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Domestic
Notice Inviting Tender (NIT) for sale of 27 mineral blocks have been issued by four states, including Jharkhand and Odisha, Parliament was informed.
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While Odisha has issued Notice Inviting Tender for 11 mineral blocks, Madhya Pradesh has issued NIT for 10 blocks. NIT has been issued for four mineral blocks in Rajasthan and one block in Jharkhand.
Replying to a written question in the RajyaSabha, Coal and Mines Minister Pralhad Joshi said, "Currently, Notice Inviting Tender (NIT) for auction of 27 mineral are issued by four states, namely, Madhya Pradesh, Rajasthan, Odisha and Jharkhand." are auctioned by various State Governments." He added that various steps have been taken to reduce the imports of coal. These include launch of commercial mining to increase availability of coal through Non-coal India (CIL) mining leases, increase in availability of the dry fuel through greater allocations of coal under different auction windows conducted by the coal behemoth, and reduction in floor price for different categories of non-power consumers by CIL. CIL accounts for over 80 per cent of domestic coal output.
Coal supply to power plants dipped in past 3 years; declined more in FY21 due to COVID: Power Min
Coal supply to power plants dipped during the last three years, but declined more in 2020-21 due to the COVID-19 pandemic, Parliament was informed.
Coal supplies to power plants stood at 643.7 million tonnes in 2018-19, 638.7 million tonnes in 2019-20 and 596.3 million tonnes in 202021.
It was 171.7 million tonnes during April to June in 2021.
"The receipt of coal has registered a slight decline during the last three years. However, during 2020-21 the decline was more due to the effect of COVID-19 pandemic prevailing in the country," Power Minister R K Singh said in a written reply in the Lok Sabha. Moreover, he said the share of power generation from non-fossil fuels (renewable energy) has also been increasing consistently over the years, leading to reduction in plant load factor (PLF or capacity utilisation) of coal-based power plants.
State-owned CIL has taken an out-of-the-box initiative to produce sand from overburden at a much cheaper price, the government said. During opencast mining of coal, the strata lying above coal seam is known as overburden, comprising clay alluvial sand and sandstone with rich silica content.
The initiative will not only help in minimising environmental pollution due to sand siltation from overburden, but will be also an option for getting cheaper sand for construction purpose, it added.
Production of sand has already started, the coal ministry said in a statement. A roadmap of next five years has been drawn to maximise the output of sand from different coal producing companies under Coal India Ltd (CIL) and to become one of the major suppliers of sand in near future, it added. In this effort, CIL aims to reach a production level of around eight million tonnes of sand within the next five years by commissioning 15 major sand plants in its different coal producing subsidiaries.
By the end of current fiscal, CIL envisages to have nine out of 15 plants with a production of around three lakh cubic metres.
This effort will not only help the society at large but also help in minimising river bed mining of sand. The overburden is removed to expose and extract coal from beneath. After completion of coal extraction, the overburden is used for back filling to reclaim the land in its original shape.
CIL arm CCL seeks reconciliation on Jharkhand's Rs 56,000 cr dues demand from Coal India
Jharkhand-based Coal India arm CCL has sought 'reconciliation' of amount of claims post the state government slapping the behemoth with a whopping demand of Rs 56,000 crore in lieu of land allotted to it for mining. Jharkhand Chief Minister Hemant Soren had sought immediate payment of Rs 56,000 crore "dues" to the state from the coal giant in addition to payment of royalty on coal on 'ad valorem' basis when CIL Chairman cum Managing Director (CMD) Pramod Agarwal called on him. The PSU - the world's largest coal miner that accounts for about 80 per cent of the domestic dry-fuel production has been at loggerheads with state for long over the dues and the state way back in 2014 had sought Rs 25,000 crore as 'preliminary' amount from Coal India Ltd for excavating coal in the state without paying any compensation to it. "We have sought reconciliation of the amount of claims from the state government," Jharkhandbased CIL arm Central Coalfields Ltd Chairman cum Managing Director PM Prasad told PTI. Prasad, who is also the acting chief for Bharat Coking Coal Ltd (BCCL), said the amount sought by the state pertains to three of the Coal India arms - CCL, BCCL and Eastern Coalfields Ltd
(ECL) and CIL has given application against the claimed amount requesting for reconciliation. The CCL chief said they were hopeful for a positive outcome as CIL is a CPSU.
A state government official said that the amount has been sought in lieu of land allotted to CIL for various projects in the state over a period of time.
Jharkhand chief minister Soren has asked the CIL chairman to initiate steps for immediate payment of Rs 56,000 crore by Coal India to Jharkhand in lieu of land allotted to it for mining.
Revision of coal royalty every 3 years not mandatory: Centre
Union coal minister Pralhad Joshi said there is no mandatory provision in the Mines and Mineral (Development and Regulation) (MMDR) Act to revise the coal royalty rates every three years though Odisha has been making the demand since long. In a recent reply to RajyaSabha, Joshi said the rate of coal royalty which is 14% at present, was last revised on May 10, 2012. “Section 9(3) of the MMDR Act provides that the Centre may enhance or reduce the rate at which royalty shall be payable for any mineral provided that the Centre shall not enhance the royalty more than once during any period of three year,” he said. Responding to a query of BJD’s Prasanna Acharya as to why royalty revision has not been made since last eight years, Joshi said a study group was constituted on July 21, 2014, for the purpose of examining the issue of revision of present royalty rates on coal and lignite. The study group decides the formula after considering various factors. It submitted its report
SCCL’s Naini project in Odisha gets Stage-I forest nod
The plans of Singareni Collieries Company Ltd. (SCCL) to commence mining of coal this financial year in the Naini project allotted to it in Odisha have gone a step ahead with the 783.275 hectares of forest land getting Stage-1 clearance from the Ministry of Environment and Forests (MoEF). Based on the proposal sent by the Odisha government, the MoEF has given the first-stage forest approval to the project. The land allotted to SCCL in the Naini block includes 643.095 hectares of reserved forest land and 140.18 hectares of village forest land in Chendipada and Kunkurupa villages of the Angul forest division.
The first-stage forest clearance orders were received by the Forest Department of Odisha. The land would be transferred to SCCL once the second-stage forest clearance is accorded. The total land allotted to SCCL in the Naini block is 912.799 hectares but 738.275 hectares of it is forest land.
Talcher Village Hands Over Resources To MCL For Coal Mining
For the first time in the history of Mahanadi Coalfields Limited (MCL) in Odisha, a village Bhalugadia at Talcher in Angul district of Odisha has handed over its resources without any obstruction and in one go to facilitate coal mining operations. Bhalugadia, a compact village spread over on around 17 hectare coal bearing land in Talcher coalfields, had 288 families living there. The village was acquired under CBA (Coal Bearing Act) by Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited, mandated for coal mining in Odisha. The local Hingula Area management of MCL, with an active support and guidance of Odisha state administration, was able to create an environment of mutual trust among peripheral villagers that they voluntarily handed over their homestead land to the company. MCL, a subsidiary of Coal India, follows R&R policy of Odisha government in order to provide maximum benefits to land owners and meet local aspirations.
Recently, the General Manager of local command Hingula Area organised a thanksgiving ceremony for the residents of Bhalugadia village in his office for setting an example of “obstruction free” eviction from homestead land for coal mining purpose.
Indo-Bangla power project set to get first consignment of coal from Kolkata port: Official
The first consignment of coal for a thermal power plant being developed by state-owned NTPC Ltd through a joint venture in Bangladesh is getting ready at the port here and will be shipped to Mongla Port in the neighbouring country in the next 2-3 days, an official said. The 1,320-MW Rampal Power Plant is being built by BIFPC, the joint venture between India's NTPC Ltd and Bangladesh Power Development Board.
"The first full rake of coal has arrived at Kolkata docks from Dhanbad and is now getting unloaded. It will be shipped to Mongla Port in the next 2-3 days for Rampal Power Plant," Syama Prasad Mookerjee Port (formerly Kolkata Port Trust) Deputy Chairman A K Mehera told PTI. The is the first shipment for a trial run, he said. "Each rake consists of about 3,800 tonnes of coal. It will be the first export of coal cargo from this port," Mehera said. The coal-fired unit of Bangladesh India Friendship Power Company was supposed to be completed by December 2020, but the work got delayed, sources said.
RaILwaYS
Railway targets to reduce 2.5 lakh tons of carbon emission per year in NCR zone
project to significantly reduce carbon emission and produce 175 gigawatts of solar power by 2022, the north central railway zone whose 97 percent of operation area is within Uttar Pradesh is expected to reduce 2.5 lakh tons of carbon foot print every year, as the zone will have 297 MWp (megawatt peak) solar power plants. Currently, the zone whose prime responsibility is to provide high speed rail operation between west to east and north to south, as 11.03 MWp solar systems in its three divisions and three workshops---including Prayagraj with 3614 kWp capacity of renewable system which helped railway to save Rs 1.09 crore in 202021 financial year. In the remaining two divisions Agra and Jhansi, the zone had 1,588 and 1,204 kWp capacity solar photovoltaic cell systems, while in the three railway workshops of Jhansi division, a total of 4624 kWp capacity solar energy systems were installed on roofs. According to the railway, in total three divisions and three workshops helped the railway to reduce 9,000 tons of carbon footprint in the previous financial year and saved Rs 3.96 crore.
STEEL
The government is probing the price of imported steel wire rods from China to assess whether it should continue with the anti-dumping duty on the item. Indian companies such as RINL, SAIL and JSW have formally stated that the withdrawal of duties would lead to more dumping. In a gazette notification, the Directorate General of Trade Remedies (DGTR), under the commerce & industry ministry, said: “The domestic producers namely RINL, SAIL and JSW Steel have provided the prescribed information in the application. Further, Tata Steel Long Products and Jindal Steel and Power have supported the application,” the notification said. Domestic steel producers have said dumping
from China has continued even after the imposition of the duty and it would increase or recur if the government lifts the levy. The sunset review investigation will undertake a “likelihood analysis of dumping and injury”. A period of investigation of 18 months from October 1, 2019 to March 31, 2021, has been fixed.
PLI for specialty steel: Govt expects robust response from large firms
The government expects the Rs 6,322 crore production-linked incentive (PLI) scheme for specialty steel to be received well by the industry and incentive outgo of Rs 775 crore in 202324, the year when the disbursal of the sops begins. According to government’s estimate, the highest outgo of the incentive is expected to be in 2025-26 at Rs 1,394 crore, followed by Rs 1,377 crore for 2026-27 and Rs 1,293 crore for 202728. For 2024-25, the outgo has been pegged at Rs 1,088 crore.
In a notification, the government said the scheme will treat 2019-20 as the base year. The period of five years will commence from FY 2022-23 (PLI to be released in FY 2023-24). The initial year may, however, be deferred by up to two years in case of specific product categories within the overall budgetary allocation. The incentive, to be provided in the range of 4-15% on incremental production, will be released up to 2029-30 fiscal year.
India's steel consumption set to break records as Covid-hit economy revives
India’s steel consumption is set to break records this year, reversing the performance in 2020 when demand crashed as the pandemic upended economic activity. Economic activity in the country has revived as a deadly second wave of infections abates. The International Monetary Fund expects India to grow 9.5% this year. That’s in contrast to last year, when the economy tipped into an unprecedented 7.3% contraction, as a nationwide lockdown brought the country to a standstill. Demand for steel is expected to surge 17% to 110 million tons in the year started April, according to Seshagiri Rao, joint managing director of JSW Steel Ltd. Consumption of steel in 2020 fell year-on-year for the first time in at least a decade-and-a-half.
Rising power consumption and mining activity, along with higher tractor and passenger vehicles sales is pushing up demand for the metal, Rao said in an interview.
Specialty steel PLI scheme to help save forex: Steel minister Ram Chandra Prasad Singh
Last week, the union cabinet cleared a Rs 6,322 crore Production Linked Incentive (PLI) scheme to encourage domestic production of five categories of specialty steel. The scheme will be in force for five years starting from 2023-24. New steel minister Ram Chandra Prasad Singh, a bureaucrat-turned-politician, explains how the scheme would help the industry in an interview with Surya Sarathi Ray. Excerpts: How will the PLI scheme benefit the firms?
The main objective of the scheme is to enhance specialty steel production in the country and attain self-sufficiency by cutting down imports in line with the “Make in India” and “Atmanirbhar Bharat” initiatives. At present, our domestic production of specialty steel is about 18 million tonne (MT). We expect that thanks to the scheme, it will go up to 42 MT. This will not only meet our entire domestic demand, but we will also produce a surplus for remunerative export. Our products will be worldclass and the price will also be competitive. At present, we are importing around 4 MT of specialty steel which costs us about Rs 33,000 crore in foreign exchange annually. With the ca-
pacity expansion being planned, we will be able to export around 5.5 MT such steel. The scheme is expected to generate about 5.25 lakh employment, out of which 68,000 will be direct employment. The scheme has been brought out after a lot of deliberations with the industry and different other stakeholders. Everybody has been taken on board.
Yet another Production-linked Incentive (PLI) scheme has been announced by the government, with the specialty steel manufacturing sector now set to receive incentives worth Rs 6,322 crore.
To be provided over five years, the scheme is expected to bring in investment of approximately Rs 40,000 crore and capacity addition of 25 MT.
India presently operates at the lower end of the value chain in the steel sector. Value-added steel grades are largely imported in India. This is because of the disabilities faced by the steel industry to the tune of $80-$100 per ton, on account of higher logistics and infra cost, higher power and capital cost, and taxes and duties. The scheme aims to address this disability by incentivising the production of specialty steel within the country. It proposes to incentivise eligible manufacturers by paying between 4 percent and 12 percent incentive on incremental production. PLI incentive will also help the Indian steel industry mature in terms of technology and move up the value chain.
Steel price cut likely in July: Here’s why
Steel stocks were under pressure as there is an expectation of a price cut in July. Two factors may be responsible for the price cut. First, Russia will impose an export tax from August and so there is a possibility of higher exports from Russian producers. Second, Chinese prices have seen a sharp correction and in line with that Indian prices are also likely to see a correction.
There has also been a correction in export prices for India and that could reflect a lower price for steel. Moreover, India is getting into a seasonally weak quarter due to monsoons. During these months, construction activity in the country slows and as a result, long steel prices come under pressure. Also, secondary steel makers sitting on inventory would put pressure on prices. Steel demand in India weakened due to the localised lockdown after the second COVID-19 wave. In the month ended May 2021, the consumption of finished steel recorded a sequential fall for the fifth consecutive month.
There is also an anticipation of the third COVID-19 wave and if that happens then buying could get postponed leading to more supply than demand.
CEMENT
Prospects for cement industry in FY22 look bright, says Kumar Birla
The Indian cement industry has been on a volume growth path led by several government initiatives and has a "bright" prospect for this financial year, said UltraTech Cement Chairman Kumar Mangalam Birla. The government's spending on infrastructure projects and affordable housing schemes such as the Pradhan Mantri Awas Yojana (PMAY) with enhanced budgetary allocations will be the primary drivers of growth for the cement industry, said the latest annual report of the Aditya Birla group firm.
"Cement demand is closely linked to the housing and infrastructure sector. The industry has been on a volume growth path, motivated by the government's Housing for All by 2022' mission and large infrastructure projects in the pipeline," said Kumar Mangalam Birla in his address to shareholders.
Birla further noted that, "going forward, prospects for the industry in FY22 look bright." Over the pandemic impacted FY21, Birla said though the cement industry witnessed degrowth of 10-12 per cent due to the COVID-19 pandemic, in the second half (H2FY21) it began to show signs of early recovery.
Discounts to spur cement traffic
The Ministry of Railways has decided to grant concession on normal haulage charge per twenty-foot equivalent unit (TEU) for movement of empty specialised tank containers used for transportation of bulk cement, in a move aimed at encouraging shipment of the product by rail. The concession will be given when such specialised tank containers are moved in one direction fully-loaded and returns empty. The concession will be valid for five years beginning August 1, the Ministry of Railways said in a circular issued on July 16. The extent of concession on normal haulage charges for transportation of empty containers will be 50 per cent in the first year, 40 per cent in the second, 30 per cent in the third, 20 per cent in the fourth and 10 per cent in the fifth year. To illustrate, for loaded movement of specialised containers from A to B, the applicable normal haulage charge will be levied. Concession will be given for empty return movement from B to A.
If these specialised containers move on any other route, normal haulage charge (without discount) for empty/loaded containers will be levied.
The Ministry of Railways said that the concession is being granted “as a special case” to provide “consistency and stability in rates” to encourage customers to offer bulk cement traffic to rail.
Cement demand recovers in June; capex calls disregard second wave: Ind-Ra
With the gradual easing of lockdowns and premonsoon pent-up demand, June is likely to have registered sequential growth of about 20 per cent in cement volumes, said India Ratings in its report.
The June volumes would be despite rains affecting construction in some parts of the country, resulting in 35-40 per cent year-on-year growth in Q1FY22 on a low base, the report said.
Cement volumes transported through rail rose 22 per cent month-on-month this June.
The month of April is likely to have seen a sequential moderation of around 10 per cent in volumes, owing to the dual impact of the second Covid-19 wave-led state lockdowns and a strong March base. As restrictions intensified due to rising cases, May is likely to have seen a decline of around 25 per cent compared to March, it said.
While volumes are seeing a gradual pick up, continued increase in pet coke, coal and diesel prices, cement companies are likely to see a moderation in EBITDA/tonne in Q1FY22.
Coal prices in Q1FY22 were nearly 50 per cent higher than the FY21 average while pet coke prices were 40 per cent higher.
Diesel prices were up 20-25 per cent year-onyear in Q1FY21 and around 15 per cent higher than the FY21 average.
The increase in commodity prices is likely to lead to an increase in power and fuel as well as freight and forwarding costs as companies gradually exhaust their low-cost inventory.
