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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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Friday, 19 June 20
INDIA'S COAL CONSUMPTION GROWTH IN 2019 SLOWEST SINCE 2001: BP STATS REVIEW - HINDU BUSINESS LINE
Growth in global energy markets slowed in 2019 in line with weaker economic growth, according to the bp Statistical Review of World Energy 2020. Th ...
Friday, 19 June 20
KOWEPO TO IMPORT 1,050,000 MT OF MIN 5300 NCV COAL FOR THREE YEARS
COALspot.com: Korera Western Power Co., Ltd. (KOWEPO) has issued an International tender for Total 1,050k MT Min.5,300 kcal/kg NCV coal for t ...
Thursday, 18 June 20
INDIA: GOVT'S PLAN TO CUT COAL IMPORT GOES FOR A TOSS AS FY20 BREAKS LOGISTICS CHAIN; LOCAL OUTPUT STAGNANT - FINANCIAL EXPRESS
Weak logistics support and disrupted supply chain towards the end of the last financial year 2019-20 hit the government’s plan to cut coal im ...
Thursday, 18 June 20
INDIA: THERMAL PLANTS TO OPERATE BELOW 53% CAPACITY IN FY21 AS POWER DEMAND DIPS - BUSINESS STANDARD
The Plant Load Factor (PLF) of thermal power stations across the country is projected to dip below 53 per cent in this fiscal. Muted power demand f ...
Wednesday, 17 June 20
MARKET INSIGHT - INTERMODAL
After experiencing record earnings during the first half of the year, the focus of headlines concerning the tanker market has shifted from the deve ...
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- Samtan Co., Ltd - South Korea
- Singapore Mercantile Exchange
- GAC Shipping (India) Pvt Ltd
- Wilmar Investment Holdings
- Alfred C Toepfer International GmbH - Germany
- The University of Queensland
- Lanco Infratech Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Directorate General of MIneral and Coal - Indonesia
- Africa Commodities Group - South Africa
- Posco Energy - South Korea
- Jorong Barutama Greston.PT - Indonesia
- Kartika Selabumi Mining - Indonesia
- Agrawal Coal Company - India
- SN Aboitiz Power Inc, Philippines
- Orica Australia Pty. Ltd.
- Standard Chartered Bank - UAE
- Semirara Mining Corp, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mjunction Services Limited - India
- Siam City Cement PLC, Thailand
- GMR Energy Limited - India
- CNBM International Corporation - China
- Mintek Dendrill Indonesia
- Commonwealth Bank - Australia
- PTC India Limited - India
- Gujarat Sidhee Cement - India
- Thai Mozambique Logistica
- McConnell Dowell - Australia
- Meenaskhi Energy Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Parliament of New Zealand
- Dalmia Cement Bharat India
- Kaltim Prima Coal - Indonesia
- Petron Corporation, Philippines
- Sakthi Sugars Limited - India
- Kohat Cement Company Ltd. - Pakistan
- VISA Power Limited - India
- Sarangani Energy Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Oldendorff Carriers - Singapore
- Sical Logistics Limited - India
- SMC Global Power, Philippines
- Ceylon Electricity Board - Sri Lanka
- Ambuja Cements Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Business Power Corporation, Philippines
- Indian Energy Exchange, India
- Makarim & Taira - Indonesia
- Economic Council, Georgia
- Chamber of Mines of South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Ministry of Mines - Canada
- Wood Mackenzie - Singapore
- Xindia Steels Limited - India
- SMG Consultants - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Orica Mining Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Heidelberg Cement - Germany
- Straits Asia Resources Limited - Singapore
- Indika Energy - Indonesia
- Minerals Council of Australia
- Star Paper Mills Limited - India
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- Banpu Public Company Limited - Thailand
- ASAPP Information Group - India
- Bangladesh Power Developement Board
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Cigading International Bulk Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Carbofer General Trading SA - India
- Eastern Energy - Thailand
- Sojitz Corporation - Japan
- PetroVietnam Power Coal Import and Supply Company
- Energy Link Ltd, New Zealand
- ICICI Bank Limited - India
- Goldman Sachs - Singapore
- Bhoruka Overseas - Indonesia
- Power Finance Corporation Ltd., India
- Merrill Lynch Commodities Europe
- Medco Energi Mining Internasional
- Coalindo Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- The Treasury - Australian Government
- Interocean Group of Companies - India
- Bukit Baiduri Energy - Indonesia
- Attock Cement Pakistan Limited
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- Global Green Power PLC Corporation, Philippines
- Ministry of Transport, Egypt
- Salva Resources Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Formosa Plastics Group - Taiwan
- Kobexindo Tractors - Indoneisa
- Metalloyd Limited - United Kingdom
- Altura Mining Limited, Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Marubeni Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- OPG Power Generation Pvt Ltd - India
- Central Java Power - Indonesia
- Indo Tambangraya Megah - Indonesia
- Essar Steel Hazira Ltd - India
- Bulk Trading Sa - Switzerland
- Madhucon Powers Ltd - India
- Larsen & Toubro Limited - India
- Tamil Nadu electricity Board
- Toyota Tsusho Corporation, Japan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Riau Bara Harum - Indonesia
- Krishnapatnam Port Company Ltd. - India
- San Jose City I Power Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Port Waratah Coal Services - Australia
- New Zealand Coal & Carbon
- London Commodity Brokers - England
- PNOC Exploration Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Baramulti Group, Indonesia
- LBH Netherlands Bv - Netherlands
- PowerSource Philippines DevCo
- Edison Trading Spa - Italy
- Ministry of Finance - Indonesia
- Bharathi Cement Corporation - India
- Ind-Barath Power Infra Limited - India
- Tata Chemicals Ltd - India
- Bhatia International Limited - India
- Aboitiz Power Corporation - Philippines
- Coastal Gujarat Power Limited - India
- Jaiprakash Power Ventures ltd
- Deloitte Consulting - India
- Barasentosa Lestari - Indonesia
- Romanian Commodities Exchange
- Latin American Coal - Colombia
- Eastern Coal Council - USA
- Grasim Industreis Ltd - India
- Therma Luzon, Inc, Philippines
- Indonesian Coal Mining Association
- Aditya Birla Group - India
- Georgia Ports Authority, United States
- International Coal Ventures Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Maheswari Brothers Coal Limited - India
- Thiess Contractors Indonesia
- Mercuria Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Anglo American - United Kingdom
- Neyveli Lignite Corporation Ltd, - India
- Savvy Resources Ltd - HongKong
- Parry Sugars Refinery, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercator Lines Limited - India
- TeaM Sual Corporation - Philippines
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- The State Trading Corporation of India Ltd
- Global Coal Blending Company Limited - Australia
- Kideco Jaya Agung - Indonesia
- Australian Coal Association
- Malabar Cements Ltd - India
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- Sinarmas Energy and Mining - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Jindal Steel & Power Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Trasteel International SA, Italy
- IHS Mccloskey Coal Group - USA
- Binh Thuan Hamico - Vietnam
- Electricity Generating Authority of Thailand
- Kumho Petrochemical, South Korea
- Holcim Trading Pte Ltd - Singapore
- Karaikal Port Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Bukit Makmur.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Independent Power Producers Association of India
- Pipit Mutiara Jaya. PT, Indonesia
- Cement Manufacturers Association - India
- Pendopo Energi Batubara - Indonesia
- GVK Power & Infra Limited - India
- Planning Commission, India
- White Energy Company Limited
- Central Electricity Authority - India
- TNB Fuel Sdn Bhd - Malaysia
- Bhushan Steel Limited - India
- Renaissance Capital - South Africa
- Rio Tinto Coal - Australia
- Kalimantan Lumbung Energi - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Simpson Spence & Young - Indonesia
- Electricity Authority, New Zealand
- MS Steel International - UAE
- Meralco Power Generation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Borneo Indobara - Indonesia
- Siam City Cement - Thailand
- South Luzon Thermal Energy Corporation
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