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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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Sunday, 14 June 20
INDONESIAN COAL WAS STILL IN DEMAND; A 52,000-DWT SUPRAMAX FIXING DELIVERY CJK FOR A ROUND VOYAGE VIA INDONESIA AT $6,250 - BALTIC BRIEFING
Capesize
The Capesize market made new highs for the year this week after strong iron ore demand to the far east continued to develop in the mar ...
Friday, 12 June 20
CHINA CURBS COAL IMPORTS AFTER 5 MONTHS OF RECORD INFLOWS - SOURCES: REUTERS
China has stepped up customs checks for coal imports, leading to lengthy processing delays at ports, four sources familiar with the matter said, as ...
Friday, 12 June 20
COAL INDIA LIMITED SET FOR MARKETING DRIVE TO CREATE DEMAND - FINANCIAL EXPRESS
State-run miner Coal India (CIL), which is primarily focused on supplying coal to the power sector, is now reorienting its marketing to create dema ...
Friday, 12 June 20
MOODY'S REVISES BRENT OIL PRICE OUTLOOK TO $35/BARREL IN 2020 - TASS
Low oil prices are likely to exert the highest pressure on Iraq, Oman and Kuwait due to the limited space for the fiscal policy pursuit and higher ...
Thursday, 11 June 20
JAN-MAY, INDONESIA SHIPPED 175.15 MILLION TONS OF COAL TO ITS OVERSEAS BUYERS
Indonesia's coal production for the first 5 months of this year have reached 228 million tons. January – May 2020, Indonesia shipped US$ ...
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- Globalindo Alam Lestari - Indonesia
- SMG Consultants - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Electricity Authority, New Zealand
- Meenaskhi Energy Private Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- International Coal Ventures Pvt Ltd - India
- Chamber of Mines of South Africa
- Leighton Contractors Pty Ltd - Australia
- Rio Tinto Coal - Australia
- Metalloyd Limited - United Kingdom
- Heidelberg Cement - Germany
- Larsen & Toubro Limited - India
- Gujarat Sidhee Cement - India
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Independent Power Producers Association of India
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Mines - Canada
- Mintek Dendrill Indonesia
- Siam City Cement PLC, Thailand
- Malabar Cements Ltd - India
- Formosa Plastics Group - Taiwan
- Wood Mackenzie - Singapore
- Cement Manufacturers Association - India
- ASAPP Information Group - India
- Singapore Mercantile Exchange
- Sical Logistics Limited - India
- Marubeni Corporation - India
- Oldendorff Carriers - Singapore
- Kobexindo Tractors - Indoneisa
- CNBM International Corporation - China
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Australian Commodity Traders Exchange
- Karaikal Port Pvt Ltd - India
- Thiess Contractors Indonesia
- Meralco Power Generation, Philippines
- Indian Oil Corporation Limited
- Bangladesh Power Developement Board
- Medco Energi Mining Internasional
- Samtan Co., Ltd - South Korea
- Tamil Nadu electricity Board
- Africa Commodities Group - South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mercuria Energy - Indonesia
- Merrill Lynch Commodities Europe
- Jindal Steel & Power Ltd - India
- The University of Queensland
- Orica Mining Services - Indonesia
- Wilmar Investment Holdings
- Dalmia Cement Bharat India
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- AsiaOL BioFuels Corp., Philippines
- White Energy Company Limited
- Thai Mozambique Logistica
- IHS Mccloskey Coal Group - USA
- Billiton Holdings Pty Ltd - Australia
- Kepco SPC Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Australian Coal Association
- Sarangani Energy Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Bulk Trading Sa - Switzerland
- MS Steel International - UAE
- Jorong Barutama Greston.PT - Indonesia
- Xindia Steels Limited - India
- Orica Australia Pty. Ltd.
- TNB Fuel Sdn Bhd - Malaysia
- OPG Power Generation Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Carbofer General Trading SA - India
- Vizag Seaport Private Limited - India
- Essar Steel Hazira Ltd - India
- Banpu Public Company Limited - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Timah Investasi Mineral - Indoneisa
- Parry Sugars Refinery, India
- Maheswari Brothers Coal Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Edison Trading Spa - Italy
- Agrawal Coal Company - India
- Ambuja Cements Ltd - India
- Star Paper Mills Limited - India
- Uttam Galva Steels Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- Bukit Baiduri Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- IEA Clean Coal Centre - UK
- Pendopo Energi Batubara - Indonesia
- VISA Power Limited - India
- Bhushan Steel Limited - India
- Commonwealth Bank - Australia
- Indian Energy Exchange, India
- Madhucon Powers Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- TeaM Sual Corporation - Philippines
- Ministry of Finance - Indonesia
- Bhoruka Overseas - Indonesia
- Economic Council, Georgia
- Gujarat Mineral Development Corp Ltd - India
- Altura Mining Limited, Indonesia
- Coastal Gujarat Power Limited - India
- Central Java Power - Indonesia
- European Bulk Services B.V. - Netherlands
- San Jose City I Power Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The State Trading Corporation of India Ltd
- Neyveli Lignite Corporation Ltd, - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Antam Resourcindo - Indonesia
- Interocean Group of Companies - India
- Ceylon Electricity Board - Sri Lanka
- Goldman Sachs - Singapore
- Indika Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Vedanta Resources Plc - India
- Planning Commission, India
- Power Finance Corporation Ltd., India
- CIMB Investment Bank - Malaysia
- New Zealand Coal & Carbon
- PetroVietnam Power Coal Import and Supply Company
- Maharashtra Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Manunggal Multi Energi - Indonesia
- Jaiprakash Power Ventures ltd
- Energy Link Ltd, New Zealand
- Coalindo Energy - Indonesia
- PowerSource Philippines DevCo
- London Commodity Brokers - England
- Savvy Resources Ltd - HongKong
- Baramulti Group, Indonesia
- Sree Jayajothi Cements Limited - India
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Videocon Industries ltd - India
- Iligan Light & Power Inc, Philippines
- McConnell Dowell - Australia
- Energy Development Corp, Philippines
- Sindya Power Generating Company Private Ltd
- Kapuas Tunggal Persada - Indonesia
- South Luzon Thermal Energy Corporation
- Petron Corporation, Philippines
- Bhatia International Limited - India
- Simpson Spence & Young - Indonesia
- Renaissance Capital - South Africa
- Minerals Council of Australia
- Siam City Cement - Thailand
- Romanian Commodities Exchange
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- Bayan Resources Tbk. - Indonesia
- Global Business Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Ind-Barath Power Infra Limited - India
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- India Bulls Power Limited - India
- Salva Resources Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Indo Tambangraya Megah - Indonesia
- SN Aboitiz Power Inc, Philippines
- Indogreen Group - Indonesia
- GMR Energy Limited - India
- Borneo Indobara - Indonesia
- PTC India Limited - India
- Ministry of Transport, Egypt
- The Treasury - Australian Government
- Posco Energy - South Korea
- Chettinad Cement Corporation Ltd - India
- Parliament of New Zealand
- Central Electricity Authority - India
- Therma Luzon, Inc, Philippines
- Lanco Infratech Ltd - India
- Grasim Industreis Ltd - India
- Kideco Jaya Agung - Indonesia
- Semirara Mining Corp, Philippines
- Eastern Coal Council - USA
- LBH Netherlands Bv - Netherlands
- Directorate Of Revenue Intelligence - India
- Attock Cement Pakistan Limited
- Alfred C Toepfer International GmbH - Germany
- Makarim & Taira - Indonesia
- GVK Power & Infra Limited - India
- Anglo American - United Kingdom
- ICICI Bank Limited - India
- Rashtriya Ispat Nigam Limited - India
- Indonesian Coal Mining Association
- Trasteel International SA, Italy
- Sinarmas Energy and Mining - Indonesia
- SMC Global Power, Philippines
- Holcim Trading Pte Ltd - Singapore
- Aditya Birla Group - India
- Karbindo Abesyapradhi - Indoneisa
- Coal and Oil Company - UAE
- Intertek Mineral Services - Indonesia
- Sojitz Corporation - Japan
- Georgia Ports Authority, United States
- Kohat Cement Company Ltd. - Pakistan
- Port Waratah Coal Services - Australia
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Sakthi Sugars Limited - India
- Mercator Lines Limited - India
- Kartika Selabumi Mining - Indonesia
- Toyota Tsusho Corporation, Japan
- Eastern Energy - Thailand
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