CCAI Newsletter March-22

March 2022 Price: 40/-

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Vol. L No. 12 Published on : 28.03.2022

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From the Editor’s Desk

In a silver lining to India’s coa l sector, indigenous production and offtake of the dry fuel is on a steady ups wing but an equally high-oc tane rise in country’s power demand and a fast app roaching summer may yet aga in put the dynamics of country’s power sector to a stern test and increase Ind ia’s coal imports in coming months despite elevated global coal prices.

Bucking two years of declinin g streak, National Miner Coa l India Limited has logged record-breaking output in FY 2021-22. The mining major has come back strongly from the pandem ic-induced slump since 2020 to produce 622.6 million tonnes of dry-fuel in the ongoing fiscal, nearly 4.5 % higher than the previous financial year which is also the company’s highest ever annual production.

Meanwhile, total off-take by the Maharatna Company has also surged by more than 15% on a year-on-year basis.

Such a steady rise in domesti c coal output naturally caused India's coal import figures to slump significantly during April-January period of 2021-22. Coal prices from major exporters like Indonesia, South Africa and Australia have been on the rise and largely kept Indian importers at bay . However, a sudden spike in Power demand across the country since March and low coal stocks both at power plants and pithead s have raised alarm about ano ther possible power shortage after September-Oc tober period last year.

In order to avert any such cris is, the Ministry has directed power producers to procure coal from the oversea s market to meet increasing demand for electricity despite volatile imported coa l prices and has also directed the discoms to penalize generation utilities that fail to maintain adequate fuel stoc ks. Around Marchend, the Ministry of Power urg ed Power plants to import coa l in a transparent and competitive manner for blending purposes based on dem and assessment to deal with any shortfall of coa l availability.

Meanwhile, supply of the muchcoveted dry fuel to the countr y’s Industrial sector continues to languish much belo w the required level which has put many of the industrial plants in a tight spo t. Consequently, spot-auction prices in the country rose even more than 300% rece ntly. The supply situation to NRS consumers may further deteriorate with soar ing demand in the power sect or during summer.

Therefore, Indian coal consum ers, especially Industries, mig ht have to depend on highly volatile imported coal markets in order to sustain smoothly.

In the wake of Russia’s invasion of Ukraine, key global coal pric es have hit record levels as utilities across Europe along with other nations dep endent on thermal power are hunting for alterna tive sources of coal. However despite world-wide sanctions, India's coal imports from Russia in March could be its highest in more than two years as Indian buy ers continue buying coal from Russia amid soaring demand.

The Australia-India Econom ic Cooperation and Trade Agr eement (AI-ECTA) signed recently, may also act as a boon to the country’s coa l importers as tariff will be eliminated from 85% of goods imported from that country including coal as per the agreement. Duty-f ree import of coal and gas from Australia may play a significant role to resolve Ind ia’s impending energy crisis. .

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CONTENT Vol. L No. 12 March 2022

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

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

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Consumers' Page

12

Power

18

Domestic

24

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 In Parliament 42 Monthly Summary Of

Imported Coal & Petcoke

45

Overall Coal Production & Offtake

46 Overall Domestic Coal Scenario CCAI Monthly Newsletter March 2022

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CONSUMERS’ PAGE Present Coal Scenario: Coal Production by national miner Coal India Limited in March’22 grown significantly compared to last month. CIL’s total production for the month was 80.26 MT compared to 64.26 MT in February ’22.

However, the monthly production figures have been marginally lower than the same month previous year (81.13 MT). CIL ‘s total production in this fiscal has been 622.64 MT which is nearly 4.5% higher than the same period last year.

Coal despatch by all CIL Subsidiaries combined for March’22 has been 62.04 MT, higher than 60.06 MT in March ’21. The coal dispatch figures for CIL have grown from 58.80 MT in February. The Maharatna Company has dispatched 661.89 MT of coal so far in the ongoing fiscal, which has steadily increased from 574.48 MT in the same period in previous fiscal, a growth of more than 15%.

Issues faced by both Power and Non-power Sector: 1.

Submission regarding various forms of pending refunds from different CIL Subsidiaries:

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Various forms of refunds from different Subsidiary Coal Companies of CIL including refund of additional coal value advance, BGs related to financial coverage and performance security, EMDs, pending credit notes on account of grade slippage, refund of security deposit against expired FSAs etc have been pending since long.

As a result, huge amounts of funds of both Utilities and Industries are stuck with the coal companies.

Details of various forms of pending refunds from different CIL Subsidiaries to both Power and Non-power Sector consumers have been prepared in a tabular format and sent to MoC and CIL. Almost every customer of CIL has a certain amount of refund pending on various grounds from the said sources.

Request has been made to the Ministry of Coal and CIL to take adequate steps to ensure immediate processing of all the long-pending refunds so that the Industries may be saved from the financial ordeal. .

2. Submission regarding complete or partial roll back of price increase of different grades of coal by SCCL as notified in January 2022: Prices of different grades of coal (G-1 to G17) supplied by SCCL including the Washery Grades have been increased multiple times in the ongoing financial year. SCCL coal prices for different grades of coal have been revised 5 (five) times in total in the FY 2021-22. Such a recurrent and steep hike in coal prices is putting a huge financial burden on the coal consumers dependent on SCCL. Request has been made to the Ministry of Coal and SCCL to consider either complete or at least partial roll- back of the hiked coal price as notified by the company on 10.01.2022.

3. Request for not levying Composition User Fee on consumers operating within state of Jharkhand: The road construction department of Government of Jharkhand has levied Composition

User Fee (CUF), for use of State roads and/or bridges including interchanges, flyovers, ROB/ RUB, by-passes and tunnels thereon in mining areas, at the rate of Rs 600 per trip (Rs 1200 per round trip) from the mineral transporting vehicles.

This fee should be levied on commercial vehicle owners/transport operators but CCL has decided to pay CUF on behalf of the transporters for the period 26/10/2021 to 15/04/2022 which shall be recovered from the consumers, at the rate of Rs 60 (sixty) per tonne, as an additional charge as Reimbursement of CUF which shall be included as an additional component in the coal sale bill.

Request has been made to the Central Coalfields Limited not to levy any additional charges/taxes on the coal bill in retrospective effect.

It is also earnestly requested to consider not levying the aforementioned charge (CUF) on the consumers.

Issues faced by exclusively

by Power Sector Consumers: 4. Submission to prioritise loading and supply of rakes to long-distance consumers from ECR: As per the Railway circular regarding Preferential Traffic Order GO 95 issued on 30.03.2021, the Zonal Railways is obligated to provide special facilities or preference to transport coal and coke including all variants (except pet coke) loaded from a siding to the consumers 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. However, East Central Railway (ECR) is not giving priority to the long-distance consumers and supplying indents to the Utilities as per the order of seniority only.

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Submission has been made to ECR so that preferential loading and dispatch of rakes to the long distance consumers may be prioritised by ECR in accordance with the Railway circular. .

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

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

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

Issues faced by Non-power Sector Consumers: 6. Submission by NRS Consumers to immediately improve supply of coal rakes to the Industries: Supply of coal to NRS consumers via Rail mode has significantly deteriorated again while Road mode supply has also been hampered as preference is given to Power Sector via Road-cumRail (RcR mode). Such scarce supply of fuel for a prolonged period has led to catastrophic consequences for many Industries such as

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Aluminum, Cement, Steel, Sponge-Iron, Paper, Fertilizer, Chemical, Rayon, Textile etc. and their Captive Power Plants (CPPs).

Due to dearth of supply in FSA and e-Auction quantities, many NRS consumers are compelled to procure coal from the open market by paying 3-4 times of the premiums under the current predicament. In recent months, premiums of spot auction have indicated a mismatch in demand-supply situation for the industries with more than 300% premium over the floor price.

Request has been made to the Ministry of coal, CIL and its Subsidiaries to ensure sufficient supply of coal to the Industries by releasing pending rakes, conducting spot and exclusive auctions more frequently and offering more quantity in the e-auction and linkage auctions at the earliest possible.

7. Submission for immediate issuance of pending DOs against Linkage quantity from different sidings of SECL: Significant amount of linkage quantities to be supplied to the Industries have been kept pending since last year from a number of SECL sidings including Baroud, Jampali etc as the Road Delivery Orders (RDOs) against the offered quantities have not been issued yet. However, SECL is offering coal through Spot e-Auctions via Road Mode from the same sources this month. SECL is already offering coal only at trigger level. On top of that, offering Linkage quantities under Spot e-Auction would be an additional financial burden for these consumers as they would have to pay high premiums to procure coal while already having valid FSAs. Submission has been made to SECL and CIL for immediate issuance of pending DOs to the Industries against their Linkage quantity so that the consumers may sustain themselves by procuring coal via Road mode.

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

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8. Submission by NRS Consumers regarding extension of RDO validity issued from specific areas of WCL: The daily dispatch plan to the Industries has been revised based on area-wise commitments under Linkage Auction FSAs, Spot and Exclusive auctions from 25.03.2022. While the total daily dispatch quantity to Industries from WCL has been kept unchanged, the revision has caused the average daily dispatch mainly from Ballarpur, Wani North, Nagpur and Pench (also Kanhan and Pathakhera) areas to reduce.

Requests have been made to WCL and CIL to extend the RDO validity of the areas of WCL where the daily coal dispatch quantity has been reduced in order to revise the daily dispatch plan

by Road to the Non-power Sector.

9. Submission by NRS Consumers regarding refund of EMDs and Royalties against lapsed DO quantities from SECL: Industries securing coal under Spot e-Auctions from SECL’s Chhal, Bijari OCP in 2021, could not procure the allotted quantities due to various reasons such as non-availability of designated grade of coal (G-10, G15), frequent breakdown of weighbridges, irregular movements of loading vehicles, poor coal evacuation arrangements etc. As a result, despite high coal demand, only a small portion of the allotted DO quantities could be lifted by these Industries and the rest quantity got lapsed.

The consumers had already paid EMD for participating in the Spot Auctions but in spite of lapsing of huge DO quantities, the EMD amount worth crores of rupees has not been refunded.

Request has been made to SECL and CIL to process the refund of EMDs and Royalties against lapsed DO quantities at the earliest.

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With Best Compliments From:

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POWER THERMAL

India ranked 3rd largest primary energy consumer in the world As per India Energy Outlook 2021, published

by International Energy Agency (IEA), India has been ranked third largest primary energy consumer in the world, said Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in Lok Sabha.

India’s Hydrocarbon requirements are met through domestic production as well as through imports. The country imports oil and gas from various geographical regions including countries from the Middle East, Africa, Europe, North

12 | CCAI Monthly Newsletter March 2022

America, South America, and South-East Asia.

As per World Energy Outlook 2021 of IEA, the current share of India in global primary energy consumption is 6.1% and is likely to increase to about 9.8% understated policies scenario by 2050.

The government has taken up the development of the National Gas Grid, City Gas Distribution Networks to cover major demand centres across the country to provide clean and green fuel to the Public. As per the Ministry of Power, a significant addition to Thermal (28,460 MW), Large Hydro (12,663 MW), and Nuclear Energy (8,700 MW) capacity is underway.

Thermal plants coal stock at 39% of normative requirement The Government of India issued new coal stocking norms December 12, 2021, with provisions for penalty for non-maintenance of prescribed coal stock, Pralhad Joshi, Union Minister for parliamentary affairs, coal and mines told the Lok Sabha March 23, 2022. This was done to maintain adequate coal stocks by coal-based thermal power plants.

The daily coal requirement for both pithead and non-pithead plants is estimated at 85 per cent plant load factor (PLF), the new norms mandate. The stock needs to be maintained for 12-17 days for pithead plants and 20-26 days for non-pithead plants, according to the rules.

Month-wise variation based on the coal dispatch / coal consumption pattern during the year will be allowed, Joshi said.

Around 26.4 million tonnes (mt) of coal stock was available with the thermal power plants (TPP) as on March 14, 2022, the minister shared. This is about 39 per cent of the normative coal stock required to be maintained by the TPPs, Joshi added. .

Peak power demand can cross 200 GW in March, says R K Singh Power Minister R K Singh said electricity demand can beat all previous records and cross the 200 GW mark in March itself in view of soaring temperatures.

Asked whether the all-time high of peak power demand met of 200 GW can be breached this month itself amid the early onset of summer, Singh said, "Yes it can."

Singh was speaking to reporters at the ELECRAMA event organised by IEEMA in the capital.

The peak power demand met or the highest supply in a day was recorded at 200.57 GW on July 7, 2021.

According to power ministry data, peak power demand met stood at 197.01 GW on March 15.

This is the highest peak power demand met during March 1 to 15.

Peak power demand met was 170.16 GW in March 2020 and 185.89 GW in March 2021.

Addressing the event, Singh said, "Government is committed towards achieving its energy transmission goals and it would require support from all section of the industry."

No power crisis in India, generation capacity more than peak demand: Govt India is not facing any power crisis as the installed electricity generation capacity stood at 395.6 gigawatts (GW) against the peak demand of 203 GW recorded in 2021-22, Parliament was informed.

"There is no power crisis in the country. As on February 28, 2022, the installed generation capacity is around 395.6 GW, which is sufficient to meet the demand of electricity in the country.

The peak demand experienced during the current year was only 203 GW," said Power Minister R K Singh in a written reply to the Rajya Sabha.

In another reply to the House, the minister told the House that as per the information compiled by the Central Electricity Authority (CEA), the import of coal reduced to 22.7 MT (million tonnes) during 2021-22 (April-January) as against 39 MT during the same period last year, mainly due to high imported coal price in the international market.

The shortfall in imported coal has been compensated through the enhanced supply of domestic coal i.e. from 442.6 MT during 2020-21 (April-January) to 547.2 MT during 2021-22 (April-January).

Power ministry eases burdensome compliances in 1st phase of Ease of Doing Business action plan The power ministry informed that it has eased 79 burdensome compliances related to issues affecting industry and consumers during 2021 CCAI Monthly Newsletter March 2022

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and 22 burdensome compliances in the first phase of Action Plan 2022 of the ease of doing business (EoDB).

As per the government statement, the Bureau of Energy Efficiency (BEE) has simplified the implementation of the Standards and Labelling (S&L) programme. It had also introduced Digitalisation and Online tracking of status of application for manufacturers.

Central Transmission Utility (CTU) has eased Connectivity Bank Guarantee under revised RE procedure unlocking about `400 crore for RE Developers. Ease of Doing Business-Reducing Compliance Burden (EoDB-RCB) is a programme of government to reduce the regulatory compliance burden on citizens and businesses.

Power Ministry asks States to adhere to Make in India norms on public procurement The Power Ministry has directed the state governments to comply with provisions of the ‘Make In India’ initiative under public private participation (PPP) for boosting indigenous manufacturing and procurement of local goods and services.

The response from the Centre comes after some industry associations approached the Central Electricity Authority (CEA) complaining that state power utilities are not following the requisite norms on local procurement of goods and services. CEA is the nodal agency under the Power Ministry for issues concerning the Make in India initiative.

To promote local industries and services in the power sector, the ministry said “Fund allocation is subject to the condition that all the provisions of Make in India (MII) orders must be complied with, in all the activities involved in the project(s) from start to completion.”

Simultaneously to reduce import dependence with regard to manufacturing of power and renewable energy equipment and to promote the Aatmanirbhar Bharat initiative, a scheme for setting up manufacturing zones for power and

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renewable energy equipment has also been proposed.

Discoms owe Rs 1 lakh crore to power generating firms till February: Power Ministry Power distribution utilities outstanding dues stood at Rs one lakh crore at the end of February this year, Parliament was informed.

"As per data provided by the power sector Generating companies, on the PRAAPTI Portal, at the end of February 2022, a total amount of Rs 1,00,931 crores is due from the DISCOMs," Power Minister RK Singh said in a written reply to the Rajya Sabha.

According to the reply, this overdue amount does not include the disputed amount.

The outstanding amount of the discoms (power distribution companies) becomes overdue after 45 days of raising the bill for supply of power by gencos.

The minister explained that the government has made several interventions to improve financial and operational efficiencies of discoms linked to reform measures, including Liquidity Infusion Scheme (LIS); Additional Borrowing of 0.5 per cent of GSDP to states linked to power sector reforms; introducing additional prudential norms for lending by Power Finance Corporation (PFC) and REC based on the performance of utilities; and Revamped Distribution Sector Scheme (RDSS).

RENEWABLES India releases Arctic policy focusing on energy security, climate change, mineral wealth The Centre released India's Arctic policy, which aims to strengthen national capabilities and

competencies in science and exploration, climate and environmental protection, use of mineral wealth and maritime and economic cooperation with the Arctic region. The country is, currently, undertaking several scientific studies and research in the region.

The focus of the policy is also to increase India’s participation in the Arctic Council and improve understanding of the complex governance structures in the region, which is quite relevant to geopolitics. The country's engagement with the Arctic dates back to a century when ‘Svalbard Treaty’ was signed in February 1920 in Paris, and it has since then been actively involved in studies related to the Arctic oceanography, atmosphere, pollution and microbiology.

India is among the 13 nations that are observers in the Arctic Council, which include France, Germany, Italy, Japan, Netherlands, China, Poland, South Korea, Spain, Switzerland and the United Kingdom. India has, so far, successfully conducted 13 expeditions to the Arctic. The council is a high-level intergovernmental forum that addresses issues faced by the Arctic governments and the indigenous people of the region.

Govt to cut contribution of coal based power to 32% by 2030 India is planning to substantially slash its share of coal based thermal power generation from the current 52 percent to 32 percent by the turn of the decade, the ministry of power told the country's Parliament.

India has been increasing its renewable power production in the last few years to aid its efforts in the global war on climate change and reducing its dependence on coal based power plants would help its electric mobility thrust as well.

The government has set a soft target of EVs accounting for 30 percent new vehicle sales by 2030 but critics have repeatedly pointed that a dirty grid would make the transition pointless.

"With the increased large-scale integration of renewable power in the electricity sector, the costs of renewable power have reduced considerably and the lowest discovered tariff for solar

power has been Rs 1.99 per unit which is less than the energy charge of many coal-based power plants," the Ministry of Power said in a press release.

Retail consumer tariffs are determined by the respective State Regulators keeping in view several costs including that of power.

The government has also issued a scheme of bundling renewable power with thermal and hydro projects which it says would reduce the overall cost of power for consumers. It is also extending grant assistance for construction of Green Energy Corridors, and for Solarization of agriculture feeders/pump sets under KUSUM Scheme.

Deploy Electric Vehicles Into Official Fleet: Power Ministry Urges All Ministries The Ministry of Power has requested all the Ministries in the Government of India and the State Governments to join the initiative on transformative electric mobility and advise their respective Departments to shift their fleet of official vehicles from present Internal Combustion Engine (ICE) based Vehicles to Electric Vehicles.

Energy Efficiency Services Limited (EESL) through its wholly owned subsidiary CESL (Convergence Energy Services Limited), undertook consultations with State Transport Utilities (STUs), State Governments, Original Equipment Manufacturers (OEMs), NITI Aayog etc. to aggregate demand of 5,450 buses for deployment on Operating expenses (OPEX) basis across 9 major cities in India (having population over 4 million).

CESL floated a unified tender on 20th January 2022 towards aggregation of e-buses. In respect of Electric 3 Wheelers (E3W), CESL has floated a tender to aggregate demand for one lakh E3W as per the modified Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) Phase-II scheme. The aggregation of E3W has resulted into price reduction up to 22% in comparison to the retail segment.

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EV makers would need govt support for longer term: Par panel The electric vehicle manufacturers would need government support for a longer term until the EV market becomes self-sustainable, more affordable and within the reach of the common man, a Parliamentary panel said in a report.

The department-related parliamentary standing committee on industry has also expressed concerns over a "lacklustre progress" in both physical and financial targets set under the FAME II scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles).

The report said that the heavy industries ministry needs to promote electric mobility colossally by working towards technological solutions through R&D efforts with industry, research and development agencies.

The ministry, it said, must plan a road map to reap this opportunity for proliferation of production, sales and incentivisation of EVs.

Domestic solar equipment makers running plants at 30% capacity; reforms, tariff safeguards needed Industry body All India Solar Industries Association (AISIA) has urged Power and New & Renewable Energy Minister R K Singh that structural safeguards and tariff-based barriers are needed for domestic manufacturing to gain a foothold and establish itself. The body highlighted that the (solar equipment) "domestic manufacturers run their plants at 30 per cent capacities and incur huge unbearable losses."

In the letter shot off to Singh earlier this week, the body stated that "having been hopeful of a revival in the last decade and after surviving strong headwinds, we are passing through even more difficult times where our survival is at stake and without a robust local 'Make in India' Solar manufacturing, the security of India's energy sector is in peril."

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It urged that for domestic manufacturing to gain a foothold & establish itself, it is imperative that there are structural safeguards (ALMMApproved List of Models and Manufacturers) and tariff-based barriers (BCD/ SGD etc. basic custom duty, safeguard duty) besides production-linked incentives for 4 to 5 years before these are tapered-off gradually.

Rooftop solar cost down by 50 per cent in last 7-8 years: MNRE Overall cost of the rooftop solar system has come down by 50 per cent during the last seven-eight years, making it more competitive, Parliament was informed.

"The cost of the rooftop solar systems in the country has become competitive with the reduction of cost of Solar PV panels and the overall cost of these systems has reduced by around 50 per cent during the last 7-8 years," New & Renewable Energy Minister R K Singh said in a written reply to the Rajya Sabha.

Singh also told the House that to promote and make the rooftop solar (RTS) systems affordable in the country, the government has taken various initiatives that include launch of 'Grid Connected Rooftop and Small Solar Power Plants Programme' in December 2015 targeting 2100 MW RTS capacity addition by 2019-20 through Central Financial Assistance (CFA).

Various efforts have resulted in achievement around six gigawatt of cumulative rooftop solar capacity in the country as of February 28, 2022.

The Ministry has not made any projection of generation capacity of rooftop solar by 2030, he stated.

NTPC commissions additional 42.5MW capacity at Ramagundam floating solar project State-run power giant NTPC has made commercially operational an additional 42.5 MW of power generation capacity at Ramagundam floating solar project in Telangana. Earlier the

company had commissioned 17.5 MW (Part-I) and 20 MW (Part-II) of the Ramagundam floating solar project.

With the addition of 42.5MW, the total commercially operational power generation capacity of Ramagundam project has reached 80 MW. The project is of 100 MW capacity.

"Consequent upon successful commissioning, third part capacity of 42.5 MW of 100 MW Ramagundam Floating Solar PV Project at Ramagundam, Telangana, is declared on commercial operation with effect from 00:00 hrs. of March 24, 2022," NTPC said in a BSE filing.

With this, it stated that the standalone installed and commercial capacity of NTPC has become 54494.68 MW.

Indian scientists develop green tech, pave way for low-cost, durable fuel cells Taking a giant leap in the development of green energy technology, Indian scientists have indigenously developed platinum-based electrocatalyst for use in fuel cells. The electrocatalyst developed showed comparable properties to the commercially-available electrocatalyst in terms of its performance in fuel cells, superior corrosion resistance and could enhance the lifetime of fuel cell stack performance.

Fuel cells are energy conversion devices that produce DC electricity from hydrogen with water as a byproduct and can be used in a wide range of applications, including transportation, material handling and emergency backup power.

Although the electrocatalyst technology has a lot of merits in green energy production, the key drawback currently is the huge cost incurred in importing components. The platinum-based electrocatalyst plays an important role in

increasing durability and decreasing fuel cell costs.

The work done by scientists of International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI) in Telangana, an autonomous R&D Centre of the department of science and technology, has been published in the ‘International Journal of Hydrogen Energy’, and a patent has been filed, an Science and Technology department statement said.

MNRE grants additional 3-month extension in scheduled commissioning date of wind projects The Ministry of New and Renewable Energy (MNRE) has granted an additional three-month time-extension in the scheduled commissioning date (SCD) of wind power projects due to supply chain disruptions caused post-COVID and monsoon.

“On account of supply chain disruption due to second COVID-19 surge, it has been decided that for wind power projects for which the power purchase agreement was signed and orders were placed before 15 June, 2021, the implementing agencies can allow an additional time extension up to three months in the SCD,” the ministry said in an office memorandum recently.

It added that the extension might be considered on a case-to-case basis after due diligence and careful consideration of the specific circumstances of the case.

According to the official statement, MNRE received various representations from wind industry requesting additional time extension for projects as a special case, considering supply chain disruption due to second COVID-19 surge followed by monsoon related disruptions.

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DOMESTIC COAL Coal demand in India to surge by 63% in 2030, says Union minister Coal demand is set to peak by 63% by the year 2030. The draft Economic Survey 2021-22 projects coal demand in the range of 1.3-1.5 billion tonnes by 2030. The demand for the nonrenewable energy source is yet to peak in India.

Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi said in a written reply in Lok Sabha said that in India, transition away from coal is not happening in foreseeable future.

Although there will be push for renewable/nonfossil based energy, but share of coal in the energy basket is going to remain significant in years ahead.

Joshi in his reply also assured that currently

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there is no scenario of transitioning away from coal affecting any stakeholders involved in coal mining.

The union minister also informed that the Ministry of Coal had constituted a SubCommittee to look into holistic closure of abandoned/legacy mine sites and mines closing due to exhaustion of reserves, viability issues etc., and invoving social aspects of mine closure on principles of just transition in addition to physical and environmental closure.

India's Coal Demand is expected between 1.3 to 1.5 BT by 2030 Due consultations were held for finalizing India's approach for negotiations at COP 21 and prior to signing the Paris Agreement. As per Economic Survey, the demand for coal is expected to remain in the range of 1.3 to 1.5 billion tonnes by 2030, said Union Minister of Coal, Mines Shri Pralhad Joshi said in Lok Sabha.

He further mentioned, Coal is the most

important and abundant fossil fuel in India and accounts for 55% of the country's energy need.

Commercial primary energy consumption in India has grown by about 700% in the last four decades. The current per capita commercial primary energy consumption in India is about 350 kgoe/year. Coal is not only the primary source of energy in the country but is also used as an intermediary by many industries such as steel, sponge iron, cement, paper, brick-kilns etc.

Similarly, with increase in growth of industries using coal, their demand for coal has also been increasing; hence, there has been an overall increase in the demand of coal over the years.

Being an affordable source of energy with substantial reserve, coal is going to stay as major source of energy in the foreseeable future.

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

Pralhad Joshi assures adequate coal supply amid shortage fears Amid concerns of a persisting supply crunch of coal in the country, Union Minister for Coal, Pralhad Joshi said in the Parliament that there is no shortage of coal in the country.

In a written reply to a question in Rajya Sabha, he cited data from the Central Electricity Authority (CEA) and said the coal stock at power plants in the country was 25.14 million tonne as on March 13, 2022.

"Coal stock at Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) pithead as on 13th March, 2022 is 47.95 million tonne and 4.49 million tonne respectively. In 2021-22 (up to 10th March, 2022), Coal India (CIL) has dispatched 506.29 MT, with a 23% growth over last year," the minister said.

Similarly, SCCL and captive coal blocks have dispatched 50.38 million tonne and 77.5 million tonne coal to power sector up to March 10, which is 34.2% and 40% more than the same period of last year, he added.

Coal ministry seeks to ease green norms to boost domestic production India's coal ministry will seek a relaxation of some environmental norms to help increase the country's overall coal production, coal minister Pralhad Joshi said.

Domestic demand for coal has risen considerably because of a steep hike in international prices, Joshi said, according to a press statement issued by India's Ministry of Coal.

The minister underscored that sustained supply of coal to the power sector is of paramount importance. He urged CIL and the Ministry of Coal officials to deliberate upon immediate measures required to enhance coal production.

Pralhad Joshi has also asked Coal India to complete 35 first mile connectivity projects as per the set deadlines.

Recently Coal Secretary said Indian industries, including steel and aluminum makers, will need to continue importing expensive coal shipments to meet their requirement, as the cheaper, domestically produced fuel will be prioritized to power generators. .

Mining Sector Undergoes Reforms to Strengthen Sustainable Mining The Ministry of Mines implemented Sustainable Mining by making provisions under Chapter-V of Mineral Conservation and Development Rules (MCDR), 2017. Accordingly Rule 35 of MCDR provides for star rating of the mining leases based on the sustainable mining practices adopted by the miners. Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi said in a written reply in Rajya Sabha.

The National Mineral Policy 2019 envisions sustainable mining as financially viable; socially responsible; environmentally, technically and scientifically sound mining practices with a long term view of development; optimal use of mineral resources and ensuring sustainable post-closure land uses.

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All miners including private miners are following the Sustainable Mining provisions under Chapter V of MCDR 2017 and follow star rating system developed for evaluation of the leases.

Star rating has been made mandatory under Rule 35(2) of MCDR, 2017 and every mining lease holder has to submit online self-assessment report before 1st day of July every year for the previous financial year, along with the digital images of mining lease area as per rule 34A of the said rules to the Regional Controller or the authorised officer of the Indian Bureau of Mines.

Domestic Coal Imports Down Around 3.90% On Year In This Fiscal Ministry of Coal stated in a latest update that the entire demand of coal is not met from domestic production as the supply of high quality coal / coking coal (low-ash-coal) in the country is limited and thus no option is left but to resort to import of coking coal.

disruptions push up the cost of imported fuels.

Customers paid Coal India Ltd. an average premium of more than 340% above baseline prices in two sales this month, according to people familiar with the results, who requested anonymity as they are not permitted to speak publicly. That compares to premiums of about 100% in auctions in January.

Coal India, the world’s top producer of the fuel, sells about 15% to 20% of its output through an online auction system in which consumers make offers above a minimum set price. Rates paid are typically far higher than the long-term contracts that account for the majority of sales.

Thermal coal loaded at Australia’s Newcastle port, a benchmark for seaborne supply in Asia, soared to a record last week as buyers shun Russian shipments and seek alternatives to pricey natural gas. That’s tightening a global market that was already squeezed by disruptions in other exporter nations.

Further, coal imported by power plants designed on imported coal and high grade coal required for blending purposes cannot be substituted by domestic coal.

India’s Russian coal imports could be highest in over two years in March

However, due to increased availability of coal on account of policy measures taken to increase domestic coal production, total coal import declined from 248.54 MT in 2019-20 to 215.25 MT in 2020-21. Further, during April 2021-January 2022, coal import has further decreased to the level of 173.32 MT as compared to 180.56 MT during the corresponding period of previous year, recording a drop of 3.90%.

India’s coal imports from Russia in March could be the highest in more than two years, data from research consultancies showed, as Indian buyers continue buying the fuel from a market that is now increasingly isolated by sanctions.

Coal buyers in India are paying 300% premiums to secure fuel

Russia, usually India’s sixth largest supplier of coking and thermal coal, could start offering more competitive prices to Chinese and Indian buyers as European and other customers spurn Russia because of sanctions, traders said, adding that the trade could also be boosted by a rouble-rupee trading arrangement.

Indian coal prices have surged in auctions held by the country’s state-run miner, with domestic buyers rushing to secure supplies as global

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Vessels carrying at least 1.06 million tonnes of coking coal, mainly used for steelmaking, and thermal coal, used primarily for electricity generation, are set to deliver the fuel at Indian ports in March, the highest since January 2020, data from consultancy Kpler showed.

About 870,000 tonnes of Russian coal have already delivered or are expected to be delivered at Indian shores until March 20, the highest since April 2020, Indian consultancy Coalmint says.

Non-power sector cries foul over downwards revision of coal supplies Coal India, subsidiaries cut down supplies from 3.6 lakh tonnes per day to 2.75 LTPD, against a daily average requirement of 5 lakh tones.

As coal mining PSUs gear up to meet the country’s electricity demand from coal-fired power plants ahead of the peak summer season, non-power sector (NPS) industries have again sounded alarm bells over the constant reduction in their supplies from 3.6 lakh tonnes per day (LTPD) to 2.75 LTPD, against a daily average requirement of 5 lakh tonnes.

This comes at a time when the power and NPS sector have cut down on imports due to surging international prices. Besides, industry players said online auctions by the State-run Coal India (CIL) in recent months have witnessed record premiums of more than 100 per cent, thereby escalating cost of the crucial commodity.

Aluminium Association of India (AAI), in a letter to PK Mishra, Principal Secretary to the Prime Minister, had said the coal supply crisis has adversely impacted NPS industries, particularly the captive power plants (CPPs) of the highly power intensive aluminium industry, which continues to struggle for un-interrupted coal supplies and is facing depleted stocks of 3-4 days against the prescribed level of over 15 days.

Overall coal imports have been consistently heading south since FY20. From the peak of 248.54 mt in FY20, imports fell to 215.25 mt in FY21. During April-January period in FY22, it fell further to 173.32 mt.

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Coal India Plans to Produce 1 Billion-Ton By 2023-24 Coal India Limited, the largest coal producer in the world has planned to increase all India coal production to the level of 1 BT by 2023-24 and coal production by Coal India Limited to 1 BT by 2024-25 has been prepared. As per the draft report of Niti Aayog, the coal demand is expected to remain in the range of 1,192-1,325 million tonnes by 2030.

The following action has also been taken by Government to further enhance the production of coal in the country.

-Commercial Auction of coal on revenue share mechanism: Since the Launch of the auction of coal mines for commercial mining in June 2020, a total of 4 rounds of auction have been conducted in which total 292 coal mines were offered. In 3 rounds, 42 coal mines have been successfully auctioned. Further, in respect of 4th round of auction, bids were opened on 02.03.2022 and 2 or more bids have been received in respect of 5 coal mines and 6 coal mines have fetched single bids.

-Allowed sale of excess coal production: The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to allowing sale of coal or lignite, on payment of additional amount to the State Government, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked with the mine.

Coal India outstanding dues at Rs 15,293.17 crore but no cash crunch in company, subsidiary: Coal Minister Coal India Ltd and its subsidiaries are not facing any cash crunch even as their outstanding dues were provisionally pegged at Rs 15,293.17 crore as on February 28, the Ministry of Coal said on March 16.

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While the gross debt of Coal India and its subsidiaries continues to remain high, it has come down significantly from Rs 22,165.85 crore as of March 31, 2021.

In February, Coal India Chairman Pramod Agrawal had said that there was an urgent need to increase prices, and without it, certain subsidiaries will find it difficult to survive.

Coal India has faced the challenging task of scaling up production and dispatch amid disruptions due to the pandemic and heavy rains in the fiscal as demand picked up. The company has huge receivables on one hand and on the other hand is unable to increase prices despite rising costs.

“At present, there is no cash crunch in Coal India Limited and its subsidiaries. However, gross debtors of Coal India Limited (ClL) and its subsidiaries stood at Rs. 22165.85 crore and Rs. 15293.17 crore (Provisional) as on 31.03.2021 and 28.02.2022,” the ministry said in the statement

RAILWAYS & SHIPPING

More rakes to power sector poised to hit key infrastructure: Railways With the summer months approaching and power and coal demand expected to touch a record high, the ministry of railways has said it is unable to increase rakes for coal supply.

Since last year, the railways has been curtailing rake supply to non-regulated sectors to meet the enhanced demand of the power sector.

current average coal stock at power units stands at 9.4 days, almost close to the critical level stock of seven days. Several non-regulated sectors — ranging from metals to paper — have claimed to have seen low coal supply to the tune of 30-40 per cent of their demand.

A senior official said the railways is close to hitting the ceiling of its rake supply to the power sector. “We want the ministry of coal to sort out its issues that are causing supply bottlenecks of approximately 76,000 tonnes of coal every day,” said the official.

STEEL

Indian aluminum mills get fewest coal rail rakes in six months Railway rakes supplying coal to India’s aluminum plants have dropped to the lowest since the peak of an energy crisis in September, forcing the industry to import more amid rising cost pressures.

The industry got an average of 18.4 coalladen carriages a day in the first half of March, the lowest since the 17.8 rakes it received in September, according to data provided by Coal Minister Pralhad Joshi in a written reply to Parliament. Coal is supplied to power plants in India through railways and roads, but buyers located far from mines prefer the trains as road transport is costlier.

The ministry is of the view that “any more curtailing will cause crucial infrastructure industries to suffer.”

Tighter supplies of coal to the aluminum industry, the biggest consumer among nonpower producers in India, comes at a time when the sector is already reeling under surging oil and gas prices. State-run monopoly Coal India Ltd. is diverting more supplies to power plants to avoid a repeat of last year’s shortage, prioritizing citizens over industries.

According to the National Power Portal, the

An uninterrupted power supply is critical

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for the aluminum mills as it is a continuous process industry, and an outage can cause the molten metal in the pot line to become solid, causing months of shutdowns. The Aluminum Association of India has been seeking government intervention to normalize the situation by earmarking atleast 25-30 coal rakes a day to the sector.

India’s steel exports hit fivemonth peak in February India's finished steel exports in February surged by 77pc from a year earlier on higher demand from international markets and amid China's absence from the export market early last month on account of the lunar new year holiday.

Exports of finished steel also rose by 42.1pc on the month to 1.16mn t, provisional data from the steel ministry's joint plant committee (JPC) show. Finished steel exports during April 2021-February 2022 rose by 30pc compared to the same period a year earlier, to 12.3mn t. Finished steel comprises alloyed and nonalloyed steel.

Vietnam was the top export destination for finished steel in February with about 192,000t, followed by Turkey at 129,000t and the UAE at 104,000t, according to Argus calculations.

Demand for Indian steel rose in the international market last month with China being away from the export market in early February because of the lunar New Year holiday. Interest from the EU and Turkey also rose. .

CEMENT

Cement company assure state to contain costs South Indian Cement Manufacturers Association (SICMA) has assured the state government to contain cost of cement. They

also sought the government’s support to tide over the coal shortages that is affecting the operations and resulting in higher cost of operations.

The assurance comes in the wake of reports over an unprecedented spike in the cost of various construction materials including cement in the past two years and adversely impacting individual builders and developers.

Earlier this week. SICMA representatives including Ramco Cements, India Cements and others met state industries minister Thangam Thennarasu. In a statement, SICMA president N Srinivasan said there has been a steep increase in the cost of every input material for cement, particularly coal.

“In spite of the commodity prices having spiked and the Ukraine crisis affecting petroleum products, transport costs and packing materials, the industry will strive to contain costs,” he said.

Compared to prices that were prevailing one year ago, the wholesale price index of cement shows a decline of 3%, he added

Shree Cement commences trial production at Raipur cement plant’s new clinker line Shree Cement has fired up the kiln of a new clinker line at its Raipur cement plant in Baloda Bazar, Chhattisgarh.

The Business Standard newspaper has reported that the company funded the project, involving the reactivation of the Raipur plant’s Kiln 3, from its internal accruals.

It has also installed a new waste heat recovery (WHR) plant alongside the kiln. The line will augment Shree Cement’s supply of clinker to its grinding plants in Eastern India. It hopes thereby to contribute to growth and development in Chhattisgarh and beyond.

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GLOBAL

Asia's coal imports decline, but Ukraine crisis will keep prices up Asia's imports of coal slumped in February as prices remained close to record highs for both thermal and coking grades, and the crisis in Ukraine means the cost of the fuel is unlikely to retreat any time soon.

Seaborne imports of all grades of coal across Asia, the top-consuming region for the polluting fuel, fell to 59.27 million tonnes in February from 61.92 million in January, according to port and vessel-tracking data compiled by Refinitiv.

This was the lowest monthly total in Refinitiv data dating back to January 2015, and was also some 13% below the 68.15 million tonnes the continent imported by ship in February 2021.

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A milder winter across north Asia, high prices and the lingering effects of Indonesia's shortlived export ban for the month of January are the most likely culprits behind the drop in February import volumes.

China, the world's biggest coal importer, has recorded a weak start to 2022, with February imports of 11.65 million tonnes marginally higher than January's 11.27 million, but the combined total for the first two months of the year is the lowest Refinitiv has assessed.

Imports in the first two months of 22.92 million tonnes are 46.2% below the 42.58 million recorded in the first two months of last year, according to Refinitiv.

China: Some Coal Prices Started to Fall, Coke Market with Stable Expectations

The adjustment will further enhance the country's thermal coal transport capacity and provide stronger support for the national economy, it said.

On the supply side, deliveries were limited in some areas with strict prevention control measures, but production were not affected, while coking enterprises operated normally with smooth shipments. Inventories of coke enterprises run at low levels.

In addition, a new batch of bullet trains will be added to optimize railway routes and provide more travel options for passengers in central and eastern parts of the country, according to the diagram.

On the demand side, the operating rates of steel mills were running at a high level with high utilization of blast furnaces, while coke stocks continued to fall with high enthusiasm for coke procurement.

.

Indonesia coal miners may struggle to meet 2022 output target: Association

In terms of raw material, coking coal stocks in coal mines accumulated, and some prices of the coal bids dropped, leading to the increasing wait-and-see sentiment in the market. Prices of some types of coal started to decrease.

Indonesian miners may struggle to reach a 2022 output target of 663 million tonnes because of export restrictions imposed unexpectedly in January, Indonesia Coal Miners Association executive director Hendra Sinadia said.

Comprehensively, due to the strict prevention control measures, transport was blocked while the resumption of steel mills went well. The demand for coke was still satisfying, but prices of coking coal were expected to fall. Coking enterprises expect the prices to remain stable.

It is expected that the coke market would be at stable operation in the short term.

The world's top thermal coal exporter shocked global energy markets at the start of the year with a decision to halt foreign shipments to shore up domestic supply for power stations.

China to launch more cargo trains to boost coal transport With a new train diagram to be put into operation from April 8, China will launch additional cargo trains to boost coal transport amid the country's efforts to ensure energy supply.

According to the diagram, new cargo trains will be added to transport coal from the coal-rich Shanxi Province to the eastern regions, said the China State Railway Group Co., Ltd. More heavy-haul freight trains will be put into operation to step up the country's capacity to transport coal from north to south, the company said.

Exports have since resumed but the government has put in place rules where miners' domestic sales are monitored monthly and only those fulfilling local quotas are then allowed to export.

Meanwhile, coal demand and prices are being pushed higher as Russia's invasion of Ukraine sends oil prices soaring, leading buyers to seek alternative fuel supplies from Indonesia and Australia, Hendra said during an interview on local television network IDX Channel.

"We heard there are some buyers, even embassies of European countries who try to facilitate (exports talks) with companies in Indonesia," he said, adding that miners may not be prepared to meet this additional demand.

Indonesia's 2022 output target, up from last year's 614 million tonnes, was "too optimistic" to begin with, Hendra said.

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Australia to provide Ukraine with 70,000 tonnes of coal Australia will provide Ukraine with at least 70,000 tonnes of thermal coal to strengthen energy security.

The Economy Ministry of Ukraine wrote this on Facebook, Ukrinform reports.

The Australian government has held talks with the country's coal companies to accumulate certain volumes of coal for further transfer to Ukraine as part of humanitarian aid.

It is noted that the Australian company Whitehaven Coal will organize a corresponding dispatch. Coal and its delivery costs will be covered by the Australian government.

“Australia is internationally recognized as a leading and reliable supplier of energy resources.

We thank our Australian partners for helping Ukraine in this difficult time when our state is resisting an illegal and brutal military invasion

by Russia," Ukrainian Energy Minister German Galushchenko said.

Coal driving rise in Malaysian cement prices Malaysia: Sharuddin Omar Hashim, the managing director of Cement Industries of Malaysia Berhad (CIMA), says that rising input materials, especially coal, are driving up the cost of cement.

He blamed the mounting price of coal on Indonesia’s export ban and the war in Ukraine, according to the Malaysian National News Agency.

Sharuddin said that coal had previously cost up to US$70/t but it was now US$200/t, with the possibility of reaching US$400/t. Other raw material costs were also reported to have risen sharply due to logistic problems following the Covid-19 pandemic. Sharuddin added that his company is trying to optimise production and

26 | CCAI Monthly Newsletter March 2022

reduce production costs through the use of other alternative materials.

Minister: Cost of generating electricity in Malaysia increases by 45pc due to increase in coal prices The increase in coal prices has caused the cost of generating electricity to increase by 45 per cent, said Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan.

He said, however, the government had decided to give a rebate of two sen per kilowatt-hour for domestic consumers from February to June 2022.

“The government covers a subsidy of RM715 million using funds from the Kumpulan Wang Industri Elektrik. We do not impose any surcharge even though it should be released to consumers,” he said when winding up the debate on the motion of thanks for the Royal Address for the Ministry of Energy and Natural Resources (KETSA) in Parliament.

Takiyuddin said that between July and December 2021, a total of RM1.672 billion had been spent on fuel purchases for electricity generation, which should have been released to consumers for the period from February to June 2022.

Ukraine has enough coal to avoid more imports – Dtek Ukraine’s coal stocks have risen to over 1m tonnes, up more than 40% on the month, thereby negating the need for further imports to keep the country’s lights on, Dtek said.

“At this stage, Ukraine does not need any imported coal to keep power stations in operation,” Maxim Timchenko, CEO of the Ukrainian energy firm, said at a virtual press briefing.

Stocks at this time last year were at just 0.43m tonnes.

Timchenko said daily consumption by Ukraine’s coal-fired plants amounted to around 0.03m tonnes, “so this means we have enough stock at the moment”.

Russia halted all rail exports of coal to Ukraine in November. Since the invasion began a month ago the country’s import terminals have been unable to receive seaborne imports from countries such as Colombia and the US, which raised concerns of supply shortages.

Dtek said last week that just Poland was supplying 0.06m tonnes of coal to ensure it had sufficient stocks to meet demand, and the CEO said around a further 0.1m tonnes could be requested, if needed.

Ukraine Crisis Could Send Coal Prices To $500 Coal prices are soaring, hitting $462 per tonne, up from $186 on the 23rd of February and likely to pass $500 this year, Rystad Energy research suggests.

While most of Europe and the wider world have focused on how Russia’s war in Ukraine has impacted oil, gas, and, more recently, nickel prices, relatively little has been written about the coal price shock that is likely to hit the region and spread like a tsunami around the world.

Russia is Europe’s largest supplier of thermal coal. According to Eurostat, last year, Russia supplied EU member states with 36 million tonnes of thermal coal, representing 70% of total thermal coal imports. While volumes have stayed about the same, a decade ago, Russian coal imports were just half that at 35%.

While total power coal demand has been on a declining trend for the last 10 years, coal-fired power generators in Europe have become increasingly dependent on Russian coal and Russia’s market share has grown substantially over time.

Germany woos South Africa to replace Russian coal Germany’s plan to halt all imports of Russian coal this year has deepened market efforts to secure alternative material in the shortest possible time, with South Africa – formerly one of Europe’s main suppliers – one of the most favourable candidates, market participants said.

Economy and climate minister Robert Habeck announced over the weekend that Germany would aim to scrap Russian coal imports by autumn.

The government is now in talks on how best to curb its dependency on Russian coal, according to an energy ministry spokesman, noting the supply possibilities “are diverse” without specifying a preference of origin.

“South Africa will be the one profiting most, in my view,” said a coal trader with a large German utility.

He pointed out that South Africa could increase its exports of higher-grade material – required

by European utilities – if prices remained high for a protracted period. Already, after Russian troops first entered eastern Ukraine last month, German utilities began jetting their coal traders off to South Africa, where they hoped high prices and the prospect of long-term demand may lure cargoes away from the more usual – and reliable – Asia-Pacific customers.

But even with prices five-fold higher than a year ago, South African miners would struggle to increase exports to Europe, at least to the extent required, market participants said. .

US coal production falls 5.5% on week: EIA Weekly US coal production fell 5.5% on the week to 11.3 million st in the week ended March 12, according to Energy Information Administration data released March 17.

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With shoulder season approaching, all major basins decreased production compared with the previous week, with Central Appalachia and Illinois Basin coal regions dropping by the most significant margins nationwide. On an annualized basis, total production was 593.7 million st, up 0.7% from 2021.

IB output fell 8.1% week on week to 1.5 million st, down 13.5% on the year. IB trailed the nation in year-on-year production in part due to the idling of one of its largest mines, Foresight Energy’s Sugar Camp, because of an underground fire last August. Year-to-date IB production was 16 million st, down 0.1% from 2021. Illinois Basin was the only major coal-producing region to post a year-on-year production deficit in the latest week on a year-to-date basis. Annualized IB production rose 7.6% from 2021 to 81 million st.

Central Appalachia output fell 8.1% on the week to 1.3 million st, down 6.2% on the year. Yearto-date CAPP production was 13.3 million st, up 2.2% from the same period in 2021. On an annualized basis, CAPP production was 67.2 million st, up 4.7% from 2021.. .

US coal production falls 5.5% on week: EIA Weekly US coal production fell 5.5% on the week to 11.3 million st in the week ended March 12, according to Energy Information Administration data released March 17.

With shoulder season approaching, all major basins decreased production compared with the previous week, with Central Appalachia and Illinois Basin coal regions dropping by the most significant margins nationwide. On an annualized basis, total production was 593.7 million st, up 0.7% from 2021.

IB output fell 8.1% week on week to 1.5 million st, down 13.5% on the year. IB trailed the nation in

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year-on-year production in part due to the idling of one of its largest mines, Foresight Energy’s Sugar Camp, because of an underground fire last August. Year-to-date IB production was 16 million st, down 0.1% from 2021. Illinois Basin was the only major coal-producing region to post a year-on-year production deficit in the latest week on a year-to-date basis. Annualized IB production rose 7.6% from 2021 to 81 million st.

Central Appalachia output fell 8.1% on the week to 1.3 million st, down 6.2% on the year. Yearto-date CAPP production was 13.3 million st, up 2.2% from the same period in 2021. On an annualized basis, CAPP production was 67.2 million st, up 4.7% from 2021..

Alberta government to extend pause on Rocky Mountain coal mine development.

Canada - The Alberta government is renewing and expanding its restrictions on coal mining in the province’s Rocky Mountains in response to two reports written after extensive public consultations on the issue.

Energy Minister Sonya Savage said she is maintaining a ministerial order blocking all coal exploration and development in the region’s most sensitive lands. She is also extending that order to cover a much wider swath of the province’s summits and foothills.

Coal development will now be blocked on all the lands originally covered by the province’s 1976 coal policy until land-use plans, which require public consultation and legislative approval, are complete.

Four coal projects that have already entered the regulatory process will be able to continue that work, if the proponents choose.

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IN PARLIAMENT GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

Q. No. 2445. REDUCING DEPENDENCE ON COAL 16.03.2022 SHRI ACHYUTANANDA SAMANTA: Will the Minister of COAL be pleased to state: (a) whether India aims to produce 50% of its electricity from renewable resources by 2030, to reduce its dependence on coal; (b) if so, whether the Government has made plans of introducing a national policy that will ensure smooth transition to renewable resources from coal and recognize the social implications of moving towards clean energy and if so,

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the details and timeframe, thereof; (c) whether the Government is considering the transition away from coal which is likely to lead to unemployment and require retraining and reskilling of workers; (d) if so, whether the Government has a process in place to identify the workers directly or indirectly working in the coal sector, if so, the details thereof; and (e) whether the Government has identified districts across India, including Odisha that have at least one asset linked to the coal sector, including coal mine, thermal power plant or steel

plant, and will be affected by the transition; and (f) if so, the details, thereof?

ANSWER MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI) (a&(b)): No such National Policy for Just Energy Transition is under consideration by the Government. However, through Panchamrit Declaration during COP 26, India has set a timeline for attaining non-fossil energy capacity of 500 GW by 2030 and also to meet 50% of its energy requirements from renewable energy by 2030. (c)&(d): In India, no transition away from coal is happening in foreseeable future. Although there will be push for renewable/non-fossil based energy, but share of coal in the energy basket is going to remain significant in years ahead.

Thus, as of now there is no scenario of transition away from coal affecting the workers involved in coal mining.

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

It is evident that above paragraph is not mandating the phase down of coal power, and it is not setting any timelines for the phase down. Further, the paragraph is only ‘calling upon’ Parties to accelerate efforts towards the phase down

of unabated coal power in line with national circumstances and recognizing the need for support towards a just transition. Paris Agreement is a multilateral treaty for combating climate change.

Accordingly, while India has committed to clean energy; the pace of transition to cleaner energy sources in India is to be viewed in the light of national circumstances, and principle of common but differentiated responsibilities and respective capabilities, the transfer of climate finance and low cost climate technologies. (e)&(f): Questions do not arise in view of part (c)&(d) of the question.

Q. No. 2455. REFORMS IN COAL SECTOR 16.03.2022 MS.RAMYA HARIDAS:: Will the Minister of COAL be pleased to state: (a) whether despite being world’s fourth largest producer, India is the second largest importer of the dry fuel and if so, the details thereof: (b) whether it is also a fact that India is still importing coal, if so, the details thereof: (c) whether the Government has brought in any reforms in coal sector with the vision to build an “Atma Nirbhar Bharat’’, by promoting commercial mining of coal in the country and unlocking coal mining for private players; and (d) if so, the details thereof along with the achievements made by the Government in this regards?

ANSWER MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI) (a): As per Coal Directory 2020-21, India is the second largest coal producer and importer in the world. (b): The quantity of total coal imported during last five years and current year upto the month of January, 2022 is given below:CCAI Monthly Newsletter March 2022

| 31

Year

(in Million Tonnes) Import of Coal

2016-17

191.01

2017-18

208.25

2018-19

235.35

2019-20

248.54

2020-21

215.25

2021-22 upto Jan.2022

173.32

(c)&(d): Order regarding methodology for auction of coal and lignite mines / blocks for sale of coal / lignite on revenue sharing basis and tenure of coking coal linkage was issued on 28.05.2020. Auction process for auction of coal blocks for sale of coal has been launched on 18.06.2020.

Amendments have been made in the Mines & Mineral (Development & Regulation) (MMDR) Act and the Coal Mines (Special Provision) (CMSP) Act to ensure wider participation and competition in auction of coal mines. The amendments in the Acts would enable the following: • Allocation of coal blocks for composite prospecting license-cum-mining lease which will help in increasing of the inventory of coal/lignite blocks for allocation.

• Repetitive and redundant provision requiring previous approval of Central government even in cases where the allocation or reservation of coal/lignite block has been made by the Central Government itself has been done away with.

• Provided flexibility to the Central Govt. in deciding the end use of Schedule II and III coal mines under the CMSP Act. • Companies which do not possess any prior coal mining experience in India can now participate in auction of coal blocks.

In view of the amendments made in CMSP Act, the Coal Mines (Special Provisions) Rules, 2014 were also amended through the Coal Mines (Special Provisions) Amendment Rules, 2020 and the same has been notified on 29.05.2020.

32 | CCAI Monthly Newsletter March 2022

Since Launch of auction of coal mines for commercial mining in June 2020, a total of 4 rounds of auction have been conducted in which total 292 coal mines were offered. In 3 rounds, 42 coal mines have been successfully auctioned.

Further, in respect of 4th round of auction, bids were opened on 02.03.2022 and 2 or more bids have been received in respect of 5 coal mines and 6 coal mines have fetched single bids.

The Ministry of Coal has amended Mineral Concession Rules,1960 with a view to allowing sale of coal or lignite, on payment of additional amount, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked with the mine.

Q. No. 2478. DEMAND FOR COAL

16.03.2022 SHRI FEROZE VARUN GANDHI: Will the Minister of COAL be pleased to state: (a) whether the Ministry was consulted before India’s declaration at COP21 that India would phase down the use of coal and if so, the details thereof; (b) whether as per Economic Survey, the demand for coal in India would be between 1.3-1.5 billion tones by 2030; (c) if so, whether the Ministry acknowledges that this is a massive increase from the current demand for coal; and (d) if so, the manner in which the Ministry plans to keep up with the declaration that India would phase down coal?

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

AFFAIRS,

(a): Due consultations were held for finalizing India's approach for negotiations at COP 21 and prior to signing the Paris Agreement. (b)to(d): Yes, Sir. As per Economic Survey, the demand for coal is expected to remain in the

range of 1.3-1.5 billion tonnes by 2030.

Coal is the most important and abundant fossil fuel in India and accounts for 55% of the country's energy need. Commercial primary energy consumption in India has grown by about 700% in the last four decades. The current per capita commercial primary energy consumption in India is about 350 kgoe/year. Coal is not only the primary source of energy in the country but is also used as an intermediary by many industries such as steel, sponge iron, cement, paper, brick-kilns etc. Similarly, with increase in growth of industries using coal, their demand for coal has also been increasing; hence, there has been an overall increase in the demand of coal over the years.

Being an affordable source of energy with substantial reserve, coal is going to stay as major source of energy in the foreseeable future. Despite push for renewables, country will require base load capacity of coal-based generation for stability and also for energy security.

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

It is evident that above paragraph is not mandating the phase down of coal power, and it is not setting any timelines for the phase down. Further, the paragraph is only ‘calling upon’ Parties to accelerate efforts towards the phase down of unabated coal power in line with national circumstances and recognizing the need for sup-

port towards a just transition. Paris Agreement is a multilateral treaty for combating climate change.

Accordingly, while India has committed to clean energy; the pace of transition to cleaner energy sources in India is to be viewed in the light of national circumstances, and principle of common but differentiated responsibilities and respective capabilities, the transfer of climate finance and low cost climate technologies.

Q. No. 2502. COAL FIRED GENERATION 16.03.2022 SHRI T.R. BAALU: Will the Minister of Coal be pleased to state: (a) whether disagreement among electricity generators, Coal India Limited (CIL) and the Indian Railways may hamper economy looking to grow at over 8 per cent because coal-fired generation is the key to lubricating India’s growth for the next few years; (b) if so, the steps taken/proposed to be taken by the Government to step up imports and fix unreliable logistics to stave off the kind of crisis that threatened electricity generators during last year; and (c) if not, the reasons therefor?

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

AFFAIRS,

(a): Coal supplies to power sector is being regularly monitored by an Inter-Ministerial Sub Group comprising of representatives from Ministries of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL) and NTPC etc. to take various operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal stock position in power plants.

CCAI Monthly Newsletter March 2022

| 33

In 2021-2022 (upto February, 2022) coal supply to Power sector from all domestic sources was 611.43 Million Tonnes(MT) with a growth of about 25.55% against the supply of 486.98 Million tonnes during the same period of last year.

The coal import by power sector reduced from 39.013 MT in 2020-21(upto January,2021) to 22.73 MT during the same period of this fiscal.

The source wise details of Domestic coal supply to power sector is given below:(Figures in Million Tonnes) Company/Year

2020-21*

2021-22*

% growth

CIL

397.99

487.88

22.6

SCCL

35.97

48.91

36.0

Captive

53.02

74.64

40.77

Total

486.98

611.43

25.55

*Provisional Similarly, in 2021-2022 (upto February 2022) domestic coal-based generation was 901.82 BU with a growth of about 16% against the actual generation of 777.84 BU during the same period of last year. (b) and (c): As per the current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choice as per their contractual prices on payment of applicable duty. In view of limited domestic production of coking coal, coking coal will continue to be imported for use by the steel sector. Thermal power based on domestic coal may use imported coal up to 10% for blending with domestic coal, where technically feasible, to meet the increased power demand in the country.

Logistic of imported coal movement for GENCOs which are sourcing coal from import have been planned in consultation with Railways, Ministry of Power and Ministry of Coal.

34 | CCAI Monthly Newsletter March 2022

Q. No. 2503. SHORTAGE OF COAL 16.03.2022 SHRI B.N.BACHE GOWDA: Will the Minister of Coal be pleased to state: (a) the reasons for the shortage of coal during pandemic and the action taken by the Government to ensure this shortage does not happen again; (b) the number of coal mines functioning in the country; (c) whether the country is self sufficient in coal production and if not, the percentage of coal imported to India from various countries?

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

AFFAIRS,

(a): Owing to Covid-19 pandemic, the subdued demand in power and non-power sectors had adversely affected coal dispatch from the coal companies. The pithead coal stock at Coal India Limited was 99.33 Million Tonnes (MT) as on 1st April, 2021 and 28.66 MT at the Thermal Power Plants end. The coal production got regulated due to high levels of coal inventory and less demand from the consumers.

There is no shortage of coal in the country. Due to increased demand of power, less power generation by imported coal based power plants and some interruption in supply of coal due to heavy rains, the coal stock at the power plants depleted to 7.2 MT as on 8th October, 2021.

Subsequently with increased coal supplies, the coal stock has started increasing and has now reached 26.5 MT as on 09.03.2022 with respect to the plants based on domestic coal. In addition, coal stock at Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) pithead as on 13.03.2022 is 47.95 MT and 4.49MT respectively.

The following action has been taken by Government to further enhance the production and supply of coal in the country:

i. Commercial Auction of coal on revenue share mechanism: Auction of commercial mining on Revenue Sharing Mechanism was launched on 18.06.2020 by Hon’ble Prime Minister. Under this scheme, total of 2 tranches have been successfully completed and third Tranche is currently under process. From these two tranches total of 28 coal mines have been successfully auctioned for which Vesting order have in signed for 27 coal mines. ii. Allow sale of excess coal production: The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to allowing sale of coal or lignite, on payment of additional amount, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked with the mine. The Mines and Minerals (Development & Regulation) Act had been amended in 2021. This is applicable for both the private and public sector captive mines. With this amendment, the Government has paved the way for releasing of additional coal in the market by greater utilization of mining capacities of captive coal and lignite blocks,which were being only partly utilized owing to limited production of coal for meeting their captive needs. iii. Rolling auction: In order to expedite the process for conducting auction and to carryout more rounds of auction in a year, a mechanism of rolling auctions of coal mines has been planned. Under this mechanism, upon completion of the electronic auction process of a tranche, the next tranche of auction would be launched for following mines: a. Mines where no bid or only single bid was received in the previous tranche of auction (except for those mines where Ministry of Coal decides to go for second attempt of auction) b .New mines, if any, identified by Ministry of

Coal.

In the current III tranche of commercial auction, total of 48 coal mines have been rolled over from the II tranche of mines. iv. Single Window Clearance: The Union government has already launched Single Window Clearance portal on 11.01.2021 for the coal sector to speed up the operationalisation of coal mines. It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India. Now, the complete process shall be facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approval or clearances.

Considering the increased demand as projected by the Ministry of Power, Coal India Limited (CIL) has already taken steps to augment the dispatch & build-up stock at power plants end which is as under: o CIL has planned to supply 565 Million Tonne (MT) during 2022-2023 to the power sector to meet the generation requirement of domestic coal-based power generators. o CIL has already additionally allocated 11.2 MT of coal from its high stock mines through RCR mode which is to be lifted from different Goods Shed/Private Washeries to build up stock at the plant end. o Railways are regularly being requested to give priority in supply of rakes to the power generators. o CIL has already started building stock at its railway sidings to facilitate adequate rake loading for power sector. (b): The number of functioning coal mines in India as on 31.03.2021 is 442. (c): The details of production and consumption of coal in the country during the year 2020-21is as under: (Fig. in MT)

Year

Domestic Production

Domestic Dispatch

Total Import

Total Consumption (Domestic Dispatch + Import

% Import

2020-21*

716.08

690.88

215.25

906.13

23.75

*Provisional CCAI Monthly Newsletter March 2022

| 35

GOVERNMENT OF INDIA MINISTRY OF COAL RAJYA SABHA Q. No. 181. ROYALTY ON COAL

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

Statement referred to in reply to parts (a) to (d) of Rajya Sabha Starred Question No. 181 for answer on 21.03.2022 asked by Shri Muzibulla Khan: (a) : Yes. The rate of royalty on coal was last revised w.e.f 10.05.2012.

amend the second schedule (which specifies rates of royalty) so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification, provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of three years. As such, there is no mandatory provision in the Act to revise the rates of royalty every three years.

A Study Group was constituted on 21.07.2014, for the purpose of examining the issue of revision of royalty rates on coal and lignite. The Study Group had examined the issue in depth and held consultation with stakeholders. The study group inferred from the comments of the stakeholders that the coal producing States had suggested to increase the rates of royalty from existing 14% to roughly 20%, whereas the coal consuming stakeholders suggested to reduce the rate of royalty from 14% to roughly 5 - 6%.

The Study Group has considered that there is gain in revenue to the coal producing States due to ad-valorem rates of royalty, coupled with DMF, after last revision in rates of Royalty in the year 2012, whereas implementation of GST has given some relief to the coal consuming States/ Industries. In such a scenario, any increase in rate of royalty will make the power to consumer expensive, whereas decrease in rate will adversely impact the revenue of the Coal producing States. Accordingly, the study group had recommended the following:

(b) : The proviso of Section 9(3) of the Mines and Mineral (Development and Regulation) Act, 1957, provides that the Central Government may, by notification in the official Gazette,

i. No change is proposed in rates of royalty on coal from the rates notified vide notification no.

G.S.R. 349 (E) dated 10.05.2012. The rate of royalty on coal produced in all states and Union

21.03.2022

SHRI MUZIBULLA KHAN: Will the Minister of Coal be pleased to state: (a) Whether the rate of royalty on coal has not been revised even after lapse of more than nine years; (b) if so, the details thereof; (c) Whether Government has constituted a Study Group to consider revision of rate of royalty on coal on 21 July 2014 and the State of Odisha has been demanding that the rate of royalty on coal should be enhanced from 14 per cent to 20 per cent of sale value; and (d) Whether Government will consider enhancement of royalty on coal?

ANSWER

36 | CCAI Monthly Newsletter March 2022

Territories, except the state of West Bengal, may be kept unchanged i.e. @ 14% (Fourteen Percent) ad-valorem on price of coal, as reflected in the invoice, excluding taxes, levies and other charges. ii. No change is proposed in rates of royalty on coal produced in the State of West Bengal and royalty thereon may be kept unchanged as rupee per tonne, as notified under G.S.R 349 (E) dated 10.05.2012.

The suggestion of Study Group was accepted by the Government. (c): As mentioned above, a Study Group was constituted on 21.07.2014, for the purpose of examining the issue of revision of royalty rates on coal and lignite.The Study Group suggested no change in rates of royalty on coal from the rates notified on 10.05.2012. The suggestion of Study Group was accepted by the Government.

The issue raised by the State of Odisha for enhancing rate of royalty from 14% to 20% was discussed during the Eastern Zonal Council meeting held at Bhubneswar on 28.02.2020.

However, after deliberations, the issue was decided to be dropped. (d): No proposal for enhancement of royalty on coal is under consideration of the Government..

Q. No. 1940. IMPORT OF COAL

21/03/2022

SHRI PRAKASH JAVADEKAR: Will the Minister of COAL be pleased to state: (a) the coal import in last five years, year-wise; (b) the decisions and steps taken by Government to increase coal production so that the country does not depend on imports; and (c) the result of all these measures?

ANSWER MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

(SHRI PRALHAD JOSHI) (a): The quantity of total coal imported during last five years is given below:(in Million Tonnes) Year

Import of Coal

2016-17

191.01

2017-18

208.25

2018-19

235.35

2019-20

248.54

2020-21

215.25

(b): The following action has been taken by Government to further enhance the production of the coal in the country: 1. Commercial Auction of coal on revenue share mechanism: Since Launch of auction of coal mines for commercial mining in June 2020, a total of 4 rounds of auction have been conducted in which total 292 coal mines were offered.

In 3 rounds, 42 coal mines have been successfully auctioned. Further, in respect of 4th round of auction, bids were opened on 02.03.2022 and 2 or more bids have been received in respect of 5 coal mines and 6 coal mines have fetched single bids.

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

CCAI Monthly Newsletter March 2022

| 37

3. Rolling auction: In order to expedite the process for conducting auction and to carry out more rounds of auction in a year, a mechanism of rolling auctions of coal mines has been planned. Under this mechanism, upon completion of the electronic auction process of a tranche, the next tranche of auction would be launched for following mines: i. Mines where no bid or only single bid was received in the previous tranche of auction (except for those mines where Ministry of Coal decides to go for second attempt of auction) ii. New mines, if any, identified by Ministry of Coal 4. Single Window Clearance: The Union government has launched Single Window Clearance portal on 11.01.2021 for the coal sector to speed up the operationalisation of coal mines.

It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India. Now, the complete process shall be facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approvals or clearances.

5. Coal India Limited (CIL) has envisaged a coal production programme of one Billion Tonne from CIL mines. CIL has taken the following steps to achieve the target of augmentation of coal production capacity. i. 15 Projects identified with a Capacity of about 160 MTPA (Million Tonnes per Annum) to be operated by Mine Developer cum Operator mode. ii. Capacity addition through special dispensation in Environment Clearance under clause 7(ii) of Environmental Impact Assessment (EIA) 2006 iii. CIL has taken steps to upgrade the mechanized coal transportation and loading system under 'First Mile Connectivity' projects. (c): The entire demand of coal is not met from domestic production as the supply of high quality coal / coking coal (low-ash-coal) in the country is limited and thus no option is left but to resort to import of coking coal. Further, coal imported by power plants designed on imported

38 | CCAI Monthly Newsletter March 2022

coal and high grade coal required for blending purposes cannot be substituted by domestic coal. However, due to increased availability of coal on account of policy measures taken to increase domestic coal production, total coal import declined from 248.54 MT in 2019-20 to 215.25 MT in 2020-21. Further, during April 2021-January 2022, coal import has further decreased to the level of 173.32 MT as compared to 180.56 MT during the corresponding period of previous year.

Coal import by Power sector declined from 69.22 MT in 2019-20 to 45.47 MT in 2020-21.

Further, during April 2021-January 2022, coal import by Power Sector has decreased to the level of 22.73 MT as compared to 39.01 MT during the corresponding period of previous year.

Q. No. 1942. PLAN TO PREVENT SHORTAGE OF COAL IN SUMMER SEASON 21.03.2022 SHRI SAMIR ORAON: Will the Minister of Coal be pleased to state: (a) whether Government is planning to prevent the shortage of coal in the power plants in the summer season; (b) if so, whether it is contemplating to augment the production of coal under this scheme; and (c) if so, the target set for total production and the quantum which is higher in comparison to the previous year?

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

AFFAIRS,

(a): There is no shortage of coal in the country.

As per Central Electricity Authority (CEA), the coal stock at power plants end was 25.14 Million Tonne (MT) as on 13th March, 2022, with respect to the power plants based on domestic coal. In addition, coal stock at Coal India Limited

(CIL) and Singareni Collieries Company Limited (SCCL) pithead as on 13th March, 2022 is 47.95 MT and 4.49 MT respectively. In 2021-22 (up to 10th March, 2022), Coal India (CIL) has dispatched 506.29 MT, with a 23% growth over last year. Similarly, SCCL and captive coal blocks have dispatched 50.38 MT and 77.5 MT coal to power sector (up to 10th Mar’22) which is 34.2% and 40% more than the same period of last year.

Further to address the issues of coal supplies to power sector, an Inter-Ministerial Sub Group comprising of representatives from Ministries of Power, Ministry of Coal, Ministry of Railways, Central Electricity Authority (CEA), Coal India Limited (CIL) and Singareni Collieries Company Limited (SCCL) meet regularly to take various operational decisions to enhance supply of coal to thermal power plants as well as for meeting any contingent situations relating to Power Sector including to alleviate critical coal stock position in power plants. In addition to this, an Inter-Ministerial Committee (IMC) has been constituted comprising of Chairman, Railway Board, Secretary, Ministry of Coal, Secretary, Ministry of Environment, Forest and Climate Change and Secretary, Ministry of Power to monitor augmentation of coal supply and power generation capacity. Secretary, Ministry of New and Renewable Energy and Chairperson, CEA are co-opted as Special Invitees as and when required by the IMC. CEA has also issued revised coal stocking norms, which mandates the power plants to maintain sufficient stock at all times to meet any contingent situation. In addition, Ministry of Power vide OM dated 07.12.2021 has advised power plants to import about 36 MT coal for blending during 2022-23 with a view to build sufficient coal stock at Power Plants. (b): The following action has been taken by Government to further enhance the production and supply of coal in the country: i. Commercial Auction of coal on revenue share mechanism: Auction of commercial mining on Revenue Sharing Mechanism was launched on 18.06.2020 by Hon’ble Prime Minister. Under this

scheme, total of 2 tranches have been successfully completed and third Tranche is currently under process. From these two tranches total of 28 coal mines have been successfully auctioned for which Vesting order have in signed for 27 coal mines. ii. Allow sale of excess coal production: The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to allowing sale of coal or lignite, on payment of additional amount, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked with the mine. The Mines and Minerals (Development & Regulation) Act had been amended in 2021. This is applicable for both the private and public sector captive mines. With this amendment, the Government has paved the way for releasing of additional coal in the market by greater utilization of mining capacities of captive coal and lignite blocks, which were being only partly utilized owing to limited production of coal for meeting their captive needs. iii. Rolling auction: In order to expedite the process for conducting auction and to carryout more rounds of auction in a year, a mechanism of rolling auctions of coal mines has been planned. Under this mechanism, upon completion of the electronic auction process of a tranche, the next tranche of auction would be launched for following mines: a. Mines where no bid or only single bid was received in the previous tranche of auction (except for those mines where Ministry of Coal decides to go for second attempt of auction) b .New mines, if any, identified by Ministry of Coal.

In the current III tranche of commercial auction, total of 48 coal mines have been rolled over from the II tranche of mines. iv. Single Window Clearance: The Union government has already launched Single Window Clearance portal on 11.01.2021 for the coal sector to speed up the operationalisation of coal mines. It is an unified platform that facilitates grant of clearances and approvals required for starting a coal mine in India. Now, the complete process shall be facilitated through Single WinCCAI Monthly Newsletter March 2022

| 39

dow Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approval or clearances.

Considering the increased demand as projected by the Ministry of Power, Coal India Limited (CIL) has already taken steps to augment the dispatch & build-up stock at power plants end which is as under: o CIL has planned to supply 565 Million Tonne (MT) during 2022-2023 to the power sector to meet the generation requirement of domestic coal-based power generators. o CIL has already additionally allocated 11.2 MT of coal from its high stock mines through RCR mode which is to be lifted from different Goods Shed/Private Washeries to build up stock at the plant end. (c): All India Coal Production and Target from 2020-21 to 2021-22 is given below: (Quantity in Million Tonne) Years

All India Coal Production Annual Target

Actual

2020-21*

828.50

716.08

2021-22*

848.00

681.516 (Upto-February 2022)

*Provisional

Q. No. 1943. STRATEGIC ROADMAP TO REDUCE COAL BASED ENERGY PRODUCTION 21.03.2022 SMT. PRIYANKA CHATURVEDI: Will the Minister of COAL be pleased to state: (a) whether Government has prepared any strategic roadmap for the next five years to reduce coal based energy production to achieve the targets promised at Glasgow Climate Change Conference; (b) if so, the details thereof; (c) whether Government has envisioned any plan for the workers who will be unemployed due to the closing down of coal based power plants; and (d) if so, the details thereof?

ANSWER

40 | CCAI Monthly Newsletter March 2022

MINISTER OF PARLIAMENTARY COAL AND MINES (SHRI PRALHAD JOSHI)

AFFAIRS,

(a)&(b): Coal is the most important and abundant fossil fuel in India and accounts for 55% of the country's energy need.

Being an affordable source of energy with substantial reserve, coal is going to stay as major source of energy in the foreseeable future. Despite push for renewables, country will require base load capacity of coal-based generation for stability and also for energy security.

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

It is evident that above paragraph is not mandating the phase down of coal power, and it is not setting any timelines for the phase down. Further, the paragraph is only ‘calling upon’ Parties to accelerate efforts towards the phase down of unabated coal power in line with national circumstances and recognizing the need for support towards a just transition. Paris Agreement is a multilateral treaty for combating climate change.

Accordingly, while India has committed to clean energy; the pace of transition to cleaner energy sources in India is to be viewed in the light of national circumstances, and principle of common but differentiated responsibilities and respective capabilities, the transfer of climate finance and low cost climate technologies. (c)&(d): Questions do not arise in view of reply to part (a)&(b) of the question.

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

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

Monthly Price - FOB USD 316.00 USD 282.44 USD 236.30 USD 158.79 USD 110.69

Monthly Price- FOB INR 24107 INR 21547 INR 18027 INR 12114 INR 8444

Monthly Change (USD) 109.29 106.72 84.31 44.44 34.55

Indicative Pet Coke Price PET COKE

Sulphur

Price

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

-5% + 8.5%

INR 18056 INR 18645 ($244.40)

Monthly Change ($) INR 3533.60 66.40

USA (CIF)

- 6.5%

INR 20247 ($265.40)

71.40

Exchange Rate

Change (Monthly)

INR 76.29

1.33

Indicative Coking Coal Price Current Month

Premium Low Vol FOB CFR China 584.60 436.70

Monthly Change (USD)

139.92

41.30

HCC 64 MID Vol Semi Soft Low Vol PCI Mid Tier PCI MET COKE 62% CSR FOB Aus CFR China FOB Aus FOB Aus FOB Aus CFR India FOB N China 552.10 405.20 459.90 545.50 543.50 684.20 638.90 154.52

48.83

South African Coal News: * In a groundbreaking ruling, a court has ordered the South African government to reduce air pollution in a coal-mining belt ranked by Greenpeace as the world's most polluting cluster. Mpumalanga, which borders Mozambique, is the hub of South Africa's coal industry and boasts 12 coal-fired plants.

Local environmental lobby group GroundWork and Vukani won the case with a Pretoria high court last week declaring air quality in the area "in breach of residents'... constitutional right to an environment that is not harmful to their health and well-being. * Deputy Minister for mineral resources and energy Nobuhle Nkabane said South Africa is aiming to reduce the country’s dependence on coal while pointing out that there is an “umbilical cord” between South Africa’s coal mining and energy. Currently the country’s reliance on coal as a primary source of energy is at 75%. He said SA has committed to progressively contribute its fair share as part of

42 | CCAI Monthly Newsletter March 2022

155.28

226.53

226.47

85.95

129.65

its approved Nationally Determined Contributions, and aims to reduce coal consumption in the power generation sector to below 60% by the year 2030. * South African miners are exploring ways to supply coal and metals consumers in Europe scrambling for alternative sources to Russian supply, but logistics and cost constraints make it difficult to rapidly boost output, companies said. Customers are approaching suppliers they have no existing relationships with, desperate to secure the commodities, major producers said. Miners typically utilize long-term contracts, making surplus supply scarce. * South Africa is an advocate of a fair energy transition that considers developmental needs of poor countries. While coal currently accounts for 90% of South Africa’s energy sources, it has been ramping up roll out of wind and solar energy farms to reduce its reliance on coal-fired power stations for generating electricity. Last year, South Africa announced that it had secured $8.5 billion in financing from the EU,

Britain, Germany, France and United States over the next five years to help it shift from coal to renewable energy. The country presently plans on selling off its stranded assets in energy-related sectors like coal mining, an outcome that could result in massive job losses.

top independent producer, Whitehaven Coal, and New Hope Group (NHC.AX) said they have been approached to supply countries, including Poland, which have traditionally relied on Russian coal. Coal supply is extremely tight at the moment, partly due to flooding and labor issues at mines in Australia, which means local producers would be hard-pressed to fill any supply gap in Europe in the near term.

Australian Coal News: * Australia has promised to send 70,000 tonnes of coal to Ukraine but there’s currently no ship contracted to send the coal from Newcastle to the war zone. There are only 13 Australian-flagged vessels – the only ships the government can legally commandeer – left in operation. Prime Minister Scott Morrison announced on Sunday the thermal coal shipment, worth about $28 million, would be sent as soon as possible after a request from the Ukrainian leadership. The government has agreed with Whitehaven Coal that taxpayers will cover the costs of the coal and shipping. The mining company and the government are reluctant to reveal detailed plans about the transportation of the coal for security reasons. * Producers of power-station coal in Australia, the second-biggest exporter, have only limited capacity to send cargoes to Europe to help replace Russian fuel. New Hope, which operates the 10-million tons a year Bengalla mine on Australia’s east coast, has held talks with prospective customers in Europe and with local government officials, who’ve urged domestic suppliers to assist. * Australia's federal resources minister Keith Pitt is pressuring the premier of Queensland State Anastacia Palazczuk to expedite coal mine developments to free up shipments to Europe and other markets opposed to Russia's invasion of Ukraine. Canberra has put a number of European buyers in touch with key Australian coal mining firms, after Polish Prime Minister Mateusz Morawiecki called on his Australian counterpart Scott Morrison to increase shipments of Australian coal to Eastern Europe. Mining firms were already operating at capacity to capitalise on recordhigh prices over the past six months. Australian coal haulage firm Aurizon has warned that it is difficult for mining firms to increase output further no matter what price signals they are receiving. * The Australian government is helping coal importing nations find alternatives to Russia for supplies by connecting them with local producers. Australia's

Indonesian Coal News: * Indonesia may delay rolling out its carbon tax on coal power plant emissions, officials said on Mar ch 25 as authorities have yet to finalise details a week before its Apr 1 start date. Under a sweeping law passed in October, Indonesia introduced a new levy for coal power plant operators of 30,000 rupiah (US$2.09) per tonne of carbon dioxide equivalent (CO2e) for emissions above a set limit. Indonesia, the world's fourth-most populous country where coal powers 60 per cent of electricity use, has trailed the tax for 32 operators. Emissions caps were set at 0.918 tonne CO2e per megawatt hour for power plants with a capacity above 400 MW. *Coal miners in Indonesia, the top shipper, are preparing for potential new curbs on exports, a move that would add pressure to prices already at record highs. New restrictions on overseas sales are possible in either April or August -- when mine output is typically lower -- to make sure local power plants have sufficient supply. Indonesia requires coal producers to supply at least 25% of output to meet local needs and sets a ceiling price for coal sold to local power plants at $70 per ton, a policy known as the domestic market obligation rule. The higher international coal prices rise, the more likely local miners are to sell the remainder of their output overseas, which will increase the chance of another export disruption, experts say. * Most emerging Asian currencies and stock markets were set for weekly losses this week as the worsening Russia-Ukraine conflict dampened appetite for riskier assets, while Indonesian shares rallied on higher energy prices. Soaring prices of energy, including coal and natural gas have been one of the many fallouts of the Ukraine crisis. Higher coal prices have benefited Indonesia - a major coal exporter in the region.

Indonesian stocks rose 0.9%, with coal producers Adaro Energy and Bayan Resources jumping 15% and 7%, respectively, by 0732 GMT. The rupiah also gained marginally.

CCAI Monthly Newsletter March 2022

| 43

US Coal News: * Global energy prices rose sharply this month amid the Russia-Ukraine conflict, a trend that hit US thermal coal export FOB Baltimore and FOB NOLA coal prices hit record highs. FOB Baltimore 6,900 NAR was assessed at $181.40/mt, up $29.25 from the previous session and the highest since the assessment began April 5, 2019. FOB NOLA 6,000 NAR was assessed at $168.50/mt, up $30.35 from the previous session, marking the highest price since the assessment launched April 6, 2018. * US coal producers said they only have limited ability to boost exports and offset lost Russian volumes due to chronic industry underinvestment amid the clean energy transition. Paul Vining, chairman of privatelyheld Westmoreland Mining LLC, said US coal exports this year should be slightly higher than last year’s 72 million tonnes, but be constrained from further growth due to staffing constraints and limited rail capacity. * Coal-burning facilities in North Dakota have cut their mercury emissions from more than 2,300 pounds in 2010 to 847 pounds in 2020, according to data supplied by the state Department of Environmental Quality. That mirrors a national trend, as some coal plants around the country have been replaced by natural gas and the rest have had to adapt to tighter environmental policies from the federal government.

While coal-fired power is not the country's biggest source of Mercury pollution anymore, North Dakota plants dominate recent catalogs of the biggest mercury emitters in that sector.

Pet Coke News: * Price of petcoke in the US Spot market has remained unchanged this month. The Medium-sulfur based US Gulf Coast petcoke market has remained quiet while no new bids were heard in the West Coast of the United States as well. Top destination for US petcoke in recent months has been Japan, closely followed by China in the second spot. * Price of Mediterranean-delivered petcoke soared to historic highs this month although rates maintained a firm $200 discount compared to thermal coal.

Additionally, freight rates moved higher for transAtlantic petcoke runs. Meanwhile US petroleum coke prices have also gone up this month, with US Gulf

44 | CCAI Monthly Newsletter March 2022

Coast activity leading the way. However, West Coast assessments finished flat compared to the previous month. * Volatile market conditions and erratic demand has caused the US petcoke prices to go higher in both the Gulf Coast and West Coast regions. US Gulf Coast high and mid-sulfur petcoke prices jumped more than 15% this month. Activities along the West Coast were relatively lighter. Overall petcoke export by the US has dropped by nearly 20% this month, with Brazil being the top destination so far followed by Ecuador and Netherlands.

Shipping Update: * With the Black Sea route choked by the Russia-

Ukraine conflict, India is weighing a raft of options– including trade through the strategically important Chabahar Port in Iran–to beat shipping snarls and export goods to the Commonwealth of Independent States (CIS). At stake are New Delhi’s annual dispatches of about $4-4.5 billion to these nations.

Official and trade sources told that the government is considering two other options as well trade by ship through China’s Qingdao port and on to the CIS members from there by rail, and exports through the Georgia port. *India will take steps to ensure a steady supply of coking coal for domestic steel companies, which are struggling with cargo disruptions and rocketing prices in the wake of Russia’s invasion of Ukraine.

India’s overall coking coal imports total 50-55 million tonnes, with overseas purchases rising 4% annually.

To reduce its import dependence on Australia, India last year agreed with Russia to import coking coal, which accounts for about 40% of the total cost of steel production. * The sudden surge in container rates and insurance costs following the Russian invasion of Ukraine is expected to drive up freight costs across the world, industry executives and trade associations said.

Container rates are up ten-fold in less than a fortnight, while war insurance premiums have risen 5%. The shipping industry, which plays a major role in global trade, was already fighting a shortage of vessels and containers when American and European sanctions on Russia and its businesses drove up crude prices, increasing shipping costs.

OVERALL COAL PRODUCTION & OFFTAKE Sl. No.

Subsidiary

Monthly Target

Production During Mar'22

Production upto Mar'22

FY - 2022

Achmt. (%)

FY - 2021

FY - 2022

FY - 2021

Growth % (FY-22-21)

1

ECL

5.74

4.12

71.78

6.01

32.43

45.01

-27.95

2

BCCL

4.34

3.92

90.32

2.78

30.51

24.65

23.76

3

CCL

12.40

11.22

90.48

8.71

68.85

62.59

10.00

4

NCL

12.71

12.49

98.27

11.12

122.43

115.05

6.42

5

WCL

9.92

10.26

103.43

8.37

57.71

50.28

14.79

6

SECL

23.25

20.66

88.86

26.43

142.51

150.61

-5.38

7

MCL

18.60

17.57

94.46

17.71

168.17

148.01

13.62

86.96

80.26

92.30

81.13

622.64

596.22

4.43

6.14

6.45

105.07

6.38

65.02

50.58

28.55

9.05

8.45

89.6

69.18

29.52

95.76

95.96

777.26

715.99

8.56

Overall CIL 9

SCCL

10

Captives/ others

Grand Total

CCAI Monthly Newsletter March 2022

| 45

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

February, 2022 64.26 6.04

February, 2021 61.87 5.59

% Growth 3.9% 8.0%

April- February, 2022 542.38 58.58

April- February, 2021 515.09 44.20

% Growth 5.3% 32.5%

Overall Offtake (in MT) Company

February, 2022

February, 2021

% Growth

April- February, 2022

April- February, 2021

% Growth

CIL SCCL

57.47 5.41

51.27 5.22

12.1% 3.8%

599.92 59.59

514.42 42.60

16.6% 39.9%

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

February, 2022

February, 2021

% Growth

April- February, 2022

April- February, 2021

% Growth

CIL SCCL

48.05 4.22

39.85 4.36

20.6% -3.3%

487.88 48.91

397.99 35.97

22.6% 36.0%

Company

Coal Qty. Allocated February, 2022

Coal Qty. Allocated February, 2021

Increase over notified price

Coal Qty. Allocated April- February, 2022

Coal Qty. Allocated April- February, 2021

Increase over notified price

CIL

1.51

4.41

270%

28.01

37.21

107%

Spot E-auction of Coal (in MT)

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

Coal Qty. Allocated February, 2022

Coal Qty. Allocated February, 2021

Increase over notified price

Coal Qty. Allocated April- February, 2022

Coal Qty. Allocated April- February, 2021

Increase over notified price

CIL

2.34

5.69

20%

41.25

33.01

35%

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

Coal Qty. Allocated February, 2022

Coal Qty. Allocated February, 2021

Increase over notified price

Coal Qty. Allocated April- February, 2022

Coal Qty. Allocated April- February, 2021

Increase over notified price

CIL

0.17

3.83

154%

25.66

25.75

49%

Special Spot E-auction (in MT) Company

Coal Qty. Allocated February, 2022

Coal Qty. Allocated February, 2021

Increase over notified price

Coal Qty. Allocated April- February, 2022

Coal Qty. Allocated April- February, 2021

Increase over notified price

CIL

-

0.03

-

2.86

2.37

81%

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

Coal Qty. Allocated February, 2022 -

Coal Qty. Allocated February, 2021 -

46 | CCAI Monthly Newsletter March 2022

Increase over notified price -

Coal Qty. Allocated April- February, 2022 2.33

Coal Qty. Allocated April- January, 2021 7.53

Increase over notified price 50%

CCAI Monthly Newsletter March 2022

| 47

REGISTERED

48

KOL RMS/022/2022-2024