Monthly Summary Of Domestic Coal

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

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.

* Renewable energy sources are expected to account for around 21 percent of electricity demand in 2021-22, Power Minister R K Singh said on Thursday. "As per Central Electricity Authority's National Electricity Plan, contribution of renewable energy sources is estimated to be around 21 percent of the total electricity demand of the country in the year 2021-22 and 24 percent by 2026-27," Singh was quoted as saying in a statement issued by the power ministry.

CEMENT

* Cement manufacturers association (CMA) said the government's budgetary push for infrastructure, logistics and warehousing will boost the industry. Finance minister Nirmala Sitharaman in her over two-hour long speech announced the plans to set up five new smart cities on PPP model and 100 more airports to be set up by 2024 to support UDAN scheme and allocated Rs 1.7 lakh crore to transportation.

*Shree Cement has surpassed ACC Ltd to operationalise the world’s largest cement kiln at Ras Al Khaimah in the UAE. According to sources, Shree Cement has come up with a kiln capacity of 14,500 tonne per day (tpd) in its plant in the UAE which is 2,000 tpd higher than ACC’s Wadi II Plant in Karnataka.

STEEL

* The domestic steel industry is hopeful that the government focus on infrastructure sector, which is steel-intensive, will boost capex and kick start the economy. Commenting on it, T V Narendran, CEO, Tata Steel said. Initiatives like expansion of national gas grid and piped water supply to households will boost steel demand." Anil Kumar Chaudhary, Chairman, Steel Authority of India Ltd also felt the government’s plan of massive investment on infrastructure projects will definitely work to boost steel consumption in the country and give momentum to the economy and help to generate job opportunities.

* The Indian government is planning to leverage the Corona virus effect on China's economy as it asked domestic steelmakers on Monday to step up production to target a larger global market share. At present, India is the secondlargest steel producer with an annual output of over 106 million tonne (MT) but lags way behind China that accounted for 928.3 MT of the alloy in 2018.