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Thursday, 25 June 20
ALL YOU WANT TO KNOW ABOUT COAL MINE AUCTIONS - THE HINDU BUSINESS LINE
Last week, Prime Minister Narendra Modi threw open the auction of 41 coal blocks for commercial mining. The decision, which was part of the announcements made by the Centre under the Atmanirbhar Bharat Abhiyan, was already proposed in January through the Mineral Laws (Amendment) Ordinance, 2020.
What is it?
These auctions invite participants to mine coal blocks by bids on the percentage value of coal sold that they will be willing to share with the government. Successful bidders will obtain leasing rights from State governments to mine a coal block for a certain period.
What’s new about the recent auction of 41 coal blocks is that this is the first time private players have been allowed to mine coal for commercial mining purposes, without any end-use restrictions. That is, unlike now, mined coal can be sold outside. There is no requirement that it should be used only for the firms’ own consumption.
India has a long history of commercial mining, for about 200 years starting from 1774. In the second half of the 20th century, the government took note of the inadequate capital investments from private players to meet the burgeoning energy needs of the country. Some private coal miners were found to be using unscientific coal mining practices and providing poor working conditions for labour. This led to the Central Government taking a decision to nationalise private coal mines. The nationalisation was done in two phases, from 1971-1973. That’s how the Coal Mines (Nationalisation) Act, 1973 was enacted, which restricted coal mining operations mainly to government entities.
The recent decision to allow private firms to participate in the bidding process with a reduced upfront amount, the facility of adjustment of upfront amount against royalty, liberal operational efficiency parameters, and 100 per cent FDI through automatic route is a watershed moment for India’s energy industry. Further, allowing a revenue-sharing basis (a percentage of revenue share (final bid) has to be paid to the government on the sale of coal) as against the current mechanism of paying fixed rupee per tonne, may also encourage private players to take participation in the auction process.
Why is it important?
Despite India being the world’s fourth-largest country in terms of availability of coal reserves, we still import around 240 million tonnes (mt) of coal a year valued at about ₹1.7 lakh crore. Almost the entire requirement of coking coal, a key raw material for steel, is imported as the domestic availability of high-quality coking coal is limited. According to the Coal Ministry, the 41 mines opened for auction now can hit a peak production of 225 mt in 2025-26, saving precious foreign exchange.
The High Powered Expert Committee formed in 2017 to examine the efficacy and challenges in coal mining auctions recommended a gradual shift from the allocation of coal blocks for own consumption to allocation of blocks for commercial mining. It expected that commercial mining of coal would help tap the locally available reserves and increase the availability of coal in the Indian market at a cheaper price making us less dependent on imports.
Why should I care?
On launching the auction of 41 coal blocks last week, the Prime Minister said that coal would be brought out “after decades of lockdown” and private sector involvement would help realise ₹33,000 crore of capital investment in the next five years. Should private investments flow in, it can give a leg up to the economic activity within the country and play an important role in job and income creation.
In addition, higher production and surplus availability of coal may lead to fall in its prices, which may reduce the cost of electricity consumed by the households and industries. Currently, coal-fired plants generate about 70 per cent of India’s electricity.
But weighed against this, is the question of is whether this has this move come a little too late in the day, and will it see enthusiastic bidding? India’s energy mix is already shifting towards cleaner renewables, the cost of producing power through cleaner routes has been falling and global players are shying away from polluting fuel.
The bottomline
Its a fine balance between short-term cost savings and long-term environmental impact
A weekly column that puts the fun into learning
Source: Satya Sontanam | The Hindu Business Line
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Wednesday, 15 July 20
CHINA'S JUNE COAL IMPORTS FALL 6.7% Y/Y ON PORT CURBS - REUTERS
China’s coal imports dropped 6.7% in June from the same period last year, as stringent import restrictions at ports impeded purchases by trad ...
Wednesday, 15 July 20
MARKET INSIGHT - INTERMODAL
The Covid-19 virus spread around the world has obviously impacted the global oil demand while the situation remains fluid. The overall constraint ...
Tuesday, 14 July 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.75 PCT - XINHUA
China Taiyuan coal transaction price index stood at 126.01 points Monday, up 0.75 percent week on week.
The index, released by China ...
Tuesday, 14 July 20
TURKEY - A CASE OF UNDECLARED BUNKER - GARD
KNOWLEDGE TO ELEVATE
Undeclared/excess bunkers can be considered a criminal act by Turkish customs officials with the ship's crew being ac ...
Monday, 13 July 20
PANAMAX: A TUMULTUOUS WEEK IN THE PANAMAX MARKET ENSURED ALL MARKETS GAINED VALUE ON THE WEEK - BALTIC BRIEFING
Capesize
This week witnessed the dreaded correction in the Capesize market, with the time charter average shedding almost 18 per cent to close ...
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- Aditya Birla Group - India
- Central Electricity Authority - India
- Minerals Council of Australia
- Kapuas Tunggal Persada - Indonesia
- Therma Luzon, Inc, Philippines
- Planning Commission, India
- Coastal Gujarat Power Limited - India
- Africa Commodities Group - South Africa
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- Ambuja Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Mines - Canada
- Altura Mining Limited, Indonesia
- Kumho Petrochemical, South Korea
- Sinarmas Energy and Mining - Indonesia
- Sical Logistics Limited - India
- Bhushan Steel Limited - India
- Dalmia Cement Bharat India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Georgia Ports Authority, United States
- Asmin Koalindo Tuhup - Indonesia
- ICICI Bank Limited - India
- Wilmar Investment Holdings
- Bahari Cakrawala Sebuku - Indonesia
- Sakthi Sugars Limited - India
- Sojitz Corporation - Japan
- Borneo Indobara - Indonesia
- Independent Power Producers Association of India
- Commonwealth Bank - Australia
- Tamil Nadu electricity Board
- TNB Fuel Sdn Bhd - Malaysia
- Indian Energy Exchange, India
- Kobexindo Tractors - Indoneisa
- Global Business Power Corporation, Philippines
- Petron Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- Kalimantan Lumbung Energi - Indonesia
- Coal and Oil Company - UAE
- Rio Tinto Coal - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Neyveli Lignite Corporation Ltd, - India
- Agrawal Coal Company - India
- Indogreen Group - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Binh Thuan Hamico - Vietnam
- Heidelberg Cement - Germany
- CIMB Investment Bank - Malaysia
- European Bulk Services B.V. - Netherlands
- Semirara Mining Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Larsen & Toubro Limited - India
- Barasentosa Lestari - Indonesia
- Parry Sugars Refinery, India
- Australian Commodity Traders Exchange
- Pendopo Energi Batubara - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Ind-Barath Power Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Cement Manufacturers Association - India
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- The Treasury - Australian Government
- Directorate Of Revenue Intelligence - India
- Energy Development Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Timah Investasi Mineral - Indoneisa
- New Zealand Coal & Carbon
- CNBM International Corporation - China
- Kepco SPC Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Latin American Coal - Colombia
- Carbofer General Trading SA - India
- Eastern Coal Council - USA
- Merrill Lynch Commodities Europe
- Mercuria Energy - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Bharathi Cement Corporation - India
- PowerSource Philippines DevCo
- Semirara Mining and Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Deloitte Consulting - India
- Billiton Holdings Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Simpson Spence & Young - Indonesia
- Kideco Jaya Agung - Indonesia
- Global Green Power PLC Corporation, Philippines
- Central Java Power - Indonesia
- Madhucon Powers Ltd - India
- Singapore Mercantile Exchange
- Wood Mackenzie - Singapore
- Mjunction Services Limited - India
- Baramulti Group, Indonesia
- Trasteel International SA, Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Finance - Indonesia
- Jindal Steel & Power Ltd - India
- Iligan Light & Power Inc, Philippines
- Gujarat Sidhee Cement - India
- Holcim Trading Pte Ltd - Singapore
- Port Waratah Coal Services - Australia
- Ministry of Transport, Egypt
- Riau Bara Harum - Indonesia
- Marubeni Corporation - India
- Posco Energy - South Korea
- Edison Trading Spa - Italy
- Cigading International Bulk Terminal - Indonesia
- India Bulls Power Limited - India
- IEA Clean Coal Centre - UK
- Indika Energy - Indonesia
- Lanco Infratech Ltd - India
- Eastern Energy - Thailand
- Indian Oil Corporation Limited
- OPG Power Generation Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Bhatia International Limited - India
- Bhoruka Overseas - Indonesia
- SN Aboitiz Power Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kohat Cement Company Ltd. - Pakistan
- Videocon Industries ltd - India
- Orica Mining Services - Indonesia
- Romanian Commodities Exchange
- Rashtriya Ispat Nigam Limited - India
- Malabar Cements Ltd - India
- Jaiprakash Power Ventures ltd
- GMR Energy Limited - India
- Oldendorff Carriers - Singapore
- The State Trading Corporation of India Ltd
- Power Finance Corporation Ltd., India
- Bulk Trading Sa - Switzerland
- SMC Global Power, Philippines
- Sindya Power Generating Company Private Ltd
- Parliament of New Zealand
- Sree Jayajothi Cements Limited - India
- Mintek Dendrill Indonesia
- Xindia Steels Limited - India
- Maheswari Brothers Coal Limited - India
- PTC India Limited - India
- Chamber of Mines of South Africa
- Sarangani Energy Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Star Paper Mills Limited - India
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- McConnell Dowell - Australia
- Bangladesh Power Developement Board
- Meralco Power Generation, Philippines
- International Coal Ventures Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement - Thailand
- Electricity Authority, New Zealand
- Alfred C Toepfer International GmbH - Germany
- PNOC Exploration Corporation - Philippines
- Energy Link Ltd, New Zealand
- MS Steel International - UAE
- Chettinad Cement Corporation Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Kaltim Prima Coal - Indonesia
- Attock Cement Pakistan Limited
- PetroVietnam Power Coal Import and Supply Company
- Petrochimia International Co. Ltd.- Taiwan
- Thai Mozambique Logistica
- Krishnapatnam Port Company Ltd. - India
- Tata Chemicals Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Australian Coal Association
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- LBH Netherlands Bv - Netherlands
- Mercator Lines Limited - India
- Thiess Contractors Indonesia
- Electricity Generating Authority of Thailand
- Intertek Mineral Services - Indonesia
- Straits Asia Resources Limited - Singapore
- ASAPP Information Group - India
- Standard Chartered Bank - UAE
- GAC Shipping (India) Pvt Ltd
- London Commodity Brokers - England
- Global Coal Blending Company Limited - Australia
- Coalindo Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karaikal Port Pvt Ltd - India
- Goldman Sachs - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- Anglo American - United Kingdom
- Vizag Seaport Private Limited - India
- VISA Power Limited - India
- Indonesian Coal Mining Association
- AsiaOL BioFuels Corp., Philippines
- Meenaskhi Energy Private Limited - India
- Banpu Public Company Limited - Thailand
- White Energy Company Limited
- Vedanta Resources Plc - India
- Formosa Plastics Group - Taiwan
- Ceylon Electricity Board - Sri Lanka
- Samtan Co., Ltd - South Korea
- Antam Resourcindo - Indonesia
- Economic Council, Georgia
- Essar Steel Hazira Ltd - India
- IHS Mccloskey Coal Group - USA
- Interocean Group of Companies - India
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