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Domestic
Govt mops up Rs 8,965 cr till Nov from auctioned, allotted coal blocks
The government mopped up Rs 8,964.75 crore till last month from the auctioned and allotted mines, according to the coal ministry. These revenue figures consist of upfront amount and monthly premium only, while royalty and taxes or cess are payable over and above these payments, the coal ministry said in its EBooklet on reforms.
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Apart from 204 coal mines covered under the Coal Mines (Special Provisions) Act, the remaining blocks are allocated under the Mines and Minerals (Development and Regulation) Act. Till date, 11 coal blocks under the MMDR Act have been allotted to various government companies, where two blocks are for commercial purpose and the remaining nine are for captive end-use, it said. In 2015, the central government brought in the Coal Mines (Special Provisions) Act to reallocate coal blocks cancelled by the Supreme Court in 2014.
The Act ensured continuity in operation of the producing mines and bringing into production other mines expeditiously. It also amended the Coal Mines (Nationalisation) Act and the MMDR Act, thereby bringing uniformity in provisions of all the three Acts governing coal block allocation.
Centre mulls barring non-serious players from future mineral auctions: Pralhad Joshi
The Centre is considering bringing stringent provisions to bar non-serious players from future mineral auctions. Coal and Mines Minister Pralhad Joshi said that he is in talks with State governments to identify and bar those companies that have been delaying production and sabotaging the mineral auction process. Speaking at the CII Global Mining Summit, Joshi said, “We are bringing changes in the next round of the mineral auctions to ensure that only serious players can participate. The government’s intention is to maximise revenue and production.” Joshi said that the Centre had done its part by expediting the auction of mineral leases and transferring clearances. “The leases of a large number of working merchant mines were expiring in March 2020 and had to be auctioned immediately. Our government took a pro-active and industry-friendly step of transforming all the statutory clearances to the new leaseholders by promulgating an ordinance (the Mineral Laws (Amendment) Ordinance 2020). This was a major step to ensure a seamless and continuous supply of raw materials,” he said. The Ordinance allowed transfer of existing clearances to new lease holders. This was done to ensure that there was no dip in mineral production for want of regulatory approvals. But according to Joshi, some mine-lease holders are not producing enough minerals despite having all approvals in place.
CIL banks on supplies to nonpower sector to expand sales
The average loading per day to the non-power sector during the month marked a steep 59% growth at 40 rakes per day against 25 rakes the same month last year. The country’s power sector is stocked with 37.4 mts of coal, sufficient for 22 days. PSU miner Coal India (CIL) is reorienting its marketing plans since the demand from the power sector, its main consumer, is yet to fully resurge. “We are concentrating our efforts on non-power consumers to expand our sales volume. Till there is demand resurgence from power sector we shall follow this, which is helping us,” said a senior executive of the company. The non-power consumers are showing a tendency to lift more coal. CIL’s supply to this sector has risen to 12.3 million tonnes in November this fiscal compared to 8.4 mts during November last fiscal, registering a 46% growth. The non-power sector’s lifting accounted for 24% of the month’s total despatch at 51.3 mts. The non-power sector predominantly consisting of cement, sponge iron, captive power plants and a host of other industries, progressively consumed 80.6 mts up to November, a growth by 14%. The average loading per day to the non-power sector during the month marked a steep 59% growth at 40 rakes per day against 25 rakes the same month last year. The total rake loading during the referred month went up by 20% as CIL loaded 264 rakes per day against 220 rakes during November last fiscal. The power plants are regulating their lifting and are not adhering to their earlier placed programme for rakes. Around 83 power plants have regulated lifting of coal in November, of which 26 have considerably reduced their programme placed for rakes against their entitlement. The remaining 57 have not filed their programme for rakes leading to a demand stagnation for the month, a CIL spokesperson said.
India makes future coal import disclosures mandatory
India has made it mandatory for coal importers to disclose future shipments, in a move seen as tightening screening to curb imports to protect domestic producers. Importers of coking coal, steam coal and bituminous coal would have to gain a permit ahead of deliveries, the commerce and industry ministry said.
"The Coal Import Monitoring System (CIMS) shall require importers to submit advance information in an online system for import of items and obtain an automatic registration number," it said. India's coal consumption was likely to rise in coming years, but it could vary widely, with 2030 demand seen anywhere between 1.15 billion tonnes and 1.75 billion tonnes. The latest move for greater screening is aimed at pushing economic self-reliance to reduce imports and increase exports of value-added products by Prime Minister Narendra Modi's government, officials had told Reuters in September this year.
He said India being a very competitive market, such scarcity leads to intense bidding and unsustainable valuation. Jindal also said coal availability should improve and imports come down over the next five-ten years due to commercial mining. (File photo: IE) Jindal Steel and Power Ltd Chairman Naveen Jindal said the Union government should not “hoard” mines and create artificial scarcity, putting up only a few blocks for auction. He said India being a very competitive market, such scarcity leads to intense bidding and unsustainable valuation. There’s a need for speed in the race to digital: Sunil Jose, Senior Vice-President, Salesforce India MSI GE66 Raider: This laptop packs some serious power “Government has taken care of a lot of challenges, and commercial mining was a bold move… It should help the sector… But, the government cannot hoard blocks and create artificial scarcity,” Jindal said at the Bengal Chamber of Commerce-organised virtual mining conclave. “Royalty and taxes are the highest here in the world. Royalties are also not GST-compliant, and even coal cess of Rs 400 per tonne cannot be adjusted as input cost,” he said. In June, Prime Minister NarendraModi had launched the auction process for 41 coal blocks for commercial mining.
Odisha CM Naveen Patnaik discussed with Union Ministers Pralhad Joshi, Dharmendra Pradhan on the issues auction of mines, mineral reforms
Chief Minister Naveen Patnaik discussed with Union Minister, Coal, Mines and Parliamentary Affairs Pralhad Joshi and Union Minister, Petroleum, Natural Gas and Steel Dharmendra Pradhan and senior officials over video conference on the issues that have emerged from the recently conducted auction of mines, further mineral reforms and other issues related to Mineral sector in the State. Chief Minister emphasized on further Mineral reforms to ensure uninterrupted supply of ore to industry and safeguarding the employment and State revenues. He said that Odisha has been one of the first State to successfully conduct auction of mineral blocks in accordance with the orders of Hon’ble Supreme Court. However, there have been some glitches in commencement in mining operations leading to disruptions in production and dispatch leading to shortage of minerals for end user industries and price rise, he added. Chief Minister emphasized that such disruptions and uncertainties in production and dispatch are undesirable, especially during these times. He said that shortages of ore and resultant high price has posed a challenge for the Sponge Iron plants, Small and Medium size Steel plants which has affected the revenues of the State and the employment of the people dependent on the sector. Chief Minister requested the Union Government for an early decision on the issues discussed as the revenues of the State and employment of the people at large are involved.
STEEL
PHDCCI urges govt to extend quality control order for steel, steel products by 11 months
In the statement, PHDCCI President Sanjay Aggarwal said the total demand of tinplate/tin free steel in India is around 6,50,000 tonnes, while the domestic availability is close to 4,00,000 tonnes. Therefore the gap in demand and supply is met through imports. Industry body PHD Chamber urged the government to extend the Steel and Steel Products Quality Control Order (QCO) issued in July this year by another 11 months. As per the order issued by the Ministry of Steel on July 17, 2020, foreign suppliers are required to take Bureau of Indian Standards (BIS) licence in order to supply tinplate/tin free steel products to consumers in India, PHD Chamber of Commerce and Industry (PHDCCI) said in a statement. The order is valid for 9 months till April 17, 2021, the body said. In the statement, PHDCCI President Sanjay Aggarwal said the total demand of tinplate/tin free steel in India is around 6,50,000 tonnes, while the domestic availability is close to 4,00,000 tonnes. Therefore the gap in demand and supply is met through imports.
Steel prices hiked for the second time in a week
A second hike during the month, on the back of buoyant domestic demand, was largely anticipated since the domestic HRC prices, even after the first hike in December, were at a 6% discount to import parity prices from China. Analysts said there could be the third hike after an inevitable revision in the prices of iron ore in the next few days. The steel prices in the domestic market have been moving northwards on the back of rising domestic demand. Close on the heels of a stiff Rs 3,000/tonne increase in hot-rolled coil (HRC) prices effective from December 2, the domestic steelmakers have raised their benchmark product’s price by another Rs 2,200 per tonne. The latest price hike will be with effect from December 9. A second hike during the month, on the back of buoyant domestic demand, was largely anticipated since the domestic HRC prices, even after the first hike in December, were at a 6% discount to import parity prices from China. Analysts said there could be the third hike after an inevitable revision in the prices of iron ore in the next few days. Assam wants tea to go directly from gardens to globe, banks on six airports for agri exportsoil prices two years high, petrol prices in delhi, diesel prices in delhi, covid vaccine hope driving oil prices, OPEC, public oil marketing companies, BPCL, HPCL, IOCIndia's fuel demand drops 3.6% in November
Nitin Gadkari sees profiteering by cement and steel units
The minister for MSMEs and highways Nitin Gadkari came down heavily on steel and cement industries for jacking up prices, without valid reasons. The minister for MSMEs and highways Nitin Gadkari came down heavily on steel and cement industries for jacking up prices, without valid reasons. Stating that these two industries appeared to take unfair advantage of the government’s initiatives to help businesses, Gadkari wondered what prompted steel firms to raise prices by 55% in the last six months. He indicated that commensurate increases were absent in the price of key inputs like power and raw materials. Gadkari accused cement units of forming cartels to raise the prices of the building material, even as the construction industry is struggling
to recover after being hit hard by the pandemic and the lockdown.
“I decided to make all roads concrete. I wanted to encourage the cement industry. But they are only taking (unfair) advantage of the situation and making cartels. So, I am now allowing bitumen (for road construction),” Gadkari at a Ficci event.
The minister, however, said that there was nothing wrong for a businessperson to earn profit; in fact, that is her “fundamental right” since she is not in the business for “charity”, but there has to have reasons for raising prices. (ends) CEMENT discipline Cement prices in southern India grew by around 18% year on year, which is nearly double the prices in other regions of the country. The cement industry in the southern part of the country has exhibited strong production discipline in the face of weak volumes. According to MotilalOswal, prices in South India have been strong and are up 18 per cent YoY (flat QoQ), while prices in North, West and Central India are up 7 per cent, 6 per cent and 5 per cent YoY, respectively, and 3 per cent, 1 per cent and 2 per cent QoQ, respectively. In Q3FY21, the average price is up 0.8 per cent QoQ so far across India versus a decline of 1.1 per cent and 0.7 per cent QoQ seen in the past 5-10 years. The same is up by around 7 per cent YoY to Rs 360 a bag. Led by hikes of around Rs 70-90 a bag (around 20%) in April-May 2020, prices in the south are still up Rs 60/bag, or 18% YoY to Rs 393 a bag in Q3FY21. On a QoQ basis, prices are flattish as hikes in November 2020 have neutralized the declines seen in the September-October period this year. The report added, volumes are growing over 10 per cent YoY in North, East and Central India, while demand has remained weak in the South and Maharashtra.
Prices in Maharashtra are up by around 10 per cent at Rs 354 a bag, supported by higher prices in the South, which is a key supplier to the state. The same for Gujarat remained steady QoQ (up 3% YoY) at Rs 350 a bag. As a result, prices in the West are currently up 1% QoQ (6% YoY) at
Cement prices in southern India rise 18% over strong production
Rs 352 a bag.
November freight loading rises 9%, nears January level
Transportation of automobiles by train surpassed last year’s figures by 39% Indian Railways (IR) has loaded 109.68 million tonnes (mt) of cargo in November this year, up almost 9 per cent against the corresponding month last year. Loading of all commodities, barring coal, was higher during the month. In November 2020, the Railways earned ₹10,657.66 crore from freight loading, 4 per cent higher compared to last year’s earnings for the same period (₹10,207.87 crore), Railway Board Chairman and CEO VK Yadav informed media in a web-conference here. With this loading, the Railways continued the trend that started post-Covid-19 this fiscal when sequentially all months (barring August) loaded a higher quantum of cargo against the previous month. Higher loading With this, the Railways is also climbing back to pre-Covid times of freight load. It had loaded 110.19 mt of cargo in January this year, when the tracks were populated with both passenger and freight trains. The higher loading was despite the festive month of Diwali when people went on leave; Punjab being cut-off from rails for 23 days during the month; and Cyclone Nivar.
