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Domestic
COAL
India’s coal demand growth fastest amid record global use: IEA
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India’s coal demand growth is expected to be the fastest in the world at 7%, followed by the European Union’s (EU) 6% and China’s less than 1% as global consumption is poised to hit a record 8 billion tonne this year, the International Energy Agency said.The agency’s annual coal market report listed higher consumption for power generation as the primary reason propelling demand for the dry fuel. It said post-pandemic revival in electricity demand, low hydeloutput and EU switching to coal-fired power amid gas crunch shifted the burden on coal.“Global coalfired power generation is set to rise to a new record of around 10.3 terawatt hours this year, while coal production is forecast to rise by 5.4% to around 8.3 billion tonnes, also an all-time high,” the report said. Forecasting a 4% growth in India’s power demand, the report expects the country’s coal demand to increase by 70 million tonnes (MT). In comparison, China’s power demand growth is pegged at 7% and coal consumption growth at 18 MT.Recent industry reports had put the all-India electricity demand growth at 10.6% on a year-on-year basis in the 8 months between
April and November period of the current fiscal (April 1, 2022-March 31, 2023). State-owned Coal India Ltd (CIL) has reported a 17% rise in its coal production so far in the financial year 2022-23. During April-November, the company produced 412.6 million tonne (MT) of coal compared to 353.4 MT a year ago, the miner said in a statement.
Coal important for energy security: Pralhad Joshi
Coal and Mines Minister Pralhad Joshi while emphasizing on the importance of dry fuel in securing energy security on Saturday said that the government is undertaking various reforms in the sector. Addressing a coal and mines conclave in Bengaluru, Joshi told investors that the future outlook of dry fuel is positive.The coal ministry is organizing various conclaves across the country to attract investors for auction of 141 blocks, which it is offering for commercial mining.Senior officials of the coal and mines ministries, Karnataka Chief Minister BasavarajBommai and state government officials were also present on the occasion. The mines ministry has auctioned 108 mineral blocks since March 2021 as compared to 108 blocks auctioned in six years prior to that from 2015 to 2021.Further, auction of 70 mineral blocks is under process. The Geological Survey of India has handed over more than 200 explored blocks to state governments for auction. More than 400 blocks are ready for auction in the country, official sources said.
Allocation of all coal mines done through open auction, says Kishan Reddy
Union Minister G Kishan Reddy refuted Telangana Chief Minister K Chandrashekar Rao's allegations of alloting coal mines only to Gujarat, and said that the Centre has given coal mines not as per its wish but through an open auction.Speaking to ANI, Reddy said that the government had given the allotment to Singareni Collieries Company Ltd. (SCCL) in Telangana before 2020, however, it decided thereafter that the coal mining allocation through an open auction. "KCR is making a false accusation that the central government is alloting coal mines to government companies in Gujarat and not giving it to the Singareni Collieries Company Ltd. (SCCL) in Telangana. Before 2020, the allotment has been given to Singareni and also to Telangana GENCO for power generation. The same has been given to Gujarat. After 2020, the central government decided that the coal mining allocation will be through an open auction," he said."The country is facing a huge problem because of coal shortage as government companies that are allocated the mines are not mining coal. Power generation and employment generation have decreased," Reddy added. The central government has not given any coal mines as per their wish, but through open auction to private or government companies. KCR is making the false accusation that there is a different justice to Gujarat and a different justice to Telangana by the central government. The centre has given mines to Telangana also when it gave to Gujarat," he said.
India augmenting its coal production to meet increasing energy needs
Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in LokSabha mentioned India's augmenting coal production for meeting the rapid demand in the energy sector.
While mentioning that, he said "In India, the transition away from coal is not happening in foreseeable future. Although India is pushing for renewable/non-fossil-based energy, but the share of coal in the energy basket is going to remain significant in years ahead. India is augmenting its coal production for meeting its increasing energy needs. Total coal consumption in India is yet to peak. The Economic Survey 2021-22 projects coal demand in the range of 1.3-1.5 billion tonnes by 2030 from the current level of about 1000 MT."It is projected that coal demand will continue to rise and may peak around 2040. Thus, despite thrust on renewable, coal is going to continue as a primary source of energy to meet the growing development needs of India.
Coal production rose to 75.87 mn tonnes in Nov
India's total coal production went up by 11.66 per cent to 75.87 million tonnes in November 2022 from 67.94 million tonnes recorded during the corresponding period of last year.According to the coal ministry data, in November 2022, Coal India Ltd (CIL) registered a growth of 12.82 per cent, whereas Singareni Collieries Company Limited (SCCL) and other captive mines registered a growth of 7.84 per cent and 6.87 per cent respectively. Out of the top 37 mines in coal production as many as 24 mines produced more than 100 per cent and production of five mines stood between 80 and 100 per cent in terms of output.The power utilities dispatch also increased by 3.55 per cent to 62.34 million tonnes during November as compared to 60.20 million tonnes in the corresponding period of last year.Coal-based power generation also registered a growth of 16.28 per cent in November as compared to last year, while overall power generation in November was 14.63 per cent higher than the power generated in November 2021
Govt issue allocation orders for 6 coal blocks
The government said it has issued allocation orders to the successful bidders for six coal mines which were put on sale for commercial coal mining.The successful bidders got the vesting orders from coal secretary AmritLalMeena. "The Nominated Authority, Ministry of Coal issued vesting order for six coal mines i.e. Barra, Maiki North, Alaknanda, Basantpur, Bandha North and Kasta East for which the Coal Mine Development and Production Agreements (CMDPAs) were signed on October 17, 2022," the coal ministry said in statement. Of the said blocks, one coal mine is fully explored and the remaining mines are partially explored.The Peak Rated Capacity (PRC) of fully explored mine is 1.89 Million Tonnes Per Annum (MTPA). Total geological reserve of six coal mines is 2,302 million tonnes and the blocks are likely to generate an annual revenue of Rs 130.08 crore and will attract capital investment of Rs 283.50 crore. It will provide employment to 2,555 people both directly and indirectly. With the allocation of these six coal mines, a total of 45 allocation orders have been issued till date with cumulative PRC of 85 MTPA.
NTPC coal mining output jumps 48% to 12.24 MMT in April-Nov
State-owned power giant NTPC on Friday said it has recorded 48 per cent growth in coal mining output at 12.24 million metric tonne for April-November 2022 as compared to the same period a year ago.NTPC recorded 8.27 million metric tonne (MMT) of coal production in the same period of 2021, a company statement said. The four operational coal mines viz. Pakri-Bar-
wadih and ChattiBariatu (Jharkhand), Dulanga (Odisha) and Talaipalli (Chhattisgarh) contributed in accomplishing the highest ever monthly coal production of 20.47 lakh metric tonne last month, since their inception.Pakri-Barwadih coal mine has also achieved the highest ever coal production of 12.24 lakh metric tonne for a month since its commencement. So far, the captive mines have delivered 58.42 MMT of coal to more than 22 power plants of NTPC, it stated. Along with this coal production, NTPC has also attained the highest ever monthly overburden removal of 83.49 lakh cubic meter, it added. After the in-house development of e-SMP (Digital Safety Management Plan) and its successful implementation in all the coal mines of NTPC, projects like integrated coal management system and safety mobile app are in the pipeline.
Singareni gearing up to achieve a target of producing 70 million tonnes of coal
In order to achieve the target of producing 700 lakh metric tonnes of coal during this financial year, Singareni Collieries Company Limited has decided to utilise the remaining four months at the optimal level and increase the coal production.Accordingly, the Singareni chairman and managing director N Sridhar has set a target of producing 2.3 lakh tonnes of coal per day and its transportation to various sectors. Besides, he had also set a target of removal of 16 lakh cubic meters of overburden per day at the OCPs. At a video conference with the respective area general managers from Singarenibhavan in Hyderabad on December 2, 2022, the Singareni C&MD said that the respective areas have picked up coal production in spite of causing serious losses due to incessant rains during this year. Stating that they could achieve coal production of 2 lakh metric tonnes per day in the month of November 2022, he directed the officials to achieve the target of producing 2.3 lakh metric tonnes of coal per day and its dispatch. He also informed the area general managers to ensure that there was the removal of at least 16 lakh cubic meters of overburden at all OCPs in the Singareni. He said that they had crossed the milestone of removing 15 lakh cubic meters of overburden in the month of November 2022. He informed the officials to ensure the removal of 16 lakh cubic meters of overburden per day at all OCPs to achieve the targeted coal production.
No dethroning coal in the next two decades
The country’s largest miner Coal India does not anticipate a fuel supply crunch as seen last summer. Coal India chairman Pramod Agrawal, in an interview said that there is no “dethroning” of coal as a major fuel source at least in the next two decades and touched upon a need for a judicious increase in the price of coal.Coal India has an ambitious production target of 700 million tones (mt) in 2022-23. Based on the current production trend, what is the anticipation for March 31, 2023? A: The target is definitely ambitious. We began FY23 entailing a quantum jump of 78 mt to breach the target. So far we have produced 61 mt more coal than last fiscal. Given the present production pace, we feel upbeat about sailing past the target by FY closure. On a progressive basis, we consistently maintained double-digit output growth. This was catalytic in bringing the annual asking growth rate down by nearly half to 6.4 per cent from 12.4 per cent at the start of the fiscal. What steps are being taken by Coal India this year to prevent a situation seen last summer?
A: Such a situation is unlikely with improved production. We are augmenting our output capacity through the opening of Greenfield projects and the expansion of existing projects. In the current fiscal we have started three mines with three more in the pipeline. During the past two financial years, CIL has approved a total of 52 projects which contribute to incremental capacity creation of an aggregate 378 mt/year. These will start contributing in a phased manner. RAILWAYS
SHIPPING
India November thermal coal imports at 10 month-low as local output soars
India's thermal coal imports fell to the lowest levels in 10 months during November, data from consultancy Coalmint showed, mainly due to a rise in domestic coal production.The country imported 10.83 million tonnes of thermal coal in November, the Coalmint data showed, compared with 12.03 million tonnes in October and 9.45 million tonnes in November 2021. Imports fell mainly due to higher production by state-run Coal India, which accounts for 80% of India's coal output.The world's largest coal miner has seen output increase by a sixth to 412.6 million tonnes during the first eight months of this financial year, putting it on track to meet annual production targets for the first time since 2010.The decline in shipments of the power generation fuel in November marked the fifth straight month when imports fell compared with the previous month, the data showed. Imports of coking coal - used mainly in steelmaking - fell to 4.56 million tonnes from 4.95 million tonnes in October and 5.3 million tonnes in November 2021.India is the world's secondlargest importer, consumer and producer of coal, and counts Indonesia, Australia, South Africa, Russia and United States as its major suppliers.Overall imports of coal and coke products metcoke and petcoke rose 8.5% to 17.87 million tonnes, the Coalmint data showed.
Railway Ministry Drops Proposal for Monetisation of Stations on PPP Mode
The ministry of railways has dropped its proposal for monetisation of stations on publicprivate partnership mode, and projects are now being taken up under engineering, procurement and construction (EPC) mode, a source said. The source also told PTI that the ministry of railways has been asked to expedite monetisation of other assets, including trains, goodsheds, hill rail, stadiums, railway colonies and railway land parcels among others. "Largest asset class (stations) dropped. Stations earlier proposed on PPP mode are now being taken up under EPC mode," the source said. The ministry has so far raised only Rs 1,829 crore against the target of Rs 30,000 crore in the current financial year, the source added."Likely realisation from asset monetisation of Indian Railways assets under NMP (National Monetisation Pipeline) in the current fiscal has been now estimated at Rs 4,999 crore," the source said.Finance minister NirmalaSitharaman in a meeting with NitiAayog CEO ParameswaranIyer on November 14 reviewed the progress of NMP implementation.An e-mail sent to the official spokesperson of the ministry of railways seeking comments remained unanswered.
Earlier this year, the then NITI Aayog CEO Amitabh Kant had said the government's plan to monetise railway assets by allowing private players to run trains did not attract enough investors due to lack of proper structuring and the railway ministry is looking at it afresh.According to the NMP document, a total of 400 stations, 90 passenger trains, railway stadiums and colonies, and the famed Konkan and hill railways were among the assets identified by the government for monetisation.
Indian Railways may place mega order for 50,000 wagons in budget
The Central government may announce in the upcoming budget a mega order for 50,000 wagons to be supplied by 2027-28, people aware of the plan said. The order is likely to be valued at Rs 21,000 crore to Rs 25,000 crore, experts said.“The Indian Railways would like to procure as many wagons as the market can offer over the next few years. These steps are being taken to increase the railways’ market share in transporting cargo to 50 percent by 2030,” said a railway ministry official who did not wish to be identified.The share of the railways in India’s cargo market is 27 percent, second to about 60 percent for roadways. The new order, along with the mega tender announced last year, will benefit wagon manufacturers, according to the official. The government will award longer-term contracts to facilitate investment in wagon manufacturing and increase their production capacity by 25 percent, the official said.Titagarh Wagons, Texmaco Rail, Hindustan Engineering Industries, Commercial Engineer, and Oriental Foundry were the five companies that were awarded contracts worth Rs 23,500 crore to supply 60,000 wagons to the Indian Railways by 2025-26. To avert a fuel and power crisis like the one earlier this year, ministries are joining hands to take the sea route to supply coal cheaper and possibly faster.From January 2023, Power, Coal and Shipping ministries are looking to start coal transportation from Odisha and Jharkhand by sea to the western coast as part of a key new strategy.Several states reeled under power shortage due to flagging coal supply the last summer, forcing state-owned Coal India to import coal for the first time since 2015.The target states are Gujarat, Maharashtra and possibly Punjab, officials in the know told ET.
STEEL
Aim to enhance steel production to 300 million ton by 2030: Scindia
TheUnionMinisterofSteelandCivilAviation,Shr iJyotiradityaM.Scindia.urged the Indian steel industry to move towards green and low carbon emitting production processes. Speaking at the launch of KalyaniGroup's first green steel brand'KalyaniFeRRESTA'inNewDelhi, thehon’bleministeremphasized onthegrowingroleofsteelasthefoundationalforceforthedevelopmentofanation. Minister Scindia added that as the fifth largest economy and second largest producer of steel,India needs to also become a responsible and sustainable producer of steel. Talking about theenhancedconsumptionand productioncapacities ofthenation, the minister saidthat“Wehave ambitious expansion plans of doubling our production capacity by 2030 from the currentlevel of 154 MT to 300 MT, as also envisaged in National Steel Policy 2017”.
He said that therefore there is a need to strikeabalancebetweenSteelIndustry’s ambitious capacity enhancement targets and work towards Prime Minister NarendraModi’svision ofachievingnet zero target by2070. He also shared that through strategic policy interventions,the government has resolved to bring downcarbonemissions by 2030 and strengthenthecountry's commitmenttowardsproducinggreensteel.Hesaidthatthe government and other stakeholders need to work together to decarbonise the industry by ensuring increased use of renewable energy, efficient raw materials like scrap and pellets, best available technologies and green hydrogen. He addedthat together the industry needs to move from fossil fuel intensive BF-BOF (Blast Furnace –Basic Oxygen Furnace) route and Coal-based DRI-EAF/IF (Direct Reduced Iron-Electric Arc Furnace/Induction Furnace) to gas-based DRI-EAF to ensure a successful transition to green steel.
India's eight core industries recorded a growth of 5.4 per cent in November as against 3.2 per cent in the same month last year, according to data released by the Ministry of Commerce & Industry on Friday. The cumulative growth rate of ICI during AprilNovember 2022 stood at 8.0 per cent (provisional) as compared to the corresponding period of last year.The production of Cement, Coal, Electricity, Steel and Fertilizers increased in November 2022 over the corresponding month of previous year. The production of crude oil, natural gas and petroleum refinery sectors contracted by 1.1 per cent, 0.7 per cent and 9.3 per cent respectively. ICI measures combined and individual production performance in selected eight core industries namely coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, the statement said. The eight core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
India's finished steel imports from Russia hit 4-year high in April-October
India's finished steel imports from Russia during April-October rose to their highest in at least four years, government data compiled by Reuters showed, underscoring Moscow's bid to divert shipments in the wake of Western sanctions.Russia's steel exports to India reached 149,000 tonnes in the first seven months of the current fiscal year that began in April, up from around 34,000 tonnes shipped a year earlier. Russia accounted for just about 5% of India's total steel imports but was among the top five exporters. India’s total steel imports between April and October stood at 3.2 million tonnes, up 14.5% from a year earlier. South Korea exported 1.3 million tonnes to India, accounting for a 41% share of the country's total purchase. Between April and October, India emerged as a net exporter of steel, even as overall shipments more than halved due to an export tax and a slowdown in global demand. Earlier this month, India scrapped the export tax levied on some steel intermediates, reviving expectations of a turnaround in exports.JSW Steel Ltd (JSTL.NS), India's largest steelmaker by capacity, said six to seven distressed Russian steel shipments arrived during the current fiscal year. Other than buying large quantities of steel from Russia, Indian firms have also been importing coking coal from Moscow.Indian steelmakers have so far imported record 5-6 million tonnes of Russian coking coal in 2022/23, compared with less than 2 million tonnes last year.
Tata Steel will continue to invest in Odisha: CEO Narendran
Tata Steel which has make investments of over Rs 75,000 crore in Odisha will continue to invest in the state which has 25 per cent of India's total steel making capacity, its MD & CEO T V Narendran said. Narendran made the remarks at the 'Make in Odisha Conclave 2022' in Bhubaneswar."The Tata group of companies, and more specifically Tata Steel, has invested over Rs 75,000 crore in Odisha in the last five years. We will continue to invest to support the growth in Odisha," the official said. Over the last few years in Odisha, Tata Steel has not just built its plant in Kalinganagar, but has also acquired several assets which include NeelachalIspat plant, he said.According to Narendran, Tata Steel is the largest steel manufacturer in Odisha producing about 9 million tonnes of steel annually. "We plan to double this over the next few years as we expand in all our locations in Odisha. Odisha accounts for 1/4th of the steel capacity in the country today," he said.Steel Minister JyotiradityaScindia said India's total steel making capacity has touched about 150 MT mark.
CEMENT
Purbanchal Cement lines up Rs 200cr for expansion, Bengal in roadmap
Assam-based Purvanchal Cement has earmarked Rs 200 crore for acquisition and expansion over the next few years, including foraying into markets outside the northeastern region like West Bengal, a senior official said. The Maithon Group Company has at present a 0.5-million tonne capacity plant near Guwahati. "We are evaluating between brownfield expansion and acquisition preferably with mine rights in the northern part of Assam," Purbanchal Cement MD Vedant Agarwal said."We have earmarked Rs 200 crore over the next two-three years to fund our expansion. Initially, we are aiming at ramping up our installed capacity to 1 million tonnes," he told PTI.Agarwal said the company is also looking at opportunities beyond the northeast."There are plans to set up a grinding unit in West Bengal to tap the eastern market demand," he said. The West Bengal government has been wooing manufacturing industries for investment, banking on robust coal deposits, official’s said. In recent times, however, cement makers have been hit by high commodity prices and supply hurdles."As a result of coal shortage, the industry is experiencing severe cost pressure, which has led to price volatility. However, things seem to be improving, albeit slowly," Agarwal said.
UltraTech Cement commissions two new Northern Indian grinding units
UltraTech Cement says that it recently commissioned two new grinding units in Northern India. The Aditya Birla subsidiary commissioned a new 1.8Mt/yr grinding unit at its expanded Dhar integrated cement plant in Madhya Pradesh on 27 November 2022. The company also inaugurated its new 1.8Mt/ yrDhule grinding plant in Maharashtra. The projects form the first phase of 12.9Mt/yr-worth of planned expansions, announced by the company in late 2020. UltraTech Cement's managing director KailashJhanwar visited the Dhar cement plant to congratulate the team there on its contribution to the expansion drive.
