CCAI Newsletter November-22

WHERE SERVICE AND DEDICATION JOIN HANDS

From the Editor’s Desk

The global climate emergency is massively impactful on countries, pushing them to make relentless efforts to work on a seamless transition from coal to renewable energy. Most countries including India are trying to devise and facilitate the process of phasing down coal in an attempt to carry out a successful transition. The significant consideration to be made during the process of transition is that it will affect not just the stakeholders but also the people who are directly employed by coal power plants, or indirectly dependent for employment.

Despite the climate crisis taking a toll on nations, global coal power generation is looking at setting a record high for a second-straight year and remains the world’s most significant source of electricity. Consumption has surged in Europe to replace shortfalls in hydro, nuclear, and Russian gas, while top producer China is extracting record volumes from mines to insulate itself from volatile global energy markets.

Earlier at the UN Climate Change Conference, India argued that the world must phase down all fossil fuels, and not just coal, to achieve the Paris Agreement goals. The European Union supported the call by India to phase down fossil fuel use as part of a COP27 deal, provided it does not weaken previous agreements on reducing the use of coal. After COP27, G7 countries announced a partnership with Indonesia to expedite a just energy transition, away from fossil fuels and towards renewable energy. India is next in line likely to sign a similar pact with the G7 countries, along with Vietnam and Senegal. The motive is to take initiatives toward decarbonizing energy systems and increasing energy efficiency.

Meanwhile, India witnessed a coal production increase of 17.4% to 351.9 MT in the April-October period of the ongoing fiscal as per CIL. The company's coal output in the corresponding period of the last fiscal was 299.6 MT. India’s total coal production went up by 11.66% to 75.87 million tonnes in November 2022 from 67.94 million tonnes recorded during the corresponding period of last year. Although India is focused on green energy options and aims to achieve net-zero emissions by 2070, the geo-political situation propelled by the Russia-Ukraine war has led to the rise in energy prices and has pushed inflation to the highest levels in several countries. The combined factors have compelled India to continue relying on coal-based thermal energy.

Experts believe that, like many nations, India too will have to rely more on coal due to its abundance in availability. The Indian government constantly endeavors to increase domestic coal production and has been contemplating the idea of becoming completely self-reliant to cater to domestic requirements.

Vol. LI No. 08 November 2022

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Present Coal Scenario:

Continuing with the trend of the last few months, India’s overall coal production in November ’22 has gone up to 75.87 MT which is nearly 12% higher than the same month previous year this is also 8.85 MT higher than October ’22. CIL’s production has also grown by 12.82% on a Y-o-Y basis. Country’s overall coal production so far this fiscal has registered more than 17% Y-o-Y growth.

In sync with the growth in production, India’s coal despatch is also on an upward trend. India has despatched 74.32 MT coal in November ’22 nearly 4.55 higher than November’21 and 10% more than the previous month. Amid despatch of coal to NRS, CPP and Steel sectors have witnessed year on year growth this month of 33% and 47% respectively, while supply to Cement, Sponge-iron and Others Sub-sectors have dipped. Country’s overall despatch in this financial year has grown by 7.45% Y-o-Y

Issue faced by both Power and NRS Consumers:

1. Consumers' views on Mode Agnostic Single-Window Auction:

The consumers have opined that the previous mode of auctions such as Special Forward eAuction for Power Sector, Exclusive e-Auction for the Non-power Sector and Spot e-Auction for all sectors including traders have been more apt and beneficial for both the parties compared to the new mode of auction to be introduced due to below mentioned reasons:

* Single window will bring in coal traders and consumers on the same auction platform which may lead to multiple disadvantages for the coal consumers as their coal procurement objectives are different from each other.

* For replenishing the shortfall of normative requirement, loss of heat value for grade slippage and running plants at higher PLF, TPPs have to source additional coal through auction. Sourcing coal over and above linkage quantity through single window auction is likely to be more expensive making the cost of power generation dearer.

*For running continuous process plants uninterrupted supply of coal is essential. But securing coal through single window auction will not ensure the required quantity of coal supply to the plants as unlifted quantity will lapse after 45 days in case of road mode and after three months in case of rail mode supply.

* In Single-window Mode-Agnostic auction, the default mode of supply is via rail. However, rake movement for the Non-power Sector has been extremely scarce over the last 8-9 months and sometimes tends to be nil from certain subsidiaries.

Request has been made to the Ministry of Coal and CIL that instead of introducing the new Mode Agnostic e-Auction scheme, the previous e-Auction schemes may be continued.

Issues Faced by Power Sector

Consumers:

2. Submission by Power Sector Consumers requesting issuance of credit notes by CIL Subsidiaries against excess surface moisture in coal:

According to the terms of Agreement between the coal companies, consumers and the 3rd party sampling agency and as per provision of the FSA, coal companies are required to issue debit/credit notes for the cases where there is upgrade /downgrade from the declared grade of coal based on third-party sampling and analysis. Further there is a provision in the FSA for issuance of credit notes in case the monthly weighted average surface moisture in coal exceeds seven percent (7%) during the months from October to May and nine percent (9%) during the months from June to September.

Credit notes on account of higher surface moisture have not been issued by CIL subsidiaries. As per our valued members from the Power sector, huge amounts of credit notes in this regard are pending since the inception of 3rd party sampling in 2016. Also, disbursement of credit notes worth crores of rupees by a number of CIL subsidiaries against grade slippage in coal supplied to the Power Sector are also pending for more than a year despite several appeals by the Utilities.

Request has been made to MoC and CIL so that so that issuance of credit notes against grade slippage and excess surface moisture may be expedited by CIL as it would provide a much needed respite to the coal consumers.

3. Submission by Power Sector Consumers seeking refund of differential GST amount alongwith reimbursement against idle freight uniformly by all CIL Subsidiaries:

It has been reiterated that while ECL and CCL

are providing refund against idle freight alongwith GST components charged by the Railways, Subsidiaries like MCL, SECL and WCL are not providing differential GST amount while providing reimbursement against underloading charges.

Request has been made to CIL repeatedly so that differential GST amounts may be refunded by the concerned coal companies while providing refund for underloading.

4. Submission by Power Sector Consumers on significant grade slippage from Gorandih-Begunia mines of Salanpur, ECL:

Power Sector consumers procuring coal from Gorandih-Begunia mines of Salanpur area of ECL were buying ROM coal of G8 grade, which was suitable for usage in power generation as most of the collieries in ECL otherwise has very high grade of coal. Since all other modes of eAuctions are substituted by Spot Auction only, G6 steam coal from the same source is supplied presently by Road mode to the winning bidders.

The local participants in the said auction are loading the best quality coal by handpicking via Road mode and Power plants procuring coal are being supplied from the remaining quantity which is of much lower grade, ranging from G12- G14. As the Power Sector consumers are already paying an abysmally high premium to book coal via Spot Auction, constant grade slippage of around 6-8 grades from the said mines is causing huge financial loss to the generating units.

Request has been made to ECL and CIL to take necessary measures in order to contain grade slippage from the said mines. The consumers have also suggested that G8 ROM coal may be offered to them instead of steam coal in order to mitigate loss incurred due to grade slippage.

5. Submission regarding draft amendment in the Electricity Rules, 2005 related to Captive Generating Plant:

The MoP Notification issued on 2nd November,

2022 about an amendment to the Electricity Rules, 2005 regarding captive generating plants has been lauded by CCAI and its valed member companies form the Power Sector. The proposed amendment to captive power rules will provide the necessary encouragement and incentives for industries to set up captive plants, with their subsidiaries' consumption included as their captive consumption.

Power Ministry has been informed that the proposed change will help industries benefit from captive power policy's intendedobjectives, of which they had been deprived so far. The change will provide a strong impetus to the industrial growth.

Issues faced by Non-power Sector Consumers:

6. Appeal by Industries including CPPs to further improve coal supply from CIL's Subsidiary Companies especially via rail mode:

After prolonged coal supply crunch faced by the Industries and their Captive Power Plants (CPPs) since September last year, daily average despatch of coal to this sector has improved to 2.5-3 lakh tonnes in recent times. However, the following concerns still persistin terms of coal supply to the Non-power Sector:

* While targeted allocation of coal is 25% of the total production as per recommendation of the Cabinet Committee of Economic Affairs (CCEA), CIL’s actual despatch to the Industries including CPPs is just above 14% of the total despatch at present.

*Supply of coal to the Industries has been restricted to trigger level which is 75% of the Annual Contracted Quantity (ACQ) since February ’22, forbidding NRS consumers to get the contracted quantity from indigenous sources.

* In spite of relative improvement in daily coal despatch quantity to NRS in recent weeks compared to last few months, coal despatch to NRS

from CIL has shrunk by 28.5% on a Y-o-Y basis in October ’22.

*Barring MCL and ECL, supply of coal via Rail mode from most of the CIL subsidiaries to the Industries continues to be extremely irregular. Supply of Rakes to NRS is meagre from coal companies like NCL, CCL, WCL and SECL. Average daily rake despatch by CIL to the Non-power Sector has shrunk by 38.5% in October ’22 compared to the same month last year.

* As Industrial plants and CPPs in the country are mostly designed to operate on indigenous coal, it cannot be replaced totally by imported coal as blending to the tune of 15%-20% only is admissible as per basic design of those plants. Therefore industries and CPPs are participating in Spot Auctions by paying exceptionally high premiums or resorting to open market or imported sources for coal despite having valid FSAs.

Request has been made to the Coal Minister, MoC and CIL to supply of coal to the Industries may be allowed as per ACQ instead of restricting it to trigger-level. Coal supply especially via Rail mode is needed to improve considerably from all the CIL Subsidiaries at the earliest. It is also requested that instead of keeping the CPP units idle, contracted coal quantity may be supplied to the CPP-integrated plants so that the CPPs may generate in full-capacity. This will help in transmitting surplus power to the grid for meeting the country's increased power demand

7. Request from Sponge-iron Subsector Consumers not to debar them from participating in Tranche-VI/subsequent Linkage Auction tranches:

Sponge-iron sector consumers have been debarred from participating in the upcoming linkage auction tranche for the Non-power Sector consequent to non-signing of FSA (Tranche-V) with the subsidiaries after being the successful bidders.

The consumers who have not signed the FSA with the respective subsidiaries have also compensated the seller through forfeiture of their

security deposits as well as process fee by the respective coal companies. Also, Tranche-VI is being held after a gap of three years from the previous tranche. Therefore, debarring the consumers from participating in the upcoming tranche will adversely affect them.

Request has been made to MoC and CIL to condone these consumers only once considering the pandemic situation and allow them to participate in Tranche VI Linkage Auction for Sponge Iron Sector.

8. Request to extend the period by 4/5 days for seeking change in capacity/ relevant details of EUPs of prospective bidders in NRS Linkage Auction tranche-VI:

As per NRS consumers, 7-day window for revision of capacity or any other relevant details of EUPs for the prospective bidders in the TrancheVI NRS Linkage Auction is not sufficient to complete the necessary paperwork/ submission of documents and other formalities. In actuality, the consumers interested to revise the capacity or other details of the respective EUPs were getting a five-working day window.

Request has been made to CIL to extend the timeline for another 4/5 days so that the necessary formalities may be completed in time.

9. Request for allotment / supply of rakes for Coal Loading from NCL & CCL through ECR:

Due to acute shortage in coal supply via Rail mode to NRS consumers from NCL and CCL through East-central Railway (ECR), continuous process plants such as Steel. Cement, Aluminium etc. procuring coal from these two Subsidiaries are suffering as coal stock at their plant-ends have become significantly low. If the supply situation does not improve during winter, the plants will lead to coal stock-out situation.

Request has been made to the Railway Board and Subsidiary coal companies to supply at least two rakes per day to the Non-power Sector from NCL and CCL so that theseplants may sustain themselves.

POWER

THER MAL

India power binges on coal, outpaces Asia

India's coal-fired power output has increased much faster than any other country in the Asia Pacific since Russia's invasion of Ukraine, underscoring the challenges the world's third-largest greenhouse gas emitter faces in weaning its economy off of carbon. Coal fuels nearly threequarters of the power output of India.

Use of coal globally, including in power generation, has grown since Russia's invasion of Ukraine in late February sent prices of other fossil fuels surging, derailing efforts to transition to cleaner fuels. But the increase in India's coalfired power output has outstripped its regional

peers, data from the government and analysts showed.

India's coal-fired power output increased more than 10 percent year-on-year from March to October to 757.82 terawatt hours, an analysis of government data shows, as electricity demand increased off the back of a heatwave and pickup in economic activity. The government expects this output to grow at the fastest pace in at least a decade in the current fiscal year ending March 2023. India is also the only major country in Asia, besides Japan, where the contribution of coal-fired power in overall electricity production increased in the six months since March, the data shows.

SHAKTI Scheme: New and more transparent coal linkage policy

The Ministry of Power launched a scheme for the procurement of aggregate power of 4500 MW for five years under B (v) of the SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy.

The scheme is supposed to be beneficial not just for the infrastructure sector, but also for the public sector banks which have huge loans unpaid at the end of the power companies. The companies, which did not have coal linkages before the introduction of the Shakti Scheme, would benefit when they would get domestic fuel supplies through auction at competitive rates.

The scheme also aims to reduce the dependence on imported coal and promote domestic industries. This scheme is expected to help the states that are facing power shortages and also help generation plants to increase their capacities.

Ministry of power launches scheme for procurement of aggregate power of 4500 MW

The Ministry of Power has launched a scheme for procurement of aggregate power of 4500 MW on competitive basis or five years on Finance, Own and Operate (FOO) basis under B (v) of Shakti policy.

PFC Consulting Limited (a wholly owned subsidiary of PFC Ltd) has been designated as the nodal agency by the Ministry of Power. Under the scheme, PFC Consulting Ltd has invited bids for the supply of 4,500 MW. The supply of electricity will commence from April 2023. The Ministry of Coal has been requested to allocate around 27 MTPA for this.

The utilities that have evinced interest for the scheme are Gujarat UrjaVikas Nigam Ltd, Maharashtra State Electricity Distribution Company Ltd, Madhya Pradesh Power Management Company Ltd, New Delhi Municipal Corporation and Tamil Nadu Generation and Distribution

Corporation Ltd. The last date for the bid submission is 21 December, 2022.

It is for the first time that bidding is being carried out under B(v) of Shakti scheme. At the same time, the revised PPA for medium term is being used in this bidding. This scheme is expected to help the states that are facing power shortage and also generation plants to increase their capacities.

Central Electricity Authority projects 9 per cent jump in peak power demand to 235GW in April 2023

Central Electricity Authority (CEA) on Tuesday said peak power demand may shoot up by nine per cent to 235 GW in April 2023 and called for proper planning to avoid recurrence of energy crisis. In April this year, the peak power demand was around 215GW.

The country had witnessed unprecedented coal demand from the power sector during the summer this year after COVID curbs were eased. Noting that the thermal power capacity of the country will go up till the transition period, he said the energy security for the country is the primary concern though India is committed to renewable sources.

Despite the fact that the total coal-fired power capacity will rise, its share in the total energy mix will reduce to 50 per cent from 75 per cent now, and in terms of installed capacity, it will shrink to 30-35 per cent, he said. Prasad stated that plans are afoot for plants with a total 30 GW capacity to be installed at coal mine pitheads amid logistics and cost concerns.

Have energy needs, no cut for coal phase-down: Power minister R K Singh

Asserting that it was wrong to expect India to start reducing its coal capacities, Union Power Minister R K Singh said the country will continue

to set up new coal-fired power plants to meet its growing electricity needs — making it clear the promised phase-down of coal will happen in terms of its declining share in the overall fuel mix and not as an absolute cut in existing capacities.

“As per the targets we have set for 2030, the fossil fuel capacity (in electricity generation) would come down from the current about 60 per cent to about 35 per cent. This is the phase-down. If you are talking in absolute terms, the numbers (installed capacity of coal) will go up because our demand (for electricity) is going up (between now and 2030). In percentage terms (as share of overall production), it will come down,” Singh said

PFC Consulting invites bids for supply of 4,500 MW power to state utilities

State-owned PFC Consulting Ltd has invited bids for supply of 4,500 MW power for five years beginning April 2023 to different utilities in states, including Delhi, Maharasthra, Madhya Pradesh, Gujarat and Tamil Nadu. The document seeking request for proposal floated by PFC also showed that five utilities have evinced interest for procuring as much as 3910 MW.

The utilities that have evinced interest for scheme are Gujarat UrjaVikas Nigam Ltd (1000MW), Maharashtra State Electricity Distribution Company Ltd (500MW), Madhya Pradesh Power Management Company Ltd (660MW), New Delhi Municipal Corporation (250MW), and Tamil Nadu Generation and Distribution Corporation Ltd (1500MW), it showed.

An official said that more states are likely to join the scheme and therefore the quantum of power supply has been kept higher at 4,500 MW. The supply of power under the power purchase agreement for medium term or five years must begin in April, 2023. The last date for the bid submission is December 21, 2022. After completing the bidding procedure the letter of award for supply of power would be given in January, 2023.

India mulls plan to keep old power plants running for longer

India is discussing a plan to keep old power stations running for longer, arguing that they’re needed to meet demand until enough energy storage can be built. Continued operation of the plants which have already completed 25 years of operation will be in the interest of the electrical grid, the Power Ministry said in a note for consultation.

Power companies would keep their aging plants in a separate “pool" if the plan goes ahead, according to the ministry’s note. States wishing to buy electricity could then request supplies from the pool.

The power plan would help plants that produce expensive electricity -- such as gas-fired units and coal generators located far from mines -by pooling them with those supplying cheaper energy. It would also allow the government to revive some gas-power capacity that will be key to keeping the grid stable as we inject more solar and wind energy.

SC directs all state electricity regulatory panels to frame norms for fixing tariff

The Supreme Court has directed all state electricity regulatory commissions to frame regulations under the law prescribing terms and conditions for determination of power tariff within a period of three months. The important direction from the top court came in a verdict by which it dismissed the appeal of TATA Power Company Limited Transmission (TPC-T) against a judgement of the Appellate Tribunal for Electricity (APTEL) which had upheld the grant of electricity transmission license to Adani Electricity Mumbai Infra Limited (AEMIL).

"We direct all State Regulatory Commissions to frame Regulations under Section 181 of the (Electricity) Act on the terms and conditions for determination of tariff within three months from the date of this judgment," the court said.

While framing these guidelines on determination of tariff, the Appropriate Commission shall be guided by the principles prescribed in Section 61, which also includes the NEP (National Electricity Policy) and NTP (National Tariff Policy 2006), it said.

The MERC and APTEL have arrived at concurrent findings that the 1000 MW HVDC (High Voltage Direct Current) Aarey-Kudus project is an 'existing project' for the purpose of the applicability of the GoM's GR (Government of Maharashtra's Government Resolution) 2019. This Court deciding a statutory appeal under Section 125 of the Act cannot interfere with the concurrent findings on a question of fact. Nonetheless, even on an independent assessment of the facts, the HVDC project is an existing project," Justice Chandrachud, writing the judgement for the bench, said.

RENEWABLES

India’s electricity shortage erased by renewables growth: Kemp

India’s electricity transmission system passed the difficult post-monsoon period this year with far less stress than in 2021, following a major effort to improve coal stocks and a big expansion of renewable generation capacity. Grid frequency fell below the minimum target of 49.9 cycles per second (Hertz) just 5% of the time in October 2022 compared with 11% of the time a year earlier.

There was no repeat of the widespread blackouts which plagued many parts of the country in late September and early October last year when coal-fired power plants ran short of fuel and were unable to keep up with demand.

The result was less pressure on coal, gas and diesel generators, leaving more reserves to meet daily peaks and temperature-related variations in demand. Hydro, wind and solar supplied 25.4% of all electricity consumption in October,

up from 22.8% twelve months earlier. Total installed solar and wind generation capacity increased to 119 Gigawatts (GW) from 103 GW over the period. It can be said that renewables are starting to bend the curve of coal consumption for power generation and reduce the future trajectory.

India to develop SMR with up to 300 MW capacity for Clean Energy transition: Singh

India is taking steps for development of Small Modular Reactors (SMR) with up to 300 MW capacity to fulfill its commitment to Clean Energy transition, said Union Minister of state for Science and Technology, Jitendra Singh. He added that the exploration of new clean energy options is in tune with Prime Minister Modi’s roadmap for clean energy transition through bold climate commitments.

He said that India has already taken steps for clean energy transition with penetration of nonfossil-based energy resources and achieving net-zero by 2070. “Nuclear in terms of base load power can play a big role in the de-carbonization strategy. It is in this context that the role of nuclear energy will be critical for clean energy transition of not just India but for the entire world."

The minister added that an impressive number of measures have been taken to promote renewable energy in the country. “India today stands at number four in the RE installed capacity across the world, after China, Europe and United States. “These measures also conform to the Prime Minister’s ‘Aatmanirbhar Bharat’ goal, where India contributes significant value to global value chain."

India ranked 8th on Climate Change Performance Index 2023

India, the world’s third largest energy consumer, has jumped two positions higher and is now ranked at the eight spot in the Climate Change

Performance Index (CCPI) 2023.

India rose two spots to rank 8th in this year’s CCPI and earns a high rating in the greenhouse gas (GHG) emissions and energy use categories, with a medium for climate policy and renewable energy. It is on track to meet its 2030 emissions targets (compatible with a well-below-2°C scenario).

Power Minister RK Singh highlighted that India’s CCPI ranking is a testimony to the leadership shown by Prime Minister NarendraModi towards addressing global climate change despite pandemic and tough economic times.However, the index pointed out that India’s renewable energy pathway is not on track for the 2030 target. Since the last CCPI, India has updated its Nationally Determined Contribution (NDC) and announced a net-zero target for 2070.

.Rooftop solar capacity installa

-

29 pc to 320 MW in JulSep: Mercom report

tions fall

Rooftop solar capacity installations in India fell 29 per cent to 320 megawatt (MW) in July-September 2022, according to Mercom Research India. The country added 448 MW rooftop solar capacity in the same quarter a year ago.

India

solar manufacturers to bid for $2.4 billion in aid

India is looking for takers for $2.4 billion in government aid it’s offering to stimulate domestic manufacturing of solar power equipment.

The state-run Solar Energy Corp. of India is seeking bids from solar manufactures for 195 billion rupees of financial incentives, according to documents published on the agency’s website. The government is seeking to grow the country’s module- making capacity to as much as 90 gigawatts, enough to meet its own requirements and serve export markets.

Reliance Industries Ltd. and Adani Group, industrial giants run by billionaires MukeshAmbani and GautamAdani, were winners in a previous round of solar manufacturing incentives and are eligible to apply again for building additional capacity, the bid documents show.

The financial assistance is part of Prime Minister NarendraModi’s plan to turn the nation into a manufacturing powerhouse, creating jobs and reducing imports. The focus on local production also helps India position itself as an alternative to China amid a global push to diversify supply chains in the in the wake of the pandemic

During January-September, the installations at 1,165 MW were also down 11 per cent compared to 1,310 MW in the corresponding ninemonth period of the last year. In the third quarter of 2022, 46 per cent of rooftop solar capacity was installed in the industrial sector, followed by 32 per cent in residential, commercial 21 per cent and the remaining in the government sector. According to the report, at the end of Q3 2022, cumulative rooftop solar installations reached 8.3 GW.

The tendering process increased 46 per cent year-on-year to around 311 MW of rooftop solar projects in July-September 2022, of which 33 per cent were announced by the Uttar Pradesh New and Renewable Energy Development Agency, 16 per cent by Solar Energy Corporation of India (SECI) and 51 per cent by other state agencies. Gujarat became the leading state with the highest rooftop solar installations, followed by Maharashtra and Rajasthan. The top 10 states accounted for approximately 73 per cent of cumulative rooftop solar installations.

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Union Power Minister R.K. Singh assured Arunachal Pradesh Deputy Chief Minister Chowna Mein that the Union government would soon approve an investment of Rs 32,000 crore for the 2,880 MW generation capacity Dibang hydroelectric project in the state, officials said. Through interventions like local area develop-

wants

Centre to approve Rs 32K cr investment for 2,880 MW Hydropower project in Arunachal Pradesh

ment, associated economic activities and liberal relief and rehabilitation policies, these projects would bring in an all-round development of the area. These projects would also ensure a major flood moderation in Arunachal Pradesh, thereby avoiding damages worth hundreds of crores. A clear timeline was fixed to develop these projects. The memorandum of agreements with central PSUs for five projects with 2820 MW capacity would be ready for signature in a month's time. In addition, six projects with 6063 MW capacity would be ready for investment in the next one year.

If well planned and supported, Arunachal Pradesh has a potential to contribute 10 per cent of this target through its hydro potential. The free supply of power to the state, coming from the 600 MW Kameng project which was dedicated to the nation by the Prime Minister on November 19. 2000 MW lower Subansiri hydropower project would be commissioned soon through which the state will get Rs 400 crore per year and Rs 70 crore in local area development, the statement said.

India to pitch for international biofuels alliance at G20:

Hardeep Singh Puri

India at the upcoming G20 meeting plans to pitch for a global alliance on biofuels on lines of the highly-successful international solar alliance, Oil Minister Hardeep Singh Puri said. India, the world's third largest oil-consuming and importing nation, is now pushing for greater use of biofuels extracted from sugarcane, cereals and agri waste as a means to cut reliance on crude oil.

With nations from Brazil to the US producing biofuels, the alliance would look to develop an ecosystem for fuel standards and engines and collaboration on technology for faster adoption. Puri said India is already using petrol mixed with 10 per cent ethanol extracted from sugarcane

and other agri products (90 per cent petrol, 10 per cent ethanol).

India imports 85 per cent of its oil needs and doping ethanol with petrol is aimed at reducing the import dependence. Also, biofuels have lesser emissions and aid in meeting carbon goals. Puri said India is diversifying its oil import basket, tapping newer supply regions. From buying oil from 27 nations, the basket has now expanded to 37, he said.

Draft tender document for offshore wind project ready

The Union Ministry of New and Renewable Energy (MNRE) has published the draft tender document for offshore wind energy projects in Tamil Nadu, and has invited comments from prospective bidders before November 18.

According to the tender document prepared by the National Institute of Wind Energy (NIWE), offshore wind power developers (OWPD) will be selected for leasing of sea-bed areas equivalent to 4,000MW of offshore wind power projects off the coast of Tamil Nadu through international competitive bidding.

“Specific identified offshore wind sub-blocks B1, B2, B3, B4 and G1 off the coast of Tamil Nadu in the Gulf of Mannar will be leased out for offshore wind project and the selected developer will have the exclusive rights over the allocated sea block to carry out required study survey and subsequent project development in accordance with this tender and lease agreement,” reads the draft tender.

A Tangedco official said that it will take at least six years to complete the project. “The MNRE wants to evacuate the energy generated from off-shore wind mills to the central grid, but we have been objecting to it. We want it to be linked to the state grid,” said the official.

DOMESTIC COAL

Why India needs to focus on unlocking underground reserves of coal India accounts for 12.5% of global coal consumption. Close to 70% of the country's electricity generation is coal-based. India's dependence on coal will continue for a few more decades. Phasing out coal abruptly will be difficult due to the lack of cheaper and cleaner alternatives.

Although cleaner renewable energy sources are on the rise (108.5 billion units), coal-based power generation (574.2 BU) still outweighed

them by 5.3X in the first half of FY23. Environmental interests, among other concerns, push Coal India Limited (CIL) to unlock its trapped underground (UG) reserves as a green mining option. If untapped, these resources would be lost forever.

UG coal is superior in quality compared with OC and reduces the import burden for higher grades of coal. UG mining is minimally invasive on land, detours land acquisition, avoiding its degradation, environmentally clean, and is society friendly.

The silver lining is that several new mass pro-

duction technologies (MPT) are now available that makes UG production economically viable and eco-friendly. In an encouraging sign, in FY22 four UG mines of SECL and one from ECL turned profitable due to the deployment of MPT.

Transition refers to minimising greenhouse gas emissions: Coal India chief

Coal India Chairman Pramod Agrawal on Tuesday said India will continue to depend on coal to meet its power demand in the coming decades and stressed that energy transition means transition to a world where greenhouse gas emissions are reduced to a minimum. He also called for a transition to a world where energy is equitably used.

“Today, more than 70 per cent of our energy is produced by coal… So, coal is there and coal will survive in the country for decades to come. When we are talking about transition, it is not from non-renewable sources to renewable ones.”

He stressed on the need for improving efficiency of coal use to make the value chain more sustainable. India’s per capita consumption is 1,208 units in a year, while it is about 5,900 units in China. The world average is more than 3,000 units, he said.

Government offers Coal India flexibility to levy mine closure costs

Coal India Ltd has been given freedom to pass mine closure costs on to consumers. The Maharatna PSU may consider "levying an additional fee on per tonne basis to be paid by the coal consumers to meet the cost of mine closure with the approval of the board and to provide funding for those subsidiaries which are not

able to fund the closure of these mines, an official said. However, the company has not taken any decision about levying such charges on coal sales as of now.

The Kolkata-headquartered company has created a provision of Rs 7,238 crore as on March 2022 and incurred Rs 494 crore on mine closure during 2021-22, its annual report stated. The miner had produced 622 million tonnes of coal in 2021-22 and was pursuing a target of 700 million tonnes in the current fiscal.

"As per guidelines, typically mine closure cost is around Rs 9 lakh/hectare for open cast mines and Rs 1.5 lakh/hectare for Under Ground (UG) mines. Adequate provisions are made in the mining plan and the closure cost is deposited in an escrow account opened for the purpose. It is utilised during the life period of the mine," a CIL official said.

India-Australia FTA exempts coking coal import duty

India's imports of coking coal from Australia will be exempt from a 2.5pc import duty with a free trade agreement (FTA) between the two countries finalised on 22 November.

India last week announced that it will roll out a 2.5pc import duty on coking coal, at the same time the country removed taxes on steel exports. The revisions came six months after the country had removed the import duty on coking coal because of a record rise in prices that weighed on steel mills' margins.

Australia accounted for 67.5pc of India's coking coal imports during January-September this year against 81pc share in the same period last year. Cheaper Russian cargoes and tighter supplies from Australia this year has brought down the share of Australian coal among Indian buyers.

Coal India clocks 400 MT production in record time

Coal India Limited (CIL) has clocked its quickest 400-million-tonne coal production for any fiscal year in the state-run company's history, it said on November 25. CIL also added that it expects coal production to further increase in the coming months to hit its target of 700 MT in FY23.

Nationally, the coal ministry has projected a production of 900 MT in this fiscal, a feat which has not been achieved until now. This comes at a time when India has renewed its thrust on using coal for electricity generation as globally cost of oil and gas has skyrocketed owing to the Ukraine-Russia war and global inflation.

The company’s accelerated production brought down the asking annual growth rate to 6.9 percent from 12.4 percent at the year’s start. All the subsidiary companies of CIL sustained doubledigit production growth since the beginning of FY23 compared to preceding fiscal.

at $321 in September. The prices are expected to remain elevated owing to the heightened geopolitical tensions.Domestic coal production too hit a fresh high. Production in the first half crossed 380 million tonnes, a jump of 21 per cent.

Union Minister Prahlad Joshi to Push for Coal Mining in Northeast India

Prahlad Joshi, the Union Minister of Mines, Coal and Parliamentary Affairs was present for the 1st Northeast Geology and Mining Ministers' Conclave and made some announcements regarding the mining sector in the region.

The meeting was held in the Niathu Resort of Chümoukedima. And the Union Minister announced the release of an amount of Rs 5 Crs. This fund will be utilized for exploration of coal and to add strength to this department.

Coal

imports

up 25% despite high output

Despite coal production hitting a new high in the first half of FY23 and international prices remaining elevated, coal imports grew 25 per cent.

Between April and August, coal imports went up to 115.9 mlliontonnes against 92.5 mt in the same period last year, registering a 25.3 per cent growth. The increase is mainly driven by noncoking coal, which forms more than 65 per cent of India’s coal imports. Non-coking coal imports grew to 80.6 mt against 60.9 mt, as per Care Ratings data.

Coal imports have increased despite the surge in international coal prices. As of July 2022, the global benchmark had crossed its all-time high price of around $300 per tonne in April and had reached $329 per tonne in July, before settling

He mentioned that he has an expectation of good performance and results from the Northeastern states in the direction of coal exploration. He also announced further financial support to states which can submit reports of exploration and needs more money to continue.

He asked the state governments to take up necessary steps towards proper land acquisition and compensation towards the goal. He also mentioned the rising demand for power and its doubling till the year 2040. He also mentioned the top priority for development of Northeast under the Prime Minister's agenda with the focus point of India's 'Act East Policy'.

Coal ministry launches biggest ever coal mine auction of 141 mines

Union Finance Minister NirmalaSitharaman on November 3 launched India’s biggest ever coal mine auction comprising 141 mines in as many as 11 states with a cumulative peak rate capac-

ity (PRC) of 305 million ton (MT).Sitharaman, however, urged investors to also focus on coal gasification simultaneously as the Government of India is set to release aRs 6,000 crore production linked incentive (PLI) scheme. Coal gasification is a process in which coal is partially oxidised with air, oxygen, steam or carbon dioxide to form a fuel gas (syngas). It is a cleaner option than burning coal.

As per the coal ministry, of the 141 mines that were put up for auction in the sixth round of commercial auctions, 71 are new coal mines, 62 were rollovers from the previous tranches, and eight were a second attempt of the fifth round of commercial auctions as they had earlier received single bids.

Union Coal Minister Pralhad Joshi said that since June 2020 till November 2, the government has auctioned 64 coal mines having a PRC of 152 MT and that a few of them will start operations from this year itself. He, however, did not cite the number of captive coal mines that would be commissioned this year. These 64 mines are expected to bring investments of Rs 22,862 crore and has generated direct or indirect employment to about 200,000 individuals, he said.

Coal India surpasses FY'23 green cover target

In the last five years till March this year, 4,392 hectares of greening inside the mine lease area has created a carbon sink potential of 2.2 lakh tonne per year, the PSU said.

Coal India, the world's largest miner, which is scrambling to meet an optimistic coal production target of 700 million tonnes, has said it exceeded the annual target of green coverage by mid-November. Coal India's plantation of 1,526 hectares as of November 15 has exceeded the FY'23 annual target of 1,510 hectares achieving 101 per cent target satisfaction, it said.

The plantation area of Coal India grew by 77 per cent so far over 862 hectares of FY'21. In the last five years till March this year, 4,392 hectares of greening inside the mine lease area has cre-

ated a carbon sink potential of 2.2 lakh tonne per year, the PSU said. ''Coal India supports India's commitment of Intended Nationally Determined Contributions and aims to become a net-zero company by FY 2027,'' company chairman Pramod Agrawal said. The company has planted over 30.42 lakh saplings during FY'22 expanding the green cover in mining areas to 1,468.5 hectares.

SHIPPING

Port infrastructure may get Rs. 2 lakh crore upgrade to ease logistics pain

India is eyeing an about 2 lakh crore upgrade of its port infrastructure, in a major push to ease bottlenecks in logistics. As many as 298 projects, including for road and rail connectivity to ports, have been identified under the plan.

Under the port connectivity master plan, 63 non-major ports, 13 major ports (including the under implementation Vadhavan port), and 11 multimodal terminals and river ports are being considered. Of the total projects, 161 are road projects and 132 are rail connectivity projects.

Out of these, 60 road and 42 railway projects have been identified as critical infrastructure gap projects. These supplement the 191 projects under the Sagarmalaprogramme, a port connectivity improvement exercise started in 2015. The road projects entail a cost of 75,432 crore while the cost of rail connectivity projects is pegged at 76,713 crore. The ports of Paradip, Visakhapatnam, and Kolkata have been accorded the highest priority with most projects in these connectivity plans.

Paradip Port witnesses surge in coal handling

Paradip Port has witnessed a surge in coal handling on the back of an increase in coastal ship-

ping of thermal coal and imports of thermal and coking coal from other countries due to higher demand.

According to P L Haranadh, Chairman of Paradip Port Authority, coastal shipping of thermal coal is up by nearly 60 per cent so far this year and expected to cross 40 million tonne (mt) as against 28 mt during last year. Coal imports from countries such as Australia, Indonesia and South Africa has also been happening in a big way.

A massive jump in coastal shipping of thermal coal because our rates are cheaper and we have been able to create the necessary operational ease. The capacity to handle at our terminals has increased to close to around 55 rakes now as compared to around 20 rakes earlier.Paradip Port has brought about substantial improvement in operations, thereby enabling better traffic handling. The overall productivity of the port has gone up to around 30,000 tonnes a day as against close to 25,000 tonnes a day earlier.

markets. The minister recently directed the steel companies to invest in research and development activities to make new special-grade products in the country. The move will help boost the domestic consumption of various grades of steel, he added.

Govt preparing 'coking coal mission' to diversify raw material sources: Steel minister

The government is preparing a 'coking coal mission' to diversify the sources of key steel making raw material, for which the country is heavily dependent on imports, according to Union ministerJyotiradityaScindia.

The mission is part of the government's efforts to reduce dependence on imports for coking coal and increase use of locally available coal in the steel making through gasification process, the steel minister said. On coal gasification, he said the government is eyeing to set up a coal gasification plant with an annual capacity of 100 million tonnes (MT).

Export duty removal will boost business sentiments of steel industry: Union Minister

Duty-related measures taken by the government will boost the business sentiments of the domestic steel industry, Union Minister Faggan Singh Kulaste said on Thursday. Six months after the imposition of the export duty on May 21, the government has removed the levy on steel items to nil with effect from November 19, 2022.

"The move will boost business sentiments of the steel makers. It will also boost the demand and investments in the sector," the Minister of State (MoS) for Steel said.

Kulaste, who is also the MoS for Rural Development, said the players will now utilise their capex (capex expenditure) without any "fear" as they have opportunities in the local and global

India imports around 90 per cent of its coking coal requirement. The coal produced within the country has high ash content, the minister said. Coal with high ash content is not suitable for steel making through the blast furnace route. The steel ministry held several discussions with the ministries of coal, mines, home, and commerce and industry, and finally the finance minister pursuant to which the government has taken the judicious decision, he said.

Tata Steel bets on strong demand for better H2 margin

Tata Steel’s profit slumped 90 per cent in Q1FY23 but Koushik Chatterjee, executive director & CFO of the company, tells The Telegraph that margin improvement in the second half is possible in India. He also talks about energy transition in the UK and Netherlands, the future of British Steel Pension Scheme, the deleveraging journey and the benefit from expansions.

Tata Steel faced headwinds both in India as well as Europe, resulting in sharp drop in profit. How do you expect the third and fourth quarter to play out in terms of margins?

Tata Steel’s India business is one of the most competitive in the global steel industry. In the quarter gone by, we have sold a record 4.73 million tonnes(mt), which also demonstrates the strength of our distribution and market reach in a challenging market. So at the operating level we had a good quarter in India.

However, there was a confluence of adverse factors as we had an opening inventory which had high embedded costs because of coal imported in the previous quarter; and the price realisation on steel sales in the market was significantly lower than the previous quarter.

ability of labour after the end of the festive season should help. Prospects over the medium term also are seen in a positive light. Government infrastructure investments are also expected to drive cement demand, since calendar year 2024 will be an election year

Cement companies to attempt price hike of Rs 10-30/bag

Cement companies are likely to increase the price between Rs 10 and Rs 30 per bag in November, said Emkay Global Financial Services Ltd.The cement prices were increased by nearly Rs 3-4/bag last month.

Cement firms hope for better demand, price after dismal Q2

After a forgettable second quarter when margins dipped to multi-quarter lows, respite is on the horizon for cement manufacturers as cost pressures ease. However, pickup in cement demand and sustenance of price hikes are key to earnings improvement, analysts said.

Still, cement prices and demand hold the key to earnings prospects of manufacturers. October saw some impact of the festive season and, hence, cement price improvement was limited. October demand was down 3-4% year-on-year and 7-8% month-on-month, but up 5% on a three-year compound annual growth rate, according to MotilalOswal.

Cement prices improved in south, east and west but remained flat in north and central parts of India in October. Manufacturers have announced further price hikes of ₹15-20/bag across regions in November, said analysts; however, absorption of these price hikes by consumers needs to be monitored.

Demand data for December will be scrutinized, though analysts believe that the improved avail-

Emkay Global in a recent sectoral report said the average pan-India cement price increase was about Rs 3-4/bag in October 2022.On a monthon-month (MoM) basis, prices rose by 2-3 per cent in the East and South, and about one per cent in the West; while declining 1-2 per cent in the northern and central regions, the report said.

"Cement companies are attempting price hikes of Rs10-30/bag across regions in November 22. Absorption of these price hikes will be uncovered over the next few days," IANS quoted Emkay Global as saying.

Industry volumes likely to have declined by a high single-digit YoY and a low double-digit MoM, in October 22, owing to a high base, as the festive season was spread across OctoberNovember last year.According to the report, a delayed exit of monsoons and labour shortage owing to festive holidays impacted demand in October 22.

The cost pressure is expected to ease in coming quarters for the industry players and the industry margins are expected to bottom out in Q2, with peaking of costs, higher exit of cement prices and pick-up in construction activities in coming quarters, said Emkay Global.The international petcoke prices are down by about 30 per cent from the peak of $195/tonne. Further the dip in the fuel prices are expected to provide cost savings of at least Rs 150-200/tonne from Q3FY23, Emkay Global said.

CEMENT

GLOBAL

The World Bank awards $497 million to South Africa to move away from coal

The World Bank said that South Africa, a significant emitter of greenhouse gases and a country struggling with its energy transition, had been awarded $497 million to convert one of its old coal-fired power plants. The continent's leading industrial power, gets 80% of its electricity from coal, a pillar of the South African economy employing nearly 100,000 people.

However, the country is plagued by continuous power cuts, with debt-laden state-owned Eskom unable to produce enough electricity with aging facilities that are on average 41 years old and poorly maintained.

South Africa last year secured $8.5 billion in loans and grants from a group of rich countries to finance the transition to greener alternatives. According to the World Bank, the country needs

at least $500 billion to achieve carbon neutrality by 2050.

Countries like the US, the UK, Spain, and Canada lead the way in quitting coal

Countries leading the coal exit such as the US, UK, Germany, Spain, and Canada have often had access to relatively cheap alternatives. They are able to finance new energy infrastructure and support workers and communities in coaldependent regions. Coal-dependent countries like China, India, and Bangladesh also need to rapidly manage the growing energy demand.

Transformation with regards to coal is not just about phasing out polluting sectors, it is also about creating new jobs, new industries, new skills, new investment, and the opportunity to create a more equal and resilient economy.

Canada strengthened support for closing all coal-fired power stations by 2030 by working closely with coal-dependent communities and providing integrated investment, infrastructure, training, and employment packages.

Researchers have reviewed the policies of nations working towards transitioning from coal and have provided guidance in this regard. Strong proactive and collaborative leadership Governments quitting coal in a rapid, just and orderly manner have commonly employed a proactive, collaborative, and well-coordinated mix of demand and supply-side policies.

South Africa is not ready to dump coal, says DlaminiZuma

NC NEC member and presidential hopeful NkosazanaDlaminiZuma took a jab at the Western countries and criticized them for bullying South Africa into dumping coal in favor of renewable energy. This comes after President Cyril Ramaphosa’s utterances in Egypt at the COP27 conference where the president said South Africa was planning on closing a number of aging coal-fired power stations as part of the country’s energy transition process.

Ramaphosa had also announced that a number of European countries would be investing sizeable amounts of money in the process. DlaminiZuma said it was ironic how some of these Western countries were pushing for South Africa to stop the use of coal in favor of renewable energy while their economies were built on the use of coal.

Zuma stressed the importance of using innovative cleaner ways of producing energy through coal. She said that they have coal power stations in Japan which are very clean, so the effort should be made towards technology like the Pebble Bed Modular Reactor that was used earlier but abandoned and taken by other countries.

South Africa must find technological solutions to lower carbon emissions

South Africa must find technological solutions that can maximize the usage of minerals such as coal with "minimal carbon" emissions, said Mineral Resources and Energy Deputy Minister, Dr. NobuhleNkabane.

The Deputy Minister emphasized that less developed countries need to make considered choices for their Just Energy Transitions. She added that if the situation is not handled properly by the countries of the South in general and Africa in particular, they risk aggravating energy poverty amongst economies and communities that have not benefitted from the previous energy transition that caused climate change.

The minister also stressed that South Africa remains committed to the Paris Agreement, an international climate change treaty. She said that they have submitted Nationally Determined Contributions that demonstrate a high ambition to partake in the global agenda to arrest climate change. Turning to the exploration of oil and gas, Nkabane said this remains a key area for South Africa, especially in the context of the current energy crisis in Europe.

Indonesia raises power sector’s 2023 coal requirements to 161.15 mil mt

The Indonesian government has requested thermal coal miners to supply 161.15 million mt to the country’s power producers in 2023.According to a letter to miners seen by S&P Global Commodity Insights. Indonesia’s ministry of energy and mineral resources prepared a list of 125 miners and each of their specific requirements ranged from volumes to coal grades and other areas. Industry sources said these projections were based on the discussions between the ministry, PLN, independent power producers, and miners, which will allow these stake-

holders to plan for the coming year.

The coal demand from the power sector was projected at 127 million mt for the year, at the beginning of 2022. PLN’s demand was initially projected at 64 million mt. however, the company requested for an additional 5.4 million mt and 2.2 million mt of thermal coal from the ministry in July and August, respectively. This marked a yearly increase in coal demand projection of 26.7% from Indonesia’s power sector.

Indonesia introduces methods to retire coal plants

Indonesia is looking at taking baby steps toward making the country’s net-zero emissions goal successful. The country introduced three schemes to axe coal-fired power plants early. As per the optimistic views of experts, stakeholders would be able to move forward with the plan despite the long-drawn process.

State-owned electricity monopoly PLN’s director of corporate planning and business development HartantoWibowo, introduced three options to retire coal-fired power plants earlier. PLN and state-owned coal miner PT Bukit Asam signed a principal framework agreement (PFA). The PFA, aimed to technically cut its operational life from 24 years to 15 years. The PFA would be followed by Bukit Asam’s acquisition of PLN’s PelabuhanRatu coal-fired power plant.

ElrikaHamdi, an energy economist with the Institute for Energy Economics and Financial Analysis (IEEFA), said challenges to implementing the deal would include the complex valuation process and the coal mining company’s financial condition.

In a bid to ensure market supply and stabilize prices, China has expanded long-term thermal coal supply contracts for 2023 to all coal mines and asked power utilities to source more of their demand through those contracts.

The world's second-biggest economy relies mainly on coal to generate 60% of its electricity Chinese President, Xi Jinping, has repeatedly emphasized the significant role of fuel. All coal mining firms, and coal-fired power, and heating plants will fall under long-term contracts, a document issued by the National Development and Reform Commission (NDRC). The expanded coverage aims at reducing coal supply in the spot market ensuring better supply to power utilities, and avoiding a repeat of a nationwide coal shortage that led to unprecedented power outages in 2021.

The state planner is maintaining the benchmark price for coal with an energy content of 5,500 kilocalories at 675 yuan ($92.76) a tonne for the 2023 term contract. Firms that failed to honor their contracts will have their support in new capacity approvals, rail transportation, and financing reduced.

China's Largest Port for Coal Transportation Huanghua Port Launches Foreign Trade Container Route

Huanghua Port, China's largest port for coal transportation, inaugurated a foreign trade container route. The route will open up a low-cost and high-efficiency marine thoroughfare for clients in the hinterland and is expected to meet the transportation needs of foreign trade. The route will reduce the logistics cost, promote the growth of regional economic trade, and greatly enhance the capability of Huanghua Port.

Huanghua Port, located at Bohai Bay, realized a record high of 311 million tonnes of cargo

China expands 2023 coal term contracts to all mines and aims at stabilizing market

throughput last year and was among the world's top 20 ports regarding cargo throughput for five consecutive years. The port with a throughput of 100 million tonnes, is one of the most potentials among the Bohai Bay port group and is the country's largest port for coal transportation. In recent years, the port has established an information database of incoming ships and realizes the full coverage of the 5G network. The port has also automated the entire coal loading and unloading process and thus improved its overall efficiency by 10 percent.

Kang Yanmin, secretary of the Cangzhou Municipal Party Committee, said that Cangzhou, designated by the State Council as a coastal city with an open economy, is a significant city for the coordinated development of the BeijingTianjin-Hebei one-hour transportation circle and one of China's most dynamic cities.

Mongolia sells more coal to China even as the world shuns the polluting fuel

Mongolia sends 86 % of its exports to China, with coal accounting for more than half the total. It is upgrading its infrastructure in the hopes of selling even more to its southern neighbor. China is the world's largest polluter and has pledged to achieve carbon neutrality by 2060

. Chinese authorities ordered producers in spring to add 300 million tonnes of mining capacity this year, the equivalent of an extra month of coal production. Mongolia is keen on shipping 19 million metric tons of coal to China this year, according to research statistics, already exceeding 2021's 16 million total.

Government officials are hoping for Mongolia to surpass the record 37 million tonnes sent in 2019 and to keep supplying China with a steady stream of coal well into the next decade. Deputy mining minister, BatnairamdalOtgonshar said that coking demand won't decline in the next 10

years, but the technology may change. Batnairamdal is pushing for Mongolia to invest heavily in coal, and new railways to connect to China's ports and processing plants.

Australian government mulls coal price cap

Prime Minister Anthony Albanese indicated that government intervention on the coal price is likely. With Australia’s electricity prices tipped to skyrocket 56 % by the end of 2023, the Federal Government has long signaled it would move to drive down prices. One of the key factors to contain the price hike is to place a temporary cap on the price of coal.

Significant global issues like Russia’s invasion of Ukraine have seen coal prices soar to more than $US400 a tonne in 2022, leading to significant profits for coal producers. The government believes these prices have driven higher local energy prices. Albanese said there was a “sense of urgency” in helping to reduce soaring energy prices. “But we also have the sense of making sure that we get it right and get the detail right,” he said.

Part of that complex process is working with coal-producing states New South Wales and Queensland, whose support would be required to make any changes to pricing structures. Albanese said he was having discussions with state leaders and would see the premiers and chief ministers at a national cabinet meeting.

Peabody approves $140m redevelopment capital for Australia coal mine

US-based coal miner Peabody Energy has begun steps to redevelop its North Goonyella mine, a hard-coking coal longwall operation in Australia with more than 70 million tons of reserves.

The company announced an initial $ 140 million of redevelopment capital budget for further ventilation, equipment, conveyors, and infrastruc-

ture updates in anticipation of reaching development coal subject to regulatory approvals in the first quarter of 2024.

Development costs beyond the current boardapproved amount are estimated to be $ 240 million, allowing longwall operations to start in 2026. The project would benefit from substantial infrastructure and equipment in place at the mine including a new 300 m longwall system, a proven coal handling preparation plant, a dedicated rail loop for transport to the Dalrymple Bay Coal Terminal, and an accommodation village with housing and service amenities for more than 400 workers.

Industrial action threatens Australian coal exports

The Australian coal industry is facing increased industrial action, making it harder for firms to maintain production as they struggle with flooding that has already cut exports and added upwards pressure to already inflated coal prices.

Unions are pushing hard for improved working conditions, representation and wages, spurred on by inflationary pressures on their members, higher profits by coal mining firms, labor shortages, and changes in the federal government. Several mining firms, as well as a port service provider, are negotiating new enterprise agreements (EAs), with unions representing workers balloting their members on taking protected industrial action.

Australian-Japanese joint venture BHP Mitsubishi Alliance is facing potential strikes at its coking coal mines in Queensland after unionized workers voted for industrial action.

U.S. renewables to outpace coal and nuclear in 2022

Renewable energy sources like solar and wind will likely generate more power than coal and nuclear plants in the United States as per re-

ports. According to the report, wind and solar output are up 18% through Nov. 20 compared to the same time last year and have grown 58 % compared to 2019, according to the U.S. Energy Information Administration.

But doubts remain whether the growth of renewables will meet the 40% emissions reduction goal by 2030 set by the Biden administration. It has been observed that supply chain constraints and trade disputes have slowed wind and solar installations, raising questions about the United States’ ability to meet the emission reductions sought by the Inflation Reduction Act.

Despite the hundreds of billions invested in clean energy by the Inflation Reduction Act, it will take time to implement the new law and get new funding out to projects. Researchers at Princeton University estimate the country needs to install about 50 gigawatts of wind and solar annually between 2022 and 2024, or roughly double the 25 GW that the United States installed annually in 2020 and 2021.

Colombia to face the effects of tax reforms

Colombia, the world's fifth largest coal exporter, will next year have to address the effects of the country's recently approved tax reform, which, among other things, prevents mining companies from deducting royalty payments from their income tax bills. In addition to the economic effects that this will have on the coal industry, the sector is also facing the impacts of the global economic slowdown and further reforms that the government may carry out.

Former deputy minister of mines and current president of coal producers' federation Fenalcarbón, Carlos Cante, in an interview stated that the main challenge has to do with the global economic slowdown that will deepen in 2023 and will mean a decrease in volumes of energy

demand in general, so we will have to see the implications for thermal coal and also for steel production and its effects on metallurgical coal and coke.

One of the fundamental indicators of the decrease in the rate of economic growth at the global level is the demand for energy and steel, so we're uncertain about the depth of the recession and how the international trade volumes of both thermal and metallurgical coals will decrease, as well as the impact it will have on prices.

is popular with buyers in China, the world's biggest importer, and India, the second-largest, as it tends to be cheaper than other grades, even though it's lower energy.

Poland plans on delaying coal phase-out, looks at opening mines amid energy crisis

invasion period

The global thermal coal market has returned to where it was before Russia's attack on Ukraine, with prices for most seaborne grades dropping back to pre-invasion levels while volumes remain steady. Seaborne thermal coal prices spiked after the Feb. 24 assault on Ukraine, reaching record highs amid concerns over the loss of exports from Russia and Ukraine, as well as higher demand in Europe on fears of a shortage of natural gas for power generation.

Most-traded grades from top exporters Australia, Indonesia, and South Africa have in recent weeks fallen below or dropped close to, the preinvasion levels. Seaborne thermal coal volumes have also steadied in recent months, even if there has been a small realignment of flows toward Europe and away from Asia.

The exception to the return to normality is highenergy Australian thermal coal shipped from Newcastle, but while this remains a widelywatched grade in the media, it only covers a tiny part of the market and is focused on buyers mainly in Japan. Indonesian thermal coal

The ongoing energy crisis has led Poland to delay its plans to shut down existing coal mines. According to government ministers, the country plans to expand production and even open new facilities. Poland generates 70% of its electricity by using coal, making it by far the highest figure in the EU. One-third of Polish households are heated by burning coal, and the authorities have sought to reduce this figure.

Most of the coal burned in Poland is mined domestically. Under an agreement with unions, the government announced plans in 2020 to close all Polish coal mines by 2049. In an interview with TV Republika, climate minister Anna Moskwa stated that there was growing “demand for coal even before the outbreak of war” in Ukraine. As a result, “we are planning to increase production wherever possible and are also planning new [mining] locations”. Moskwa added that, although “nuclear energy is the future for Poland” – with the government currently finalizing plans to construct the country’s first three nuclear power plants – “until we are sure of this atom[ic] energy we will not shut down any coal-fired power plant”.

The government is aiming to build another plant in the near future. The state treasury has been on a quest to buy coal assets from state-owned energy firms as part of an effort to restructure the Polish energy sector by helping state firms more easily find financing for low- and zero-emission investments.

The seaborne thermal coal situation returns to pre-Ukraine

IN PARLIAMENT

GOVERNMENT OF INDIA MINISTRY OF COAL LOK

SABHA

Q. No. 17. COAL PRODUCTION 07.12.2022

SHRI SATYADEV PACHAURI: SHRI PRADEEP KUMAR SINGH:

Will the Minister of COAL be pleased to state: (a) the quantum of coal production target aimed to be achieved by the Government by the year 2024-25; and (b) the State-wise details thereof for the next three years including the quantum increase targeted for Uttar Pradesh and Bihar?

ANSWER

07/12/2022 regarding Coal Production.

(a): During the current financial year of 2022-23, the domestic coal production is estimated to increase by 17% to reach 911 MT from 778 MT achieved in the previous year. With different measures being initiated to ramp up domestic coal production, it is expected to increase the coal production in next three years substantially. The details are given below:

(In Million Tonne) Company 2022- 23 2023-24 2024- 25 2025- 26

CIL 700.00 760.00 850.00 1000.00

MINISTER

OF PARLIAMENTARY AFFAIRS, COAL AND MINES

(SHRI PRALHAD JOSHI)

(a)to(b): A Statement is laid on the table of the House. Statement referred to in reply to part (a) to (b) of Lok Sabha Starred Question No. 17 for answer on

SCCL 70.00 75.00 80.00 85.00 Captive & Others 141.00 162.14 181.60 203.39

Total 911.00 997.14 1111.60 1288.39

(b): The details of State-wise production plan of coal for next three years are given below:

(In Million Tonne)

State 2022-23 2023-24 2024-25 2025-26

(1) Chhattisgarh 201.32 224.11 250.70 287.71

(2) Jharkhand 165.38 184.27 217.52 263.34

(3) Madhya Pradesh 130.92 142.63 151.59 158.59

(4) Maharashtra 62.39 64.98 67.97 69.53

(5) Odisha 211.50 238.20 273.04 350.41

(6) West Bengal 36.68 37.95 42.96 47.17

(7) Telangana 69.82 72.50 75.30 78.14

(8)Uttar Pradesh 33.00 32.50 32.50 33.50

Grand Total 911.00 997.14 1111.60 1288.39

It may be noted that there is no production plan of coal in Bihar in the coming years upto 2025-26. Proposed Production plan of coal in UP is as given at Sl. No. 8 in the above table

Q. No. 131. COAL MINES

07.12.2022

SHRIMATI GEETA KORA: MS. LOCKET CHATTERJEE: SHRI SUNIL KUMAR PINTU: SHRIMATI NAVNEET RAVI RANA: SHRIMATI RITI PATHAK: SHRI DILESHWAR KAMAIT: SHRI RAMESH CHANDER KAUSHIK: SHRI AJAY KUMAR MANDAL:

Will the Minister of Coal be pleased to state that:

(a) whether the Government is considering to give final shape to the plan for closing down the coal mines; (b) if so, the details thereof; (c) the State-wise details of the coal mines closed during the last three years; (d) whether the Government has taken steps for ensuring the continuation of the livelihood of the persons dependent directly or indirectly on the mines closed due to exhaustion of stocks, inappropriate mining conditions and safety related issues etc.; and (e) if so, the details thereof and if not, the reasons therefor?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a) & (b): After 27.08.2009, coal mines are closed as per approved Mine Closure Plan and mines discontinued/abandoned/closed before 27.08.2009 will be closed as per the provisions contained in the "Guidelines for management of mines discontinued/abandoned/closed before the year 2009" issued by the Government on 28.10.2022.

(c): As per the existing Mine closure guidelines, after compliance of all mine closure activities in accordance with the approved mining plan, the mine owner has to obtain a mine closure certificate from Coal Controller. During the last three years, no mine of Coal India Ltd, Singareni Colliery Company Ltd and NLC India Ltd has been closed as per the existing mine closure guidelines issued by Ministry of Coal.

(d) & (e): All the mine closure activities are undertaken by the project proponent as per the approved mining plan and guidelines issued on 28.10.2022. For implementation of mine closure activities, dedicated amount as mentioned in the guidelines is deposited in the escrow fund for the whole life the mine. As per the existing guidelines, Entrepreneurship development (vocational/ skill development) Training is provided to affected people for sustainable income. During the closure of a mine, the direct employees of coal companies are transferred to nearby coal mines for continuation of their livelihood. Since the mining activities continue at the newly opened mine in the

adjacent areas of the closed mine, the indirect employees are also gainfully deployed in the adjacent mines for continuation of their livelihood.

Q. No. 298. NEW COAL-FIRED POWER PLANTS 08.12.2022

DR. PON GAUTHAM SIGAMANI:

Will the Minister of POWER be pleased to state:

(a) whether it is a fact that country may need upto 28 Gigawatts of new coal-fired power plants by 2032 to meet power demand that is expected to more than double from the current capacity and if so, the details thereof;

(b) whether it is also true that the said estimate is in addition to 25 Gigawatts of power plants under construction and if so, the details thereof;

(c) whether it is also true that country’s annual electricity demand could grow by an average of 7.2 per cent over the five years to March, 2027 and if so, the details thereof;

(d) whether it is also true that the share of coal in the country’s total power generation, however, is likely to fall below 60 per cent by 2027 and if so, the details thereof; and

(e) whether it is also a fact that the Government is targeting to add 500 Gigawatts in non-fossil-based installed capacity by 2030 and if so, the details thereof?

ANSWER

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY (SHRI R.K. SINGH)

(a) & (b) : According to Draft National Electricity Plan published in 2022 by Central Electricity Authority, the projected new coal capacity addition requirement during the period 2022-32 is 35,014 MW which includes under construction coal based capacity totaling to 25,580 MW.

(c) : The 20th Electric Power Survey (EPS) report, published in November 2022, covers electricity demand projection for the year 2021-22 to 2031-32 as well as perspective electricity demand projection for the year 2036-37 and 2041-42 for the country.

The estimated energy requirement and peak demand of the country from the year 2021-22 to 2026-27 is given in Table 1 and Table 2 respectively.

The CAGR (Compound Annual Growth Rate) from 2021-22 to 2026-27 for electrical energy requirement is 6.67% and for peak electricity demand is 6.42%.

Table 1: Electrical Energy Requirement (Ex Bus)

Year Electrical energy requirement (in MU)

2021-22 1381646 2022-23 1512918 2023-24 1600214 2024-25 1694634 2025-26 1796627 2026-27 1907835

Table 2: Peak Electricity Demand (Ex Bus)

Year Peak Electricity Demand (in MW)

2021-22 203115 2022-23 216966 2023-24 230144 2024-25 244565 2025-26 260118 2026-27 277201

(d) : According to Draft National Electricity Plan 2022, the share of Coal based generation in the total generation is likely to reduce to 58.9 % during the year 2026-27 from 72.3% during the year 2021-22.

(e) : Government has set Nationally Determined Contribution (NDC) target to achieve about 50 percent cumulative electric power installed capacity from nonfossil fuel-based energy resources by 2030.

Q. No. 166. POLICY FOR JUST TRANSITION FROM COAL 07.12.2022

Shri Pinaki Misra:

Will the Minister of POWER be pleased to state: (a) whether there is a plan to introduce a uniform

policy for Just Transition from Coal apart from the annual Action Plans;

(b) if so, the details along with the proposed deadline thereof;

(c) if not, the reasons therefor; and (d) the details of the number of coal mines that have been closed or abandoned between 2014 – 2022, State-wise?

ANSWER

MINISTER OF COAL, MINES AND PARLIAMENTARY AFFAIRS

(SHRI

PRALHAD JOSHI)

(a): No, Sir.

(b): Does not arise in view of the reply to part (a) above.

(c): In India, transition away from coal is not happening in foreseeable future. Although India is pushing for renewable/non-fossil based energy, but the share of coal in the energy basket is going to remain significant in years ahead. India is augmenting its coal production for meeting its increasing energy needs. Total coal consumption in India is yet to peak. The Economic Survey 2021-22 projects coal demand in the range of 1.3-1.5 billion tonnes by 2030 from the

current level of about 1000 MT. It is projected that coal demand will continue to rise and may peak around 2040. Thus, despite thrust on renewable, coal is going to continue as a primary source of energy to meet the growing development needs of India. (d): The details of the number of coal mines that have been closed/ discontinued/ abandoned between 2014 – 2022, State-wise is as given below (Provisional):

RAJYA SABHA

the number of blocks where the work has commenced?

ANSWER

Shri BRIJLAL:

Will the Minister of Coal be pleased to state:

(a) whether Government has formulated or been considering to formulate any policy to promote Coal Bed Methane (CBM) mining from coal mines;

(b) if so, the salient features and details thereof; (c) the funds sanctioned and released by Government during the current year, the details thereof; and (d) the quantum of gas targeted to be extracted by Government through CBM mining and the blocks allotted to the companies for extracting the gas, and

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) in respect of Rajya Sabha Starred Question No. 55 for reply on 12.12.2022 regarding Coal Bed Methane mining asked by Shri Brijlal. (a) & (b): Government of India had formulated Coal

Bed Methane (CBM) Policy in 1997, wherein CBM being Natural Gas is explored and exploited under the provisions of Oil Fields (Regulation and Development) Act 1948 (ORD Act 1948) and Petroleum & Natural Gas Rules 1959 (P&NG Rules 1959) administered by Ministry of Petroleum & Natural Gas (MoP&NG). Directorate General of Hydrocarbons (DGH) was made the nodal agency. Subsequently, MoP&NG had issued partial modification of CBM Policy, 1997 vide notification dated 8th May’ 2018 which outlined consolidated terms and conditions for grant of exploration and exploitation rights for CBM to Coal India Limited and its Subsidiaries from its coal bearing areas for which they possess mining lease for coal mining as it will also be deemed lease for CBM extraction.

(c): No funds have been sanctioned or released during the current year to promote CBM mining from coal mines. Investment in the CBM block is made by the respective Contractor of the block.

(d): Government of India (GoI) had launched CBM bidding rounds I to IV (2001, 2003, 2005 & 2008), out of which 8 Blocks are under operation and in the Production/Development phase. Total area of these 8 blocks is 2430 sq. km. In 2021, GoI had launched Special CBM Bid Round (SCBM-21) and awarded 4 CBM Blocks covering an area of around 3860 sq. Km. At present, 12 CBM Blocks are active, 5 of which are in the production phase, 3 in the development phase and 4 blocks (awarded during SCBM-21) are under the exploration phase. The status of awarded CBM Blocks is given

In addition, in CIL subsidiaries leasehold, one CBM block under BCCL leasehold area i.e. Jharia CBM Block-I has been awarded to M/s PEPL Ltd as CBM developer. This block is under exploration stage.

The total prognosticated CBM resource of the active CBM Blocks (12) is about 480 Billion Cubic Meters (BCM) of which 5.4 BCM CBM has been produced up to Oct-2022. The projection of CBM production from 12 active CBM Blocks up to FY 2024-25 is given below: Fig in Million Metric Standard Cubic Meters (MMSCM)

to participate.

(b) Foreign Direct Investment of Rs.119.19 crores in FY-2022-23 has been made for one coal mine located in Jharkhand.

(c) Government has reviewed the Foreign Direct Investment (FDI) policy in the coal mining on 18.09.2019 allowing 100% FDI under automatic route for sale of coal, coal mining activities including associated processing infrastructure subject to the provisions of the Coal Mines (Special Provisions) Act, 2015 and Mines and Mineral (Development & Regulation) Act, 1957 as amended from time to time and other relevant Acts on the subject. Associated processing infrastructure includes coal washery, crushing, coal handling and separation (magnetic and non-magnetic). DPIIT has circulated consolidated FDI policy circular 2020 vide OM dated 17.12.2020.

Government of India has now launched Special CBM Bid Round-2022(SCBM-22) with the offering of 16 CBM Blocks covering an area of around 5800 sq.km across 7 States.

Q. No. 521. FOREIGN DIRECT INVESTMENT IN COAL SECTOR 12.12.2022

SHRI JAYANT CHAUDHARY

:

Will the Minister of COAL be pleased to state :

(a) The details of the number of foreign companies that participated in the auction of coal mines since the first auction in the year 2020 and the companies that won the bid and currently working in this sector:

(b) The details of investments made under foreign direct investment in the sector, year-wise and statewise;

(c) The steps taken by Government to attract foreign investments in the sector;

(d) Whether all the operating coal mines have valid environment clearances, if not, the reasons therefor?

ANSWER

MINISTER OF COAL, MINES & PARLIAMENTARY AFFAIRS

(SHRI PRALHAD JOSHI)

(a) No foreign company is eligible to participate in auction for commercial mining as per extant policy. However, companies incorporated in India are eligible

Further, according to the Press Note 3 of 2020, the Central Government further amended the FDI Policy to prescribe a requirement to seek prior Government approval if such foreign direct investment is by an entity from a country which shares land borders with India or where the beneficial owner of such foreign direct investment into India is situated in or is a citizen of any such country.

(d) All the currently operating coal mines have valid environmental clearances for the part of the mine which is in operation. For a mine to become operational environmental clearance is mandatory.

Q. No. 520. IMPORT OF COAL

SHRI JAWAHAR SIRCAR:

12.12.2022

Will the Minister of COAL be pleased to state: (a) the amount and value of imported coal in the last five financial years and in the first half of the current FY;

(b) the average landed cost of imported coal via-a-vis the average price of the domestic coal, in the last 2.5 years;

(c) whether country’s failure to mine sufficient coal is responsible for imports entailing high foreign exchange outgo;

(d) the main exporting and importing companies/ agencies involved in the last 2.5 years; and (e) whether any of these are connected with a specific industrial group?

ANSWER

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

(SHRI PRALHAD JOSHI)

(a): The quantity and value of imported coal in the last 5 Financial Years and the first half of the current Financial Year are given below:

Year

Quantity in Million Tonnes

Value in Rs. Crore

2017-18 208.25 138476.98 2018-19 235.35 170920.49 2019-20 248.54 152732.06 2020-21 215.25 116024.05 2021-22 208.93 228741.85

2022-23 (April-September, 2022) 131.92 231378.38

(b): Import of Coal in India consists mainly of coking coal and high grade (GCV) coal which are essential as domestic production is limited. Prices of coking coal and high grade coal are normally higher than thermal coal. The average landed price of imported coal and the average bid price of the domestic coal are as follows:

(i) Landed price of imported coal

Year

Average Notified Price per tone (ex-colliery)

2020-21 Rs. 2206.97

2021-22 Rs. 2306.53

2022-23 (upto September-22) Rs. 2662.97

(ii) The average price of the domestic coal which is sold at notified prices as well as through auction for last 2.5 years is as follows:

Year

Average Notified Price per tone (ex-colliery)

2020-21 Rs. 2206.97 2021-22 Rs. 2306.53 2022-23 (upto September-22) Rs. 2662.97

(c): As noted in para-(b), India imports coking coal and other high GCV coal as domestic production is limited due to either scarce reserves or non-availability.

Imported coal based (ICB) power plants in the coastal region import coal as they are so designed. Some end-users/traders also import coal on commercial and logistic considerations as coal is under open general license (OGL) system.

(d): A list of Importers is given at Annexure-A. (e): The list of importers given at Annexure-A, contains names of many industrial groups.

List of some of the importers

SL. No. Name of importers SL. No. Name of importers 1 A L GENERAL METAL FZE 101 INDOMINING AND TRISENSA MINERALUTAMA AND MCT ASIA 2 A One Gold Singapore PTE LTD 102 ISS INDUSTRIAL CARBONS LTD 3 A T GLOBAL RESOURCES PTE LTD 103 Itochu Singapore Pte Ltd 4 Aaditya Energy Resource Pte Ltd 104 JACOBI CARBONS LTD 5 AARIZ TRAIDING AND CONTRACTING W L L 105 JAMES DURRANS AND SONS PVT LTD 6 AARNA RESOURCES PTE LTD 106 Javelin Global Commodities UK Ltd 7 ACIRL QUALITY TESTING SERVICES PTY LTD 107 JINAN COSAVE NEW MATERIAL CO LTD 8 ACTEST-ALS Coal Mackay 108 JSL GLOBAL COMMODITIES PTE LTD 9 ADAM AND COAL RESOURCES PVT LTD 109 JSW International TradecorpPte Ltd 10 ADAN GLOBAL PTE LTD 110 KASI GLABAL FZE 11 ADARO INTERNATIONAL SINGAPORE PTE LTD 111 Katie Prewitt 12 ADCOAL RESOURCES PTE LTD 112 KAY BEE FOUNDRY SERVICES PRIVATE LIMITED 13 ADITYAA ENERGY RESOURCE PTE LTD 113 KESTREL COAL SALES PTY LIMITED 14 Aegis Resources DMCC 114 Kideco Jaya Agung 15 AGRAWAL COAL CORPORATION S PTE LTD 115 KRU Overseas DMCC 16 Agro Energy Trading Pte Ltd 116 KTP EXPORTS PTE LTD 17 Al-General Metals FZE 117 LDI RESOURCES HK LIMITED 18 ALPHA METALLURGICAL COAL SALES 118 LI LINGOS CO LTD 19 AM COMODITIES DMCC 119 LOGAN AND KANAWHA LLC 20 AMIT ENGG WORKS 120 LOTUS RESORCES PTE LTD 21 ANAND CARBO PTE LTD 121 M RESOURCES

31

BHP BILLITON MARKETING AG SINGAPORE BRANCH 131 MOGAL METAL FOR SCRAP LLP 32

BinuangMitraBersama Blok Dua 132 Moranbah North Coal Sales Pty LTD 33 Black Sand Commodities 133 MS LOGAN AND KANAWHA LLC 34

BM ALLIANCE COAL MARKETING PTY LTD 134 MUJIBULLAH OBAIDULLAH 35

BORNEO HOLDINGS LTD 135 NAWID SAEEDI LTD 36

BRAMCO TRADING WLL 136 NCA MARKETING COMPANY PTY LIMITED 37 Bravo Sponge Iron Private Ltd 137 New Asia Commodities PTE LTD 38 BT MINING LIMITED 138 NINGXIA HENGTAI CARBONS CO LIMITED 39 Bureau Veritas Minerals Pty Ltd 139 Noble Resources International Pte Ltd 40

Calipar Trading FZE 140 NOBLE RESOURCES LTD 41 CARAVEL CARBONS LIMITED 141 ORION MINING PTY LTD 42 CARBON RESOURCES PRIVATE LIMITED 142 P T BARA DAYA ENERGI 43

CENTURY COMMODITIES SOLUTION

PTE LTD 143 PAN AISA TRADELING PTE LTD 44 CHAMP MERIT HK LIMITED 144 Panasia Resources DMCC 45 Coal and Natural Resources PTE LTD 145 PEABODY COAL SALES PACIFIC PTY LTD 46 Coal Energy 146 PlantCore Mining and Plant Hire PTY Ltd 47 Coal Fillers Inc 147 PRAKTIKA ENERGY RESOURCES TRADING FZE 48 COAL ORBIS TRADING GMBH 148 PTLANNA HARITA INDONESIA 49 COALICIAN GROUP LIMITED 149 R WOOD RESOURCES DMCC 50 Coaltrade services International pte Ltd 150 RAWMET RESOURCES PRIVATE LIMITED 51 COECLERICI COMMODITIES SA 151 RESCOM MINERAL TRADING FZE 52 Comet Pelli S R L 152 RICHARDS BAY TITANIUM PTY LTD 53 Consol Pennsylvania Coal Company LLC 153 RIPLEY COMMODITIES FZ LLC 54 Coral Energy DMCC 154

67

EXEN RESOURCES PTE LTD 167 SQA CARBON CO LIMITED 68 Exim Minerals SMCC 168 STANMORE SMC PTY LTD 69

EXPRESS WELL RESOURCES PTE LTD 169 STAR ASCENT ENERGY PTE LTD 70

FLAME ASIA RESOURCES PTE LTD 170 SUCOFINDO SUB CONSUMER IND 71 FOREVER SPRING INDUSTRIAL CO., LIMITED 171 Suek Ag 72 G D ImpexPte Limited 172 SUM CARBON PVT LTD 73

GEMS TRADING RESOURCES PTE LTD 173

SWISS ISNGAPORE OVERSEAS ENTERPRISES PTE LTD 74

GLASS GLOBES 174 T S Global Procurement Co Ptd Ltd 75

GLENCOERE INTERNATIONAL AG 175 TARFIGURA PTE LTD 76

GLOBAL METCORP LIMITED 176 TATA INERNATIONAL SINGAPORE LTD 77

GLOBULK DMCC 177 TAURAUS COMMODITIES GENERAL TRADING LLC 78

GOLDEN CORE TRADING LLC 178 TCPL Singapore Pte Ltd 79

GRM RESOUCES PTE LIMITED 179 TOHKEMY CORPORATION 80 GW COALORBIS Coal Distributin GmbH 180 TRADFIGURA ASIA TRADING PTE LTD 81 HAMPTON ROADS TESTING LABORATORY 181 Transcoalimpex private limited 82 HARWA GROUP LIMITED 182 TRANSNATION HOLDINGS PTE LTD 83 HC TRADING ASIA AND PACIFIC PTE LTD 183 VALE INTERNATIONAL SA 84 HewadBaghlanHotak Limited 184 VERLIN AG 85 HI LONGOS CO LTD 185 VIETNAM NATIONAL COAL AND MINERAL INDUSTRIES 86 HIGH SEAS SALE 186 VISA COMMODITTIES DMCC 87 HINENI RESOURCES PTE LTD 187 VISA MINMETAL LIMITED 88 HMS BERGBAU SINGAPORE PTE LTD 188 VITOL ASIA PTE LTD 89 HO LINGOS CO LTD 189 VULCAN MOZAMBQUE SA DOS DESPORTISTAS N 90 HORWA GROUP LIMITED 190 WANSHI INTERNATIONAL LIMITED 91 HPL GLOBAL PTE LTD 191 WELARCO COAL MINING 92 ICI Suisse SA 192 WESTERN ELECTRODES 93 IKWEZI MINING FZE 193 WINNER PALACE INTERNATIONAL INDUSTRIAL LIMITED 94 IME METALLURGICAL RESOURCES AG 194 Wollongong Coal Limited 95 IMI FUELS LLC 195 WONDER STAR TRADING LLC 96 IMR COMMODITIES DMCC 196 Yancoal Australia Sales Pty Ltd 97 IMR METTALLURGICAL RECOURCES AG 197 YARRABEE COAL COMPANY PTY LTD 98 INDIA COKE AND POWER PRIVATE LIMITED 198 YULS HK INDUSTRIAL LIMITED 99 INDIANO GLOBAL LLC 199 ZED TRADIN DMCC 100 INDO INTERTRADE AG 200 ZIJIN SINGAPORE INTERNATIONAL MINING PTE LTD

Indonesian Coal News:

*The Indonesian government is looking at allowing the construction of new coal plants, with a combined capacity of 13 gigawatts that have already been tendered out. The plan is laid out in the country’s 10-year energy plan for 2021-2030. Crucially, a 2022 regulation issued by President JokoWidodo allowed the construction of what’s known as captive coal plants, which are built specifically to supply certain industries and not to feed into the grid. Indonesia was the world’s fifth-largest greenhouse gas emitter in 2019, behind only China, the U.S., India, and the EU. Its emissions largely come from deforestation and the burning of coal, with the latter generating 61 percent of the country’s electricity.

*The United States and Japan will lead a group of counties that will offer $15 billion to Indonesia for retiring its coal power plants earlier and moving on to lower-carbon sources of energy. The deal will focus

on financing the closure of coal power plants and the cancellation of new coal generation capacity plans. Yet the funding appears to be just a drop in the ocean of finance needed if Indonesia is to retire all its coalgenerating capacity as the total amount of money needed to do that would come in at $600 billion.

Australian Coal News:

* The need for Queensland metallurgical coal is expected to increase despite global demand for coal continues to plummet by 2050, as per state government analysis. The IEA's report looked at three different scenarios for future coal demand to 2050. Queensland Deputy Under-Treasurer for Economics and Fiscal Dennis Molloy said the

government expected demand for metallurgical to remain strong, but the need for thermal coal used in electricity production would suffer. Queensland Treasury's report noted demand for metallurgical or coking coal would continue for some time due to the lack of current alternatives to coal in the steelmaking process.

*Prices for seaborne thermal coal from Australia have started to drop as fears of a winter energy crunch ease, but the rate of decline has varied across the different grades of coal. The often-cited Asian benchmark price of Australian coal at Newcastle port dropped last week to $364.63 a tonne. 5,500 Kcal/ kg coal ended last week at $143.11 a tonne, down almost 50% from its record high of $284.20 in the week of March 11.

European Coal News:

*Coal imports almost double in the UK as the Ukraine war turns natural gas into a no-go zone. More than 560,000 tonnes of coal came into British ports last month. Rising gas prices resulting from the war in Ukraine have forced the UK to nearly double its coal imports to keep the lights on through the winter. The increasing use of coal-generated power in the country comes after years of the country shifting to cleaner electricity from gas-fired power plants and renewables but is deemed vital as Russian president Vladimir Putin crimps gas supplies to Europe.

South African Coal News:

**The World Bank chief gives South Africa's energy transition plans the thumbs up. With the R9 billion concessional loan in place, Komati is set to become the first major coal power station in the country to be converted into a renewable station with 150MW of solar, 70MW of wind, and 150MW of storage batteries. The World Bank funding will be financed through an R8 billion loan, an R870 million concessional loan from the Canadian-World Bank Clean Energy and Forest Climate Facility This project will greatly assist Eskom, South Africa, and the international community to develop a deeper understanding of how the processes of decommissioning and repurposing of coal-powered stations can be done.

* The seaborne thermal coal prices that are retreating are linked to Europe. The price of coal from South Africa’s Richards Bay dropped to $169.44 a tonne in November, bringing it down by 56 percent from its alltime high of $385.94 in August. The decline in prices for South African coal and for coal delivered to Europe is a reflection that fears related to Russian supplies have largely been overstated. As the coal powerhouse continues to supply albeit, in lesser quantity, South African sellers are not receiving the desired demand even amid escalating global demand.

*The decline in prices for Australian and South African coal and for coal delivered to Europe is largely a reflection that fears about Russian supplies have largely been overstated. Coal exports from the world's third-biggest shipper have held up in recent months, albeit with some shifting among buyers. Russia exported 10.93 million tonnes of thermal coal via ships in October. In Europe, Turkey was the biggest buyer, with purchases of 1.71 million tonnes, while shipments to the Netherlands and Germany were assessed as zero, down from 1.08 million and 462,148 in the same month in 2021.

US Coal News:

*The six major U.S. banks are behind more than onethird of the financing to expand fossil-fuel extraction. According to the Rainforest Action Network (RAN), the top 60 banks by assets globally provided a total of $1.3 trillion to the top 100 companies expanding fossil fuels between 2016 and 2021, the years since the Paris climate accord. Of that $1.3 trillion, the big six U.S. banks — Bank of America, JPMorgan Chase, Citi, Wells Fargo, Morgan Stanley, and Goldman Sachs provided 33 percent, or funding valued at about $445 billion, to the top 100 coal, oil and gas expanders.

*Renewable energy is on track to produce more energy than coal in the US in 2022. According to figures from the US Energy Information Administration (EIA), more than a fifth of all electricity by the end of 2022 will come from hydropower, wind, and solar. That

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is higher than coal at 20 percent and nuclear at 19 percent. The only other year this happened was 2020 when energy generation was reduced due to the COVID-19 pandemic. After peaking around a decade ago, coal has gradually declined its share of energy production. This is set to drop from 20 to 19 percent, according to the EIA.

Pet Coke News:

The decline in coal prices saw petcoke falling back to the neutral zone and seems to be stable in US dollar terms with demand fading out. Venezuelan products have been seen in several destinations, inhibiting mid-sulphur range prices. As long as the coal price is declining at the current speed, buyers are holding back. The low water levels on the Mississippi River result in some products not reaching the export ports. There is no specific petcoke news and the trends in the coal market, including Russian discounts for Turkey and India, and China that do not apply sanctions against Russia will keep a lid on petcoke prices. Based on low PMIs, global cement demand could be in danger of falling, but the petcoke market is expected to be stable..

Shipping Update:

*India’s Paradip Port has witnessed a surge in coal handling on the back of an increase in coastal shipping of thermal coal and imports of thermal and coking coal from other countries due to higher demand. According to the Paradip Port Authority, coastal shipping of thermal coal is up by nearly 60 percent so far this year and is expected to cross 40 million tonne (mt) as against 28 mt during last year. Coal imports from countries such as Australia, Indonesia, and South Africa have also been happening in a big way. Paradip Port undertakes coastal shipping of thermal coal to gencos in Tamil Nadu, Andhra Pradesh, and Karnataka.

* Export volumes of coal have fallen since the European Union banned coal imports from Russia, forcing the country to discount coal outside the EU. Russia has cemented its position as the second largest exporter of coal to China this year, with shipments up by around 20 percent, helping cushion the loss of Australian volumes, which Beijing has barred for more than a year. A string of vintage capes registered to single-ship brass plaque firms is busy shipping coal from Russia.