CCAI Newsletter June-22

June 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. LI No. 03 Published on : 28.06.2022

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From the Editor’s Desk

Rallied by an exponential gro wth in energy demand and geo -political conflicts, the need and usage of coal is in asce ndency across the globe despite being termed as the ‘most polluting fuel’ as climate goals have presumably taken a back seat for now.

The comeback of coal in the developed countries has been eminent as the ongoing Russia-Ukraine conflict has exposed Europe’s vulnerabilit ies.

After the European Union imposed sanctions on Russia, the later hit-back by cur tailing gas supplies.

This has caused many Europe an nations, who have openly denounced coal so far, to turn towards the dry fuel .

India, world’s second biggest coal consumer and producer, which also has world’s fifth largest coal reserve, is no exception in this regard.

Tho ugh the country has invested heavily in clean energy over the past decade, it has also focused firmly on accelerating coal production.

The unprecedented coal cris is in India since August last year was caused by an escalation in electricity dem and on the back of strong pos t-pandemic economic revival and blazing heat wav es across the nor thern plai ns of the country. The situation has firmly pointed out that transition away from coal for a country like India with ever-growing Power and Industrial demand is an uphill task while across the globe coal is returnin g temporarily to mitigate the energy demand. In recent months, high demand and tight supply scenario has caused coal auction prices soaring, leading many coal consumers to buy domesti c coal at an inflated rate. Plants dependent on imp orted coal have also struggle d a great deal to meet ends as coal price across the globe have swelled alongwith growing ocean freight rates.

To mitigate the crisis, India has focused to increase domestic coal output and urged its thermal units to import at least 10% of its requiremen t for blending. National Miner Coal India Limited has a target to reach 1,000 MT PA production in the coming years while other play ers such as SCCL, NLC, cap tive blocks and mine developer-operators (MDOs) have also accelerated their pro duction of the dry fuel.

The looming power shortage has led CIL in the process of importing coal for the first time since 2015. NTP C, the largest power genera tor in India, has also floated tenders for coal imports . The country also plans to reo pen shut mines and open new mines to increase domestic production. As per the Inte rnational Energy Agency (IEA), two Asian coa l giants China and India are ant icip ated to make up the bulk of the global coal sup ply chain investment estima ted at about USD 115 billion this year.

However, despite all efforts to improve supply of the mu ch-coveted dry fuel, the ongoing demand-supply mismatch has hur t the Non -power Sector- steel, aluminum, iron, paper, cement etc the most. Since long, the non-power sector has seen coal dispatch fall by 33 per cent leading many MSMEs dependent on domestic coal to cut down their operati ons.

It is imperative that for India to bounce back after the dow nslide during pandemic, striking a balance between coa l supply to the Power and Non -power sector is the need of the hour as both segm ents are important contributo rs to the nation’s economic growth.

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CONTENT Vol. LI No. 03 June 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

10

Power

16

Domestic

22

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.

30 Monthly Summary Of

Imported Coal & Petcoke

32 Coal Production 34 Overall Domestic Coal Scenario

CCAI Monthly Newsletter June 2022

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CONSUMERS’ PAGE Present Coal Scenario: India’s overall coal production has dipped slightly in June to 67.59 MT from 71.30 MT in May. However, the overall coal production grew significantly by 32.5% compared to same month last year. CIL’s total production has grown by over 28% on an m-o-m basis. The growth has been helped by coal production in captive blocks which has more than doubled in last one year.

Country’s overall coal despatch so far in the ongoing fiscal is 224.35 MT which is nearly 15% higher than the same period last FY. Coal despatch by CIL has grown by 10.70% so far in FY 22-23.85% of the coal has been despatched to Power Sector owing to high power demand. Despatch to power houses has grown by 22.3%. Coal despatch to Steel and CPP sub-sectors have grown in this fiscal so far by 35% and 6.6% respectively while rest of the sectors have dipped. Despatch to CPP sector has dipped by 36% in the ongoing fiscal.

Issues faced by both Power and Non-power Sector Consumers: 1. Submission for roll back of hiked price in different grades of coal by SCCL effected from 01.06.2022: The basic prices of different grades of Run Of Mine (ROM) coal for Power Sector has been hiked seven times and for Non-power Sector six times by SCCL since August ’21. The prices of washery grade coal

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have also been hiked four times by SCCL during the aforementioned period.

Also, Additional Facility Charges of Rs.100/tonne for JVR CHP shipping point and Explosive Cost Adjustment Charges of Rs.135/ tonne on all grades of coal have been introduced since 13.05.2022 which have been revised on 01.06.2022. Additionally, the Fuel Surcharge levied on per tonne of coal has also been revised multiple times in the last one year.

Request has been made to the Ministry of Coal and SCCL so that coal prices notified by SCCL on 01.06.2022 may be rolled back and levied additional charges on coal may also be reduced to the extent possible by the coal company.

Issues faced by Power Sector Consumers: 2. Submission by Power Sector for immediate release of long-pending rakes booked under Special Forward e-Auctions (SFEA): Despite a steady supply of FSA rakes from MCL, a large number of Special Forward e-Auction rakes for the Power Sector are pending since long. As per some of the utilities, supply over 550 indents allotted to various power plants under Special Forward e-Auction (SFEA) have been pending from MCL’s Talcher area alone, some of which are pending since September 2021 even as those Utilities have already paid up huge amounts of advances to the coal company.

Request has been made to MoC, CIL and MCL to expedite liquidation of SFEA rakes from all CIL Subsidiaries through allotment of pro-rata quantity in the tune of 10%-20% of the total number of coal rakes despatched per day at least till the time high demand eases.

3. Submission by Power Sector for loading of rakes as per trigger level MSQ: Power Sector consumers have pointed out that supply of rakes from ECL to their company have been significantly lower than the trigger level MSQ in recent months despite already paying up full advance against coal value worth crores of rupees.

Restriction/curtailment of loading of rakes programmed as per trigger level MSQ during a month leads to accumulation of backlog rakes which need to be loaded in the subsequent quarters. This may lead to levy of short-lifting penalty on the consumers at the end of the year as procuring such a large number of rakes may not be possible at that point.

Request has been made to ECL and CIL to ensure loading of rakes as per trigger level to the Power Sector so that coal requirement by the Utilities may be fulfilled.

4. Submission for considering changes in policy for handling and disposal of washery rejects to lower approval time: Amid the exponential rise in power demand, on lifting the coal rejects from washeries for use in AFBC/ CFBC boilers and for blending suitably in PF based power plants in a hassle-free and time bound manner has become essential.

As per the new policy for handling and disposal of washery rejects introduced on 27th May, 2022 by MoC, the approval time for disposal/lifting of washery rejects have increased from 3 days to almost 1-2 months due to various additional steps required to be followed for grant of appropriate approvals. Such inordinate delay is hampering the motto of ease of doing business for the stakeholders.

Request has been made to Ministry of Coal for revisiting the policy and making necessary amendments to ensure expeditious approval for the washeries for disposal of coal rejects.

5. Submission for allowing Usance Letter of Credit (LC) mode of payment against supplies by Road from NCL: Power Sector consumers having valid FSAs with Northern Coalfields Limited (NCL), LC mode of payment is only being allowed for supplies via Rail mode while in case of Road mode supply advance coal value has to be deposited by the Utilities. Non-applicability of the LC mode of payment via Road mode is leading to blockage of funds in the form of MSQ advance. It also dilutes the very purpose of introducing LC payment mechanism to provide financial respite to the coal consumers across the board.

Request has been made to NCL so that payment through Usance LC may be allowed for road mode consumers as well.

6. Submission by IPPs for extension of RDO validity through Road/RcR mode against additional coal offers from NCL: Validity of Road Delivery Orders (RDOs) has been extended by NCL against additional offers under CCAI Monthly Newsletter June 2022

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Round II of 2021-22 and Round I of 2022-23 through Road/RcR mode for the Power Sector consumers till 31.07.2022 as per CIL directive. However, the facility is only extended for Government Utilities while RDO validity for IPPs procuring coal from NCL has not been extended despite significant portion of allotted quantities being unlifted by IPPs from a number of NCL mines such as Dudhichua.

Request has been made to NCL to extend the validity of RDOs till 31st July for the IPPs as well so that entire allotted quantity may be lifted by them.

7. Submission by power Sector (IPPs) to prioritise loading and supply of rakes to long-distance consumers from ECR: For Case-2 scenario-4 IPPs, situated at a long distance from the mines (more than 600 km), lifting of eAuction coals from NCL and CCL have been severely affected due to huge pendency of indents from East Central Railways (ECR). Also, large quantities of coal lifted by these IPPs are stuck at various good shed sidings of ECR due to short- supply of empty rakes.

As per Railway circular regarding Preferential Traffic Order GO No. 96 effective from 1st April 2022, Zonal Railways are supposed to provide special preference to transport coal and coke loaded from a colliery siding/ washery siding/ plant siding to the plant-ends located at a long distance (more than 600 kms) irrespective of priority and date of registration on all days of the week except the two nominated days. While, most of the zonal Railways such as WCR and SECR are giving the priority as per Railway Order, ECR is not doing the same.

Submission has been made to the Railway Board so that preferential loading and dispatch of rakes to the long distance consumers may be prioritized by ECR as well.

Submission by NRS Consumers: 8. Submission regarding increasing quantum of coal supply to NRS Consumers: *Daily coal requirement by the Industries is estimated at around 5 lakh tonnes (including FSA, e-Auction and pending quantities). But supply to the Non-power Sector has been curtailed from 2.75 lakh tonnes to 2.5 lakh tonnes per day from CIL in June.

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*Average daily rake despatch has reduced to 10-11 rakes/day in June’22 which is less than one-fourth of same period last year. *Allocated quantity as per FSA is not being supplied to the Industries due to supply priority to the Power Sector. It is unviable for many Industries to book desired quantities through spot auctions due to huge number of participants and extremely high premium. *While supplying coal through private washeries, process, a significant quantity of coal (approximately 20%) is reduced through generation of rejects. This also leads to double handling of coal, increasing the turnaround time of transportation logistics slowing down evacuation process further.

Request has been made MoC and CIL for immediately increasing the quantum of supply to the NRS consumers so that industries may at least sustain themselves.

9. Submission by NRS consumers regarding significant grade slippage from NCL mines: NRS consumers procuring coal from NCL have raised concern regarding poor quality of coal received at the plant-ends. For an instance, NRS consumers procuring from Kakari mines of NCL via road mode are witnessing huge difference between billed grades and received grade of coal.

Request has been made to CIL and NCL for taking necessary steps to eradicate grade slippage and ensure supply of declared grade of coal.

10. Submission by NRS consumers regarding non-movement of coal from private railway siding under RcR mode: NRS consumers have lifted coal from NCL’s Krishnashila Colliery as per the FSA during January-February this year and moved the quantity to Krishnashila Railway siding (KRSL). In spite of permission for coal movement under Priority-D from the Railways under premium freight mode, no rakes could be allotted to them as rake movements have been prioritized for Power Sector. As a result, the indents allotted to the Industry got cancelled twice under Priority-D and the whole quantity of coal is still lying at the aforementioned railway good shed siding.

Request has been made to MoC and Railway Board for a special provision to be devised to initiate the movement of coal stuck at the railway siding to the respective plant-ends at the earliest possible.

CCAI CCAI CCAI Monthly CCAI Monthly CCAI CCAI Monthly Monthly Monthly Monthly Newsletter Newsletter Newsletter Newsletter Newsletter Newsletter September November August June April May July 2021 2022 2020 2019

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POWER THERMAL India continuing to grapple with 'severe and protracted power crisis' after surge in coal prices India is continuing to grapple with a "severe and protracted" power crisis after a sustained surge in global coal prices in late-2021 was further aggravated by Russia's invasion of Ukraine in February. The global price pressure eroded India's import volumes and reduced its power plant stockpiles to critically low levels just as an unrelenting heat wave pushed demand to unprecedented levels.

The crisis is so severe that government in India is planning to cut domestic coal supply to power plants that are reluctant to import coal at current elevated

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prices. The current deficit, the second such coal shortage since October 2021, was initially triggered by the sharp rise in global coal prices in mid-2021.

The disruption in global coal supply has led to a near 30% surge in the grade's price to $86/mt as on June ’22.

To meet India's rising power demand as Covid-19 restrictions eased, the government first tried to boost domestic coal production. The government has also tried divesting coal blocks to private companies in recent years to incentivize them to increase India's overall coal production.

With the global coal supply expected to remain tight in H2 and winter still some months away, coal shortages and power outages may well remain a pressure point for India for the rest of the year.

India to see largest increase in Govt. to invite bids for power energy demand worldwide over from 8,000 MW thermal capacithe next 20 years: Infomerics ties without PPAs India is to see the largest increase in energy demand worldwide over the next 20 years, according to a report by Infomerics Valuation and Rating Pvt Ltd, a SEBI-registered and RBI-accredited financial services credit rating company.

India is the third-largest producer and the third-largest consumer of electricity in the world. With the increasing population, electricity demand is rising at a fast clip and India has improved its power generation capacity over the years. India has added more than 500 billion units until FY22 from FY10. The power generation capacity rose from 808.498 billion units (BU) in 2009-10 to 1,381.827 BU in 2019-20.

The private power sector with 48.50% has the largest installed generation capacity followed by the Central sector (24.90%) and the state sector (26.70%). Fossil fuel has still higher installation, generating 2,35,929 MW of electricity, constituting nearly 60% of the total installed generation capacity.

At present, over 150 thermal power plants have a coal shortage problem and the coal stock position of 173 power plants stood at the sub-optimal level of 21.93 million tonnes (MT), which is less than the regulatory requirements of 66.32 MT as of April 21, 2022.

Power demand rose 25% Y-o-Y while the economy grew by 8%: RK Singh Highlighting the outcome of the initiatives taken by the government to ramp up India’s distribution and transmission sector, Power Minister RK Singh noted that the country’s electricity consumption rose by 25 per cent on a year-on-year basis, while the economy grew by 8 per cent. He noted that the efforts by the Centre to strengthen India’s debt-laden power sector have resulted in electricity demand growing from 3,500 million units (MU) per day to 4,500 MU. Singh pointed out that now companies transfer 1,12,000 megawatts (MW) of power from one corner to another. The government spent more than ₹2 lakh crore just on the power distribution segment.

The government also added 2,950-odd new sub-stations and upgraded around 3,900 old substations to higher capacity. Low tension (LT) lines of up to 7.5 lakh circuit km as well as high tension (HT) lines of 2.5 lakh circuit km, along with 7.50 lakh transformers, were added.

The government will invite bids from states to sell electricity generated from 8,000 megawatt (MW) thermal capacities without PPAs, Power Minister RK Singh has said. the minister informed that states have been asked to send their electricity requirement, and accordingly bids will be invited.

"We will aggregate (their demand) and call on for bids and based on the bids, whoever puts in the lowest bids, PPAs will be signed. Once PPAs are signed, they (states) will get the power," he said.

The minister said there are also some thermal capacities undergoing the National Company Law Tribunal (NCLT) proceedings, and the government has already taken several steps, including meeting with the bankers, to resolve the issue at the earliest so such plants can start operations.

Indian power plants blended 7 million tons of imported coal in April-June Thermal power plants (TPPs) have blended around seven million tonnes of imported coal during the AprilJune period this year following the Centre’s directive for blending of foreign coal to overcome shortage.

Till June 24, domestic coal based plants have reserve stock for more than nine days, while imported coal based plants have stocks for almost 12 days.

For FY23, India is expected to import around 59 mt of coal for blending at power plants, while for June, the in-bound shipments are likely to be in the range of 4.8-5 mt.

Earlier this month, State-run miner Coal India (CIL) floated a global tender to import 2.42 mt of the key commodity for July-September of FY23. Coal imports, which hit a peak of 248 mt in FY20, declined to 215 mt in FY21 and further to 209 mt in FY22. The decline in FY22 is largely due to a decline in imports

by Power Sector, which came down from 69 mt in FY20 to 45 mt in FY21 and then further south to 27 mt in FY22.

Centre claims 99.9% rural electrification, but 1.1 mn houses still in dark Electricity is yet to reach at least 1.1 million rural CCAI Monthly Newsletter June 2022

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households across states, two years after the Centre claimed to have attained 99.9 per cent electrification under its Saubhagya scheme or Pradhan Mantri Sahaj Bijli Har Ghar Yojana.

According to Business Standard report, a majority these households are from Assam and Uttar Pradesh, owners of which were earlier reluctant to set up metered connections, but now are willing to get connections.

Officials said, several states are coming up with new data showing more households that are left to be electrified, even after the expiry of the deadline for the last round of electrification under the Centre’s Saubhagya scheme, in 2021.

The Centre had sanctioned 4,100 crore for the fresh round of electrification keeping August 2021 as the deadline. Since then, 400,000 of the newly-identified 1.1 million rural households have been electrified, officials told BS.

Coal India ventures into power generation In a first, the Chhattisgarh-based South Eastern Coalfield Limited (SECL), an undertaking of the stateowned Coal India Limited (CIL), has decided to venture into power production.

SECL has signed an MoU with the Madhya Pradesh Power Generation Company Limited (MPPGCL) for setting up a 660-MW unit. The project will be expedited by setting up a joint venture between SECL and the MPPGCL. The coal-fired plant of the state-run MPPGCL will have an installed capacity of 660-MW, that will come near the existing Amarkantak Thermal Power Station at Chachai in Anuppur district of MP. The plant will be built with modern supercritical stateof-the-art technology. Air-cooled condenser technology will be used in the power unit, which will save water for power generation, officials said.

levels as on June 20. The national peak demand on the same day was 183,850 MW, and the shortfall was merely 109 MW. In view of improved coal supplies, domestic coalbased (DCB) power plants generated a record highpower of 3.3 million units per day between June 1 and June 16, data showed. Increased electricity generation did not deplete coal stocks at these DCB power plants during the same period and the stocks increased from 21.85 MT (June 1) to 22.64 MT (June 16).

The rake loading to the power sector increased from 215.8 rakes per day in 2020-21 to 271.9 rakes per day in 2021-22, registering a growth of 26%. In the current year also (till June 16, 2022), the rake supply from CIL to the power sector has increased by 25% as compared to the same period last year.

Nepal starts exporting 364 MW electricity to India Nepal has started exporting the total approved 364 MW of electricity to India through its power exchange market.

Buoyed by continuous rainfall this year, the Himalayan nation is exporting surplus electricity to India through its power exchange market for the second consecutive year, according to the Nepal Electricity Authority (NEA), the state-owned power utility body.

The state-owned body is now selling 37.7 MW from Trishuli and Devighat Hydropower Projects, 140 MW from Kaligandaki Hydropower Project, 68 MW from Middle Marsyangdi, 67 MW from Marsyangdi and 51 MW from Likhu-4 developed by the private sector, according to Pradeep Thike, Deputy Managing Director of the NEA. After the NEA began selling 51 MW power from the Likhu-4 in the Indian market starting, a total of 364 MW, generated by six projects with approval for export from the Indian authorities, is now being sold to India.

Coal stocks at power plants Govt asks Gencos to buy rakes improve to ensure smooth coal supply The number of thermal power plants having critically during monsoon low stocks of domestic coal has reduced significantly for the first time in nearly two months, implying higher production and improved transportation of coal in the country.

Data from the Central Electricity Authority (CEA) showed that only 74 of 150 power plants running on domestic coal in the country had critically low coal

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The government has directed the power generation companies (GENCOS) to buy rakes for captive usage, a move which will ensure smooth supplies of coal during the monsoon season.

There are actions which the Railways need to take to reduce the congestion so that more coal can be

evacuated from these places. In some areas, the Coal Ministry will have to up the production where enough rakes are available, Power Minister RK Singh said.

"You can own rakes and you save on transport cost and that pays for itself in about 9-10 years and the rake itself runs for about 25-30 years. NTPC already owns rakes, they are going to increase their rakes. I have asked all state GENCOS to own rakes to reduce load on railways." He said.

The Minister has also said that the government is gearing up to increase the stock of coal at power plants to 40 million tonnes (MT) during the monsoon season. At present, there are reserves of around 22.9 MT at the power plants.

Proposed discom dues liquidation scheme to help realise Rs 9,000 crore receivables for RE sector The Ministry of Power scheme to liquidate overdues that distribution companies (discoms) owe generation companies (gencos) can release the past receivables of the renewable energy (RE) sector of Rs 9,000 crore1 over the next two fiscals.

That could improve the receivables period of leading RE gencos by 40-50 days from the current ~180 days, and improve the equity returns of some projects by up to 1 percentage point, a CRISIL Ratings analysis shows.

Payment stretch has been one of the key risks for the RE sector. Under the proposed scheme, dues including late payment surcharge as on the cut-off date of June 3, 2022, will be converted into monthly instalments that discoms will pay over the following 12-48 months. That would translate to immediate liquidity gains for RE gencos, and can lead to better payment profiles. Of the 40-50 days improvement envisaged in the receivables cycle of RE projects, nearly half is expected to be because of this dues liquidation scheme.

PFC, REC working on loans for state power discoms Power sector financiers Power Finance Corp (PFC) and REC Ltd are working on loans for state electricity distribution companies to help them pay their electricity dues. The state power distribution companies have 1.18 lakh crore electricity dues to power producers.

The medium- to long-term loans from these financiers will be made available to states that participate in the power ministry's dues liquidation scheme, a senior official said. Interest rates for the revolving credit would vary depending on the credit rating of the borrowers. The two financiers have sought the Reserve Bank of India's nod for a special dispensation while financing power distribution companies' dues.

According to the RBI's prudential norms, a lender's credit exposure to single borrowers shall not exceed 25% of its net worth. The RBI's relaxation from the exposure limits to the power sector expired in March this year. As per the new relief scheme, total waiver by the power-generating companies will be 19,833 crore in the next 12 to 48 months.

States like Tamil Nadu and Maharashtra that have large outstanding dues will save over 4,500 crore each through this relief package. Uttar Pradesh would save around 2,500 crore while others like Andhra Pradesh, Jammu and Kashmir, Rajasthan and Telangana will pay 1,100 crore to 1,700 crore less.

Power exchanges can trade contracts up to 3 months now Power exchanges will be able to trade contracts up to three months following approval from the Central Electricity Regulatory Commission (CERC). The approval is expected to bring a landmark change in the power markets as a major chunk of bilateral trade is expected to shift from bilateral contracts to power exchanges.

Of the 660 power tenders between January 2020 and April 2022, 396 tenders (60%) were for monthly procurement of power. This indicates preference for monthly contracts among stakeholders. The power ministry had said the order will deepen the power market to a volume of 25% by 2024-25 from the present level of 5.5% of the volume.

Experts said the move would enable state power distribution companies to tie-up short-term power supply for up to three months on power exchanges at a better and transparent price. Approval is granted for daily contracts, weekly contracts, monthly contracts and any day single sided contracts (based on reverse auction methodology) to be traded at petitioner's exchange, CERC said.

CCAI Monthly Newsletter June 2022

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RENEWABLES Green goals face capex challenge India will require $223 billion of investment between 2022 and 2029 in order to meet its goal of wind and solar capacity installations by 2030, according to a report by research company Bloomberg NEF In 2020 and 2021, new solar and wind power projects together have secured $17.4 billion of asset financing.

But over the next eight years, an average of $27.9 billion is required annually to meet the 2030 targets.

“Scaling up financing to meet 2030 goals requires independent power producers to tap into new or underutilised sources of capital. This could be revolving construction debt, infrastructure investment trusts, and funding from retail investors, insurance companies and pension funds, researchers say.

The report pointed out that power purchase negotiations, land acquisition and payments delays are among the key risks cited by the industry. In the short term, rising interest rates, a depreciating rupee and high inflation will create challenges.

MSMEs require least investment to go green Small and medium businesses are the top priority for Bureau of Energy Efficiency (BEE) as they require least investment for transition to cleaner forms of energy, a senior official said.

"India cannot achieve net-zero emissions by 2070 without addressing the energy needs and clean energy challenges of the country's 63 million strong small businesses community. Solutions for this sector would also make them globally competitive, as ever more multinational corporations look to decarbonizing their supply chains," OP Agarwal, CEO, WRII said.

Highlighting the need for a just transition in this sector, he also opined that moving to cleaner energy and low carbon operations will enhance the sector's competitiveness and profit margins.

India needs to form Green Hydrogen Corridors: NITI Aayog 14 | CCAI Monthly Newsletter June 2022

India needs to form Green Hydrogen Corridors and governments can look at providing grants to startups as well as support entrepreneurs to promote green hydrogen, NITI Aayog said.

"Three hydrogen corridors should be developed across the country based on state grand challenges.

The governments can provide grants and loans to startups and projects, support entrepreneurs through incubators and investor networks, and put in place regulations that manage first-mover risks, "the report said.

The government can also use public procurement and purchase incentives (for green hydrogen) to create demand in niche markets and crowd in private investment, it added. The report suggested that the government should promote export of green hydrogen and green hydrogen-embedded products through a global hydrogen alliance.

The report predicted that hydrogen demand in India could grow more than fourfold by 2050, representing almost 10 per cent of global hydrogen demand. In the longer term, steel and heavy-duty trucking are likely to drive the majority of demand growth, accounting for almost 52 per cent of total demand by 2050.

Cabinet gives post facto approval to pact with International Renewable Energy Agency The Union Cabinet gave post facto approval to the strategic partnership agreement with the International Renewable Energy Agency (IRENA) which will help India in green energy transition.

Agreement was signed in January 2022. The aim of the Agreement is to drive ambition, leadership and knowledge on green energy transitions based on renewable energy in India. It also stated that the Union Cabinet has approved the strategic partnership agreement. The Agreement will help India's energy transition efforts and will also help the world in combating climate change.

The areas of cooperation as envisaged in the Strategic Partnership Agreement will support India in achieving its ambitious target of 500 GW of installed non-fossil fuel electricity capacity by 2030. The pact will also focus on moving towards cost-effective decarbonisation through catalysing development and deployment of green hydrogen.

Last mile reach was a challenge in several pockets of the country, especially in areas which have been “left uncensored by the state government or are on contentious land patches.” Besides, areas of which

state government or state electricity departments have not submitted proper documentation, have remained out of the ambit of the scheme.

for a 133 MW wind project in Karnataka

Duty on Solar Modules, Cells To Continue; Don't Want Imports: Power Minister

Siemens Gamesa has signed a deal with Vena Energy to supply its 3.X platform turbines to a 133 MW wind project in Koppal District, Karnataka, India. In total, the company will deliver 37 SG 3.6-145 wind turbines for this project with installation expected during Siemens Gamesa’s financial year 2023.

There are "no plans" to review the basic customs duty (BCD) levied on solar modules and cells, Union Power Minister R K Singh has said as the Government does not encourage Chinese imports in this regard.

Last year, the government had announced imposing 40 per cent BCD on solar modules and 25 per cent on solar cells with effect from April 1, 2022. The domestic manufacturing capacity of modules and cells has started going up.

However, developers of renewable energy projects have been raising concerns that the domestic capacity is not enough to meet their needs of modules and cells, and were expecting relief from the government. According to research firm Mercom India Research, the domestic module manufacturing capacity was around 18-20 GW as of March 2022.

Siemens Gamesa and Vena Energy first partnered in 2015 with a 154 MW wind farm in the state of Andhra Pradesh. Since then, Vena Energy has added over 300 MW of wind power projects in the states of Madhya Pradesh, Maharashtra and Gujarat. Following this latest order for the SG 3.6-145 turbines, Vena Energy’s portfolio with Siemens Gamesa in India will stand close to 600 MW underscoring its long-term commitment to the Indian market.

Siemens Gamesa launched this new platform in 2020 in the face of an ongoing pandemic and announced orders totalling 925 MW last year. This new deal takes order entry for the Siemen Gamesa 3.X platform in India past the 1 GW mark, helping to confirm its competitiveness in the Indian market.

TN power utility to conduct India's first fractionally-owned feasibility study for 2500 MW solar power plant launched by hydropower projects Tamil Nadu Generation and Distribution PYSE in Karnataka An investment platform PYSE has launched India's first fractionally-owned solar power plant in Karnataka. The platform helps retail investors to invest in sustainable projects that create social and environmental impacts from a ticket size as low as Rs 5,000.

According to the statement, the solar power plant is Rs 26 crore project with an average investor ticket size of Rs 25,000. The project has been strategically divided into four tranches with the first three tranches worth Rs 16 crore. Tranche 1, 2, and 3 had been oversubscribed by 2.5 times and the money was raised on an average of 3 days.

The project is backed by more than 600 retail investors and is equipped to supply solar power to marquee clients operating manufacturing plants.

PYSE will launch the fourth and final tranche with a minimum investment of Rs. 5,00,000. The plant is set to be commissioned by the end of July and is designed to offset 65 lakh kgs of carbon footprint every year for the next twenty-five years.

Siemens Gamesa signs deal

Company (Tangedco) is conducting a feasibility study on three hydropower projects that will generate 2500 MW of power.

The Tangedco has asked a private consultant to conduct a study and prepare an initial report to establish 1000 MW capacity Pumped Storage Hydropower Stations each in Upper Bhavani and Sandy Nalla. The consultant has also provided a project report for a 500 MW hydropower project in Sigur in the Nilgiris.

The state power utility will be vetting the proposal submitted by the consultant for the three hydropower projects totalling 2500 MW power and prepare a detailed project report. The DPR will be submitted to the state government for approval.

In addition to the three hydropower projects totaling 2500 MW, Tangedco is planning 7500 MW power projects in Nilgiris, Tirunelvelli, Kanniyakumari, Coimbatore, Dindigul, Theni, and Salem districts. In the first phase, the Tangedco will commence work in the Nilgiris while the other districts will be taken up during the second and third phases.

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DOMESTIC COAL

commercial mining blocks was awarded in November 2020, with 19 mines allocated, representing over 3 billion tonnes of coal reserves and a peak capacity of over 50 MTPA

Centre receives 38 bids for Investment in global coal supply auction of coal mines for chain to hit $115 bn in 2022, led commercial mining

by China and India The governmentWedsn said 31 companies, including At over $80 billion, China and India are anticipated to make up the bulk of global coal investment in 2022, says IEA. The investment quantum globally on coal supply chains is expected to grow by 10 per cent year-on-year to around $115.5 billion in the current calendar year, with China and India accounting for a major share.

Coal shortages and power rationing in China in 2021 made energy security the main priority in near-term Chinese policy, and more than 350 million tonnes (MT) per year of new coal mining capacity was brought on stream in the second half of the year.

India is also looking to increase domestic coal supply in the face of a squeeze in 2022 that increased the use of more expensive imported coal.

IEA said that India, the world’s second-largest consumer and coal producer, is seeking to increase coal production as its energy needs grow and the government looks to decrease imports. Under the Indian government’s Coal Mines (Special Provisions) Act, merchant producers can sell coal at free-market prices outside CIL’s monopoly. The first auction for

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JSW Steel, Vedanta Ltd, NLC India Ltd, Jindal Power and Bharat Aluminium Company Ltd, have submitted bids for 24 mines under commercial coal mines auctions. As many as 38 online and offline bids were submitted during the three rounds of auctions.

The auction process for 122 coal/lignite mines was launched in March. The last date of submission of technical bids was June 27, 2022, except for 10 mines. Those 10 mines comprise Parbatpur Central coal mine and 9 lignite mines.

The bids will be evaluated by a multi-disciplinary technical evaluation committee and the technically qualified bidders would be shortlisted for participation in the electronic auction. Post opening of the technical bids, the forum was opened for discussion and suggestions were invited from the bidders to make the commercial coal mine auctions more attractive for the industry.

India’s Domestic Coal Production Up By 28% in May-end

India's domestic coal production continues to witness an increasing trend in the current financial year as well, following a record-breaking coal production of 777 Million Ton (MT) in 2021-22.

degradation. The locked up coal assets left out earlier due to techno-commercial and safety concerns can now be unearthed through these technologies, Coal India (CIL) said.

The total domestic coal production in 2022-23, as on 31st May, 2022 is 137.85 MT, which is 28.6% more as compared to the production of 104.83 MT in the same period of last year. This trend is being maintained in June, 2022 also. The coal production by Coal India Ltd (CIL) is 28% more than the production in the same period of the previous year (as on16th June, 2022).

CIL is aiming to mine coal through punch entry in those OC mines which have reached their ultimate pit level and is planning to deploy 10 high wall machines in its OC mines during the ongoing. Among mass production technologies, CIL will introduce 50 continuous miners by FY 2025 with peak production potential of 25 million tonne per year. 21 such machines are already deployed in ECL, CCL and SECL producing 9 million tonne per year.

Domestic coal production target for the current financial year is 911 MT which is 17.2% more than the previous year.

Coal India Braced To Meet Power Sector's Demand, Says Chairman Coal India Limited (CIL) Chairman Pramod Agrawal said that the company is ready to meet its part of committed dry fuel supplies to the power sector.

His comments came as the monsoon season has already hit many parts of the country and he said that the company will also not spare any effort in pushing coal output. He stressed that building up dry fuel stock timely by electricity generating plants will be crucial.

"Timely stock build-up by the power plants when coal is available will be crucial. We are gearing up to meet our part of committed supplies to power sector in the ensuing months. CIL is targeting to close the first quarter with 35 million tonnes incremental production compared to same quarter of last year," Mr Agrawal said.

He said Coal India's pitheads are stocked with around 46 million tonnes of coal, whereas coal stock at power plants stands at around 24 million tonnes. CIL has registered nearly 29 per cent production growth during the first two months of current fiscal at 108 million tonnes over same period last year, the highest ever for this period. Concurrently, supply to power sector at 102 million tonnes grew by 16.7 per cent.

Coal India to explore green mining technologies The state-run coal major announced that it is exploring green mining options to minimize adverse environmental impact by leveraging a slew of ecofriendly technologies in its underground (UG) and open-cast (OC) mines.

With land turning out to be a major pain point for expansion of coal mining operations these technologies bypass land acquisition and avoid its

UG output is environmentally clean, minimally invasive on land degradation, society friendly. Around 70% of the country's coal reserves are conducive for UG mining. The aim is to make UG production sizably supplement the OC output. At current rate, mineable coal reserves at existing OC will slowly start lowering.

Coal shortage hurting non-power sectors still year after supply shift Since the coal demand-supply mismatch started in August last year, the major casualty has been the non-power sectors of steel, aluminium, iron, paper, cement, etc. as the Centre prioritised power units for coal supply. In spite of a significant increase in country’c coal production figures, in the past one year, the non-power sector has seen coal dispatch fall by 33 per cent.

“The situation has just deteriorated and we are scrambling for options. Bigger players are importing coal which is costlier, but smaller ones do not even have that capital. The rate of coal in e-auction by CIL has also gone up due to increased demand,” said an executive of a steel company.

While they are not being supplied coal under the allocated quantity as per the FSA, the coal companies are conducting spot e-auctions where the spot prices have scaled up to record high levels since March ’22, NRS consumers have pointed out.

Along with the decline in coal supply, the share of non-power sectors in the coal transportation by the railways has also been reducing, the latest data suggests. Cumulatively, the demand for non-power units requires 500,000 tonne of coal every day.

Executives said they were getting 350,000 tonne till March, but it’s not above 250,000 tonne now.

Amid worst power crisis in 6 years, CCAI Monthly Newsletter June 2022

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India buys more Russian coal Russia, which is under harsh Western sanctions as a result of its invasion of Ukraine, has significantly increased coal export to India in recent weeks as brokers offer discounts of up to 30%, according to Reuters.

As per the international news agency, India’s purchases of coal and related items increased by more than sixfold in the 20 days in June compared to the same time a year ago, reaching $331.17 million.

India bought an average $16.55 million of Russian coal a day in the three weeks, more than double the $7.71 million it bought in the three months after Russia's Feb. 24 invasion, according to Reuters calculations.

Indian bulk buying of Russian coal is set to continue, with June imports expected to be the most in at least seven and a half years, Refinitiv Eikon ship tracking data showed. Bulk shipments of Russian thermal coal started reaching India in the third week of May, with orders mainly from cement and steel firms and traders, according to shipping data compiled by an Indian coal trader..

RAILWAYS & SHIPPING

Coal transport on KothagudemSathupally railway line to begin soon Newly laid railway line from Kothagudem to Sathupalli would be made operational from May 20 for coal transportation from SCCL’s coal mines at Sathupalli, informed the company Director (Finance) N Balram.

Speaking to media here on Tuesday he said the 55 kilometre long railway was laid at a cost of Rs 650 crore. Singareni Collieries Company Limited (SCCL) provided 70 per cent of the project funding and remaining by the railways.

The first coal load from Sathupalli was expected on May 20. The railway line would stop coal transportation by road and around 600 trips of lorries that were transporting coal every day would be off road. It would reduce pollution, traffic and accidents.

It was expected to produce 10 million tonnes of coal from Sathupalli. Public hearing for VK-7 OC was over and the coal production might commence in Sept or Oct. Environmental and forest clearance for the Naini

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project was given and production would begin in Oct. Public hearing for the Rompedu project at Yellandu was yet to be conducted, Balram said.

Centre waives import duty on some raw materials for steel industry The government has waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry, a move which will lower the cost for the domestic industry and reduce the prices.

Also, to increase domestic availability, the duty on exports of iron ore has been hiked up to 50 per cent, and a few steel intermediaries to 15 per cent, according to a notification.

The import duty on ferronickel, coking coal, PCI coal has been cut from 2.5 per cent, while the duty on coke and semi-coke has been slashed from 5 per cent to 'nil'.

The tax on the export of iron ores and concentrates has been hiked to 50 per cent, from 30 per cent, while that on iron pellets a 45 per cent duty has been imposed.

Duty on pig iron and spiegeleisen in pigs, blocks, or other primary formats; flat-rolled products of iron or non- alloy steel, of a width of 600 mm or more, hotrolled, not clad, plated or coated; Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold- rolled (cold-reduced), not clad, plated or coated, Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated have been hiked to 15 per cent from 'Nil' currently.

Steel ministry in regular talks with railways, coal ministries for smooth fuel supply: Kulaste The steel ministry is in regular talks with other ministries, including the railways and coal, to ensure smooth supply of coal to steel manufacturers, Union minister Faggan Singh Kulaste said.

“We are regularly speaking to various states and ministries especially railways and coal,” he said, replying to a question related to coal supplies being impacted to steel plants.

Integrated steel players use coal to run their power units which supply electricity for captive use, while secondary players make steel using Directly Reduced Iron (DRI). About 70 per cent of the DRI is made

using thermal coal, supply of which is in constraint in the country.

On the rising prices of steel, the minister said the rates are market-driven and will calm down accordingly.

As per industry estimates, rates of hot rolled coil are trading in the range of Rs 73,000-Rs 75,000 per tonne.

STEEL

CIL has planned to increase raw coking coal production from existing mines up to 26 MT and identified nine new mines with PRC of about 20 MT

by FY 2025. Also, CIL has offered six discontinued coking coal mines, out of the total 20 discontinued mines, on an innovative model of revenue sharing to the private sector with expected PRC of about 2 MT.

Icra revises outlook on steel Need to develop right ecosystem sector to stable from positive agency Icra said it has revised its outlook for secondary steel sector: Steel Ratings on the domestic steel to stable from positive, mainly Minister on the account mounting input cost amid low steel There is a need to provide the right ecosystem for the secondary steel sector and consumers, in a bid to achieve 300 million tonnes capacity by 2030, Steel Minister Ram Chandra Prasad Singh said.

The Minister made the remarks while addressing a meeting of the manufacturers and consumers held in Surat, according to an official statement issued here.

"The Steel Minister has emphasized the need of supporting and providing the right ecosystem for the secondary steel sector and and consumers to meet 300 million tonnes of steel capacity by the year 2030," the Ministry of Steel said.

During the meeting, the Minister stressed that all these targets can be achieved only with the active participation of secondary steel producers and steel consumers. Besides other Ministry officials, representatives of South Gujarat Chamber of Commerce, stakeholders of secondary steel sector and steel consumers association of Gujarat attended the meeting.

rates.

After two back-to-back years of earnings surge, the steel companies are now staring at a significant decline in earnings over the next 12 months as the industry faces multiple headwinds emanating from trade barriers from export duty on finished steel, unprecedented coal/energy cost pressures, and muted domestic demand growth so far, Icra said in a report.

The industry could therefore be on the way to an accelerated mean reversion as the operating environment becomes far less attractive in the coming months. In the current FY23, the operating profits of steel companies is likely to be lower by 40-50 per cent over FY22 levels. The consolidated operating profits per metric tonne for the four leading domestic steelmakers come down by around USD 110/MT in Q4 FY22 compared to USD 326/MT recorded in Q1 FY22, ICRA said.

Adani Enterprises, 10 others CIL to Supply 3.45 MT Washed show interest in coal import Coking Coal to Steel Sector in FY tenders of Coal India 23 India has produced 51.7 Million Ton (MT) raw coking coal during financial 2021-22 which is 15 % more as compared to 44.8 MT during FY21. Domestic raw coking coal production continues to witness increasing trend in the current fiscal as well with production of 8.3 MT, as per the figures up to May 2022, which is 20% more compared to 6.9 MT during the same period of the previous year.

Coal India Ltd (CIL) is planning to set up and operationalize nine more new washeries with a capacity of 30 MTPA. With setting up of new washeries, it is estimated that CIL will be able to supply about 15 MT of washed coking coal to the steel sector, thereby reducing the import of coking coal.

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Adani Enterprises, Mohit Minerals, Chettinad Logistics, two coal importing agencies from abroad including one form Indonesia are among the eleven coal importers to have shown interest in the bidding for coal import tenders led by Coal India (CIL). During the pre-bid meeting, the interest bidders requested amendments in narrowing the time window of the bid price validity from 90 days to 60 days.

Among other requested amendments was fixing the time period for the supply of the first tranche of shipment, from the date of the letter of award, between 4 and 6 weeks. for the coal that lands on Indian shores, coal quantity assessment, and quality testing will have to be done through Coal India's empaneled third-party sampling agencies.

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14 to June 17 with prospective coal importing agencies evincing interest in pitching in, in the three international competitive bidding e-tenders that the company had floated earlier in the month for import of coal. The overseas sourcing of coal by Coal India was as directed by the government.

‘Fleet operators may see 10-12% revenue growth this fiscal’ Fleet operators may see a 10-12 per cent revenue growth this fiscal as they are expected to continue adding to their fleets steered by higher demand from road-freight sectors and higher repayment due to elevated borrowing cost among others, credit ratings agency Crisil said.

With strong freight demand, fleet utilisation will ramp up quickly on increased capacities. While interest rates have risen after the RBI hiked the repo rate, underlying demand will ensure fleet operators go for fleet additions, Crisil said.

According to the ratings agency, even as fleet additions would increase debt and leverage, credit profiles will remain stable. An analysis of 45 large fleet operators rated by Crisil Ratings, representing a fifth of the industry by size, indicates the 10-12 per cent growth.

Among these, large operators are likely to increase their fleet size by 12-15 per cent year-on-year this fiscal, which will be funded by a mix of external debt and accruals though higher debt will reflect in increasing leverage and toning down of debt protection indicators, they will remain adequate.

Continued demand from freight-intensive sectors and higher fleet utilisation have reflected in 3-4 per cent higher freight rates on year.

Railways looks at upgrading tracks near coal mines The Indian Railways is eyeing a significant upgrade of track infrastructure near mines that will be focused on coal bearing regions for expeditious. The plan will also include setting up requisite infrastructure at mines before they are auctioned. The focus is on creating requisite infrastructure in coal and iron ore bearing regions of Bihar, Odisha and Jharkhand, officials say.

The Railway Ministry has begun initial discussions with the coal and power ministries for upgrade of the existing infrastructure to address any possible increase in demand for coal. There is a view that a rail line should be provided wherever the output is estimated to more than one million tonnes per annum.

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In line with this approach, the South East Central Railway (SECR) zone has been tasked with developing 14 projects that are at sanctioning stage. These new lines will cover a distance of over 2985 track kms. Other key projects include the commissioning the first phase of the Angul-Balarampur link. The inner corridor of 14 kilometres (km) at Augul in the first phase followed by 54 km rail link of Balaram Jarapada - Putagadia in the second phase.

In a bid address a key issue of rake shortage, the Indian Railways recently awarded contracts for manufacturing 63,116 wagons against a demand of 90,000 wagons.

Why medium-term steel demand will continue to be robust? Care Edge Research explains with 5 important factors The medium-term steel demand will continue to be robust due to the government’s infrastructure push and increased investments amid an overall rebound in the Indian economy, a credit rating agency CareEdge Research pointed out in its June report.

The steel industry’s production and consumption grew by 18.1 and 11.4 per cent, respectively, on a year-on-year (YoY) basis in FY22, the report stated.

Besides, steel exports remained robust for the third straight year and increased by 25.1 per cent during FY22 against 29.1 per cent growth in FY21.

“International factors such as environmental concerns surrounding China’s steel industry, an uptrend in global steel prices and higher demand from European nations led to the increased shipments from India,” CareEdge said.

An increase in allocation of capex by 36 per cent YoY at Rs. 7.5 lakh crore in Union Budget 2022-23, infrastructure push towards seven engines (roads, railways, airports, ports, mass transport, waterways and logistic infra), approval of Production Linked Incentive (PLI) Scheme for specialty steel, Pradhan Mantri Awas Yojana (PMAY) scheme, Jal Jeevan Mission may turn out to be 5 driving factors for India’s Steel production.

India’s rush to avoid blackouts leaving iron firms without coal Sponge iron producers in India are raising concern as fuel supply contracts won’t be renewed as the nation’s state-run coal miner continues to prioritise power plants in an effort to avoid blackouts. Supplies from

Coal India Ltd for some producers are scheduled to end from August, which means the companies will be forced to rely on vastly more expensive imported fuel.

The producers in Chhattisgarh have appealed to the state miner to renew their pacts and are seeking talks with Coal Minister Pralhad Joshi. Coal India plans to follow the policy to auction supply contracts, it said in a response to requests for comment. The company did not specify when any new auctions will take place.

The state miner is under pressure to boost stockpiles at power plants during the current monsoon season, which typically disrupts coal production and transport. Coal accounts for 70 per cent of India’s electricity production and efforts to prevent any disruptions are coming at the cost of industrial users.

Govt to reduce tax burden on investors in non-coal blocks: Cascading of royalty to be removed The Union mines ministry is considering a proposal to exclude royalty and other levies from the average sale price (ASP) of non-coal minerals such as iron ore, limestone and bauxite to encourage investments in the sector.

The idea is to avoid cascading of taxes, that is levy of tax on tax. Royalty is currently being paid on ASP, which already includes royalty in a range of 2-20% and a clutch of other levies including payments towards the district mineral fund (DMF) and national mineral exploration trust (NMET).

According to the proposal, royalty and other levies will not be part of the ASP, but will apply on it.

Bidding for non-coal minerals take place on the basis of the revenue to be shared with the government by the investors/miners as a percentage of ASP. Whoever offers the highest revenue share gets the block.

CEMENT

Aggressive capacity expansion by large cement makers to impact smaller players, lead to consolidation

Aggressive capacity addition by large cement makers at a rate outpacing demand may lower industry-wide utilisation, possibly squeezing smaller players and further pushing consolidation in a freight-intensive sector where regional distribution reach is crucial for market dominance.

Large manufacturers, such as UltraTech Cement, Ambuja Cements and ACC, have better bargaining power given their scale which helps them achieve lower cost of production compared with smaller rivals. Experts believe that a rapid expansion in manufacturing capacity by large cement makers will further tip the scales in their favour.

The top five cement players have added 81.5 MTPA by way of capacity between FY18 and FY22, according to data from CRISIL. Their market share has increased from 50% to 55% during this period while their average capacity utilisations levels have also improved.

Experts believe new capacity addition by leading cement makers will accelerate further over the medium termThe growth in new capacity is expected to outstrip growth in demand.This (capacity addition) will outpace demand growth, causing industry-wide utilisation to drop towards 65% from close to 70% we estimated in FY22. The decline in utilisation levels and subsequent margin erosion is expected to be steeper for smaller players.

India's top cement maker paying for Russian coal in Chinese yuan India's biggest cement producer, UltraTech Cement, is importing a cargo of Russian coal and paying using Chinese yuan, according to an Indian customs document reviewed by Reuters, a rare payment method that traders say could become more common.

UltraTech is bringing in 157,000 tonnes of coal from Russian producer SUEK that loaded on the bulk carrier MV Mangas from the Russian Far East port of Vanino, the document showed. It cites an invoice dated June 5 that values the cargo at 172,652,900 yuan ($25.81 million).

Two trade sources familiar with the matter said the cargo's sale was arranged by SUEK's Dubai-based unit, adding that other companies have also placed orders for Russian coal using yuan payments

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GLOBAL Global seaborne coal supply in Q2 forecast to surge 12% on increased exports from Indonesia and Russia According to Commodities at Sea, S&P Global Market Intelligence, global seaborne coal shipments for the first 26 days of June 2022 increased by 13% year on year (y/y) to 100.7 million metric tons (mt).

While the shipments showed a considerable increase from Indonesia, Russia and Australia, the figures were lower from Colombia. Shipments of seaborne coal to mainland China declined during the same period, mainly due to higher

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domestic production and Covid-19 related lockdowns.

Global seaborne shipments in the second quarter of 2022 are forecast to increase 12% y/y to 344.4 million mt, with an increase in Russian coal shipments destined to mainland China, the Mediterranean, Indian subcontinent and Northwestern Europe. The significant increase in the shipments of Indonesian coal to Indian subcontinent will be sufficient to make up for the decline in its shipments to mainland China, while Australian coal shipments to Japan, South Korea and Taiwan offsetting the decrease in its shipments towards Indian subcontinent and Southeast Asia.

Asian coal prices hit record on hot global competition for fuel

plants using liquefied natural gas are similar to those burning high-grade coal, suggesting limited upside for coal prices.

A worsening global fuel shortage catapulted Asia’s coal benchmark to a record. Spot physical coal at Australia’s Newcastle port jumped 3.4% to a record US$402.50 (about RM1,773.42) a ton in the last week of June. That’s the first time the highly watched spot index rallied above US$ 400.

China’s benchmark Qinhuangdao 5,500kcal/ kg price fell to the current CNY1,200/t and has found support at that level, from over CNY1,600/t in late March. The correction reflects weak demand; thermal power generation declined by 10.9% yoy in May 2022 due to lockdowns to contain Covid-19 outbreaks and strong hydropower generation. Coal inventories at power plants have also rebounded.

Power generators across Asia and Europe are rushing to secure additional coal shipments as a replacement to dwindling natural gas supplies, while miners are struggling to increase output. Germany and Austria are reviving idled coal power plants in response to Russian gas supply curbs, while Japan and South Korea are stockpiling the fuel ahead of hotter summer weather.

Intense competition for a dwindling pool of available coal supply threatens higher power bills for households, as well as shortages for poorer emerging nations such as Pakistan. The surging demand spells a remarkable comeback for a commodity that many thought was on its way to being phased out. Hotter-thannormal weather in northern China is pushing power demand to an all-time high, increasing consumption of coal.

Divergence between High- and Low-Grade Thermal Coal Prices in APAC to Narrow Prices between high- and low-grade thermal coal in Asia-Pacific (APAC) have diverged since late March 2022, but Fitch Ratings expects the gap to narrow over time.

Prices of high-grade coal have been boosted by tight supply and geopolitical intensions, while prices of low-grade coal are constrained by weak demand from China. Newcastle 6,000kcal/kg grade coal reached USD380/tonne (t) in late June, a 105% premium over Newcastle 5,500kcal and close to the hard coking coal price of USD385/t. Fuel costs of north Asian power

.

Indonesia Roundup

Coal

Earnings

Fitch Ratings expects the credit profiles of Indonesian coal miners and coal contractors to remain strong through 2022, even though we think coal prices will moderate in 2023.

Liquidity for the sector’s rated entities remains robust on strong earnings, modest capex for most companies and no major near-term debt maturity.

Fitch has revised up the thermal coal price assumptions for 2022-2023. Our increased thermal coal assumptions reflect high yearto-date prices, supported by tight supply due to the Australian wet season, strong Indian demand mitigating lower demand in China, and structurally higher prices of Newcastle 6,000.

However, Australian supplies will eventually recover, while India and China have increased imports from Russia, helping meet recovering Chinese demand..

China coal sector issues supply alert ahead of peak summer season China coal industry associations urged mining companies to ensure they can meet demand during the country’s busiest summer season.

The state-run Securities Times stated that the CCAI Monthly Newsletter June 2022

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China Coal Industry Association and the China Coal Transport Association notified enterprises to expedite the delivery of high-quality coal, take measures to assure emergency supplies, and maximize mining capacity.

China’s energy market is primarily dependent on coal, and demand peaks during the summer months; a heatwave in the Yangzi River region has also increased electricity consumption.

However, flooding in the south of the country has increased the availability of hydroelectric electricity, reducing the burden on the coal industry.

Since the start of the year, Chinese authorities have approved the construction of 28 new coalfired power plants with a capacity of 37 GW, compared to 33 GW for the whole 2021. The new capacities, expected to be commissioned in 2024, are estimated to consume at least 74 mio t of coal per year. China currently has about 1,000 GW of coal-fired power plant capacity.

China: Anode coke prices remain firm in May on strong demand Anode grade coke prices in China remained firm in May 2022 amid strong buying appetite from traders as demand for electric vehicle batteries remained robust.

Prices of China's low-sulphur coke (less than 1%) were higher at $1,050-1,060/t. However, no cargoes were available for exports last month amid lockdown restrictions. Domestic prices for coke in China with 3% sulphur corrected slightly by $100/t m-o-m to $750-760/t.

Chinese anode grade coke prices have remained in a tight range over the last few months due to the government's efforts to improve air quality.

Furthermore, uncertainty due to the RussiaUkraine conflict also kept prices higher. Anode grade coke is mainly used in manufacturing calcined pet coke, a raw material for the aluminum industry. .

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Australia needs coal, gas to back up renewables – regulators Australia's Energy Security Board proposed paying coal- and gas-fired generators for buffer supply on the grid but offering longer-term contracts for new back-up capacity, such as batteries, to smooth the transition to cleaner energy.

The country's new Labor government, facing soaring power prices and blackout risks in its first month in office, has urged regulators to develop the "capacity mechanism" as fast as possible to encourage development of renewable energy and energy storage to fill the gap as coal-fired plants are retired.

The board is seeking comments on its latest plan for a capacity mechanism designed to encourage investment in energy storage, but also paying coal- and gas-fired generators based on an auction system.

Its first proposal last December sparked opposition from groups and some state governments that do not want coal-fired plants rewarded for having capacity available, but the Energy Security Board said all forms of backup will be needed. Coal-fired power makes up about 65% of generation and gas 7%, with the rest coming from renewables.

Spot Australian thermal coal has surged, but contract price is key The spot price of Australian thermal coal is higher than that of coking coal, an unprecedented situation that highlights just how the global market for the polluting fuel has been upended by Russia’s invasion of Ukraine.

The bulk of exports of thermal coal from Australia, the fuel’s second-biggest shipper, behind Indonesia, are priced against annual contracts agreed between miners and Japanese utilities, which typically run from the start of the Japanese fiscal year on April 1.

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UGF 1& 2, Kanchenjunga Building, 18 Barakhamba Road, New Delhi-110001, India - 110095 P : +91 11 23354046/47Shakarpur, F Delhi : +91-11-23354047 E : corporate@shardamaa.com W : www.shardamaa.com Phone: +91 1141 510 186, Email: nj@shardamaa.com

The annual contract for Australian thermal coal that is most watched is the one between miner Glencore and Japan’s Tohoku Electric Power.

This year it’s believed that Glencore initially wanted as much as $400 a tonne, while Tohoku was aiming for closer to $150, and negotiations so far have narrowed the gap but hardly closed it. This year it’s believed that Glencore initially wanted as much as $400 a tonne, while Tohoku was aiming for closer to $150, and negotiations so far have narrowed the gap but hardly closed it.

Assuming an agreement is eventually struck, the new price will certainly be a substantial hike from that of 2021-22, meaning power prices are likely to rise in Japan – and also in South Korea and Taiwan, which also use Australian thermal coal. However, it’s also likely that the price agreed will be some way short of current sky-high spot prices.

Firmer prices lift coking coal capacity

Australian

Around 8.4mn t/yr of new Australian coking coal production capacity has been bought on line this year, with a similar amount planned for the rest of 2022 and up to 14mn t/yr scheduled for 2023.

Firm, if volatile, metallurgical coal prices since late 2021 are starting to be reflected in mine restarts, new projects and expansions coming on line, bolstering supplies despite delays caused by extremely wet weather and safety concerns. The ramp-up of new projects, together with the approaching end of the 2021-22 fiscal year on 30 June, has seen vessel queues grow outside the key Queensland coking coal ports of Dalrymple Bay Coal Terminal, Hay Point and Gladstone.

Australian developer Bowen Coking Coal (BCC) began railing coal from its 1.2mn t/yr Bluff pulverised coal injection (PCI) grade mine to

26 | CCAI Monthly Newsletter June 2022

Gladstone this month. BCC uses Australian firm QCoal's washing and rail loading facilities at the 1.2mn t/yr Cook Colliery, which also restarted in April having closed in late 2019 when then owner Bounty Mining went into administration.

Australian state's coal royalty hike could nudge others to follow suit – analysts Queensland's bigger-than-expected hike in coal royalties could embolden other Australian states and resources-heavy countries around the world to make similar moves, analysts said.

Australia's second-largest state, which aims to deliver a budget surplus by 2024-25, said it would increase royalties on coal production after a 10-year freeze, to capture windfall profit from rocketing coal prices. The move promises an extra A$1.2 billion ($836 million) in 2023 financial year taxes for the state that's home to coal mines owned by industry leaders like BHP Group Ltd, Glencore PLC, Anglo American PLC and Peabody Energy Corp.

While another major coal producing state NSW left its rates unchanged so far, analysts said they would be keeping an eye out for the Commonwealth Budget in October to see if there were any plans to lift rates for iron ore or other miners, considering the boom most commodities saw recently in the wake of the Russia-Ukraine conflict.

Transnet aims to fix South Africa mining export shortfalls with procurement of locomotives Transnet, South Africa’s government-owned logistics and Freight Company, intended to procure new locomotives in an effort to ease the rail crisis encountered by the country’s mining firms, especially in the coal sector.

Transnet

will

come

out

with

the

new

procurement event for locomotives before endJuly. The industry, which missed out on about R35bn in 2021 from contracted coal, iron ore and chrome volumes that could not reach ports, would welcome any workable solution that Transnet procured.

South Africa’s coal industry has been most critical of Transnet saying that billions of rands were lost in revenue as well as taxes and royalties that would have rolled into the national fiscus owing to restrictions on the coal line.

In order to achieve 60 million tons (Mt) in export coal deliveries, mostly from the Mpumalanga and Limpopo provinces this year it will need to improve by 9% in the second half of the calendar year. Transnet railed 58.72Mt last year – its worst performance since 1996 – and well off its installed capacity of about 80Mt annually. .

South Africa is exporting more than ever to EU Due to the fear that Russia may cut off natural gas supply going into the harsh winter months, Europe has beguna reluctant return to coal.

But even before this turn of events, the EU had already been ramping up coal imports from other countries to prepare for an exit from Russian energy markets. In fact, EU countries have been importing coal in record numbers from South Africa.

“As soon as the Ukraine war started in February,” Quartz Africa writes, “EU countries—including the Netherlands, Italy, and Denmark—started ramping up coal imports from South Africa. The bloc has accounted for nearly 15% of RBCT’s 24 million tons of coal exports so far this year, compared with 4% in all of 2021.” Richards Bay Coal Terminal (RBCT) is the largest coal export terminal on the African Continent.

The move is contrary to climate pledge in COP26 that aims to financialy support South Africa to

phase out the dry fuel. But South Africa’s current unemployment rate is 34%, and the current spike in coal demand, as well as coal prices, will likely grow the 200,000 jobs presently offered by the domestic coal industry.

Zimbabwe: Massive NRZ Partnership Coal Deal Takes Off Zimbabwe has actualised its railway partnership agreements with Botswana and Mozambique for the enhancement of regional trade among the three countries through the movement of coal from Botswana via Zimbabwe to Mozambique.

Since March when the National Railways of Zimbabwe (NRZ) signed the business agreements with Botswana Railways (BR) and the Mozambique Railways and Ports Authority (CFM), a trial run has been consummated linking the Botswana-Zimbabwe-Ponta Techobanine port rail corridor of Mozambique.

"In terms of movement of coal from Botswana through Chiqualaquala to Maputo port, this is a very clear success of the current engagement between President Mnangagwa and President Masisi after signing the BNC agreement in Victoria Falls and also his engagement with his counterpart in Mozambique, President Nyusi. .

EU Looking For Alternate Coal Sources Before Russian Coal Embargo Takes Effect: Report The European Union could likely replace Russian coal supplies with other major coal producers like the US, Australia, Columbia and South Africa, Anadolu Agency reported. The European Union will take the decision on making a shift to other coal producers before the deadline to ban Russian coal imports in August. Russia's reduction in gas supplies ahead of the coal CCAI Monthly Newsletter June 2022

| 27

embargo has resulted in the EU intending to look for other coal suppliers as Russia is its number one coal supplier. As per report. The country accounts for around 50% of EU imports in 2020.

Russian energy corporation Gazprom said that they could only supply 67 million cubic meters of gas through the pipeline, which marked a 60% reduction in gas supplies.

Netherlands, Germany and Austria have announced plans to use coal plants to reduce gas use and store gas in storage facilities.

Russia's energy giant Gazprom has previously cut off the natural gas supply to Poland, Bulgaria, Finland, Denmark and the Netherlands.

Russia’s 2022 coal output could fall 17%, exports 30% – Interfax Russia’s 2022 coal production could fall 17% to 365.1 million tonnes and exports could decrease 30% to 156 million tonnes, the Russian news agency Interfax reported, citing the energy ministry.

That is the worst scenario with a full embargo on Russian coal coming into effect, the ministry said, according to Interfax. The European Union is set to ban Russian coal imports in midAugust..

Poland, Ukraine increase 2022 coal production to weather cold months Poland and Ukraine are increasing this year’s production of thermal coal, the most

polluting fossil fuel, preparing for colder months as Europe grapples with an energy security crisis exacerbated by the war in Ukraine.

Despite

widespread

commitments

28 | CCAI Monthly Newsletter June 2022

to

phase out coal from the electricity sector, countries including Germany, Austria and the Netherlands are preparing to boost coal-fired power generation as a contingency measure.

“Poland plans to increase thermal coal production from existing mines this year maximum by 1.5 million tonnes,” Janusz Olszowski, president of the Polish Mining Chamber of Industry and Commerce said.

DTEK, Ukraine’s largest energy investor, also said in an emailed statement that the country was planning to increase domestic stocks of thermal coal from 2 million tonnes to 3 million tonnes ahead of winter. DTEK Energy, which operates the coal mines, is trying to ensure prewar levels of coal production, it added, without disclosing numbers due to security reasons.

Colombia coal receipts set 30year record high in April: DANE Coal export receipts for Colombia, one of the world’s top coal-exporting countries, climbed to a 30-year record in April, data from government statistics agency showed. As geopolitical conflict and tight supplies bolstered coal prices worldwide, Colombia’s coal export receipts totaled $1.3 billion, or $174.63/mt, in April.

In the previous month, receipts totaled $619.9 million, or $156.16/mt. On a $/mt basis, April receipts were the highest in more than 30 years of data collection. From January through April, coal receipts averaged $154.53/mt, up from $71.26/mt a year ago.

Amid record-high prices, export volumes rose to a two-year high 7.6 million mt from 4 million mt the previous month. It was the highest monthly coal volume exported since 14 million mt in January 2020. From January through April, coal export volume totaled 20.8 million mt.

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Contact details: Mail ID: gmtltalcher2018@gmail.com Mobile No: 9133537132,7972717847 CCAI Monthly Newsletter June 2022

| 29

MONTHLY SUMMARY OF IMPORTED COAL & PETCOKE Indicative Imported Coal Price COAL

(kcal/kg)

Weekly Price - FOB

Weekly Price - FOB

Weekly Price (USD)

South Africa South Africa Australia Indonesia Indonesia

6000 NAR 5500 NAR 5500 NAR 5000 GAR 4200 GAR

USD 328.40 USD 261.23 USD 190.76 USD 136.65 USD 85.80

INR 25625 INR 20384 INR 14885 INR 10663 INR 6695

4.40 -0.82 -16.66 -8.17 -5.06

Indicative Pet Coke Price PET COKE

Sulphur

Price

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

-5% + 8.5%

INR 22007 INR 17650 ($226.00)

Weekly Change ($) (INR) -250 -22

USA (CIF)

- 6.5%

INR 18899 ($242.00)

-14

Exchange Rate

Change (Weekly)

INR 78.03

0.53

Indicative Coking Coal Price Premium Low Vol Current Week FOB Aus CFR China 373.60 417.10 Weekly Change (USD)

-127.87

-41.78

Low Vol HCC FOB Aus 338.50

Semi Soft Low Vol PCI Mid Tier PCI

CFR China FOB Aus 376.30 300.65

-126.47

-41.58

FOREWORDS: With tepid buying interest from China, Asian thermal coal market has remained steady amid sporadic Chinese purchases and volatile freight rates. Though low CV Indonesian thermal coal (3,400-4,000kcal/ kg GAR) market has remained upbeat this month.

Mid and High-CV Indonesian coal is witnessing lukewarm demand so far while Australian coal price also fell as major Asian buyers from India and China are focusing more on cheaper alternatives available from Russia. Demand from other Asian buyers such as Vietnam and Thailand is also limited this month as they are able to meet demand using indigenous coal. Meanwhile in Europe, voting by EU parliament is set to accelerate the rise of carbon prices, which would enable the market to focus on fuel switching.

Geopolitical conflicts in Europe and tight supply has

30 | CCAI Monthly Newsletter June 2022

-126.98

FOB Aus 358.40

FOB Aus 356.40

-125.35

-125.35

MET COKE 62% CSR CFR India FOB N China 577.00 537.20 -58.38

-41.68

caused Coal export receipts for Colombia, one of the world’s top coal-exporting countries, climbed to a 30year record in 2022, as per data available till April.

Indonesian Coal News: *Seaborne spot demand for Indonesian thermal increased this month as Chinese interest surfaced with easing lockdown restrictions. Low CV thermal coal demand from Indonesia was on the rise.

However, due to supply of Russian coal to India and China, demand of high-CV Indonesian coal dampened. The mid-CV grade market is very quiet because the Chinese domestic coal is cheaper in comparison. *Indonesia’s

Ministry

of

Energy

and

Mineral

Resources has said growing power consumption in India amid surging summer temperatures is one of the factors impacting Indonesian coal prices, which rose by 17 per cent on a month-on-month basis in June. Demand for low and mid-CV Indonesian coal has been high, especially after the Indian government urged power plants to import 10% of their requirement to meet the high-demand.

Australian Coal News: *Newcastle 5,500 kcal/kg NAR coal with 23% ash price was assessed at $178/mt FOB June 14, down 11% since May 31, and down sharply from almost $300/mt in the first half of March. Asian buyers that have stayed away from procuring high-CV Australian coal as they are continuing to purchase more coal from Russia and Indonesia due to offered discounts.

South African Coal News: *South Africa is emerging as the “big winner” in the EU’s exit from Russian coal, with the exporter proving a favourable option over competing suppliers.

Australia coal had to be transported longer distances and would therefore require higher freight costs, while Indonesia generally exported low-grade material and Colombian supply was insufficient to plug the gap left by the Russia ban. Exports from South Africa’s main export hub at Richards Bay to Europe surged four-fold year on year to 3.6m tonnes in the first five months of 2022, according to Vessels Value ship tracking data. *EU countries have been importing coal in record numbers from South Africa in the face of imposed restrictions on Russian coal imports. EU countries— including the Netherlands, Italy, and Denmark— started ramping up coal imports from South Africa.

The bloc has accounted for nearly 15% of RBCT’s 24million tons of coal exports so far this year, compared with 4% in all of 2021.

US Coal News: *As the Russia-Ukraine war fuels energy market volatility, the US Energy Information Administration lowered its 2022 US coal export projection to 81million tn, down by 5% from the previous projection and 4.8% below 2021. Coal exports are expected to climb 1.8% from 2022 to 82.6 million tn in 2023. *Coal based generation is projected to fall to 21.2% in 2022, before declining to 19.8% in 2023. The coal

fleet has been facing constraints in raising its share of generation despite high natural gas prices including limited rail capacity for fuel delivery, low coal stocks at power plants, reduced coal mining capacity, and rising generation from renewable sources, EIA said.

Pet Coke News: *New EU sanctions on Russia have lifted the prices of oil and coal but China lockdowns dampen demand causing sharp drop in petcoke prices.

China’s lockdowns and low domestic regulated coal prices have lowered petcoke imports, while real term prices also kept buyers away, leading to the sharp price corrections seen in April. However, FOB and destinations discounts are currently rising, making petcoke attractive when compared to coal. *Demand for imported pet coke into the Mediterranean region remained Low this week chiefly due to its higher price as consumers in the region looked for cheaper thermal coal. Heavily-discounted Russian thermal coal available in the market made some buyers interested in using it as an alternative to pet coke. Meanwhile, Indian demand for seaborne pet coke was also weak as cement companies stayed on the sidelines expecting weak demand during the monsoon period.

Shipping Update: *According to the Shipbrokers Association, in the JanApr period of 2022, global seaborne coal loadings declined by -4.0% y-o-y to 351.6 million tonnes, from 366.3 million tonnes in the same period of last year.

Most of the decline was in the month of January, which was particularly disappointing at just76.7 million tonnes, down by -17.6% y-o-y from January 2021, and was due to export restrictions from Indonesia. In more recent months, shipments from Indonesia recovered strongly, whilst Russian exports have been partially curtailed by sanctions. *China’s coastal bulk freight market saw a decline in overall demand in May, data from the Shanghai Shipping Exchange (SSE) showed. On a monthly basis, the composite index for coastal bulk freight, which measures transportation costs in the coastal shipping market, dropped 2 percent to 1,099.62. The sub-index for coal saw the most notable decrease at 2.9 percent, followed by that for metal ore. The subindices for grain and refined oil both edged up 0.4 percent, while that for crude oil remained flat from one month earlier.

CCAI Monthly Newsletter June 2022

| 31

COAL PRODUCTION Sl. No.

Subsidiary

Production During June'22

Production upto June'22

FY'23

FY'22

Growth (%) (FY22-FY23)

FY'23

FY'22

Growth % (FY'22-FY'23)

1

ECL

2.57

2.15

19.53

8.5

7.92

7.32

2

BCCL

2.75

1.76

56.25

7.87

5.82

35.22

3

CCL

5.17

3.82

35.34

15.68

12.86

21.93

4

NCL

10.52

7.95

32.33

32.34

25.76

25.54

5

WCL

4.44

3.15

40.95

14.27

10.41

37.08

6

SECL

10.61

9.18

15.58

35.7

27.7

28.88

7

MCL

15.49

12

29.08

45.36

33.51

35.36

8

NEC

0

0

0

0

51.55

40.01

28.87

159.72

123.98

28.85

Overall CIL 9

SCCL

5.56

5.27

5.5

16.92

15.57

8.65

10

Captives/others

10.47

5.7

83.53

28.89

16.30

77.21

67.58

50.98

32.57

205.53

155.85

31.89

Grand Total

COAL DESPATCH Sl. No.

Subsidiary

Despatch During June'22

Despatch upto June'22

FY'23

FY'22

Growth (%) (FY22-FY23)

FY'23

FY'22

Growth % (FY'22-FY'23)

1

ECL

2.71

3.11

-12.86

8.93

11.01

-18.89

2

BCCL

3.19

2.47

29.15

8.86

7.64

15.97

3

CCL

6.85

5.64

21.45

20.05

18.77

6.82

4

NCL

11.46

9.29

23.36

34.25

28.4

20.6

5

WCL

5.61

4.79

17.12

18.04

16.23

11.15

6

SECL

12.9

12.7

1.57

39.42

38.92

1.28

7

MCL

16.26

13.2

23.18

48.02

39.47

21.66

8

NEC

0.01

0

0.02

0

58.99

51.2

15.2

177.59

160.44

10.69

Overall CIL 9

SCCL

5.43

5.46

-0.46

17.31

16.69

3.67

10

Captives/others

10.57

5.87

80.02

29.46

18.07

62.97

74.99

62.53

19.92

224.36

195.20

14.93

Grand Total

32 | CCAI Monthly Newsletter June 2022

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

MAY’ 2022 54.72 6.04

MAY’ 2021 42.08 5.44

% Growth 30.04 11.03

Apr-Mar 2023 108.19 11.36

Apr-Mar 2022 83.97 10.30

% Growth 28.84 10.29

Overall Offtake (in MT) Company

MAY’ 2022

MAY’ 2021

% Growth

Apr-Mar 2023

Apr-Mar 2022

% Growth

CIL SCCL

61.24 6.13

55.00 5.80

11.34 5.66

118.70 11.87

109.24 11.24

8.66 5.64

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

MAY’ 2022

MAY’ 2021

% Growth

Apr-Mar 2023

Apr-Mar 2022

% Growth

CIL SCCL

52.14 5.08

43.64 4.80

19.48 5.94

101.82 9.91

86.48 9.28

17.75 6.76

Company

Coal Qty. Allocated MAY’ 2022

Coal Qty. Allocated MAY’ 2021

Increase over notified price

Coal Qty. Allocated AprMar 2023

Coal Qty. Allocated AprMar 2022

Increase over notified price

CIL

43.75

20.3

425 %

59.91

45.56

16%

Spot E-auction of Coal (in MT)

34 | CCAI Monthly Newsletter June 2022

CCAI Monthly Newsletter June 2022

| 35

REGISTERED

36

KOL RMS/022/2022-2024