CCAI Monthly Newsletter February-2022

February 2022 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. L No. 11 Published on : 28.02.2022

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From the Editor’s Desk

As the war trumpet reverb erates across Europe followi ng Russia’s armed invasion of Ukraine on Feb ruary 24, price of coal alon gwith Diesel and natural gas have skyrocketed as many nations look for alterna tives to Russian fossil fuels. European thermal coal prices have more than dou bled since the star t of the war in Ukraine and its ripple effect could be felt across Asian coal giants inducing India.

As Russia accounts for around 20 percent of the global therm al coal exports, anticipation of lower supply of coal from the European giant has caused the prices in the internation al market to soar. According to the market analysts and coal experts, the crisis in Ukraine is likely to have a bearing on the supply of thermal coa l, while direct or indirect san ctions from the western countries are also exp ected to put an upward pressur e on its prices.

Currently, international coal prices are at their lifetime high at above $400 per tonne.

Currently, the pan-India incr emental coal production is able to meet the increasing coal demand in the Power Sector, but sustaining a required level of stock in the inventories and also to serve the non-power sector, a higher growth in production will be required. Meanwhile, industr ies in the country are unable to fulfill their require ment through domestic source s are expected to face the maximum impact of the escalating global coal pric e.

The surge in Russian coal pric es will have a cascading effect on the price of dry fuel from prominent coa l exporters to India like Indone sia, Australia and South Africa. This is likely to increase India’s overall import bills, thereby widening the country's trade deficit.

While the commodity market is in a free fall with some stoc ks having crashed as much as 50% over the last few weeks, in a silver lining to the coal sector, national miner Coal India Lim ited’s stock gained over 20% .This gain may be primarily attributed to better price realizations in coal sold through e-auctions in which the premiu m has been nearly 42% higher over coal sold through fuel supply agreement s (FSAs). Country’s coal secreta ry Anil Kumar Jain has claimed that import of coal for power generation will end in India by 2024 while the domestic production of the is expected to rise by 10 per cent.

In a bid to achieve its goal the government has planned to implement new technologies and build digital infrastructure to suppor t cur ren t and future coal mines operations includi ng safety and productivity, environmental protection, and opportunities for women, Safer working con ditions through improved underground com munication, automation, mo re sophisticated mineral and metal transport ation, and emergency respons e measures are achieved by integrating tech nology into mining projects.

It is hoped that such initiati ves in the coal sector would help reduce India’s dependence on imports whi le ensuring a smooth supply situation to the Power Sector and Industries paving its way towards a tru ly self-reliant nation.

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CONTENT Vol. L No. 11 February 2022

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

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

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Consumers' Page

12

Power

20

Domestic

28

Global

Annual Subscription Rs. 400/(including postage) MO/DD to be made in favour of “Coal Consumers’ Association of India” CCAI do not necessarily share or support the views expressed in this Publication.

36 In Parliament 46 Monthly Summary Of

Imported Coal &Petcoke

49

Production And Offtake Performance Of CIL And Subsidiary Companies

50 Overall Domestic Coal Scenario CCAI Monthly Newsletter February 2022

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CONSUMERS’ PAGE Present Coal Scenario: Coal production figure by national miner Coal India Limited has grown to 64.3 MT in February ’22 from 60.2 MT in the previous month. CIL’s overall production figures this moth has grown by 3.9% compared to the same month last year (61.9 MT). Among the Subsidiaries, NCL has registered highest growth in production on m-o-m basis while ECL has registered the highest decline. In terms of cumulative production figures of CIL for FY 2021-22, the Maharatna Company has produced 542.4 MT which is 5.3% higher than the 515.1 MT produced during the same period of last fiscal.

CIL’s coal offtake figure for February (57 .4 MT) declined slightly compared to January (60.7 MT).

However, on m-o-m basis offftake for Feb ’22 has grown by 15.7% while the overall offtake for the ongoing fiscal (599.9 MT) has also grown by nearly 17% compared to the last financial year.

Issues faced by both Power and NRS Consumers: 1. Submission for release of various forms of long-pending refunds from different CIL Subsidiaries:

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Various forms of refunds from different Subsidiaries of CIL including refund of additional coal value advance, BGs related to financial coverage and performance security, pending credit notes on account of grade slippage, refund of security deposit against expired FSAs etc are pending since long. In case of strapped BGs, consumers are unable to secure required credit

limits from their Banks to carry out regular plant operations comfortably.

Due to this blockage of fund and lack of cash flow in the market, many consumers are facing difficulties in taking part in the future auctions to procure coal in order to sustain their operations.

Request has been made to Ministry of Coal, CIL and the respective Subsidiaries to immediately commence the process of releasing long pending refunds to the consumers from both Power and Non-power Sector.

A list has been prepared regarding subsidiary wise details of various forms of pending refunds and sent to CIL and its Subsidiaries. .

2. Submission regarding complete or partial roll back of price increase of different grades of coal by SCCL as notified in January 2022: Prices of different grades of coal (G-1 to G17) supplied by SCCL including the Washery Grades have been increased multiple times in the ongoing financial year. SCCL coal prices for different grades of coal have been revised 5 (five) times in total in the FY 2021-22. Such a recurrent and steep hike in coal prices is putting a huge financial burden on the coal consumers dependent on SCCL.

Rail mode supply of coal booked under FSA from SPUR-II sidings of NCL in February '22.

Short-receipt to the tune of 2% is being observed in nearly 90% of the rakes supplied from this siding which is leading to significant financial loss for the consumers as they are not getting the quantity of coal for which payment has been made against the bill.

Request has been made to NCL to take up adequate steps including recalibration of the weighbridges to eradicate the short-receipt of coal.

4. Submission by Power Sector regarding supply of lower grade coal and coal mixed with stones, boulders from NCL: Quality of coal supplied from the DWWS, GCNM, SPUS sidings of NCL are often much lower than the declared grades. Supply of lower grade coal leads to lower capacity utilization and in turn increases the overall cost of power generation.

Also rakes supplied from various sidings of NCL have quality issues as the coal is mixed with oversized stones and boulders which reduce the plant efficiency and increase ash load in the downstream. Further this leads to higher average rake retention time (more than 8 Hours) in spite of usage of faster unloading methods through wagon tipplers.

Request has been made to the Ministry of Coal and SCCL to consider either complete or at least partial roll- back of the hiked coal price as notified by the company on 10.01.2022.

Request has been made to NCL to reduce the presence of extraneous materials from coal to the extent possible and ensure supply of FSA –grade coal to the consumers from the sidings mentioned.

Issues faced exclusively by Power Sector Consumers:

.

3. Submission by Power Sector regarding short-receipt various sidings of NCL: Consistent short-receipt is being observed in

Issues faced exclusively by NRS Consumers: 5. Submission by NRS consumers regarding prolonged supply crunch of in-

CCAI Monthly Newsletter February 2022

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digenous coal from Coal India Limited (CIL) especially via Rail Mode: Coal supply scenario to the Non-Power Sector has deteriorated following brief revival during November ’21 due to further curtailment in supply by Rail as well as Road and Road cum Rail (RcR) modes since the last few weeks causing Industries like Aluminum, Cement, Steel, Sponge-Iron, Paper, Fertilizer, Chemical, Rayon, Textile etc. and their Captive Power Plants (CPPs) to face an unprecedented coal crisis.

Coal requirement of the Non-regulated Subsectors is around 25%-35% of the total coal production which is around 5 lakh tonne but total quantity dispatched to NRS Consumers via Rail, Road and RcR mode combined lower than 3 lakh tonne / day which is less than half of their daily coal requirement. Moreover, more than 4,000 FSA and e-Auction rakes have been pending in total so far.

Supply through Road mode is highly inadequate and economically unviable for sustenance of NRS Consumers. Also, as supply through RcR mode to the Power sector has been prioritized owing to high demand, supply to the Industries even via RcR or Road mode has also shrunk significantly.

High-cost of imported coal coupled with expensive ocean freight rates, makes it financially unviable for most of the consumers to depend on imported coal. Also, barring a few plants, most of the boilers, kilns and furnaces are designed to run mostly on indigenous coal.

legitimate entitlement and could continue their production economically for delivery of goods at affordable price.

6. Submission by NRS Consumers with linkages for supplying coal via Rail mode and conducting Exclusive eAuction from various CIL Subsidiaries: NRS Consumers were suffering due to nonsupply of coal via Rail mode from certain CIL Subsidiaries despite high coal demand among the Industries (including CPPs). Also, Exclusive, e-Auction for NRS Consumers have been stalled from most of the Subsidiaries (except Steel grade coal from BCCL). Though Spot auctions are taking place, NRS Consumers are compelled to procure coal from open market by paying extensively higher costs. Also, procurement of coal via Road Mode involves additional transport charges which increases the overall cost of operations.

Request has been made to the Ministry of Coal, CIL and Subsidiaries to immediately offer coal rakes and increase present supplies for NRS Consumers having linkages with various CIL Subsidiaries-especially NCL, CCL & WCL at present. Also, the authorities have been requested to conduct Exclusive e-Auction for the Non-power sector.

7. Submission by NRS Consumers for A detailed joint submission has been made increasing supply of rakes as well as alongwith other Association including Alu- rake despatch in close circuit: minium Association of India, Confederation of Indian Textile Industry, Indian Captive Power Producers Association, U P Paper Mill Power Plant Owners Association, Sponge Iron Manufacturers Association, The Fertiliser Association of India, Vidarbha Industries Association Hon’ble Prime Minister’s Office, Ministry of Coal, Power, DIPP, Steel, Railways, and Coal India Limited to ensure a justified ratio of coal allocation between Power Sector and Industries so that the consumers are not deprived of their

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Railways have allowed close circuit dispatch within the division and Subsidiaries permitted conversion of mode of supply from Rail to Road. But the amount of coal supplied to the Industries is grossly inadequate for their sustenance.

Submission has been made to the Railway Board and CIL to increase supply of rakes to the NRS Consumers having linkages immediately from CIL Subsidiaries-especially where sup-

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plies are almost stalled from NCL, WCL, ECL & CCL. Also request has been made so that a window of dispatches for NRS Consumers may be permitted in close circuit.

Request has been made to East Coast Railways for ensuring allotment of rakes against offers in a planned manner so that lapsing of rakes could be avoided.

8. Submission by NRS Consumers for supply of coal as per MSQ and providing e-Auction rakes without deposition of fresh advance from MCL:

10. Submission by NRS Consumers for immediate issuance of pending RDOs and release of arrear rakes from SECL:

MCL vide Notice no. 646 dtd 31.01.2022 decided to allocate coal at trigger level which is 75% of the Monthly Scheduled Quantity (MSQ) in case the FSA is signed under Linkage Auction instead of supplying the quantity according to MSQ. It is understood that such limited supply would lead to even greater coal supply crunch to the Industries amid the ongoing crisis which may cause production cuts and even closure of many industrial plants. a. Request has been made to MCL and CIL to ensure supply coal as per MSQ to Non-regulated Sector FSA Consumers. b. It is requested that advance payment to be made by the NRS FSA consumers to the coal company may not be higher than coal value equivalent to MSQ of one month. c. Submission has been made to MCL and CIL for liquidation value-paid rakes to the Industries which are pending since long and NRS Consumers are allowed to participate in the upcoming auctions without depositing fresh advance as coal value.

9. Submission by NRS consumers regarding planned allotment of value-paid rakes by ECoR: Rake allotments are not given by the East Coast Railways (ECoR) against the offer given

by Mahanadi Coalfields Limited (MCL) from its Talcher area for the month of January ’22. Rake allotments are not given by the East Coast Railways (ECoR) against the offer given by Mahanadi Coalfields Limited (MCL) from its Talcher area for the month of January ’22.

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Road Delivery Orders (RDOs) are not being issued to the NRS Consumers in spite of having multiple FSAs with SECL and paying the entire coal value well in advance. In some cases, RDOs are not being issued from different dispatch points of SECL since the last 4-5 months leading to pendency of significant RDO quantities.

Request has been made to CIL and SECL to immediately issue the pending RDOs against the FSA and e-Auction quantities in order to regularize supply of coal to the Industries via Road mode considering the dismal supply situation via Rail to the NRS Consumers. demand in the Power Sector. At a certain point supply of rakes to the Industries was stopped as well.

As the NRS consumers could not avail the benefit of concession provided by the Railways due to lack of rake supply, request has been made to the Railway Board to extend the distance based graded concession for one more year i.e.

31.12.2022.

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POWER THERMAL Energy requirements of Indians expected to double in 20 years: PM Narendra Modi Energy requirements of the people of India are expected to double in the next 20 years, Prime Minister Narendra Modi said as he urged developed countries to fulfill their commitments on finance and technology transfer.

"Denying this energy would be denying life itself to millions. Successful climate action also needs adequate financing. For this, developed

12 | CCAI Monthly Newsletter February 2022

countries need to fulfill their commitments on finance and technology transfer," the prime minister said.

He said India believes in fulfilling commitments under the United Nation Framework Convention on Climate Change (UNFCCC).

Calling India a mega-diverse country which accounts for eight per cent of the world's species, the PM said, "It is our duty to protect this ecology."

"With 2.4 per cent of the world's land area, India accounts for nearly 8 per cent of the world's species. It is our duty to protect this ecology. We are strengthening our protected area network," he said.

Govt intends to ensure uninterrupted 24x7 power supply to all households: Power Minister Power Minister R.K. Singh while speaking in the interaction said that the government intends to ensure an uninterrupted 24x7 power supply to all households. In the past 7 years, India has increased its installed capacity of 395,000 MW whereas our peak demand is 200,000 MW. India now has an integrated national grid. The Minister stressed that the two main requirements for an uninterrupted power supply are a better distribution system and the viability of Discoms.

The Minister said that India is the most attractive destination for investment in the Renewable Energy sector.

Shri Singh stated that the world needs an energy transition where there is a shift from fossil fuel to the non-fossil fuel systems. The transition will happen faster if the cost of energy storage devices goes down. Under the PLI scheme for high-efficiency solar modules, the Finance Ministry will grant an additional Rs 19,500 crore.

The Minister emphasized that it is important to electrify the economy and increase the share of RE in the electricity mix. He added that the addition of more Electric Vehicles to the transport system will help in reducing pollution in NCR and is also the future of mobility. There is a need to replace the use of coal in small industries.

Diesel pumps will be replaced by solar pumps in the agricultural sector by 2024. He said that the farmers can make use of PM KUSUM in this regard, He added.

Power bills may go up as govt. wants timely revision of tariff by discoms The power ministry wants electricity distribution companies to hike tariffs timely and adequately to cover their rising costs, a move, if accepted in Toto by states, could put additional

burden on households already reeling under high fuel prices.

The parliamentary consultative committee identifies delayed or inadequate tariff revisions as a key factor that is keeping alive the vicious cycle of continued accumulation of unsustainable levels of losses and debt for meeting working capital needs.

“Tariff petitions are filed late and most of the times not disposed off timely by the SERCs (state electricity regulatory commissions)…

Many SERCs fix tariffs that are not reflective of the costs. The gap is shown as ‘revenue gap’ or ‘regulatory assets’. These are meaningless terms because the discoms cannot recover them,” the note says.

Out of the 36 states/UTs (union territories) 17 issued tariff orders for 2021-22 before March 2021 and 12 in the April-November period of 2021, while seven have not. The note also blames the perpetual cash crunch faced by discoms on delayed payment of state government subsidies to discoms and their poor billing and collection efficiency of about 85% and 91%, respectively.

Govt. approved 112 crore outlay for R&D schemes in power sector As per the information available in the “Report on Performance of Power Utilities? published

by Power Finance Corporation (PFC), the cost of Power to Distribution Utilities increased from Rs. 4.21 / KWh in the year 2017-18 to Rs. 4.73 / KWh in the year 2019-20, in which time, the Aggregate Technical and Commercial Losses reduced from 21.50% to 20.93%.

The Government is promoting Research and Development (R&D) for the Indian Power Sector through Central Power Research Institute (CPRI) and various R&D schemes. The Government has recently approved the proposal for continuation of R&D schemes in the Power Sector to be implemented through CPRI with an CCAI Monthly Newsletter February 2022

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outlay of Rs. 112 crore.

A Standing Committee on R&D (SCRD) in Power Sector has been constituted under the Chairmanship of Chairperson, Central Electricity Authority to identify and prioritize important strategic areas of R&D, which are to be implemented under “R&D” schemes. The SCRD identifies leading Researchers and Domain Experts in diverse areas of Power Sector and engage them in the Research Schemes.

Technical Committees in specific fields of power, namely, Thermal Generation, Hydro Generation, Transmission and Grid, Distribution & Energy Conservation, have also been constituted to assist the SCRD in evaluating R&D proposals and monitoring of the R&D projects till successful completion. The committees have representation from Academia, Industry, Utilities and Policy making bodies.

DISCOMs to either pay in advance or give LC for 50% Shri R.K Singh Union Minister for Power and MNRE has mentioned the step to address the financial health of DISCOMS. As per information stated by Power Minister the total outstanding dues owed by electricity Distribution Companies (DISCOMs) to Central Public Sector Generation Companies, Independent Power Producers (IPPs) and Renewable Generators as on 31.12.2021 are Rs.95,167 Crores.

The requirement of either making prepayment or giving Letter of Credit (LC) with the entire cost of the power was relaxed to 50% during the period 24.03.2020 to 30.06.2020. Thus, Power Ministy suggested DISCOMs to either pay in advance or give LC for 50% of the cost of power they wanted to be scheduled; the remaining 50% was to be paid within the period given in the PPA, failing which the delayed payment surcharge would apply. This was not applicable for State Generators.

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Central Electricity Regulatory Commission (CERC), in accordance with the directions issued by the Government of India under section 107 of the Act, had issued an order to the effect that if any delayed payment by the Distribution Companies to the Generating Companies and inter-State Transmission Licensees beyond 45 days from the date of the presentation of the bills falls between 24.03.2020 and 30.06.2020, the concerned Distribution Companies shall make the payment with Late Payment Surcharge (LPS) at the reduced rate of 12% per annum.

Power & NRE Minister chairs 4th India - Australia Energy Dialogue The 4th India – Australia Energy Dialogue was held on 15th February 2022. The dialogue was co-chaired by Hon’ble Minister for Power and New & Renewable Energy, Mr. R.K. Singh from the Indian side, and Hon’ble Minister for Energy and Emissions Reduction, Mr. Angus Taylor from the Australian side.

Energy Transition was a major area of discussion in the dialogue and both the Energy Ministers spoke in detail about the ongoing Energy Transition activities in their respective countries with a focus on renewables, energy efficiency, storage, EVs, critical minerals, mining, etc. The need of Climate Finance was also highlighted

by India for meeting the Energy Transition goals of developing countries.

A Letter of Intent between India and Australia on New and Renewable Energy Technology was signed during the Dialogue. This LoI will pave the way for working towards reducing the cost of new and renewable energy technologies and scaling up deployment in order to accelerate global emissions reduction. The focus of this LoI will be scaling up the manufacture and deployment of ultra-low-cost solar and clean hydrogen.

CEA projections show no new coal energy project in 10 years India is unlikely to build any new coal-based energy capacity over the next 10 years when the country's energy mix will tilt significantly towards cleaner sources with solar emerging the top source, the government's internal projections show.

It projects coal and lignite generation capacity at 252 gigawatt (GW) in 2031-32 against the present capacity of 235 GW, with projects already under construction accounting for the slight increase. Renewable energy generation is seen well over the country's 2030 commitment of 500 GW against 104 GW at present.

As per the proposed energy mix, 44 GW is targeted from grid-scale battery energy storage out of total capacity of 897 GW by FY32.

Hydroelectric capacity is envisaged at 64 GW in FY32 and 52 GW in FY27, up from 47 GW now.

Solar energy generation is likely to rise manifold to 334 GW by FY32 from 49 GW at present, and wind energy to 110 GW from 40 GW. Significant additional installed capacity over 10 GW is also expected from nuclear and pump storage stations.

ferent fuel gasoline, diesel and dedicated CNG, dedicated LPG, dual fuels & Bi-fuels. "The revised standards are a single standard covering all available fuels and upcoming fuels viz producer gas, hydrogen gas etc," the proposal has said.

The India Genset Emission Standards-IV+ given for gen sets in two categories mentions the limits NO (Oxides of Nitrogen); HC (Hydrocarbon); CO (Carbon Monoxide); PM (Particulate Matter) and also for CI (Compression Ignition) and PI (Positive Ignition).

There would be certifications based on types of engines and there would be authorized agencies for certifications.

The emission limits for new engines up to 800 kW used for power generating set shall come into force from July 1, 2023 with the draft also mentioning the transition provisions for Gensets and Genset Engines manufactured as per Central Pollution Control Board (CPCB-II) norms.

State governments lead India’s journey to an electric future: CEO, Niti Aayog

RENEWABLES

India’s drive towards an electric future is being led by state governments, as large states such as Maharashtra and Uttar Pradesh formulate policies on EV adoption, and various metro cities convert their public transport fleets to EVs.

Environment ministry proposes common emission norms for generator sets

“Twenty-seven states have moved forward in formulating their EV policies, and 18 states/ UTs have already notified their EV policy,” Amitabh Kant, CEO, Niti Aayog, said.

The Ministry of Environment, Forest and Climate Change (MoEF&CC) has notified draft revised norms for emissions from generator that would be common for all fuels and even upcoming fuels, effective from July 2023.

Kant said while the pace of electrification of two and three-wheelers has been fast, electric buses are the real “low-hanging fruit” of India’s transport market. “States play a very proactive role in the procurement of e-buses,” he explained.

Currently, there are three different emission standards for the generator sets based on dif-

The second phase of Faster Adoption and CCAI Monthly Newsletter February 2022

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Manufacturing of Hybrid and Electric Vehicles (FAME 2), which proposed e-bus aggregation for cities with a population of more than four million (Mumbai, Delhi, Bengaluru, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune) has been pursued actively, Kant said.

India installs 678 public EV charging stations in the last four months: Power ministry India’s effort to expand public electric vehicles charging infrastructure gave a quick result as the country witnessed a 2.5 times growth in charging stations in nine mega cities in the last four months. It had installed 678 public EV charging stations between October 2021 to January 2022 in Surat, Pune, Ahmedabad, Bengaluru, Hyderabad, Delhi, Kolkata, Mumbai, and Chennai.

“The Government has made 360-degree efforts to enhance public charging infrastructure by involving private and public agencies (BEE, EESL, PGCIL, NTPC, etc.). Many private organisations have also come forward to install EV charging stations to develop a convenient charging network grid to gain consumers’ confidence,” said the power ministry in a statement.

To boost the electric vehicle infrastructure in the country, the power ministry revised its guidelines in January. It includes providing an affordable tariff chargeable by public EV charging station operators, enable owners of electric vehicles to charge EVs at their residences using their existing electricity connections. A revenue sharing model has been suggested for land use to make a public charging station financially viable from an operational perspective and technical requirements for public charging stations have been elaborated.

IREDA eyes Rs 2,749 Cr revenue in 2021-22 16 | CCAI Monthly Newsletter February 2022

State-run Indian Renewable Energy Development Agency Ltd (IREDA) is eyeing Rs 2,749 crore revenue from operations in the ongoing financial year. IREDA has signed a Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE), setting an annual performance target for the year 202122, an MNRE statement said.

The government has set a target of Rs 2,749 crore revenue from operation under the 'Excellent' rating along with various performancerelated key parameters such as return on net worth, NPA to total loans, asset turnover ratio and earnings per share etc, it stated.

In FY 2020-21, IREDA was rated 'Excellent' with a score of 96.93.

The company as on date, has financed more than 2,900 renewable energy projects loan accounts with cumulative loan sanction and disbursement to the tune of Rs 1,08,606 crore and Rs 69,951 crore respectively. It has supported green power capacity addition of 19,463 MW in the country.

Govt. targets 5 MT green hydrogen; waives RE transmission charges for makers for 25 years India announced plans to produce five million tonnes of green hydrogen by 2030 and announced a policy to enable manufacturers to set up renewable energy plants or source nonfossil electricity without transmission charges for 25 years.

The policy provides that green hydrogen or ammonia manufacturers may purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other developer anywhere.

It granted open access - or permission to procure the electricity from any source other than distribution company - within 15 days of receipt of application. It also provided that the

green hydrogen or ammonia manufacturer can bank his unconsumed renewable power, up to 30 days, with distribution company and take it back when required.

Distribution licensees can also procure and supply renewable energy to the manufacturers of green hydrogen or ammonia in their states at concessional prices which will only include the cost of procurement, wheeling charges and a small margin as determined by the state commission.

Waiver of inter-state transmission charges for a period of 25 years will be allowed to the manufacturers of green hydrogen and green ammonia for the projects commissioned before June 30, 2025.

India and Japan to hold joint seminars on attracting Hydrogen investments The Embassy of Japan announced it has, in collaboration with Japanese organizations of the region, designated February-April 2022 as the “India-Japan Clean Hydrogen Month” in order to attract further investment and to resolve technical and economic issues obstructing the utilization of hydrogen.

Under the initiative, the two sides will hold intensive hydrogen-related seminars during this period. The idea is to present the potential of hydrogen business in India and Japan’s advanced hydrogen technology to all the stakeholders in public and private sectors from both the countries.

The series of seminars — that will promote public-private partnerships in the field of hydrogen energy — will begin with the “CIIJETRO Green Hydrogen Dialogue” on 24 February with speakers from Asahi Kasei, Toshiba, Mitsubishi Power, Marubeni, Adani, and Reliance.

This will be followed by the 4th India – Japan

Hydrogen and Fuel Cell Workshop on 4 March, with the theme – Hydrogen production and power generation technologies of both countries and International Hydrogen Supply Chain with India as a Hub.

India wants to become a solar powerhouse without China’s help India is pressing ahead with plans to curb reliance on China, the dominant producer of solar power equipment, even as it seeks to add huge volumes of renewable energy.

A pair of measures in recent budget will help Prime Minister Narendra Modi’s efforts to extend his government’s made-in-India campaign to the clean power sector, in which about 80% of all solar hardware is imported from the nation’s northern neighbor.

Grants of 195 billion rupees ($2.6 billion) are being added to spur local equipment production, while there’ll also be a 40% tax on imports of solar modules and 25% on cells from the next fiscal year.

India, the world’s third biggest emitter of greenhouse gases, plans to more than quadruple its renewable power generation capacity to 450 gigawatts by 2030, including 280 gigawatts of solar. That total will continue to rise sharply as the nation seeks to zero out its emissions by 2070.

Strong demand outlook for domestic solar OEMs aided by policy measures: ICRA Business prospects of domestic solar original equipment manufacturers (OEMs) will remain strong aided by several policy measures over medium-term, rating agency Icra said.

As a result, many domestic OEMs have announced sizeable capital expenditure to augment the cell and module capacity, including CCAI Monthly Newsletter February 2022

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the capex for integrated facilities under PLI scheme by the winning bidders. However, it stated that timely commissioning and ramping up of ongoing capex in module manufacturing value chain remains a critical factor in the near to medium-term.

As a result, adequacy of the modules from the domestic OEMs to meet the demand in utility & non-utility segment as well as quality of such modules remains a monitorable.

Further, ALMM list has only domestic solar OEMs and there remains an uncertainty for inclusion of foreign solar OEMs as of now.

Given the strong response for the PLI scheme for solar modules, the scheme outlay has been further increased to Rs 24,000 crore from Rs 4,500 crore earlier, Icra said.

THDC India signs LoI to set up 10,000-MW solar projects in Rajasthan State-owned THDC India Ltd (THDCIL) has signed a pact to build 10,000-megawatt (MW) solar power projects entailing an investment of Rs 10,000 crore in Rajasthan. "THDC India Limited (THDCIL) signed the letter of intent (LoI) of 10,000 MW in Rajasthan with an estimated investment of Rs 40,000 crore for the establishment of renewable energy parks/ projects of 10,000 MW in the august presence of the chief minister, Rajasthan, and the Minister for Industry, Revenue and Energy, Government of Rajasthan," the company said in a statement.

On behalf of THDCIL, its Director (Finance) J Behera signed the LoI in Jaipur, which was accepted by Rajasthan Additional Chief Secretary Subodh Agarwal, who is also the CMD of RRECL. The land bank will be allocated by the Government of Rajasthan through RRECL. The RE parks will be implemented through a special purpose vehicle in the term of a joint venture with RRECL in the ratio of 74:26.

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With the above intent of investment in the energy sector by THDC India Ltd, it is expected that around 10,000 direct and indirect employment opportunities will be created during the peak time of construction, which will boost the local economy.

Hydro power developers can now access a new fund for performance assessment Hydropower project developers and operators can apply for funding to help finance an independent assessment of a project’s sustainability performance.

A sustainability fund backed by the Swiss government - and supported by the International Hydropower Association (IHA) and the Hydropower Sustainability Council - has now become available for companies to assess their environmental, social and governance (ESG) performance.

"As of February 2022, the fund is now open to applications from projects in over 40 countries across the world. Hydropower projects of all sizes and at any stage of development can apply for the funding to help conduct an independent assessment using an ESG tool," IHA said in a statement.

This initiative, funded by the Swiss Government’s State Secretariat for Economic Affairs (SECO), is now in its fourth round of funding and recently awarded six grants across six countries in Africa and South America.

ReNew Power commissions Gujarat's first wind-solar hybrid project ReNew Power has commissioned Gujarat's first wind-solar hybrid project of 17.6 MW at the Chlor-Alkali unit of Grasim Industries Ltd in Vilayat, Bharuch. The first phase of the

hybrid project, with 17.6 MW commercial-scale wind-solar, commenced operations last week and is expected to generate 80 million units of renewable energy every year, mitigating 75,000 tCO2e (carbon emissions) annually, the company said in a statement.

The partnership will expand further with an additional 16.68 MW, which will be commissioned in the next financial year (FY23), as part of the second phase.

The project is being developed by ReNew Green

Solutions (RGS), the B2B arm of ReNew Power.

Both the parties have entered into a 25-year PPA (power purchase agreement), which will see the project supply power for the plant at Vilayat, Bharuch, via an open access mechanism.

Once both phases are commissioned with a combined capacity of 34.28 MW, the partnership is expected to generate a total of approximately 160 million units of renewable electricity annually, mitigating a cumulative 150,000 tCO2e (carbon emission) a year.

CCAI Monthly Newsletter February 2022

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DOMESTIC COAL Govt plans new tech, digital infrastructure to support domestic coal mines operations The government plans to implement new technologies and build digital infrastructure to support current and future coal mines operations, a move that would reduce the country's dependency on imports. Technological advancements in coal mining are also making operations more productive.

This involves a strong, multi-speed backbone information technology and infrastructure system that allows rapid deployment of new technologies.

To reduce the dependency on imports, it is critical for Coal India Ltd (CIL) to reach the one

20 | CCAI Monthly Newsletter February 2022

billion tonnes (BT) target, thereby embarking on a technological transformation journey, it said.

New technologies can have a number of impacts on mining operations, including safety and productivity, environmental protection, and opportunities for women. Safer working conditions through improved underground communication, automation, more sophisticated mineral and metal transportation, and emergency response measures are achieved by integrating technology into mining projects.

"The scope of this road map (is)...technology enablement in coal mines for transformation across business value chain, leveraging 'digital technology' as an accelerator for demonstrating performance enhancement from in the coal mines and increasing productivity, safety and sustainability while...reducing environmental impact by upgrading conventional technologies to new technologies," according to the draft road map.

India’s coking coal imports fall to 14-month low India's coking coal imports in December fell to their lowest in more than a year as wetter weather in Australia slowed its Queensland coal supply chain.

Imports fell by 32pc on the same month a year earlier and by 26pc on the previous month to 3.64mn t, the lowest since August 2020.

Australian imports in December fell by 31pc on the year and by 34pc on the month to 2.89mn t. Previous imports from the country had increased by 46pc on the year in November after a fall in prices. Other origins partially offset Australia's slowdown as imports from the US, Mozambique, Indonesia, and Russia all increased.

India's pulverized coal injection (PCI) imports stood at 959,085t in December, down by 40pc on the year and by 5pc on the month. PCI imports from Australia continued to supply the bulk of India's PCI shipments, standing at 852,157t, down by 24pc on the year.

India's metallurgical coke imports totaled 170,616t in December, down by 42pc on the year and by 21pc on the month. Arrivals from Poland topped December imports again at 65,361t, followed by Colombia at 48,183t.

Japan imports increased more than fivefold on the year and sevenfold on the month to 33,999t.

Coal India Says Falling Imports, Price Rise Pose Challenges Maharatna company Coal India Limited (CIL) has said that the second half of the current financial year has been tough for the sector due to falling imports and global prices of dry fuel witnessing a three-time rise.

Beside these reasons, the prolonged monsoon in the coal-bearing areas made the situation more challenging, CIL said in a statement.

Despite the challenges, the company due to

"meticulous planning" rose to the occasion and fulfilled the demand of additional coal for thermal power plants, the statement added.

CIL supplied around 20 million tonnes of additional coal due to curtailed import of dry fuel. The company accounts for over 80 per cent of domestic coal output and is eyeing one billion tonnes of coal production by 2023-24.

Coal India stock awaits price increase trigger Coal India Ltd (CIL) witnessed a remarkable 22% sequential growth in consolidated revenues during the December quarter (Q3FY22). One factor that drove this improvement was the strength in price realizations in coal sold through e-auctions. In Q3, e-auction realizations stood at 1,947 per tonne, a 42% premium over coal sold through fuel supply agreements (FSAs). It helps that higher global coal prices have further boosted e-auction realizations. The state-run coal producer told analysts that the e-auction premium over FSA coal stood at about 100% in January. That apart, domestic coal demand is robust, which helps volume outlook. These factors should support CIL’s earnings prospects in the near-to-medium term, at least.

In Q3, e-auction realization rose by 22% vis-àvis Q2, while that of FSA fell about 1%. Note that FSA volumes rose about 23% sequentially, while e-auction volumes fell about 4%. Analysts point out CIL was not able to fully capitalize on higher e-auction realizations due to the diversion of incremental volumes to power linkages. To that extent, e-auction volume growth was impacted.

But, CIL’s Ebitda (earnings before interest, taxes, depreciation and amortization) increased by 26% year-on-year to 7,385 crore, which is decent. This is Ebitda excluding stripping activity adjustment expenses.

Meanwhile, CIL’s investors await potential price hikes in the FSA segment with the cost outlook posing a headwind. In a call last week, the management acknowledged the urgent need for price hikes.

CCAI Monthly Newsletter February 2022

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Coal India's despatch to power plants rise 23% in AprilFebruary’22 State-run Coal India Ltd's despatches to power plants rose 23% to 468.4 million tonne so far in the current financial year.

During the corresponding period of the last fiscal, the company had supplied 381 million tonne to power plants. Overall supplies of Coal India so far in the fiscal stood at 575 MTs higher than the annual despatch of 574.5 million tonne in financial year 2021.

The 9.4% growth in power generation till December FY22 was the highest in a decade on the back of a strong post-Covid economic revival. Whereas, coal imports are down to a nine-year low due to a sharp increase in international coal prices.

The company has ensured higher availability of coal at a time when the domestic coal-based generation spiked up by 17% till January FY22.

It aims to scale up its supplies to the regulated power sector to 548 million tonne ending 202122 as per the projection of central electricity authority. This would mean a whopping 103 million tonne volume jump compared to the power sector’s despatch of 445 million tonne in FY21..

India to be self-dependent in coal production for thermal power generation by 2024, says Coal Secretary Coal Secretary Anil Kumar Jain said the import of coal for thermal power generation will end in India by 2024 and the domestic production of the dry-fuel is expected to rise by 10 per cent.

He said 90 million tonnes of coal for thermal power plants used to be imported. There is a possibility that this year, 60-70 million tonnes of this will be achieved domestically. In 2023, there

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will be limited requirement of imported coal.

He further said that along with good results in productivity out of commercial mining, the production of coal by Coal India Ltd will also increase by 10 per cent.

Jain also said it is expected that demand for electricity will grow 10 per cent next year. Coal India Ltd’s production is expected to be 630635 million tonnes this year and will increase to 700 million tonnes during next fiscal year.

Non-power coal users claim shortage; government denies India's aluminium smelters, textile mills, sponge iron and fertiliser-makers say they face a coal shortage as power generators take the bulk of supplies.

Top miner Coal India Ltd, which accounts for more than 80% of India's production of the fuel, and the coal ministry, deny there is a problem.

In a letter to the Prime Minister Narendra Modi dated February 7, eight industry associations including the Aluminium Association of India and Fertilizer Association of India urged the government to ensure a "justified ratio of coal allocation between power sector and industries".

They do not give precise figures on the extent of the shortage, but industry officials said the government's policy of prioritising coal shipments to power generators rather than the non-power sector in response to high prices and reduced imports had caused panic and uncertainty.

Supplies to the non-power sector have been lower than last year, and the number of trains supplying coal to it dipped to 12-14 trains per day at end-January, compared with 36 in August, the Coal Consumers Association of India said.

42 Coal Mines Auctioned Till

Date for Commercial Government

Use:

A total of 42 coal blocks have been auctioned till date for commercial mining, government has said, adding that out of these, 10 reserves were auctioned last week under the third tranche.

Jindal Steel and Power and Hindalco Industries were among the successful bidders during the round.

On the first day of the auction held last week, five blocks were sold, where Dalmia Cement Bharat Limited had emerged as the highest bidder for two coal blocks in Jharkhand.

Mahanadi Mines and Minerals had emerged as the highest bidder for a coal block in Odisha while Yazdani Steel and Power was the highest bidder for another coal mine in the eastern state.

The 10 blocks sold last week are projected to generate an annual revenue of 2,858.20 crore, the ministry said.

On the second and the third days of the auction, Jindal Steel and Power had bagged Utkal-C coal mine in Odisha while Hindalco Industries made the highest bid for Meenakshi mine in the state. BS Ispat Limited emerged as the highest bidder for Majra mine in Maharashtra, and Assam Mineral Development Corporation bagged Garampani coal block in Assam.

Coal Giant NCL is Moving towards Renewable to Become a Net Zero Company In line with Nations’ Commitment towards Energy Transition and improving on the share of clean energy, Northern Coalfields Limited (NCL), a Coal India arm is responding positively to these shifts and moving swiftly towards producing Renewable energy to become a Net Zero Company under the aegis of its Sustainable Development Cell.

With its robust energy strategy, Company is aggressively focusing on generating 270 MW of solar power for internal consumption by the year

23 | CCAI Monthly Newsletter May 2021

2025-26, with an approx. Capital Expenditure of 440 crores.

The company has already started working on the 50 MW Ground Mounted Solar Project in Nigahi Area of NCL along with 3.37 MW rooftop Solar Project in Offices and Townships of Different units of the Company including its HQ. Besides this, NCL is also adopting the energyefficient measures across Mining and other major operations like deployment of new HEMMs with state of the art technology

RAILWAYS & SHIPPING

Gangavaram port clocks record cargo handling Gangavaram Port Ltd (GPL) said it has created a national record when it comes to steel loading with the port loading 10,854 metric tonnes (MT) of steel blooms for RINL in 24 hours using vessel cranes in February 2022, surpassing its earlier record of 9,078 MT on a 24-hour basis in November-2021.

The port also achieved its highest ever loading of iron ore fines in 24 hours this month when it loaded 53,262 MT onto MV Crimson Knight for KIOCL, surpassing the previous record of 52,577MT on vessel MV African Spoonbill.

The port also achieved its maiden record in sugar cargo loading of 16,020 MT from MV Jenny M that berthed at the port on February 21, in addition to the highest ever steam coal discharging of 70,000 MT in 24 hours from vessel MV Manasota for AEL in January 2022 by deploying ship unloader cranes. It also set a record in PCI coal discharging with 43,700 MT PCI coal discharged within 24 hours using harbour mobile cranes from vessel MV Atmosphere for JSPL in January this year.

CCAI Monthly Newsletter February 2022

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Two longest Railway flyovers being built in Katni for smooth movement of coal-laden trains Two longest railway flyovers in the country, with a total length of 34.9 km, are being built at the estimated cost of Rs 1,250 crore in Madhya Pradesh's Katni district for smooth movement of trains carrying coal, an official said. The two flyovers, one each on the up and down directions, are being built on the Bina-KatniBilaspur route under the Katni grade separation project, said Rahul Jaipuriyar, the chief public relations officer of the West Central Railway (WCR) said.

The project will help in the smooth movement of coal-laden trains from mines in the eastern parts of Madhya Pradesh and Chhattisgarh.

Coal trains running on the Katni-Singrauli route will have direct access to these flyovers, he said.

The Rs 1,250-crore project was started in 2020 and is expected to be completed by 2023-24, the official said, adding that 25 per cent of the work has been completed.

The flyovers will comprise eight Rail-Over-Rail (ROR) bridges on two existing railway routes, including six other bridges on rivers, he said.

The Jabalpur-Katni-Manikpur and Bina-KatniBilaspur routes have separate infrastructure that crosses Katni,

STEEL

4QFY22 Spreads For Steel Sector Could Moderate Due To Higher Coking Coal Prices India Ratings and Research has published its January 2022 credit news digest on India's steel sector. The report highlights the demandsupply scenario, price trends, imports/exports

24 | CCAI Monthly Newsletter February 2022

in both India and China encompassing finished steel products (both flat and long), scrap, iron ore, coking coal and others, while also evaluating the impact of end-user industries on India's steel sector. The agency has also covered its recent rating actions.

Production improves in 2021 Ind-Ra opines India's steel production growth in 2HFY22 will be supported by strong consumption growth and preparedness of the sector participants with new capacities. India's crude steel production improved 0.9% year on year (yoy) and 6% month on month (mom) to 10.4 million tonnes (MnT) in December 2021.

During 2021, India's crude steel output was 118.1MnT, up 17.8% yoy. The global crude steel production was 158.7MnT in December 2021, 10.8% mom higher month on month (mom) but 3% yoy lower.

Chinese crude steel production was 86.2MnT in December 2021, 24% higher mom, but 6.8% lower yoy. In 2022, Chinese production is likely to reduce with the government focus of regulating steel output to reduce the environmental impact.

In 2021, the global crude steel production was 1,911.9MnT, 3.6% higher yoy.

MoEF panel gives green nod to JSW’s steel plant project An expert appraisal committee of the Union ministry of environment and climate change (MoEF&CC) has recommended grant of environment clearance (EC) for JSW Utkal Steel Ltd’s proposed steel plant near Paradip in Jagatsinghpur district. The committee that had deferred granting environment clearance to the company seeking more information, has set a series of conditions while giving its nod.

The Sajjan Jindal-led group has planned a 13.2 MTPA crude steel plant along with 900 MW captive power and 10 MTPA cement grinding unit. It also plans to set up a captive jetty near the plant. While the state government is in the process of handing over of land for the project, the project has been facing stiff resistance from

some locals. At least three petitions relating to the project have also been pending in the Orissa high court.

The committee has also set a condition that the project proponent shall not construct any steel plant facility on north-eastern portion of high tide line and sand dunes in the vicinity of the project site. The company has also laid the condition that no filling and raising of land beyond 2950.10 acres (constituting 973.533 acres of green belt) shall be permitted to the project proponent.

As an area of 209.34 acres (84.72 hectares) of the forest land is located in between the proposed integrated steel plant and jetty, the MoEF&CC said the forest area will remain untouched and separated from the plant and jetty.

Demerger of Nagarnar plant will be completed by June 2022: NMDC The country’s largest iron-ore producer NMDC Ltd is expecting to complete the demerger process of its upcoming 3 million tonne per annum Nagarnar iron and steel plant by “late March or around April-June”. and the value unlocking will happen once the steel plant gets listed “in another two to three months”.

According to Amitava Mukherjee, Director (Finance), NMDC Ltd, the State-run company has requested for waiver of creditors meeting.

If the Ministry of Corporate Affairs (MCA) accedes to the request, then the demerger process could be completed by March-end or end-of-April.

Necessary clearances from SEBI and the stock exchanges have already been received. In case, the MCA “directs” NMDC to go ahead with a creditors meeting (there are two creditors), then there could be a delay of “a month or a month-and-a-half”.

The commissioning of 3 mtpa steel plant in Chattisgarh has begun and commercial production is expected around July. The management indicated that coke oven heating

process has begun and production is expected “maybe in the end-of-March” or “beginning-ofApril”. Nearly 19500 crore has been invested till Q3 FY22 in the project.

Aluminium players say captive power plants facing alarmingly depleted coal stock, seeks govt help Seeking the government’s intervention, the Aluminium Association of India (AAI) has said the sector’s captive power plants are facing "alarmingly" depleted coal stock of only threefour days as against the prescribed level of 15 days.

The aluminium industry has also made a plea to earmark at least 25-30 coal rakes per day for economically viable and sustainable industry operations.

"The captive power plants (CPPs) of the aluminium industry are facing alarmingly depleted coal stocks of only 3-4 days as compared to the prescribed level of 15 days,” the AAI said in a recent letter to the coal secretary.

There is a backlog of over 6,000 coal rakes as most of the available coal and rakes are being diverted to the power sector as "priority coal supplies", the AAI stated and urged the government to earmark at least 25-30 coal rakes per day for economically viable and sustainable industry operations.

CEMENT Cement prices likely to stay firm in Q4 after staying buoyant in January Cement prices were buoyant in January.

Analysts expect the trend to continue for the remainder of the fourth quarter given rising input costs and improving demand trend as construction activities gain momentum. This CCAI Monthly Newsletter February 2022

| 25

augurs well for cement companies, which have been through a period of demand uncertainty over the past few quarters due to the impact of the pandemic coupled with an extended monsoon season.

In the recent past, cement prices did not see any major increase as companies were unable to peg the demand trend. However, this is likely to change given a sustained push to demand. In January, companies increased prices by 2-5% compared with the previous month. All India average cement price increased by 5% year-onyear to Rs365 per 50 kg bag in January. It was 2.1% higher than the month-ago average price.

One of the major reasons for the price increase is the rising construction activities amid falling Covid cases and abating intensity of cold weather. In addition, increasing construction of government-funded infrastructure projects (including election spending) will boost demand.

Another major factor is the rising prices of key raw materials – pet coke price has increased by over 50% while diesel price is up 14.4% year-onyear. Cement companies will have to undertake price increases to retain profitability amid rising input costs.

India Cements reports drop in profits owing to 'coal crisis' and poor prices India Cements reported a sharp decline in net profit for the quarter ended December 31 with profits slumping to Rs 3.3 crore as opposed to Rs 62 crore in the same quarter last year.

The company attributed this decline to poor prices and higher cost of production. It said that the heavy rainfall and subsequent flooding in a number of southern states too played spoilsport as it led to stalling of construction activities, which in turn impacted the company.

"Our main markets were flooded," N Srinivasan, Vice Chairman and Managing Director of India

26 | CCAI Monthly Newsletter February 2022

Cements said. "And what used to give us some succor was the East - where the prices were very low. So, we had to choose whether to supply there or not and we chose not to. On top of this, for the first time we had a coal crisis. The cost of coal went up from $60 to $290."

He said that American coal was unavailable, Australian coal was priced high while Indonesian coal's supply was erratic. He also added that the quality of South African coal does not match that of American coal. Hence, those who bought coal earlier at low prices were the ones who could sustain.

Ambuja Cements to invest Rs 3,500 Cr. for raising cement grinding capacity Ambuja Cements Ltd, part of Swiss building material major Holcim group (earlier LafargeHolcim), announced an investment of Rs 3,500 crore for expansion of its cement grinding capacity.

"The board has approved in principle an investment of Rs 3,500 crore for a cement grinding expansion plan of potential 7.0 million tonnes across our existing grinding units at Sankrail and Farakka and at a greenfield (fresh) location at Barh, in Bihar," Neeraj Akhoury, CEO of Holcim India and MD & CEO of Ambuja Cements, said in an earnings statement.

This is supported by a 3.2-million tonne brownfield (existing) clinker expansion at the company's existing integrated plant in Bhatapara, Chhattisgarh, he added.

Currently, Ambuja Cement has an annual cement production capacity of 31 million tonnes with six integrated cement manufacturing plants and eight cement grinding units across the country.

Its consolidated revenue from operation stood at Rs 28,965.46 crore in 2021. .

GLOBAL The Future Production

of

Global

Coal

Despite its adverse environmental impact, coal was in high demand in 2021. As economies reopened following the start of the COVID-19 pandemic, countries struggled to meet resurgent energy needs. As a readily available low-cost energy source, coal filled the supply gap, with global coal consumption increasing by 450 million tonnes or around +6% in 2021.

This graphic looks at the IEA’s coal production forecasts for 2024, and the specific countries projected to reduce or increase their production over the next few years.

Many of the top coal-producing countries did not commit to the COP26 pledge. China, the U.S., India, Russia, and Australia abstained, and of those five, only the U.S. is forecasted to reduce coal production in the next two years.

With 15 EU countries signing the pledge, the European Union is forecasted to see the greatest drop in coal production at 82 million tonnes,

28 | CCAI Monthly Newsletter February 2022

along with the greatest forecasted reduction in coal consumption (101 million tonnes, a 23% reduction).

Many of the top coal-producing countries did not commit to the pledge. China, the U.S., India, Russia, and Australia abstained, and of those five, only the U.S. is forecasted to reduce coal production in the next two years. With 15 EU countries signing the pledge, the European Union is forecasted to see the greatest drop in coal production at 82 million tonnes, along with the greatest forecasted reduction in coal consumption (101 million tonnes, a 23% reduction).

Banks gave more than $1.5 trln to coal sector in 2019-2021 – NGOs Financial institutions channeled more than $1.5 trillion into the coal industry in loans and underwriting from January 2019 to November 2021, despite many having made net-zero

pledges, a report by a group of 28 nongovernment organisations showed.

Cutting coal use is a key part of global efforts to slash climate-warming greenhouse gases and bring emissions down to net zero by the middle of the century, and governments, firms and financial institutions worldwide have pledged to take action. But banks continue to fund 1,032 firms involved in the mining, trading, transportation and utilisation of coal, the research showed.

“Banks like to argue that they want to help their coal clients transition, but the reality is that almost none of these companies are transitioning,” said Katrin Ganswind, head of financial research at German environmental group Urgewald, which led the research. The study said banks from six countries - China, the United States, Japan, India, Britain and Canada - were responsible for 86% of global coal financing over the period.

Direct loans amounted to $373 billion, with Japanese banks Mizuho Financial and Mitsubishi UFJ Financial - both members of the Net Zero Banking Alliance - identified as the two biggest lenders.

Another $1.2 trillion was channelled to coal firms via underwriting. The top 10 underwriters were Chinese, led by the Industrial and Commercial Bank of China (ICBC) with $57 billion. It did not respond to a request for comment. Institutional investments in companies still developing coal assets amounted to $469 billion, led by BlackRock with $34 billion.

NDRC, said that the price of 5,500 kcal/kg NAR will be considered stable below Yuan 900/mt ($142.07/mt) at ports, Platts reported.

The NDRC asked coal producers to step up production and urged sellers to sell at a stable price level.

The price of Qinhuangdao 5,500 kcal/kg NAR was heard at Yuan 900/mt FOB on Feb. 15, a 20% correction from Feb. 11.

China — the world’s largest producer and importer of coal — is also one of the top importers from Indonesia, accounting for 10 million-12 million mt per month on an average.

The country produced 4.07 billion mt of raw coal in 2021, 4.7% higher on the year and imported 320 million mt, up 6.6% on the year, the customs data showed. .

Indonesia parliament calls for bigger domestic sales of coal Indonesian lawmakers have called on the government to raise the domestic sales requirement for coal miners to 30per cent on the expectation that energy demand in Southeast Asia's biggest economy will rise in coming years.

Coal companies are currently required to sell 25per cent of their output to the local market, with a $70-per-tonne cap for power generators and a $90 cap for cement and fertiliser industries.

Indonesian coal prices are likely to decline in the near term as Chinese buyers stay on the sidelines amid a fall in the latter’s domestic coal prices.

The world's biggest thermal coal exporter in early January suspended shipments of the fuel amid low inventories at local power generators.

Exports have since been allowed to resume, except from miners who have yet to comply with the domestic sales rule. Any increase in the so-called mandatory domestic obligation is likely to worry the global energy market, already reeling from the unexpected ban earlier this year.

The development comes after China’s National Development and Reform Commission, or

Sugeng Suparwoto, chairperson of the parliamentary committee overseeing the energy

Indonesian coal prices stare at downtrend amid lack of China demand: sources

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sector, said the current 25per cent requirement will not be enough to meet local demand as it is expected to rise.

this year and institutional changes in both coal supply contracting and monitoring of coal deliveries.

As part of its efforts to reach net-zero carbon emissions by 2060, Indonesia has said it will not build new coal power plants. But several projects are already underway and these are expected to add around 14 gigawatts of new capacity in the coming years, according to the country's 20212030 power supply strategy.

Australia’s Thermal coal’s record price run may end up its own worst enemy

Indonesian firms sign cooperation agreement

coal

Three Indonesian state-owned companies — coal producer Bukit Asam, utility PLN and rail operator Kereta Api Indonesia (KAI) — have signed an interim agreement aimed at strengthening cooperation on the country's coal supply chain.

The firms will collaborate to create a comprehensive study relating to cooperation schemes, business models, technical and operational partnerships, and other factors.

The result of the study will serve as a guideline for delineating each company's role in the partnership.

The interim deal is a follow-up to an initial agreement signed between the three companies in August last year.

Bukit Asam will be responsible for supplying coal to PLN's power plants using KAI's railway system under the proposed partnership. The three companies are planning to have an operational system ready for deployment by 2025, with Bukit Asam supplying 20mn t/yr of coal to PLN under the terms of the proposal.

The additional supply from the proposal will also serve as a security net in the event of issues in the delivery of coal from private-sector producers to power plants. Indonesia narrowly avoided two power crises in a span of a year in the first quarters of 2021 and 2022 because of a lack of coal deliveries to power plants. This resulted in a month-long export ban in January

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The price of benchmark Australian thermal coal rose last week to trade near record highs, providing a short-term boost to producers but increasing the risks of longer-term pain.

The Newcastle index, as assessed by commodity price reporting agency Argus, climbed to $258.59 a tonne in the week to Feb. 11, up from $246.34 the prior week and close to the all-time high of $261.11 from the week to Jan. 28.

Australia, the world’s second-biggest shipper of thermal coal used for power generation behind Indonesia, is seeing strong demand for the polluting fuel from traditional customers in north Asia, such as Japan and South Korea.

It’s worth noting that the bulk of coal bought by these countries is sold under short- and medium-term contracts, and not at the weekly spot price. This doesn’t mean Japanese and South Korean utilities aren’t paying high prices for their most of their supplies, but it is unlikely they are paying the current extremely high weekly index price.

To put the current price in context, this time last year the Newcastle Index was at $87.43 a tonne, having recovered strongly from its pandemiclow in 2020 of $46.94. However, between 2012 and the middle of last year, the price had never exceeded $120 a tonne and had spent much of those years between $50 and $90.

NSW coal defies challenging year

odds

in

Australia - With robust international demand

in 2021, the New South Wales coal sector weathered the COVID pandemic and market changes and emerged with positive export volumes and jobs.

New data from Coal Services shows 164 million tonnes (Mt) of coal was exported from NSW in 2021, one per cent down on 2020 and almost 30 per cent higher than a decade ago.

India and Thailand were major drivers of demand, with the emerging trade partners almost doubling their imports of NSW coal.

India increased from 8.9Mt in 2020 to 16Mt in 2021, and Thailand jumped from 3.7Mt in 2020 to 6.7Mt in 2021.

Korea increased its imports of NSW coal by 25 per cent to 26.8Mt in 2021, while the Philippines and Malaysia both remained steady. No NSW coal was exported to China.

Australian coal largely cleared at Chinese ports ahead of festival, but no sign of further imports China’s coal supplies strengthened amid the potentially rising demand ahead of the Chinese New Year holidays, with ports ramping up efforts to expand imports or clearance of coal from countries like Australia while domestic suppliers increased production capacity to further ensure adequate inventories.

Some industry insiders confirmed with the Global Times that coal imports from Australia that was stagnant at ports have largely been cleared.

“In December, Australian coal stranded at ports was cleared up, and the remaining Australian coal – could be less than 1 million tons – would also be cleaned up in January,” a senior industry insider told the Global Times on condition of anonymity.

66.37 million tons less than in 2020, a drop of more than 85 percent year-on-year, amid the disruption by the soured relations between China and Australia, the insider said, noting that last year, Australian coal imports took only around 3 percent of the 320 million-ton total imports.

Australian delays affect Anglo American coking coal South African mining firm Anglo American's delay in securing regulatory approval to restart its 5mn t/yr Grosvenor mine and a below expected performance at its 6.5mn t/ yr Moranbah mine are adding to wide price premiums for Australian hard coking coal.

Anglo American produced 14.9mn t of metallurgical coal in 2021, just shy of its 15mn t target, by increasing production at its lower grade Dawson mine, offsetting lower production at the high-grade Moranbah and the delayed restart of Grosvenor. This is contributing to the shortage of high-grade hard coking coal exports from Australia and the wide premiums paid compared with lower grade metallurgical coal such as pulverised coal injection (PCI) and semi-soft coking coal.

The firm's Moranbah mine, which was restarted in June after being closed for four months because of elevated gas level has also not raised output as expected with difficult geological conditions.

This has left Anglo American reliant on its lower grade Dawson mine to come close to its 15mn t guidance for 2021, with its 20mn-22mn guidance for 2022 reliant on the government approving the restart of Grosvenor quickly and on workforce absenteeism staying under control as Queensland experiences its first major wave of Covid-19 infections.

Imported Australian coal to China in 2021 was CCAI Monthly Newsletter February 2022

| 31

China's daily output of coal rebounds to over 12 mln tonnes China's coal output returned to more than 12 million tonnes per day as of Feb. 20, the country's state planner said this week, a level equal to the average daily production of the fourth quarter of last year.

Daily coal output in January and early February was affected by the Chinese New Year holiday.

The National Development and Reform Commission (NRDC) did not give a figure for January output.

Production and supply of coal in China's main production areas of Shanxi, Shaanxi and Inner Mongolia are expected to stabilise as the weather warms up, the NDRC said in its official Wechat account.

Authorities have ordered coal miners to run at maximum capacity to tame red-hot coal prices and prevent a recurrence of September's nationwide power crunch that disrupted industrial operations and added to factory gate inflation. .

China coking coal futures jump on tight supply, demand hopes Inventories of the metallurgical coal at 247 steel mills and 230 coking plants covered by Mysteel consultancy stood at 21 million tonnes last week, down 4% from a week earlier.

Coke prices on the Dalian bourse jumped 3.6% to 3,389 yuan a tonne at close. They gained up to 3.8% earlier in the session. Benchmark iron ore futures rose for the first time in six sessions after regulators' price-containing measures last week. They were traded range-bound in morning session and soared 4.7% to 707 yuan a tonne when market close. .

China Turns To Indonesia For Coal Following Fallout With Australia China and Australia appear to have finally moved away from each other. The relationship turned frosty after China imposed an “unofficial ban” on Australian coal imports back in November 2019. At the time, many speculated that China would suffer more. But steel prices have held steadier as well.

The dispute started sometime in 2019 after China delayed Australian coal shipments. Other factors including Covid made things worse.

China hardened its stance after the Australian government called for an independent inquiry into the origins of COVID-19. In what is being interpreted as “retaliation”, China blocked imports of Australian products like copper and coal. Last year, China imported 54.7 million tons of coking coal, down by 24.6% from 2020.

With demand at downstream users recovering, coking plants are more willing to buy products.

Resumption of production at blast furnaces and the use-up of Australian coal could keep supply tight in China.

The lifting of export controls of coal from Indonesia may come as good news for China.

China remains one of the largest importers of Indonesian coal, importing as much as 123 million tons of it last year. China does not need to go back to Australia. When Indonesia implemented an export ban on coal and subsequently partially lifted the ban that provided more options for China.

The most-active coking coal futures on the Dalian Commodity Exchange , for May delivery, ended up 5% to 2,647 yuan ($418.07) per tonne, the highest closing price since Oct. 27.

South Africa has pledged to switch from coal to clean energy.

Minister of Mineral Resources and Energy

32 | CCAI Monthly Newsletter February 2022

Gwede Mantashe stated at a coal colloquium in Pretoria that while South Africa is committed to a transition to cleaner energy, coal would continue to be important for the country's economic growth and job creation for some time.

According to media reports, Mantashe said coal accounted for around 70% of primary energy consumption, 75% of electricity generation, and 30% of petroleum liquid fuels in the country's energy mix.

"Coal's role to energy security, considerable contribution to the gross domestic product, huge workforce, and other relevant economic concerns must all be addressed in the transition.

These national interests cannot be overlooked in our climate change strategy.

They must be incorporated into our strategies to transition from high to low carbon emissions "Mantashe remarked.

Ukraine imported almost 1.3M tonnes of coal since Nov 2021 Ukraine has imported almost 1.3 million tonnes of coal since November 2021, the Prime Minister said. four more vessels with about 334 thousand tonnes of coal are expected to arrive by the end of this month and six vessels with 391 thousand tonnes in March. Two ships with 300,000 tonnes of coal are being unloaded at the port.

The Prime Minister said that as of February 16, 822,000 tonnes of coal were accumulated in thermal generation warehouses. At the same time, the consumption of this type of fuel in February 2022 is 18% less than in February 2021.

According to Shmyhal, available energy reserves will be enough to complete the heating season. Moreover, there have been no so-called

"rotating outages" and there are no plans to use them.

Russian gas crisis stokes Europe’s appetite for Russian coal Russian coal merchants are proving to be the winners as European buyers, nervous a feared Russian invasion of Ukraine could lead to disrupted gas supplies, stock up on the dirtiest fossil fuel.

Despite Europe’s ambitions to reduce carbon emissions to net zero by the middle of the century, which means weaning itself off all fossil fuels, but especially coal, the continent has been switching to coal from gas since the middle of last year.

Even before the current risk invasion and possible Western sanctions on Russia could choke off gas from Europe’s biggest gas supplier, fuel buyers responded to record high gas prices.

The European Union’s coal imports rose by 55.8% in January versus a year ago, to 10.8 million tonnes – of which Russia supplied 43.2% – analysis from shipbroker Braemar ACM, based on ship tracking data, found. EU coal imports also rose in December 2021 by 35.1% year-on-year to 9.3 million tonnes.

For 2021 as a whole, imports of Russian thermal coal into Europe, of which the majority is shipped to Germany, Belgium and the Netherlands, rose to 31.1 million tonnes, a year-on-year increase of 16.2%, Braemar analysis showed. .

US coal generation share falls to 18-month low in November: EIA Power sector coal stockpiles were 32.3% lower at the end of November than the year-ago month and the lowest for the corresponding month in CCAI Monthly Newsletter February 2022

| 33

21 years, Energy Information Administration data showed.

Since hitting 20-year low 80.42 million st in September, coal inventories grew to 92.15 million st at the end of November, up 8.6% from October and a 7.31 million st build.

Bituminous coal stocks were 33.2% lower than the five-year average 55.96 million st after November and 31.9% lower than the year-ago month. Compared with October, bituminous stocks were 8.2% higher at 37.36 million st, a four-month high.

Bituminous supply at coal plants averaged 100 days of cover at the end of November, a seven-month high and 9.9% higher than October. Compared with the year-ago month, bituminous days of burn were 28.6% lower.

Bituminous days of burn were nearly flat to the five-year average 99 days.

US power generation from coal totaled 57.4 TWh in November, down 8.3% on the month and 6.2% on the year. Coal represented 18.2% of the stack in November, an 18-month low. In the year-ago month, coal’s share was 20.3%. Power generation from coal was 29.6% lower than the five-year average in November.

US National Coal Council reestablished as National Advisory Committee on Coal US - The National Coal Council will be reestablished under a new name and with a revised mandate, the Department of Energy said.

The council’s charter lapsed more than two months ago, “in light of DOE’s commitment to fully evaluate the need to expand the scope of advisory work of the committee,” read a notice published in the Federal Register.

34 | CCAI Monthly Newsletter February 2022

While the council will continue to advise the Secretary of Energy on “general policy matters relating to coal issues,” according to recent notice, its charter “has been modernized to reflect matters currently faced by the coal industry, workers, and communities.”

It will now be called the National Advisory Committee on Coal.

The National Coal Council had previously been criticized by environmental groups for allegedly favoring industry. Many such groups, including the Powder River Basin Resource Council, praised the DOE’s decision to update the charter instead of renewing it..

Increased PRB coal production points to ‘strong 2022’ Coal production in the Powder River Basin saw growth in 2021 after a significant pandemicrelated setback marred the extraction industry the year before.

Amid an overall downturn in the demand for thermal coal, 2022 appears poised to be another productive year for basin coal mines.

The 12 Campbell County mines produced about 230 million tons of coal last year, about a 10% increase from the 2020 yield of nearly 207 million tons, according to coal production data from the Mine Safety and Health Administration.

The decreased 2020 production came amid the early stages of the COVID-19 pandemic and resulted in about a 22% drop from the almost 267 million tons of PRB coal mined in 2019.

The “unexpected uptick” in demand for coal last year came from a confluence of factors, particularly in the third and fourth quarters of the year, that involved projections of a colder winter and increased natural gas prices throughout the country, said Travis Deti, executive director of the Wyoming Mining Association.

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IN PARLIAMENT GOVERNMENT OF INDIA MINISTRY OF COAL RAJYA SABHA

Q. No. 48. MEASURES TO PREVENT COAL SHORTAGE AND ENERGY CRISIS 07.02.2022 SHRI DEREK O' BRIEN: Will the Minister of Coal be pleased to state: (a) the measures taken by Government to prevent a resurgence of the coal shortage and energy crisis seen in November, 2021; (b) the measures taken to diversify the supply chain away from Coal India Limited, which currently supplies nearly eighty per cent of our coal based energy requirements; and (c) the possible effects of Indonesia export ban in January, 2022, on India’s coal supply and measures being taken to offset this?

36 | CCAI Monthly Newsletter February 2022

ANSWER MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI) (a) to (c): A statement is laid on the table of the House.

Statement referred to in reply to parts (a) to (c) of Rajya Sabha Starred Question No. 48 for answer on 07.02.22 asked by SHRI DEREK O' BRIEN: (a): There is no shortage of coal in thermal power plants in the country. Even in 2021, coal stocks came down at thermal power plants due to evacuation issues, but there was adequate coal available in the country. In 2021-22 (upto Janu-

ary 2022) Coal India Limited (CIL) has supplied coal to the tune of 441.35 Million Tonnes (MT) (provisional). The total coal stock at the power plants end has increased from 10.82 MT as on 31.10.2021 to 25.31 MT as on 31.01.2022.

The following steps have been taken to improve coal supplies for meeting increased demand in the country: i. In order to address the issues of coal supplies to power sector, an Inter-Ministerial Sub-Group comprising of representatives from Ministry of Power, Ministry of Coal, Ministry of Railways, CEA, CIL and Singareni Collieries Company Limited (SCCL) meet regularly to take various operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to power sector including critical coal stock position in power plants. ii. CIL had offered additional coal of about 5.2 MT (in October'21) and 6.0 MT (in December'21) from its various subsidiaries to States, Central Gencos for lifting through Rail-cumRoad(RCR)/ Road Mode. (b): 107 coal block have been allocated under the provision of CM(SP) Act and 18 coal block have been allocated under MMDR Act for Power Sector, NRS Sector, Sale of Coal under auction/ allotment mode.

The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to encourage domestic coal production enhancement from captive mines by allowing sale of coal or lignite, on payment of additional amount, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked with the mine. Earlier this year, the Mines and Minerals (Development & Regulation) Act had been amended to this effect. This is applicable for both the private and public sector captive mines. With this amendment, the Government has paved the way for releasing of additional coal in the market by greater utilization of mining capacities of captive coal and lignite blocks,which were being only partly utilized owing to limited production of coal for meeting their captive needs.

(c): Indonesia has relaxed export ban and few coal vessels have already departed in the last days of January’22. The export ban in major period of January’22, has provided an opportunity to supply more domestic coal. CIL supplied 50.7 MT coal to power sector in January 2022, achieving a growth of 24% in comparison to January 2021 supply of 40.8 MT. Ministry of Power has projected a requirement of 727 MT domestic coal for coal based power generation for the year 2022-23. India's dependence on imports for meeting thermal coal demand has sharply reduced. In FY23, this demand shall be met from CIL, SCCL and coal production from captive coal blocks.

Q. No. 128. OUTSTANDING BALANCE ON STATES FOR SUPPLY OF COAL 14.03.2022 SHRI K.R.N. RAJESHKUMAR:: Will the Minister of Coal be pleased to state: (a) whether it is a fact that Government is supplying indigenous coal to the States; (b) if so, the details of outstanding balances to be paid to Government by the States, Statewise; (c) the details of undisputed outstanding and disputed outstanding of the States, State-wise; and (d) if there is disputed outstanding, whether Government has any plan to resolve the issues with the States, especially with the State of Tamil Nadu?

ANSWER MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI) (a) to (d): A statement is laid on the table of the House.

Statement referred to in reply to parts (a) to (d) of Rajya Sabha Starred Question No. 128 for answer on 14.03.22 asked by SHRI K.R.N. RAJESHKUMAR: (a): Central and State Public Sector Units are supplying domestic coal to different Power genCCAI Monthly Newsletter February 2022

| 37

erating companies of the State Governments. (b) & (c): State-wise outstanding (disputed and undisputed) dues to be paid to Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) as on 28.02.2022 is annexed at Annexure -I and Annexure -II respectively. (d): Coal Sales Dues are continuously monitored by coal company and regular follow-up is done with consumers for early recovery. For making recovery of outstanding dues easier, CIL has developed an online bill-to-bill reconciliation portal, through which online reconciliation will be carried out and dues will be monitored

and realized in a better way.

CIL and Coal Companies are also ensuring bilateral meetings to settle commercial disputes and matters where commercial disputes cannot be settled bilaterally are also referred to Administrative Mechanism for Resolution of CPSEs Disputes (AMRCD). Fuel Supply Agreement also provides for levy of interest on delayed payment and coal companies are claiming interest on delayed payment from consumers.

The amount due from Central and State Gencos for CIL are also followed up by the Ministry of Coal.

Annexure-I Statewise and Utilitywise outstanding dues as on 28.02.2022 (Provisional) to be paid to CIL

(Fig. in Rs. Crore)

States

GENCOS

Undisputed

Disputed

Total

Andhra Pradesh

APGENCO

221.59

0.00

221.59

Bihar

BSPCL

0.64

26.00

26.64

Chattisgarh

CSPGCL

183.36

20.24

203.60

Delhi

DVB

0.00

3.46

3.46

Gujrat

GUVNL

153.70

3.95

157.65

Haryana

HPGCL

2.97

79.68

82.65

JSEB

21.58

0.00

21.58

TVNL

980.29

0.00

980.29

Total

1,001.87

0.00

1,001.87

Karnataka

KPCL

121.33

0.00

121.33

Madhya Pradesh

MPEB

1,379.14

40.88

1,420.02

Maharastra

MSEB

2,310.86

16.62

2,327.48

Orrisa

OPGC

17.13

0.00

17.13

Punjab

PSEB

78.63

26.15

104.78

Rajasthan

RRVUNL

482.60

6.34

488.94

Tamil Nadu

TNEB

842.93

118.98

961.91

UP

UPRVUNL

1,138.80

49.69

1,188.49

DPL

455.91

3.76

459.67

DPS

0.00

1.08

1.08

WBPDCL

1,221.83

86.61

1,308.44

WBSEB

0.00

1.29

1.29

Total

1,677.74

92.74

1,770.48

Jharkhand

West Bengal

38 | CCAI Monthly Newsletter February 2022

Annexure-II Statewise and Utilitywise outstanding dues as on 28.02.2022 (Provisional) to be paid to SCCL (Fig. in Rs. Crore) States

GENCOS

Undisputed

Disputed

Total

Telangana

TSGENCO

4098

331

4429

Andhra Pradesh

APGENCO

230

0.00

230

APPDCL

31

0.00

31

Karnataka

KPCL

565

9

574

Maharashtra

MSEB

24

0.00

24

Tamil Nadu

TANGEDCO

16

0.00

16

Q. No. 513. TIMELINE FOR COAL PHASEDOWN 07.02.2022 SHRI TIRUCHI SIVA:: Will the Minister of COAL be pleased to state: (a) whether Governmenthas decided on any timeline yet for the coal phasedown as agreed in the recent Glasgow Climate Pact at the COP26; (b) if so, the details thereof; and (c) the number of current loss-making coal mines in the country, district-wise?

ANSWER MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI) (a)&(b):Coal is the most important and abundant fossil fuel in India and accounts for 55% of the country's energy need. Commercial primary energy consumption in India has grown by about 700% in the last four decades. The current per capita commercial primary energy consumption in India is about 350 kgoe/year.

Coal is not only the primary source of energy in the country but is also used as an intermediary by many industries such as steel, sponge iron, cement, paper, brick-kilns etc. Similarly, with increase in growth of industries using coal, their demand for coal has also been increasing; hence, there has been an overall increase in the demand of coal over the years.

Being an affordable source of energy with substantial reserve, coal is going to stay as major

source of energy in the foreseeable future. Despite push for renewables, country will require base load capacity of coal-based generation for stability and also for energy security.

Overarching decisions titled ‘Glasgow Climate Pact’ reflect the following agreement between parties with regard to coal and fossil fuel subsidies: ‘Calls upon Parties to accelerate the development, deployment and dissemination of technologies, and the adoption of policies, to transition towards low emission energy systems, including by rapidly scaling up the deployment of clean power generation and energy efficiency measures, including accelerating efforts towards the phasedown of unabated coal power and phase-out of inefficient fossil fuel subsidies, while providing targeted support to the poorest and most vulnerable in line with National circumstances and recognizing the need for support towards a just transition’.

It is evident that above paragraph is not mandating the phase down of coal power, and it is not setting any timelines for the phase down.

Further, the paragraph is only ‘calling upon’ Parties to accelerate efforts towards the phase down of unabated coal power in line with national circumstances and recognizing the need for support towards a just transition. Paris Agreement is a multilateral treaty for combating climate change.

Accordingly, while India has committed to clean energy; the pace of transition to cleaner energy sources in India is to be viewed in the light of national circumstances, and principle of com-

CCAI Monthly Newsletter February 2022

| 39

mon but differentiated responsibilities and respective capabilities, the transfer of climate finance and low cost climate technologies. (c): In Coal India Limited (CIL), 231 mines were

loss making mines in FY 2020-21. However, the profits from profit making mines are more than the losses of loss making mines. During 202021, 34 mines were also loss making in Singareni Collieries Co. Ltd. (SCCL). The details of loss making mines of CIL and SCCL are given below:

Subsidiary Company

No. of Loss Making Mine

ECL, Sanctoria, West Bengal

60

BCCL, Dhanbad, Jharkhand

23

CCL, Ranchi, Jharkhand

37

WCL, Nagpur, Maharashtra

43

SECL, Bilaspur, Chattisgarh

58

MCL, Sambalpur, Odhisa

7

NEC, Margherita, Assam

3

Total CIL

231

SCCL, Bhadradri-Kothagudem, Telangana

2

SCCL, Peddapalli, Telangana

9

SCCL, Jayashankar-Bhupalpalli, Telangana

5

SCCL, Komarambheem-Asifabad, Telangana

1

SCCL, Mancherail, Telangana

17

Total SCCL

34

Q. No. 514. COAL RESERVES IN INDIA 07.02.2022 SHRI NARESH BANSAL: Will the MINISTER OF COAL be pleased to state: a. the present reserves of coal available in India; b. the amount of tonnes of coal produced by Coal India Limited during each of the last three financial years; c. the amount of tonnes of coal imported by India during the last three financial years; and d. the details of specific measures taken by Coal India Limited to increase the production of coal?

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

AFFAIRS,

(a) As per the Inventory for Coal and Lignite as on 01.04.2021, the total assessed geological coal resource is 352125970000 tonnes. (b) Raw coal production of Coal India Limited during each of the last three financial years is given below: (Quantity in Tonnes)

Year

2018-19

2019-20

2020-21

Production

606,887,577

602,136,509

596,219,080

40 | CCAI Monthly Newsletter February 2022

(c) Details of coal imported by India during the last three financial years are as under:(Quantity in Tonnes) Year

2018-19

2019-20

2020-21

Coal Import

235,348,010

248,536,480

214,994,910

(d) Details of specific measures taken by Coal India Limited to increase the production of coal are as under:-

MCL & SECL are under implementation to facilitate enhancement of capacity utilisation of the mines.

*Capacity addition through approval of new & expansion PR: CIL shall be adding capacity of about 289 Mty through approval of new & expansion PRs (Future Projects).

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

* Capacity addition through special dispensation in EC under clause 7(ii) of EIA 2006: this is an ongoing process and CIL is enhancing its capacity through efficiency enhancement under the special dispensation of EIA Act. * Capacity addition in smaller subsidiaries: Smaller subsidiaries like ECL & BCCL are enhancing its capacity through marginal schemes and OC patches. *Capacity augmentation through deployment of MDO: CIL has already initiated process for operating 15 nos. of mines through MDO having an ultimate capacity of about 170 Mty *Use of Mass Production Technology (MPT) in UG mines wherever feasible: CIL intends to implement the application of more and more MPT in UG mines wherever feasible. * Improving evacuation efficiency & capacity: Through FMC 1 & 2, CIL is in the process of eliminating inefficient and polluting road transport in favour of 44 CHPs, Silos through rail transport. * Procurement of HEMM- Order value worth Rs. 8300 Crs have been placed for procurement of HEMM in CIL in 2019-20 & 2020-21. Equipment supply has been started during 2020-21 and will be followed during the subsequent years for enhancement of production capacity. * Enhancement in evacuation facility from the mines to destination-Evacuation facilities like doubling of Tori-Shivpur Rail line, construction of connecting coal transport roads and sidings in CCL & MCL, construction of CHP-Silos in

Q. No. 1310. REDUCTION IN IMPORT OF COKING AND NON-COKING COAL 14.03.2022 SHRI SAMBHAJI CHHATRAPATI: Will the Minister of COAL be pleased to state: (a) whether the country imports about half of its requirement every year spending substantial foreign exchange despite huge coal reserves within the country; (b) if so, the details of indigenous production, imports and requirement of coking and noncoking coal including the reasons for resorting to imports; (c) the emphatic steps taken by Government for developing adequate technology for indigenous production of coking coal to curb import; and (d) whether the country has entered into tie-ups with the countries which possess advanced technology for the production of coking coal and if so, the details thereof?

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

AFFAIRS,

(a)&(b): Demand of coal is higher than the current level of domestic supply of coal in the country. The gap between demand and domestic supply of coal cannot be bridged completely as there is insufficient availability and reserve of prime coking coal in the country. Further, coal imported by power plants designed on imported coal and high grade coal required for blendCCAI Monthly Newsletter February 2022

| 41

ing purposes is also imported in the country as this cannot be fully substituted by domestic coal as the country has limited reserve of high grade coal. As per the current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choice as per their contractual prices on payment of applicable duty. GovernSl. No.

ment of India does not interfere in this matter.

The total actual demand of coal during 202021 was 906.13 Million Tones (MT). Out of which total coal import was 215.25 MT which was 23.75% of the total requirement. The details of indigenous production, import and requirement of coking and non-coking coal (actual demand) during the year 2020-21 is as under:-

Item

2020-21 (Fig. in MT) Coking Coal

Non-Coking Coal

Total

1.

Domestic Production

44.79

671.30

716.09

2.

Domestic Supply

44.00

646.88

690.88

3.

Import

51.20

164.05

215.25

4.

Actual Requirement (2+3)

95.20

810.93

906.13

(c): Coking coal mission has been launched for increase in the coking coal production from present 45 MT to 140 MT by 2029-30. This will help in reducing the import of coking coal as it can be blended with high grade imported prime coking coal for steel manufacturing. (d): Latest technology e.g. Continuous Miner for underground mines, surface miner for opencast mines, latest HEMMs etc. are already in vogue for production of coal in the country.

Q. No. 1313. REDUCTION IN IMPORT OF COKING AND NON-COKING COAL 14.03.2022 DR. C.M. RAMESH: Will the Minister of Coal be pleased to state: (a) whether some industry associations representing fertilizer, paper, textile and other sector have made a joint representation regarding severe coal shortage faced by them, if so, the details thereof; and (b) whether due to persistent coal crisis, overall industry specially power intensive Plants and SMEs have been forced to operate at reduced capacities with looming risk of plant closures, if so, the details thereof and the steps taken by Government in this regard?

42 | CCAI Monthly Newsletter February 2022

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

AFFAIRS,

Reply (a) & (b): Some representations have been received from different industry associations regarding supply of coal like UP Paper Mill Power Plant Owner Association, Coal Consumers’ Association of India, Federation of Indian Mineral Industries, All India Association of Industries, Cement Manufacturers Association, Bharat Chamber of Commerce, Industries and Commerce Association etc. In order to meet the requirement of non- power sector, Coal India Limited (CIL) has recently conducted NonRegulated Sector (NRS) Linkage auction for long term supply of coal to the consumers of various non-regulated sectors. Besides above, e-auction of coal is being conducted regularly by coal companies to mitigate the demand of different industries. As on Feb’22, 160.5 Million Tonne (MT) has been offered this fiscal out of which 100.1 MT coal has been booked through the e-auction window.

CIL and SCCL have supplied 123.06 MT of coal in FY 2020-21 (upto Feb’21) and 122.72 MT coal in FY 2021-22 (upto Feb’22) for non-reg-

ulated sectors. The coal imports by non power sector have been 100.410 MT in 2020-21 (upto January 2021) and 103.007 MT in 2021-22 (upto January 2022).

The Government has introduced following measures/reforms to increase availability of domestic coal: (i) Commercial Auction of coal on revenue share mechanism: Auction of commercial mining on Revenue Sharing Mechanism was launched on 18.06.2020 by Hon’ble Prime Minister. Under this scheme, total of 2 tranches have been successfully completed and third Tranche is currently under process. From these two tranches total of 28 coal mines have been successfully auctioned for which Vesting order have in signed for 27 coal mines. (ii) Allowed sale of excess coal production: The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to allowing sale of coal or lignite, on payment of additional amount, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked with the mine. Earlier this year, the Mines and Minerals (Development & Regulation) Act had been amended to this effect.

This is applicable for both the private and public sector captive mines. With this amendment, the Government has paved the way for releasing of additional coal in the market by greater utilization of mining capacities of captive coal and lignite blocks,which were being only partly utilized owing to limited production of coal for meeting their captive needs. (iii) Rolling auction: In order to expedite the process for conducting auction and to carryout more rounds of auction in a year, a mechanism of rolling auctions of coal mines has been planned. Under this mechanism, upon completion of the electronic auction process of a tranche, the next tranche of auction would be launched for following mines: a. Mines where no bid or only single bid was received in the previous tranche of auction (except for those mines where Ministry of Coal de-

cides to go for second attempt of auction) b .New mines, if any, identified by Ministry of Coal In the current III tranche of commercial auction, total of 48 coal mines have been rolled over from the II tranche of mines. (iv) Single Window Clearance: The Union government has already launched Single Window Clearance portal on 11.01.2021 for the coal sector to speed up the operationalisation of coal mines. It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India. Now, the complete process shall be facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approval or clearances. (v) Coal India Ltd. has envisaged a coal production programme of one Billion Tonne from CIL mines. CIL has taken the following steps to achieve the target of augmentation of coal production capacity: 1. 15 Projects identified with a Capacity of about 160 MTPA (Million Tonnes per Annum) to be operated by Mine Developer cum Operator mode.

2. Capacity addition through special dispensation in Environment Clearance under clause 7(ii) of Environmental Impact Assessment (EIA) 2006 3. CIL has taken steps to upgrade the mechanized coal transportation and loading system under 'First Mile Connectivity' projects.

Q. No. 1320. IMPLEMENTATION OF REVISED SHAKTI DR. AMEE YAJNIK: DR. AMEE YAJNIK: Will the Minister of Coal be pleased to state: (a) the details of the revised Scheme for Harnessing and Allocating Koyala Transparently in India (SHAKTI) and the current Status of its implementation; (b) the details of States, currently eligible under the SHAKTI, policy for better allocation of coal to present and future power plants in the country; CCAI Monthly Newsletter February 2022

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(c) whether SHAKTI has been able to address the coal linkage problems of the stressed power plants; (d) if so, the details thereof; and (e) if not, the reasons therefor?

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

AFFAIRS,

(a): The Government approved the fading away of the existing Letter of Assurance (LoA) - Fuel Supply Agreement (FSA) regime and introduced Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI), 2017, which was issued by the Ministry of Coal on 22.05.2017. The Government also approved amendments to the SHAKTI Policy, 2017, which was issued by the Ministry of Coal on 25.03.2019. The main features of the SHAKTI Policy (as detailed under its various Paras) are as under: Para A: FSA may be signed with pending LoA holders after ensuring that the plants are commissioned, respective milestones met, all specified conditions of the LoA fulfilled within specified time frame and where nothing adverse is detected against the LoA holder. Further, it has allowed continuation of the existing coal supply to the capacities of about 68,000 MW at the rate of 75% of Annual Contracted Quantity (ACQ), which may further be increased in future, based on coal availability. The policy has enabled coal supplies at 75% of ACQ against FSA to about 19,000 MW capacities, which have been delayed in commissioning, provided these plants are commissioned within 31.03.2022. The medium term Power Purchase Agreements (PPAs) to be concluded in future against bids invited by DISCOMS have also been made eligible for linkage coal supply.

Para B (i): The Coal India Limited (CIL)/ the Singareni Collieries Company Limited (SCCL) may

44 | CCAI Monthly Newsletter February 2022

grant coal linkages to State/Central Gencos/ Joint Ventures at notified price on the recommendations of the Ministry of Power.

Para B (ii): Linkages to Independent Power Producers (IPPs), having Long Term PPAs based on domestic coal, where IPPs, participating in auction, will bid for discount on the tariff (in paise/unit). The bidders, who could not participate in the linkage auction under B (ii) due to any reason, may be allowed to participate in the B (ii) auctions of this policy. Further, the bidders, who could not secure linkage for full ACQ, may obtain linkage for the balance quantity by participating in future auctions at a later stage under B (ii) after benchmarking discount.

Para B (iii): Linkages to IPPs/ Power Producers without PPAs shall be on auction basis.

Para B (iv): Coal linkages may also be earmarked for fresh PPAs, by pre-declaring the availability of coal linkage with description, to the States.

The States may indicate these linkages to DISCOMS/State Designated Agencies (SDAs).

Para B (v): Power requirement of group of States can also be aggregated and procurement of such aggregated power can be made by an agency, designated by the Ministry of Power or authorized by such States on the basis of tariff based bidding.

Para B (vi): Linkages shall be granted for full normative quantity to Special Purpose Vehicle (SPV) incorporated by nominated agency for setting up Ultra Mega Power Projects (UMPPs) under Central Government initiative through tariff based competitive bidding under the guidelines for determination of tariff, on the recommendation of the Ministry of Power.

Para B (vii): The Ministry of Coal, in consultation with the Ministry of Power, may formulate a detailed methodology of a transparent bidding process for allocating coal linkages to IPPs, having PPAs, based on imported coal with full

pass through of cost savings to the consumers. ] Para B (viii): (a) Power plants with no PPAs are allowed coal linkage under B (iii) & B (iv) for a period of minimum 3 months upto a maximum of 1 year for sale of power generated through the linkage in Day Ahead Market (DAM) through power exchanges or in short term through Discovery of Efficient Energy Price (DEEP) portal. (b) Use of the existing coal linkage for sale of power through short term PPAs using DEEP portal or power exchange by the generator, which terminates PPA in case of default in payment by the DISCOM, for a maximum period of 2 years or until they find another buyer of power under long /medium term PPA, whichever is earlier. (c) Coal linkage under B (v) is also applicable in cases, where the nodal agency designated by the Ministry of Power aggregates/procures the power requirement for a group of States even without requisition from such States. (d) Central and State generating companies can act as an aggregator of power of stressed power assets. (e) Mechanism to ensure servicing of debt.

As of now, coal linkages to the following capacities have been granted under various Paras of the policy: (i) Clearance has been given for signing of Fuel Supply Agreement (FSA) to 9 LoA holders with a total capacity of 7,460 MW under provisions of para A(i) of SHAKTI policy. (ii) 24 Thermal Power Plants (TPPs) have been granted linkage for a total capacity of 26000 MW under provisions of para B (i) of SHAKTI policy.

SHAKTI policy was conducted in September, 2017, whereby 27.18 Million Tonne Per Annum (MTPA) of annual coal linkage was booked by ten successful bidders for about 9,045 MW capacity. In the second round conducted in May, 2019, quantity of 2.97 MTPA of linkage has been booked by eight bidders for about 874.9 MW capacity. In the third round, auction has been conducted by PFC Consulting Limited (PFCCL) during May, 2020, where, 2.8 MTPA linkages have been booked by 5 successful bidders. Fourth round of linkage auction has been conducted by PFCCL in September, 2021, where, 3.20 MTPA linkages have been booked by 5 successful bidders. (iv) The linkage auction for SHAKTI B (iii) was conducted in February, 2020, where out of the total offer of 11.8 MTPA, 6.48 MTPA was booked by 7 successful bidders. (v) Coal linkage have been earmarked from CIL for the States of Gujarat, Uttar Pradesh and Madhya Pradesh for a capacity of 4000 MW, 1600 MW and 2640 MW respectively for linkage under B(iv) of SHAKTI Policy. (vi) Coal linkage earmarked from CIL for a capacity of 2500 MW for linkage under B(v) of SHAKTI Policy. (vii) 8 tranches of Linkage Auction have been conducted by Coal India Limited under B(viii)(a) of SHAKTI Policy. Out of total offered quantity of 42.13 MT of Coal, 8.1 MT have been booked by successful bidders. (b): All the Generating companies of States and Union Territories are eligible for coal linkage under SHAKTI Policy, subject to terms and conditions mentioned in the Policy. (c) to (e) : SHAKTI Policy is a transparent way of allocating coal to the Power Plants including stressed power plants.

(iii) First round of linkage auction under B(ii) of CCAI Monthly Newsletter February 2022

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MONTHLY SUMMARY OF IMPORTED COAL & PETCOKE Indicative Imported Coal Price COAL South Africa South Africa Australia Indonesia Indonesia

(kcal/kg) 6000 NAR 5500 NAR 5500 NAR 5000 GAR 4200 GAR

Monthly Price - FOB USD 206.72 USD 175.72 USD 151.99 USD 114.35 USD 76.13

Monthly Price- FOB INR 15495 INR 13172 INR 11393 INR 8571 INR 5707

Monthly Change (USD) 30.72 35.64 23.33 15.85 8.71

Indicative Pet Coke Price PET COKE

Sulphur

Price

India-RIL(Ex-Ref.) Saudi Arabia (CIF)

-5% + 8.5%

INR 14522 INR 13343 ($178)

Monthly Change ($) INR 538.00 23.50

USA (CIF)

- 6.5%

INR 14505($194)

22.25

Exchange Rate

Change (Monthly)

INR 74.96

0.39

Indicative Coking Coal Price Current Month Monthly Change (USD)

Premium Low Vol FOB CFR China 444.68 395.40 35.43

6.18

HCC 64 MID Vol Semi Soft Low Vol PCI Mid Tier PCI MET COKE 62% CSR FOB Aus CFR China FOB Aus FOB Aus FOB Aus CFR India FOB N China 397.58 356.38 304.63 318.97 317.03 598.25 509.25 34.80

4.22

South African Coal News: *One of the biggest announcements from last year’s COP26 climate talks was a pledge by some rich countries to provide $8.5 billion to help South Africa transition away from coal.

Now different interests within the country are tussling over how that money should be distributed. Eskom Holdings SOC Ltd is proposing that a substantial portion be used to expand the grid in order to encourage more investment in renewable electricity. But it faces competition from the South African department of trade and industry, which is also seeking funds for two programs- boost electric-vehicle production and green hydrogen in a bid to position South Africa as a major producer as interest grows in its use in decarbonizing activities.

46 | CCAI Monthly Newsletter February 2022

34.81

41.53

41.66

22.75

-6.44

* South Africa’s Minerals and Energy Minister Gwede Mantashe rallied behind the nation’s coal producers, emphasizing that the fossil fuel will still be used for decades. Mantashe, a former coal miner and union leader, told the CEOs of mining companies that their product shouldn’t be abandoned “prematurely” and highlighted that the industry employs nearly 90,000 workers in a nation with record-high unemployment. The statement clashes with plans for the country, which relies on coal to produce more than 80% of its electricity, for transition to cleaner energy sources.

Australian Coal News: * Despite China clearing millions of tonnes of Australian coal stranded at its ports late last

year amid crippling energy shortages, analysts do not expect China to lift its unofficial ban on Australian coal cargoes any time soon and said the long-running restrictions could persist for at least another two years. *The price of benchmark Australian thermal coal rose this month to trade near record highs, providing a short-term boost to producers but increasing the risks of longer-term pain. The Newcastle index, as assessed by commodity price reporting agency Argus, climbed to $258.59 a tonne in the month to Feb. 11, up from $246.34 the prior month and close to the all-time high of $261.11 from the week to Jan. 28. * Australia's thermal coal market is expected to see rising interest in the near term even as Indonesia eases its export ban amid increasing omicron cases and persistent rains leading to supply tightness. Market participants had expected Australian prices to soften after Indonesia relaxed its export ban in Jan. 2022, anticipating an easing of some pressure from the Australian coal in the global supply chain.

However, prices have remained elevated and sources expect the trend to continue in the near term. Wet weather conditions and omicron spread have limited production at mines, leading to berthing delays at Newcastle, sources said. * Australian coal stranded at the Chinese ports have been largely cleared ahead of the Chinese New Year festival this month, but no sign of further imports could be seen, market analysts say. Imported Australian coal to China in 2021 was 66.37 million tons less than in 2020, a drop of more than 85 percent year-on-year, amid the disruption by the soured relations between China and Australia.

supply requirements is essential to avoid a crisis in the future, industry experts said. Indonesia's domestic coal stocks slipped to critically-low levels at state-owned PLN, in December 2021 as producers failed to meet their domestic market obligation, or DMO. This led to a threeweek export ban in January, causing disruption in the global markets and a rise in prices as supply fell extremely short. * China has turned to Indonesia for coal following fallout with Australia. The lifting of export controls of coal from Indonesia may come as good news for China. China remains one of the largest importers of Indonesian coal, importing as much as 123 million tons of it last year amid its decision to ban import of Australian coal. *Indonesian coal prices are likely to decline in the near term as Chinese buyers stay on the sidelines amid a fall in the latter's domestic coal prices. The development comes after China's top economic body, the National Development and Reform Commission, or NDRC, said that the price of 5,500 kcal/kg NAR will be considered stable below Yuan 900/mt ($142.07/mt) at ports. *Indonesia has fully lifted a one month ban on thermal coal exports ending uncertainty over the coal-rich nation’s blueprint towards its future coal plans. According to authorities, the ban has been lifted due to satisfactory replenishment of domestic inventories, with the supply suspension having given significant support to seabourne prices in recent weeks.

However, Shipment from the archipelago may still be limited.

US Coal News: Indonesian Coal News: *Transparency regarding the allocation of coal to the domestic market in Indonesia, some degree of demand-supply predictability and clarity on regulations over failure to meet local

* Central Appalachia weekly coal production surged to the highest level in over nine years, according to data released by the US Energy Information Administration. The increased CAPP output encompasses both met and thermal coal and is due in part to global tension CCAI Monthly Newsletter February 2022

| 47

around the Russia/Ukraine situation. An increase in long-term coal prices for 2022 also contributed to the rise. *US thermal coal exports surged to four-year high 36.17 million mt in 2021, up 47.9% from 2020, according to US Census Bureau data released in February this week. December thermal coal exports totalled 3.12 million mt, up 0.7% on the month and 18.7% from December 2020. December coal exports were at a sixmonth high —the highest monthly volume since 3.25 million mt in July. Of the thermal volume shipped in December, 2.44 million mt was bituminous, down 4.9% from November but up 10.6% from December 2020, and 608,817 mt was sub bituminous, up 16.1% on the month and 138.2% year on year. * Communities devastated by the collapse of U.S. coal production are also losing their bank branches, removing a catalyst for economic transition when it is most needed. A band of 22 coal mining counties across West Virginia, Kentucky and Virginia have watched coal production decline to a quarter of the level seen just over a decade earlier, and coal jobs have fallen by 69.5%, as the U.S. shifts its power mix to lower-cost, lower-emission generation in the battle against climate change. Without this critical industry, the local population has declined, and banks have responded by shuttering branches.

Pet Coke News: * Price of petcoke in the US Spot market has remained unchanged this month. The Mediumsulfur based US Gulf Coast petcoke market has remained quiet while no new bids were heard in the West Coast of the United States as well. Top destination for US petcoke in recent months has been Japan, closely followed by China in the second spot. * India’s Directorate General of Foreign Trade on Thursday said it has notified the procedure for allocation of quota for import of calcined pet coke for use in the aluminium industry, and

48 | CCAI Monthly Newsletter February 2022

raw pet coke for CPC manufacturing industry for 2022-23. In a notification, the Directorate General of Foreign Trade (DGFT) said that the imports will be subject to guidelines laid down by the environment ministry. It said that all eligible entities which want to avail the quota should apply for import license along with state pollution control board certificate. * US petcoke prices have surged this month showing a bullish trend. High Ocean Freight may have caused tepid interest from Indian buyers. Though prices of Mediterranean petcoke continued to fall this month amid the Lunar New Year holidays. Analysts observed that such fall may have some Asian buyers to look for mid-sulfur, petcoke from Turkey.

Shipping Update: * The dry bulk market has been experiencing some positive momentum of late. In its latest weekly report, shipbroker Allied Ship broking said that “the dry bulk market has moved on a positive track as of the past couple of weeks or so. Following the typical softening in freight conditions during the early part of the year, many would argue that this recovery of late has to some degree been anticipated. *The end of China’s New Year Celebrations is bound to bring with it a restocking process, which could help the dry bulk market move forward and recover part of the lost ground of the past few months. Freight transport company Intermodal said, after the Chinese New Year Eve, February 2022 displays small signs of a dry bulk market recovery with the BDI moving upwards at a constant pace. As anticipated due to the improvements in the dry bulk freight market a more positive sentiment prevails among shipping participants which pushes the asset prices again to upper levels. *Firm seaborne thermal coal prices and volatile freight rates have slowed down interests from Asia’s ex-Chinese markets like Thailand, Vietnam and India. These markets are expected to return in March on hopes that prices and freight would ease for procurement in April.

PRODUCTION AND OFFTAKE PERFORMANCE OF CIL AND SUBSIDIARY COMPANIES COAL PRODUCTION (Figs in Mill Te) FEB'22

SUB CO. ACTUAL THIS YEAR

APR'21 - FEB'22

ACTUAL SAME % PERIOD LAST GROWTH YEAR

ACTUAL THIS YEAR

ACTUAL SAME PERIOD LAST YEAR

% GROWTH

ECL

3.50

4.60

-22.30

28.30

39.00

-27.40

BCCL

3.20

2.00

61.00

26.60

21.90

21.60

CCL

7.80

7.10

9.50

57.60

53.90

7.00

NCL

11.50

9.30

23.70

109.90

103.90

5.80

WCL

6.90

7.10

-2.70

47.40

41.90

13.20

SECL

15.20

17.90

-15.20

121.90

124.20

-1.87

MCL

16.10

13.90

16.00

150.60

130.30

15.60

0.00

0.00

542.40

515.10

NEC CIL

0.00 64.30

61.90

3.90

5.30

OFFTAKE (Figs in Mill Te) FEB'22

SUB CO. ACTUAL THIS YEAR

APR'21 - FEB'22

ACTUAL SAME % PERIOD LAST GROWTH YEAR

ACTUAL THIS YEAR

ACTUAL SAME PERIOD LAST YEAR

% GROWTH

ECL

2.90

3.80

-22.70

32.30

37.10

-12.70

BCCL

2.90

1.70

68.50

28.90

20.30

42.50

CCL

6.80

6.50

3.30

64.70

57.80

11.80

NCL

10.70

8.90

19.80

114.40

98.30

16.40

WCL

6.10

5.20

17.40

57.90

43.80

32.00

SECL

13.50

12.60

7.30

141.30

124.50

13.50

MCL

14.50

12.50

16.30

160.40

132.50

21.10

0.00

0.10

57.40

51.30

12.00

599.90

514.40

NEC CIL

0.00

16.60

CCAI Monthly Newsletter February 2022

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OVERALL DOMESTIC COAL SCENARIO Coal Production (in MT) Company CIL SCCL

January, 2022 64.49 6.02

January, 2021 60.42 5.96

% Growth 6.7% 1.1%

April- January, 2022 478.12 52.54

April- January, 2021 453.22 38.61

% Growth 5.5% 36.1%

Overall Offtake (in MT) Company

January, 2022

January, 2021

% Growth

April- January, 2022

April- January, 2021

% Growth

CIL SCCL

60.85 5.99

53.57 5.49

13.6% 9.1%

542.48 54.17

463.16 37.38

17.1% 44.9%

Coal Despatch to Power (Coal and Coal Products) (in MT) Company

January, 2022

January, 2021

% Growth

April- January, 2022

April- January, 2021

% Growth

CIL SCCL

50.04 4.74

40.43 4.64

23.8% 2.0%

440.79 44.69

357.54 31.61

23.3% 41.4%

Company

Coal Qty. Allocated January, 2022

Coal Qty. Allocated January, 2021

Increase over notified price

Coal Qty. Allocated April- January, 2022

Coal Qty. Allocated April- January, 2021

Increase over notified price

CIL

2.72

3.80

232%

26.50

32.80

99%

Spot E-auction of Coal (in MT)

Special Forward E-auction for Power (in MT) Company

Coal Qty. Allocated January, 2022

Coal Qty. Allocated January, 2021

Increase over notified price

Coal Qty. Allocated April- January, 2022

Coal Qty. Allocated April- January, 2021

Increase over notified price

CIL

9.46

4.32

36%

38.91

27.33

36%

Exclusive E-auction for Non- Power (in MT) Company

Coal Qty. Allocated January, 2022

Coal Qty. Allocated January, 2021

Increase over notified price

Coal Qty. Allocated April- January, 2022

Coal Qty. Allocated April- January, 2021

Increase over notified price

CIL

0.22

2.08

62%

25.50

21.92

47%

Special Spot E-auction (in MT) Company

Coal Qty. Allocated January, 2022

Coal Qty. Allocated January, 2021

Increase over notified price

Coal Qty. Allocated April- January, 2022

Coal Qty. Allocated April- January, 2021

Increase over notified price

CIL

-

0.05

-

2.86

2.34

81%

Special Spot E-auction Scheme 2020 For Import Substitution Company CIL

Coal Qty. Allocated January, 2022 -

Coal Qty. Allocated January, 2021 0.23

50 | CCAI Monthly Newsletter February 2022

Increase over notified price -

Coal Qty. Allocated April- January, 2022 2.33

Coal Qty. Allocated April- January, 2021 7.53

Increase over notified price 50%

CCAI Monthly Newsletter February 2022

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REGISTERED

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