MONTHLY SUMMARY OF DOMESTIC COAL Comparative Price of Domestic Coal: Power/Non-power. *The price shown in the Chart below is without: (a) Surface Transportation Charges. (b) State specific taxes. (c) Coal company or area wise charges if any. (d) Evacuation Facility Charges INR 50 per tonne w.e.f. 00:00 of 20.12.2017 GCV (Kcal/kg) (Mid-value)
G3-6400-6700
G5-5800-6100
G7-5200-5500
G10-4300-4600
G11-4000-4300
G12-3700-4000
Basic ROM price (Rs./te)
3144/ 3144
2737/2737
1926/2311
1024/1228
955/1145
886/1063
Tentative Ex-Mine Price*
4447/4447
3941/3941
2932/3411
1809/2063
1724/1959
1638/1858
COAL * Coal Industry has sought easier norms for commercial coal blocks, including lesser payment and more lenient requirement of minimum production. Potential bidders want upfront payment to be halved and computed on the basis of extractable reserves in a block and not on the total reserves estimate. The draft rules provide for minimum 70% production on an average over a three-year period, while yearly minimum production has to be 50%. Potential miners want this changed to 60% average production in a five-year period and no yearly production stipulations. *Coal India will increase spot e-auction offerings in the current quarter to 15 percent of the year’s production. In the three quarters till end-December 2019, the company had offered about 12 percent of its production for auctions. Spot auction offers accounted for almost 46 percent of the quantity offered for auctions till December.
RAILWAYS * The Indian Railways is reworking its strategy on freight loading as the transportation of coal, which comprises half of its freight, is on
30 | CCAI Monthly Newsletter February 2020
a decline because of the Centre’s thrust on clean energy. “Freight loading by the Railways in 2019-20 (FY20) is 1,223 million tonnes (mt), of which 50 percent is coal and the rest other commodities,” Vinod Kumar Yadav, chairman of Railway Board, said here in a post-Budget conference. The share of coal in railway freight is expected to come down to 40 percent in the FY21, target for which is 1,265 mt. Besides reduction in thermal production that is leading to a decline in coal transportation, overall transit cost for coal is being rationalised by the power companies, which would also bear an impact on freight
POWER * India's electricity supply rose 3.25 percent during the month of January after five straight months of decline, provisional government data showed, in a relief for power producers. Power supply rose to 106.36 billion units in January, up from 103.01 billion units last year, an analysis of daily load despatch data from state-run Power System Operation Corp Ltd (POSOCO) showed. India's Central Electricity Authority (CEA), an arm of the federal power ministry, is expected to release official data on power demand later this month. POSOCO releases provisional load despatch data every day.
