DOMESTIC COAL

India achieves 47% growth in Coal Production in the last Nine Years

India has achieved 47 percent growth in Coal Production in the last Nine Years. The Coal supply has also touched 877.74 Million tonnes, recording 45.37 percent growth in the same period. Overall coal production has gone up to 893.08 Million tonnes in Financial Year 2023, which is the highest in the history of the country.

The Coal Ministry has signed agreements for a total of 23 coal mines having cumulative peak rated capacity (PRC) of 33.224 MT per annum during the Financial Year 2022-23. The Ministry said, considering the good response received for the 6th round of commercial auctions, it is expected that 25 coal mines will be allocated during Financial Year 2023-24 for commercial mining.

The Ministry said that as per the Action Plan for 2023-24, the coal production target for financial year 2023-24 is one thousand twelve Million tonnes by enhancing overall production, efficiency, sustainability, and adopting new technologies.

Government says Coal Ministry is making continuous efforts todevelop indigenous manufacturing capabilities in coal mining sector

The government has said that Coal Ministry is making continuous efforts to develop indigenous manufacturing capabilities in coal mining sector. It said, this will further reduce India’s reliance on import of high-capacity mining equipment and boost its domestic production. Coal Ministry said, these efforts are in line with the objectives of aatmanirbharbharat promoting Make in India.

Currently, Coal India Limited imports High-Capacity equipment such as Electric Rope Shovel, Hydraulic Shovel, Dumpers, Drill and Motor Graders worth around three thousand 500 crore rupees and pays one thousand crore rupees as custom duty.

Therefore, the Ministry has planned to phase out import over the period of next five to six years by encouraging and developing domestic equipment manufacturers’ capabilities. The Ministry said, some of the high-capacity machines are presently under trial procurement from domestic manufacturers.

Government likely to introduce amendment bill seeking to provide auction of minerals mined offshore

The government is likely to introduce an amendment bill, which seeks to provide an auction of minerals mined offshore, in the next Parliament session, sources said. The objective behind the move is to use the national wealth in the sea for the use of the people of the country.

“The hurdle is that the original Act for offshore mining does not provide for auctions of minerals. The auction is the policy now. So the Act needs to be amended. The consultations to amend the act are over and a bill is likely to be introduced in the forthcoming Monsoon session of Parliament,” the sources said.

The Offshore Areas Mineral (Development and Regulation) Act was enacted in 2002. However, not even a single rock could be mined out from the sea-bed mainly due to pending litigations. The amendments will help in realizing the natural wealth which lies with the country along its coast.

Coal India readies 52 projects to reach 1 BT target by FY26

State-run Coal India Ltd (CIL) has drawn up 52 coal mining projects, including 13 new coal blocks, to reach the one billion tonne coal production target by financial year 2025-26, a company official said.

“Apart from the expansions and greenfield projects, we are also trying to do more of underground coal mining for better grades of coal that will help reduce India’s coal imports. Of the 52, eight are underground projects,” he said.

Coal India produced 703 million tonne of coal in FY23 and has a target of 780 MT in the current fiscal. It has set a target to produce one billion tonne of coal by FY26, by when coal minister has said India will start exporting coal. These coal projects will contribute a total of 271 MT of coal to CIL’s production in FY26. Their total peak rated capacity, which will happen in different years for different coal mining projects till financial year 2030-31, will be 445 MT.

Coal India raises high grade noncoking coal prices by 8%

India's largest coal supplier Coal India Ltd has raised prices of non-coking coal of grade G2 to G10 by 8% over the existing notified prices with effect from May 31, five years after the last hike. These high grade coals are used mainly by the cement, fertiliser, and sponge iron sectors and the development will increase their input costs. It is unlikely to affect the thermal power sector that mainly uses coal of G11-13 grade to generate electricity.

The price revision will help Coal India earn incremental revenue of approximately 2,703 crore in FY24. The company has absorbed inflationary costs for over the past five years without any revision in prices. Some of CIL's subsidiaries may not be able to finance their future projects as they feel the pinch in the absence of adequate compensation, a Coal India official said. The current notified price of coal for grades G2G10 for all sectors is in the range of 1,228-3,288 per tonne on 'pithead run-of-mine' basis..

Imports of coking coal from Russia may double

Russia’s supply of coking coal—the prime raw material in steelmaking—may more than double in FY24, led by state-owned Steel Authority of India Ltd and private steelmakers such as JSW Steel Ltd and Jindal Steel and Power Ltd (JSPL). India’s coking coal imports stood at 54 million tonnes (mt) in FY23, and these imports will account for a fifth of it this year. Imports of Russian coking coal in FY23 stood at a mere 4 mt.

About 90% of India’s coking coal requirement of 60 mt is currently imported, of which Australia alone contributes more than 70%. India has been looking to diversify its imports of steelmaking coal and identified a few markets. Russia has now emerged as a preferred source due to its pricing and ability to deliver it quickly, one of the two officials cited above said.

“Diversification of sources of import is always good as it prevents choking of supplies on account of various environmental disturbances and the emergence of sudden geo-political events. However, it is for the companies to decide on new import markets based on their assessment of quality and the price matrix," steel

secretary NagendraNath Sinha said.

Coal Ministry extends last date for bid submission till June 27

The Ministry of Coal has extended the last date for submission of bids till June 27, 2023, for the ongoing 7th round of Commercial Coal Mine auctions.

With a view to creating additional production capacity, Coal Ministry has so far allocated/ auctioned 133 mines with cumulative Peak Rated Capacity (PRC) of 540 million tonnes per annum (MTPA), out of which 48 coal mines came into production having cumulative PRC of 195 MTPA. The production from captive/commercial mines has reached 16.25 MT in the ongoing financial year till 22nd May 2023 achieving significant growth of 10.2% compared to 14.75 MT produced during the same time period last year.

In order to facilitate the private players for the early development of coal mines, the Ministry is providing necessary support in terms of land availability, environment/forest clearances, assistance from financial institutions, and interagencies coordination. Ministry of Coal has targeted 162 MT production from captive/commercial mines during this financial year.

India to close around 30 coal mines in next few years to pave way for forests, water bodies

India will have around 30 coal mines closing over the next three to four years to pave way for forests or water bodies besides substantial reduction in the quantum of imported coal even as the demand of coal for the thermal power generation in the country will continue to grow till 2040, AmritLalMeena, union secretary for coal, said.

Meena said de-coaling or coal-mine-closure will definitely have a good impact on the environment but will have an adverse impact on soci- ety and the community at large as livelihood of 50 lakh people who are directly or indirectly engaged in the business will get impacted.

“The de-coaled lands are being put to environment friendly usage by filling them up with flyash, creating forest cover, agriculture lands, solar plants and water bodies. Of the expected more than 2 lakh hectare of de-coaled lands, around 20000 hectare has been identified and 500 hectares per year of it will be made available for various environmental usages over the next few years." he said. Coal mines last for average 25 to 30 years.

Harnessing 10% of coal bed methane reserves can cut India's energy import bill by $2 billion: Experts

India can cut its energy imports bill by USD 2 billion if the nation harnesses 10 per cent of the coal bed methane reserves of 2,600 billion cubic meters, said experts. This assumes significance in view India's coal production clocking record high during the last fiscal year and plans afoot to increase it further. India has an estimated Coal Bed Methane Reserve of 2600 billion cubic metres.

Sharma said the savings would be more if we are able to tap more CBM reserves. Through ICSSA we have been making attempts in creating awareness about the potential of Methane and have conducted workshops for Oil & Gas, Agriculture & Livestock sectors. Going forward the plan is to connect companies related to Coal, Transport and Waste management in order to share knowhow on Methane capture, he added.

The prognosticated CBM resources in the country are about 2600 billion cubic meters (BCM) in 12 states of India. To capitalise on the country's CBM potential, the government enacted a CBM policy in 1997, which mandates the exploration and utilisation of CBM (natural gas). Utilisation of coal mine methane has the potential to benefit India by reducing emissions and increasing domestic energy security.

Steel industry plans robust capex as leverage remains stable: Crisil

The top five steel manufacturers in India are planning major capital expenditure over the next few fiscal years, projected to amount to 55,00060,000 crore per year, nearly double the average annual spending over the previous five fiscal years, credit rating firm Crisil in a report.

Despite this planned surge in capex, the credit rating agency anticipates the key players’ leverage, in terms of net debt to Ebitda (earnings before interest, tax, depreciation, and amortization) ratio, will stay below 2.0 times this fiscal year. This forecast comes despite a slight uptick from the 1.6-1.7 times leverage seen in fiscal year 2023. Crisil attributes this to robust balance sheets, significant cash flows, and low project risks related to new capacity additions.

The Crisil study highlighted the five top steel producers, who account for roughly 60% of domestic output, indicating their capacity expansion is driven by robust demand growth and high operating rates. After experiencing growth rates of approximately 11.5% and 13.3% in fiscal years 2022 and 2023 respectively, domestic steel demand is expected to grow steadily at 7-9% this fiscal year. This is largely due to government initiatives to stimulate the infrastructure and construction sectors, which constitute about 70% of steel consumption.

Local steel prices may fall further on China exports

Steel prices in the domestic market, which have been under pressure since late March, may fall further after a sharp surge of exports from China at lower prices that is seen undercutting exports from India amid weakening global demand.

At around Rs 57,000 per tonne, prices of hotrolled coils in May are down by nearly 3-4% from April, and over 17% lower year on year. Steel mills are likely to reduce prices or offer discounts of Rs 1,500-2,000 per tonne in June as they look to push volumes, industry watchers said.

China, which accounts for 57% of the global production of steel, exported 7.3 million tonnes of steel in April, not only 82% higher than a year earlier but also higher than those in the month of April during 2017-2020, and only marginally lower than 7.97 mt exports in April 2021. This despite production in China falling 1.5% year on year to 92.6 million tonnes last month, Nomura Financial Advisory and Securities (India) said in a recent report.

Around 40 MT new steel capacity to be commissioned in India by FY26: Assocham

Around 40 million tonne (MT) of new steel-making capacity will be commissioned by 2025-26, an industry executive said. VinodNowal -- the Chairman of Assocham's National Council on Iron and Steel -- made the remarks at India Steel Summit in the national capital. Domestic steel production capacity is expected to touch 300 MT and crude steel production is likely to reach 255 MT by FY31, he said.

Nowal, who is also the chairman of JSW Bhushan Power and Steel Ltd, said, "Fresh steel capacities of accumulating to 35-40 MT per annum are lined up for commissioning by FY26".

As per the industry body Indian Steel Association (ISA), India's total installed steel-making capacity was 154 MT as of March 2023. Another 40 MT capacity addition by FY26 will scale it up to 194 MT.

Indian cement makers to increase coke use over coal

Indian cement makers are looking to expand petroleum coke use in their kilns through imports in order to benefit from competitive prices compared with thermal coal. Cement makers, the key consumers of fuel-grade coke in India, have been actively securing June and July-loading cargoes in recent weeks to benefit from lower prices.

The Indian cement industry raised coke imports by more than 72pc on the year during JanuaryApril to 3.21mn t, according to GAC Shipping data. It imported about 7mn t of fuel-grade coke in the 2022 calendar year, up from below 3mn t in 2021. But imports to India's cement industry appear well placed to cross 7mn t well before the end of 2023, said a market participant. India is becoming an even more crucial destination for US and Saudi coke sellers as demand in other markets remains subdued.

Coke prices have declined sharply this calendar year on improved availability and subdued demand from major consuming markets, including China and Turkey. The cfr India US 6.5pc coke price declined by 28pc since January to a two-year low of $125/t in May, making it the cheapest fuel for the cement industry on a heatadjusted basis.

Star Cement, Assam government inks MoU for investment worth Rs 1,400 crore

A MoU has been signed between Star Cement Limited and the Government of Assam for investment worth Ra 1400 crores within the state of Assam. The MOU is signed for setting up a Cement Grinding unit in Guwahati and another Cement Grinding unit in Cachar and AEC Block and other construction manufacturing units in Guwahati.

The total investment which is in the tune of

1,400 crores was signed between Government of Assam and Star Cement led by the Chief Minister HimantaBiswaSarma and Minister of Industry & Commerce Bimal Bora in the presence of Chairman, Star Cement Limited SajjanBhajanka, Executive Director, TusharBhajanka. Sarma termed it a red letter day as the state witnessed pumping in private investment to the tune of Rs 8201.29 crore.

RAILWAYS & SHIPPING

Gati Shakti: Railway lines & Road projects gather steam

Almost two years after the launch of Gati Shakti National Master Plan (NMP), construction of new rail lines has risen to 12 km per day in 2023 from 4 km per day before 2022. The railways has planned a record 13,264 km of rail infra projects for the year, data analysed by the Department for Promotion of Industry and Internal Trade (DPIIT) shows.

Similar improvement is seen in road projects as well since the rollout of NMP, officials aware of the development said. All logistics and connectivity infrastructure projects in the country entailing investment of over 500 crore are routed through the Network Planning Group constituted under the PM Gati Shakti initiative.

Till now, 79 projects worth 5.19 lakh crore have been evaluated on the NMP, comprising 34 of railway ministry, 25 of the road transport and highways ministry, and four of the petroleum and natural gas ministry. As per the analysis, usage of NMP has increased rail electrification by 40%, automatic signalling by 144%, and sanction of station redevelopment by 49 times.

Dedicated Freight Corridor achieves milestone of running 1 lakh trains

Dedicated Freight Corridor (EDFC) achieved a milestone of running one lakh trains with Member Operations and Business Development at Railway Board, Jaya Varma Sinha, flagging off the 100,000th train running on the Corridor alignment in May. Till now 55,332 trains have been operated on the Eastern Dedicated Freight Corridor (EDFC) while 44,658 trains on the Western Dedicated Freight Corridor (WDFC).

As of today, 2089 Route KM -- 73.5 per cent of the DFC has been commissioned, it said, while adding that DFC alignment except for Jawaharlal Nehru Port Trust (JNPT) connectivity is expected to be commissioned by December 2023.

DFC is a vital initiative under the National Logistics Policy and is aimed at reducing the cost of logistics from 15 per cent (approx.) of the country's GDP to 8 per cent by 2030.

Union Shipping Minister announces five initiatives to make India global leader in maritime sector

Union Minister of Ports, Shipping and Waterways (MoPSW) SarbanandaSonowal announced five major initiatives, focusing on green shipping and digitisation of the ports, by his Ministry to make India a global leader in the maritime sector.

The 'Panch Karma Sankalp' include 30 per cent financial support from the Ministry for promoting green shipping, procuring two tugs each for the Jawaharlal Nehru, VO Chidambaranar, Paradip and Deendayal ports under the green tug transition programme and developing hydrogen hubs at some of these ports, it said.

The other two initiatives are -- setting up a single window portal to facilitate and monitor river and sea cruises and turning Jawaharlal Nehru, VO Chidambaranar and Tuticorin into smart ports by next year, it said.