34 9.70 57.55 8.73 8.31

0.00 47.38 9.51 58.92 9.23 0.21

Name of TPP

2015-16

2016-17

2017-18

GMR KAMALANGA (IPP) 30.07

25.22

21.40

25.05

21.40

21.75

6.92

8.06

JINDAL INDIA THERMAL -

0.30

3.51

2.75

19.26

8.47

6.22

2.27

IND BHARATH ENERGY(Utkal) LTD

1.00

0.50

15.08

1.16

4.88

0.00

Total ORISSA NTPC BONGAIGAON TOTAL ASSAM RIHAND UNCHAHAR DADRI

311.63 0.00 138.65 57.00 77.32

281.33 1.14 1.14 130.10 50.24 72.10

281.64 2.00 2.00 140.45 55.19 80.10

292.01 6.76 6.76 143.47 45.19 57.51

316.44 10.69 10.69 142.05 54.00 80.10

288.83 7.35 7.35 148.55 43.93 62.11

102.31 5.34 5.34 45.93 17.46 25.90

88.20 4.38 4.38 43.94 6.30 28.55

TANDA

24.38

24.86

24.62

19.45

23.00

19.69

7.44

4.61

SINGRAULI

110.00

115.82

HARDUAGANJ PARICHHA

29.54 50.63

28.37 59.37

112.65 27.90 50.63

108.76 24.14 41.52

115.00 27.90 50.63

100.80 20.44 43.48

37.18 9.02 16.37

29.89 6.92 13.01

PANKI EXTN.

9.00

6.70

9.00

5.97

9.00

1.49

2.91

0.00

PRAYAGRAJ (JAYPEE)

2.62

23.40

26.95

70.20

23.65

22.47

12.66

OBRA

39.80

35.09

46.67

32.93

46.57

34.81

15.06

6.61

ANPARA

85.00

94.87

94.99

104.09

118.64

113.26

38.36

43.63

ROSA(IPP),UP

46.89

45.03

46.89

44.36

46.89

38.86

15.16

10.62

LANCO ANPARA

41.82

47.72

41.82

51.41

41.82

47.67

13.52

17.30

BAJAJ ENERGY

19.50

17.26

19.50

13.70

19.50

5.00

6.31

3.26

LALITPUR POWER

5.43

2.15

0.71

0.00

MEJA URJA NIGAM

0.00

0.52

0.19

Total U.P.

729.53

735.59

773.81

721.60

845.30

704.97

273.09

227.49

PSPCL (Bhatinda, LHM, Ropar)

66.00

55.98

66.00

40.81

66.00

33.16

21.34

12.77

NABHA POWER (IPP)

55.50

42.40

55.50

50.34

55.50

48.34

17.95

16.49

TALWANDI SABO

25.73

18.31

66.99

48.91

77.20

47.88

24.96

18.11

Total PUNJAB

147.23

116.69

188.49

140.06

198.70

129.38

64.25

47.37

PANIPAT

66.00

28.41

44.65

15.45

44.65

20.22

14.44

10.78

YAMUNANAGAR

28.00

24.43

28.00

21.59

28.00

16.39

9.05

6.03

RGTPS,HISSAR

47.88

17.39

47.88

27.74

47.02

26.83

15.20

13.03

IGTPP,JHAJJAR

58.01

34.45

59.07

33.04

56.23

49.01

18.18

15.03

MGTPP,JHAJJAR

49.37

29.99

49.37

16.84

49.37

34.80

15.96

11.36

Total HARYANA

249.26

134.68

228.97

114.66

225.27

147.25

72.83

56.23

RAJGHAT

8.00

0.39

8.00

0.00

28 | CCAI Monthly Newsletter August 2018

FSA Qty

Despatch

FSA Qty

Despatch

FSA Qty

Despatch

Total DELHI

50.00

1404.02

35.47

11.92

17.20

10.65

2018-19 (till Julyâ&#x20AC;&#x2122;18) Prorata Despatch FSA Qty 5.56 4.69

KOTA

69.58

52.40

69.58

41.62

69.58

45.08

22.50

18.91

CHABRA

23.12

20.32

23.12

22.06

23.12

14.55

7.48

4.22

SURATGARH

78.04

39.15

78.04

26.49

78.04

28.88

25.23

15.80

ADANI POWER KAWAI

0.00

0.68

0.00

KALISINDH UNIT - 1

0.00

1.02

0.26

Total RAJASTHAN

170.74

111.87

170.74

90.17

170.74

90.21

55.21

39.19

SIKKA

12.20

2.93

12.20

1.03

12.20

0.00

3.94

0.00

UKAI

41.70

42.18

41.70

41.20

41.70

42.12

13.48

13.11

GANDHINAGAR

34.60

20.50

34.60

17.34

34.60

25.67

11.19

8.13

WANAKBORI

85.20

46.93

85.20

28.87

85.20

47.38

27.55

22.63

AHMEDABAD (Torrent)

13.40

8.89

13.40

11.06

13.40

10.36

4.33

3.63

ADANI-MUNDRA

64.05

40.36

40.90

28.29

64.05

49.01

20.71

11.33

Total GUJARAT

251.15

161.78

228.00

127.80

251.15

174.54

81.20

58.83

KORBA (E) & EXP

53.00

51.53

53.00

48.56

53.00

43.51

17.14

14.25

KORBA (W)

70.99

71.60

70.12

74.25

70.12

64.74

22.67

26.55

KORBA (W) POWER CO LTD RAIGARH

0.52

0.27

1.25

0.00

1.16

0.00

0.38

0.00

MARWA TPS

1.30

19.39

40.55

14.69

KORBA/STPS (NTPC)

145.12

142.40

145.12

135.94

145.12

126.10

46.92

44.72

SEEPAT(NTPC)

149.56

133.15

149.56

138.36

149.56

136.07

48.36

48.97

LANCO AMARKANTAK

20.04

18.48

27.85

23.32

27.85

22.02

9.00

6.99

DB POWER

6.65

3.22

20.28

10.46

20.28

16.58

6.56

4.26

NSPCL,BHILAI

24.08

19.82

24.08

22.59

24.08

21.77

7.79

7.02

MARUTI CLEAN COAL POWER LIMITED

0.00

0.20

12.69

3.04

12.69

9.19

4.10

3.17

Name of TPP

2015-16

2016-17

2017-18

KSK MAHANADI LTD

29.87

26.64

8.38

9.03

0.00

0.39

BALCO IPP

5.53

4.43

12.13

9.69

15.59

9.58

5.04

3.65

JINDAL TAMNAR

8.38

11.42

28.25

17.10

34.80

27.86

10.20

8.37

RKM POWER CO LTD

0.00

0.99

0.00

0.73

16.99

7.58

5.49

4.12

TRN ENERGY Pvt.Ltd.

0.00

2.40

19.87

10.52

6.43

3.73

SKS Power

0.00

0.34

0.00

0.84

NTPC LARA

0.00

2.00

ACB INDIA LTD.

0.65

0.29

Total CHHATISGARH

513.74

485.45

552.71

514.86

591.11

538.80

190.73

191.62

AMARKANTAK

20.00

9.76

20.00

8.54

20.00

9.84

6.47

2.87

SARNI

66.45

59.75

69.62

21.51

69.62

41.52

22.51

18.66

BIRSINGHPUR(MP)

64.00

52.39

64.00

49.25

64.00

52.02

20.69

18.51

VINDHYACHAL (NTPC)

203.89

202.67

205.75

214.01

207.39

257.40

67.06

79.50

JP BINA (IPP)

15.42

8.93

15.42

4.06

15.42

12.06

4.99

4.75

SHRI SINGAJI KHANDWA

49.94

27.63

46.78

13.09

46.78

26.90

15.13

16.62

MB POWER LIMITED

18.03

18.40

35.04

24.55

35.04

31.21

11.33

9.37

Jhabua Power Limited

0.11

13.28

2.43

18.98

9.61

6.14

4.71

Total MADHYA PRADESH

437.73

379.64

469.89

337.44

477.23

440.56

154.32

154.99

CHANDRAPUR

128.00

95.98

128.00

92.70

128.00

94.22

41.39

24.45

CCAI Monthly Newsletter August 2018

| 29

2015-16 Name of TPP

2016-17

2017-18

2018-19 (till Julyâ&#x20AC;&#x2122;18) Despatch

FSA Qty

Despatch

FSA Qty

Despatch

FSA Qty

Despatch

Prorata FSA Qty

KHAPARKHEDA.

72.04

64.65

73.12

48.16

73.12

47.28

23.64

18.58

NASIK

33.56

33.40

33.56

22.52

30.78

23.18

9.95

6.71

KORADIH

31.60

30.13

31.60

34.09

34.51

52.04

11.16

15.54

BHUSAWAL

69.21

56.52

71.00

30.82

67.63

59.84

21.87

19.17

PARLI

47.04

7.05

35.95

3.73

34.19

15.41

11.05

4.99

DAHANU

24.50

24.27

24.50

22.48

24.50

19.53

7.92

7.31

WARDHA WARORA

16.25

11.17

16.25

0.00

16.25

3.10

5.25

2.69

PURTI POWER IPP

1.10

1.12

1.10

0.91

1.10

0.28

0.36

0.00

NTPC-MOUDA

25.07

12.77

25.17

23.18

62.98

24.35

11.95

10.63

EMCO WARORA (IPP)

26.00

21.40

26.00

17.30

26.00

18.78

8.41

5.76

ADANI POWER TIRODA

49.10

66.71

49.12

68.55

49.12

39.91

15.88

11.57

RATANINDIA (AMRAVATI) TPP (IPP)

68.36

37.17

54.93

5.86

54.93

35.24

17.76

19.01

VIDARBHA IPP(BUTIBORI)

11.11

11.02

11.11

12.21

11.11

12.85

3.59

3.50

DHARIWAL INFRASTURE

0.28

0.23

14.14

4.85

14.14

10.65

4.57

3.65

SOLAPUR STPP (NTPC)

0.00

0.58

13.02

0.77

8.24

2.59

Total MAHARASHTRA

630.01

501.74

622.34

407.18

653.39

476.07

202.84

163.48

204.45

158.75

204.45

125.17

204.45

137.94

66.11

53.34

VALLUR-TNECL

63.95

33.00

62.39

45.18

62.39

52.60

19.20

14.37

NLCTPL,TUTICORIN

8.40

5.89

26.31

16.40

34.81

34.32

12.50

10.71

Total TAMIL NADU

276.80

197.64

293.15

186.75

301.65

224.86

97.81

78.42

RAICHUR (KPCL)

51.21

54.39

51.21

45.51

51.21

42.30

16.56

16.18

BELLARY (KPCL)

8.18

0.92

Total KARNATAKA

51.21

62.57

51.21

46.43

51.21

42.30

16.56

16.18

TNEB/TANGENDCO : METTUR, ENNORE, NORTH CHENNAI, TUTICORIN

KOTHAGUDEM TPS

0.07

0.12

RAMAGUNDEM/STPS

10.00

3.10

Total TELENGANA

10.00

3.18

0.00

0.12

0.00

SIMHADRI

98.22

59.73

98.22

66.68

98.20

79.17

31.75

26.96

MUDANNUR

18.80

23.22

18.80

22.02

18.80

15.45

6.08

3.38

VIJAYWADA

83.12

61.21

83.12

59.15

83.12

65.36

26.88

21.79

HINDUJA

1.70

35.37

20.83

46.24

26.32

14.95

0.04

APPDCL, SRIDAMODARAM 19.87 SANJEEVIA TPS-(U 1&2)

14.15

50.00

35.94

50.00

30.41

16.17

13.20

PAINAMPURAM (THERMAL POWER TECH)

19.66

11.96

33.47

22.38

42.73

24.68

13.82

9.66

ANDHRA PRADESH

239.67

171.99

318.99

227.00

339.09

241.39

109.65

75.03

TOTAL CIL

4763.87

5477.49

4912.92

3963.12

5203.37

4230.68

1688.36

1450.72

30 | CCAI Monthly Newsletter August 2018

Annexure-II POWER HOUSE/STATE WISE DESPATCHES FROM SCCL SOURCES FOR THE LAST THREE YEARS AND CURRENT YEAR (UP TO JULY 2018) (in Lakh Tonnes) 2015-16

2016-17

2017-18

POWER HOUSE

2018-19 (Apr-Jul â&#x20AC;&#x2DC;18)

LINKAGE

Supply

LINKAGE Supply

PRORATA Supply LINKAGE

KOTHAGUDEM

59.00

95.58

82.12

89.95

82.12

99.52

27.45

28.87

RDM B

3.00

2.72

3.00

3.30

3.00

3.29

1.00

1.01

KAKATIYA

21.60

23.34

21.60

25.93

21.60

27.69

7.22

9.75

KTPS STGE-VII

0.00

BHADRADRI TPS

0.00

112.00

124.27

112.00

122.06

37.44

38.33

22.00

14.98

22.00

17.92

5.01

4.84

45.00

59.31

16.38

13.56

N.T.P.C ., RGM

102.00

121.55

KTPP- STAGE-II SINGARENI T P PROJECT

0.00

1.82

35.00

26.23

Total Telangana

185.60

245.01

275.72

284.65 285.72

329.79

94.50

96.36

RTPP MUDDANUR NTPC (Simhadri) SRI DAMODARAM STPP

38.80 15.00 0.00

35.87 17.29 0.33

38.80 25.00 10.00

31.14 24.02 1.26

34.87 10.61 0.11

12.97 3.34 0.00

10.02 2.36 0.00

VTPS

0.00

64.15

50.00

39.27

25.00

29.38

7.34

22.03

Total Andhra Pradesh

53.80

123.80 22.60

95.70 0.08

74.30 0.00

74.97

PARLI TPS/MAHAGENCO (OLD) 22.60

117.64 7.62

23.65 0.00

34.41 0.00

KORADI TPS

5.20

6.50

11.40

13.00

16.32

3.26

6.35

0.00

4.33 0.00

3.87 2.27

8.65 10.00

8.03 7.58

2.17 3.34

3.05 4.82

NTPC Ltd., SOLAPUR SUP. THERMAL

0.00

5.00

4.29

0.84

2.33

M S E B BHUSAWAL CHENDRAPUR(CSTPS) KHAPERKHEDA TPP

0.00 0.00 0.00

0.00 16.09 3.70

5.00 10.00 5.00

2.90 19.23 7.85

1.64 10.00 1.03

0.56 11.22 0.23

0.00 0.84 0.00

0.96 0.00 0.00

PARAS TPS

0.00

0.48

0.00

1.60

0.84

0.90

POWER E-AUCTION Total Maharashtra BELLARY (KPCL)

0.00 22.60 24.00

0.00 33.09 23.47

25.00 78.43 50.00

8.39 55.97 29.69

0.00 49.32 20.00

1.45 51.27 17.07

1.67 12.95 5.74

1.18 19.59 3.60

5.00

3.73

20.00

7.54

13.04

3.99

NTPC KUDGI

0.00

0.24

5.00

0.82

25.00

19.56

13.04

6.16

RAICHUR / KPCL

24.00

40.91

30.10

38.06

30.10

31.11

10.06

9.37

Total Karnataka TANGEDCO (MTPS I & II) NTPC Vallur

48.00 0.00 0.00

64.62 0.00 0.00

90.10 10.00 0.00

72.30 4.91 0.00

95.10 3.00 0.09

75.29 2.07 0.00

41.87 0.00 0.00

23.12 0.00 0.00

Total Tamilnadu

0.00

10.00

4.91

3.09

2.07

0.00

ARAVALLY TPS Total Haryana NSPCL (Ntpc&Sail)

15.00 15.00 10.00

9.85 9.85 3.10

5.00 5.00 10.00

1.03 1.03 0.40

0.00 0.00 1.00

0.00 0.00 1.11

0.84 0.84 1.67

0.72 0.72 0.88

NTPC KORBA SUP.THER.

0.00

0.19

1.67

0.39

NTPC LTD-SIPAT

0.00

0.10

0.04

0.00

Total Chhattisgarh

10.00

3.10

10.00

0.40

1.10

1.34

3.34

1.27

TOTAL POWER

335.00

473.31

593.05

514.97 508.63

534.72

177.15

175.47

PARLI (UNIT -8) NTPC Mouda

0.00

YERMARUS TPP

38.80 10.00 0.50

CCAI Monthly Newsletter August 2018

| 31

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

G3-6400-6700

G5-5800-6100

G7-5200-5500

G10-4300-4600

G11-4000-4300

G12-3700-4000

Basic ROM price (Rs./te)

3144/ 3144

2737/2737

1926/2311

1024/1228

955/1145

886/1063

Tentative Ex-Mine Price*

4447/4447

3941/3941

2932/3411

1809/2063

1724/1959

1638/1858

COAL CIL said it produced 177.43 million tonnes of coal in the first four months of the ongoing fiscal, registering a growth of 14 percent. It had produced 155.53 million tonnes (MT) of coal in the year-ago period, Coal India Ltd said in a filing to BSE. In July CIL produced 40.56 MT coal, against 36.69 a year ago. The stateowned firm accounts for over 80 per cent of the domestic coal production. Coal India is considering outsourcing coal bed methane production to global operators and will set aside Rs 3,000 crore to part-finance the initiative, company executives said. The government is considering the recommendations of a sub-group with regard to revision of present royalty rates on coal, Parliament was informed. “The Study Group has submitted its recommendations which is under consideration with the government,” Coal Minister Piyush Goyal said in a written reply to Lok Sabha. Coal India Ltd, the world’s biggest miner, has pushed back its ambitious 1 billion tonne production target by at least two years owing to the existing ground realities, a top official of the company has said.

RAILWAYS India’s harbors have become clogged up with coal as imports to power an expanding economy outpace railroad capacity to transfer the fuel to consumers. Stockpiles rose by 15 percent in seven weeks to 19.2 million metric tons, according to a compiled data from 18 ports. State-run freight carrier Indian Railways shipped 47.32 million mt coal in July rising 8.7% from the same month a year ago, according to latest data from the Directorate of Statistics and Economics released. In a first, Indian Railways is set to opt for the reverse auction method to decide on its wagon tender as 13 players have entered the race to manufacture 21,758 wagons at an estimated cost of Rs 5,600 crore -the largest wagon order ever for the national transporter. The order includes about nine types of wagons, including covered, flat, open, brake van and regular ones, to be supplied by the successful bidders in the next two years.

POWER Coal Minister Piyush Goyal has said that the recent decision of the Union Power Ministry to allow states to import coal is temporary in nature. “We are constantly trying to ramp up production. Allowing states to import coal is temporary in nature,” Goyal told when asked about the Union Power Ministry asking states to import coal in the wake of coal shortage.

32 | CCAI Monthly Newsletter August 2018

The number of power plants facing coal shortages has reduced in the last four months as state-owned CIL and the railways worked jointly to augment the supplies, Parliament was informed. It has come down to six plants with critical stocks and five with supercritical stock as on August 1, from 13 and 17 plants respectively four months ago. The country is seen to have 2.5% surplus power available in FY19 than the peak demand of 180.7 giga-watts (GW), the â&#x20AC;&#x2DC;load generation balance reportâ&#x20AC;&#x2122; released by the Central Electricity Authority (CEA) showed. The government agency anticipates conventional power capacity addition of 9,626.2 MW during the fiscal, comprising 8,216.15 MW of thermal, 910 MW of hydel and 500 MW of nuclear power. Prime Minister Narendra Modi has reviewed the progress of power, renewable energy, petroleum and natural gas, coal, and mining sectors. An official statement said, â&#x20AC;&#x153;It was noted that the installed power generation capacity in India has risen to 344 Giga Watts (GW). The power ministry has allowed power generation firms to supply less expensive power from their preferred plants to distribution companies (discoms), even if power purchase agreements (PPAs) are linked to other (more expensive) plants. Lack of coal linkages, delay in payment from discoms and other regulatory issues impacted the power sector, Power Secretary A K Bhalla told. However, there is scope for consultation on power NPAs and a few projects are under resolution too, he also said. A high level committee on power would meet to discuss the case and the finance ministry will take a call on intervention under Section 7 of RBI Act, he added. Higher demand for thermal power and lower-than-required growth in domestic coal output may push up coal imports to 62 million tonne this fiscal. According to the sources, imported coal requirement is likely to increase to 62 million tonne this fiscal from 56 million tonne in FY2018 to meet the incremental power generation. Power plants which are shut due to coal shortage are themselves responsible for low fuel stocks as Coal India (CIL) has already supplied contracted quantities to these generation units, the coal ministry said. As per the latest government data, the outage at 8,980 MW of coal-based power generation capacity has been attributed to the shortage of fuel.

CEMENT Coal India will supply 4.65 million tonnes of coal a year for the cement industry for five years through e-auctions, a senior Coal India executive said. It had recently offered 7 million tonnes to sponge iron firms, and received bids that were 39% higher than the notified price for the non-power sector. Despite pick-up in cement demand in Q1 FY 19, higher coal, pet coke prices and freight costs in the nearterm are likely to put pressure on the profitability margins and debt metrics of the cement companies, a report said. Domestic cement demand registered a healthy growth of 14.2% Y-o-Y in Q1 FY2019. This buoyancy has however not been translated into improved financials for the sector.

STEEL India has the potential to treble crude steel production by 2030 from the present level of roughly 100 million tonnes per annum (mtpa), but that alone will not be sufficient to make it a dominant player in the global market, according to experts. The falling rupee will adversely impact the domestic steel sector as import of various raw materials will become expensive and the cost of servicing debt would also go up, government officials and experts said. Domestic steelmakers are set to increase prices from next month as a historical currency erosion drives up costs of imported raw material. The increase is also the result of attempts by manufacturers to plug the gap between domestic and international steel prices. Currently, Indian steel prices are at a 5-8% discount to the prevailing rate overseas. CCAI Monthly Newsletter August 2018

| 33

34 | CCAI Monthly Newsletter August 2018

6780

64.73

Source CEA

TOTAL

53.15

56.39

AUG-2018

1265000

5000

NUCLEAR

BHUTAN IMP

38500

130000

ACTUAL*

57.72

HYDRO

1091500

PROGRAM

274791.51

THERMAL