COALspot.com keeps you connected across the coal world
  • NOVEMBER 2021 HBA FOR EXPORTS INCREASED BY $33.03% MOM, $85.79 YTM AND $183.50% YOY
  • NOVEMBER 2021 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS FIXED AT US$215.01 A TON

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Tuesday, 19 October 21
COAL INDIA, THE FALL GUY FOR POWER CRISIS - INDIA EXPRESS
The post-Covid economic recovery has led to a major increase in the demand for power, both in India and globally. In India, coal-based power plants have witnessed rapid depletion of coal stocks from a comfortable 28 days at the end of March to a precarious level of four days by the end of September. The country is struggling to understand how the crisis is likely to pan out in the near future. Coal India Ltd (CIL) has been unfairly attacked, even as it gears up to play a crucial role in fighting the power crisis.
 
The reasons for the crisis are not hard to find. These are structural as well as operational. A government-appointed committee in the early 1990s concluded that CIL “cannot be expected to meet the demand of the power sector, in case the pace of capacity addition accelerates.” This led to an amendment in the Coal Mines Nationalisation Act (CMNA) in 1993 that enabled the government to take away 200 coal blocks of 28 billion tons from CIL and allocate them to end-users for the captive mining of coal. These end-users, mostly in the private sector, failed to produce any significant quantity of coal to meet the rapidly rising power capacity between 2007 and 2016. The cancellation of 214 blocks by the Supreme Court added to the problem.
 
Commensurate to the captive mines allocated to the end-user industries, the coal production today should have been at least 500 million tonnes per annum (mtpa). In reality, this has never exceeded 60 mtpa. CIL, with denuded reserves, is called to meet the rising gap in coal supplies. These structural factors fuelled not just over-expectations from CIL, they also kept the company in a constant state of stress.
 
On the operational side, power plants are required by the Central Electricity Authority (CEA) to maintain a minimum stock of 15 to 30 days of normative coal consumption, depending upon the distance of the plant from the source of coal. The compliance with this directive by power plants has been severely lacking. This enhances the vulnerability of power plants, particularly those at longer distances, to supply constraints on account of the coal producer or transporter.
 
The persistent non-payment of coal sale dues by power plants to coal companies has created a serious strain on their working capital position. Some companies were forced to borrow from banks to meet the operational expenses, including disbursement of salaries. According to reports, Rs 18,000 crore is currently due to coal producers.
 
The persistent shortage of coal production by the privatised and captive mines forced India to import around 200 million tonnes (mt) of coal. Of this, more than 40 per cent goes to meet the demands of power plants. A spurt in imported coal prices, mainly due to a major increase in coal imports by China, acted as a brake on imports of coal. This escalated the demand for domestic coal.
 
Simultaneously, from August, the demand for thermal power witnessed a sudden rise after stagnating for over three years. The spurt in demand for coal is being linked to the post-Covid economic recovery. In the short run, the coal production by CIL has faced severe headwinds in the first quarter due to the second wave of the pandemic. Thousands of workers and officers were infected and hospitalised and more than 250 CIL employees lost their lives. In the second quarter, the extended monsoon severely affected open-cast mining. These added to supply disruptions and aggravated the crisis.
 
Despite so many constraining factors, it is to the credit of CIL that it has achieved a growth of 14 million tonnes (mt) or 5.8 per cent in coal production during the first half of 2021-22. Yet, the offtake was higher than the preceding year by 52 mt or 20.6 per cent. This was possible by drawing down on the opening inventory of coal from 100 mt to 42 mt during April to September.
 
With the monsoons behind us and the onset of a good productive season, CIL has already stepped up coal offtake to more than 1.5 mt per day. It is expected to rise further to 1.6/1.7 mt in the next few weeks. With these efforts, supply will match, if not exceed consumption. With efforts on the part of the railways in moving the coal, the crisis should dissipate in the near future, at least for power plants that pay timely for coal supplies. Obviously, it will take a few months for coal stock at power plants to climb to comfortable levels in line with the CEA’s norms.
 
Besides meeting the growing coal demand of power plants, CIL has been able to significantly replace the import of highly expensive thermal coal. Even after bearing the highest tax and transport cost globally, the landed cost of CIL coal continues to be much cheaper than imported coal at almost all destinations. The resultant benefits are savings of foreign exchange, and generation of power at affordable tariffs. The coal price charged by CIL, expressed in energy units, is at a deep discount of 60-70 per cent of imported coal.
 
In brief, CIL has been unfairly blamed for the coal crisis. It has played a stellar role, standing like a solid rock between light and darkness. It is striving to build comfortable stocks at the power plants, not in default of payment. The company has ramped up coal production despite the 1990s policy that took away coal blocks of 28 billion tonnes of reserves. It is time that the country recognises the critical role of CIL. It needs bouquets rather than brickbats.
Source: The India Express


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Friday, 12 November 21
INDONESIAN COAL PRICE REFERENCE TOPS $215 A TON; THE HIGHEST COAL PRICE IN HISTORY
COALspot.com: Indonesian Coal Price Reference in a steep climb for most of second half of 2021 as it reached a pinnacle of $215.01 in November 2021 ...


Thursday, 11 November 21
ASIA COAL POWER PIPELINE TO SHRINK BY TWO THIRDS AFTER CHINA FINANCE CUT - REUTERS
Asia’s pipeline of proposed coal-fired power plants is expected to shrink from 65 gigawatts to 22 gigawatts following China’s pledge to ...


Tuesday, 09 November 21
ASIA-PACIFIC IS HOME TO SOME OF THE WORLD'S LARGEST CARBON-EMITTERS - 2 CHARTS SHOW ITS RELIANCE ON COAL - CNBC
Asia-Pacific is home to some of the world’s largest carbon emitters — and experts say much of global efforts to fight climate change de ...


Tuesday, 09 November 21
CHINA DAILY COAL OUTPUT HITS MULTI-YEAR PEAK, PRICES EXPECTED TO FALL - REUTERS
China’s daily coal output hit 11.93 million tonnes last week, a multi-year high as more capacity returned to operation, the state planner sai ...


Thursday, 04 November 21
CHINA'S COAL MARKET SEES SIGNIFICANT IMPROVEMENTS: NDRC - GLOBAL TIMES
China’s top economic planner has declared initial success in its efforts to ensure coal supply and stabilize prices, saying that daily coal o ...


   2 3 4 5 6   
Showing 16 to 20 news of total 6470
News by Category
Popular News
 
Total Members : 27,644
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • Meralco Power Generation, Philippines
  • Bhushan Steel Limited - India
  • TANGEDCO India
  • NTPC Limited - India
  • Aboitiz Power Corporation - Philippines
  • Antam Resourcindo - Indonesia
  • Argus Media - Singapore
  • Coeclerici Indonesia
  • BRS Brokers - Singapore
  • Mitsui
  • Kideco Jaya Agung - Indonesia
  • IHS Mccloskey Coal Group - USA
  • GMR Energy Limited - India
  • Ernst & Young Pvt. Ltd.
  • Cemex - Philippines
  • Karaikal Port Pvt Ltd - India
  • Global Green Power PLC Corporation, Philippines
  • SMG Consultants - Indonesia
  • Kohat Cement Company Ltd. - Pakistan
  • Maybank - Singapore
  • Iligan Light & Power Inc, Philippines
  • Billiton Holdings Pty Ltd - Australia
  • Lafarge - France
  • Kalimantan Lumbung Energi - Indonesia
  • Madhucon Powers Ltd - India
  • APGENCO India
  • Coal India Limited
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Chettinad Cement Corporation Ltd - India
  • Bharathi Cement Corporation - India
  • Medco Energi Mining Internasional
  • Oldendorff Carriers - Singapore
  • Georgia Ports Authority, United States
  • Indonesian Coal Mining Association
  • IMC Shipping - Singapore
  • Bhatia International Limited - India
  • EIA - United States
  • The University of Queensland
  • Permata Bank - Indonesia
  • CoalTek, United States
  • ANZ Bank - Australia
  • Dalmia Cement Bharat India
  • Grasim Industreis Ltd - India
  • Siam City Cement - Thailand
  • Trasteel International SA, Italy
  • TeaM Sual Corporation - Philippines
  • Merrill Lynch Commodities Europe
  • Borneo Indobara - Indonesia
  • IOL Indonesia
  • Thailand Anthracite
  • Samsung - South Korea
  • Barclays Capital - USA
  • Cosco
  • Straits Asia Resources Limited - Singapore
  • Interocean Group of Companies - India
  • Formosa Plastics Group - Taiwan
  • Freeport Indonesia
  • Globalindo Alam Lestari - Indonesia
  • The State Trading Corporation of India Ltd
  • ACC Limited - India
  • Port Waratah Coal Services - Australia
  • Price Waterhouse Coopers - Russia
  • Mintek Dendrill Indonesia
  • Sical Logistics Limited - India
  • Cement Manufacturers Association - India
  • Jatenergy - Australia
  • Fearnleys - India
  • Larsen & Toubro Limited - India
  • Sucofindo - Indonesia
  • Indogreen Group - Indonesia
  • JPower - Japan
  • Vitol - Bahrain
  • Indian Oil Corporation Limited
  • Thriveni
  • Essar Steel Hazira Ltd - India
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Global Business Power Corporation, Philippines
  • Merrill Lynch Bank
  • Panama Canal Authority
  • Rudhra Energy - India
  • Goldman Sachs - Singapore
  • Adani Power Ltd - India
  • Maharashtra Electricity Regulatory Commission - India
  • Glencore India Pvt. Ltd
  • Japan Coal Energy Center
  • OCBC - Singapore
  • BNP Paribas - Singapore
  • Neyveli Lignite Corporation Ltd, - India
  • Electricity Generating Authority of Thailand
  • White Energy Company Limited
  • Qatrana Cement - Jordan
  • Tamil Nadu electricity Board
  • Vijayanagar Sugar Pvt Ltd - India
  • Indonesia Power. PT
  • GB Group - China
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • Maheswari Brothers Coal Limited - India
  • Pendopo Energi Batubara - Indonesia
  • Surastha Cement
  • CCIC - Indonesia
  • globalCOAL - UK
  • Bhoruka Overseas - Indonesia
  • PetroVietnam
  • Karbindo Abesyapradhi - Indoneisa
  • Inco-Indonesia
  • Aditya Birla Group - India
  • Kartika Selabumi Mining - Indonesia
  • Ind-Barath Power Infra Limited - India
  • Banpu Public Company Limited - Thailand
  • Noble Europe Ltd - UK
  • Bangkok Bank PCL
  • Indo Tambangraya Megah - Indonesia
  • Commonwealth Bank - Australia
  • LBH Netherlands Bv - Netherlands
  • Agrawal Coal Company - India
  • Altura Mining Limited, Indonesia
  • bp singapore
  • Malco - India
  • ING Bank NV - Singapore
  • Ministry of Mines - Canada
  • GN Power Mariveles Coal Plant, Philippines
  • Edison Trading Spa - Italy
  • Holcim Trading Pte Ltd - Singapore
  • Reliance Power - India
  • Makarim & Taira - Indonesia
  • Credit Suisse - India
  • Coaltrans Conferences
  • Marubeni Corporation - India
  • India Bulls Power Limited - India
  • Central Java Power - Indonesia
  • Australian Commodity Traders Exchange
  • GAC Shipping (India) Pvt Ltd
  • Bangladesh Power Developement Board
  • Jindal Steel & Power Ltd - India
  • PTC India Limited - India
  • Siam City Cement PLC, Thailand
  • Ceylon Electricity Board - Sri Lanka
  • Indika Energy - Indonesia
  • Kaltim Prima Coal - Indonesia
  • Global Coal Blending Company Limited - Australia
  • Thai Mozambique Logistica
  • U S Energy Resources
  • Petrochimia International Co. Ltd.- Taiwan
  • Rio Tinto Coal - Australia
  • Inspectorate - India
  • Standard Chartered Bank - UAE
  • Core Mineral Indonesia
  • Bayan Resources Tbk. - Indonesia
  • Bukit Baiduri Energy - Indonesia
  • Therma Luzon, Inc, Philippines
  • Kobe Steel Ltd - Japan
  • Xstrata Coal
  • DBS Bank - Singapore
  • Eastern Coal Council - USA
  • SGS (Thailand) Limited
  • Pipit Mutiara Jaya. PT, Indonesia
  • VISA Power Limited - India
  • Sree Jayajothi Cements Limited - India
  • Infraline Energy - India
  • Heidelberg Cement - Germany
  • Berau Coal - Indonesia
  • RBS Sempra - UK
  • SMC Global Power, Philippines
  • SUEK AG - Indonesia
  • Thiess Contractors Indonesia
  • Electricity Authority, New Zealand
  • Gupta Coal India Ltd
  • Gujarat Sidhee Cement - India
  • TNPL - India
  • KPMG - USA
  • Binh Thuan Hamico - Vietnam
  • Thermax Limited - India
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Directorate Of Revenue Intelligence - India
  • Shree Cement - India
  • Tata Power - India
  • Planning Commission, India
  • Asia Cement - Taiwan
  • UBS Singapore
  • Krishnapatnam Port Company Ltd. - India
  • PowerSource Philippines DevCo
  • Videocon Industries ltd - India
  • Mechel - Russia
  • Renaissance Capital - South Africa
  • Semirara Mining and Power Corporation, Philippines
  • International Coal Ventures Pvt Ltd - India
  • World Coal - UK
  • Britmindo - Indonesia
  • Simpson Spence & Young - Indonesia
  • Tata Chemicals Ltd - India
  • Eastern Energy - Thailand
  • Petron Corporation, Philippines
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Bank of China, Malaysia
  • WorleyParsons
  • Indian Energy Exchange, India
  • Bukit Makmur.PT - Indonesia
  • Deutsche Bank - India
  • Asian Development Bank
  • ETA - Dubai
  • Sinarmas Energy and Mining - Indonesia
  • MEC Coal - Indonesia
  • KEPCO - South Korea
  • Russian Coal LLC
  • KOWEPO - South Korea
  • Carbofer General Trading SA - India
  • SN Aboitiz Power Inc, Philippines
  • PNOC Exploration Corporation - Philippines
  • Kepco SPC Power Corporation, Philippines
  • Metalloyd Limited - United Kingdom
  • SASOL - South Africa
  • CNBM International Corporation - China
  • Kobexindo Tractors - Indoneisa
  • Riau Bara Harum - Indonesia
  • Xindia Steels Limited - India
  • Adaro Indonesia
  • Coalindo Energy - Indonesia
  • Gujarat Electricity Regulatory Commission - India
  • Sarangani Energy Corporation, Philippines
  • Mjunction Services Limited - India
  • Ambuja Cements Ltd - India
  • Cigading International Bulk Terminal - Indonesia
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • Platou - Singapore
  • Coastal Gujarat Power Limited - India
  • IEA Clean Coal Centre - UK
  • Orica Mining Services - Indonesia
  • Attock Cement Pakistan Limited
  • Arch Coal - USA
  • CESC Limited - India
  • Africa Commodities Group - South Africa
  • Toyota Tsusho Corporation, Japan
  • Petrosea - Indonesia
  • KPCL - India
  • Mitra SK Pvt Ltd - India
  • Cardiff University - UK
  • Kapuas Tunggal Persada - Indonesia
  • Wood Mackenzie - Singapore
  • Vale Mozambique
  • McKinsey & Co - India
  • Uttam Galva Steels Limited - India
  • San Jose City I Power Corp, Philippines
  • Maersk Broker
  • Energy Link Ltd, New Zealand
  • GNFC Limited - India
  • Semirara Mining Corp, Philippines
  • Arutmin Indonesia
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Anglo American - United Kingdom
  • Parliament of New Zealand
  • London Commodity Brokers - England
  • Economic Council, Georgia
  • Vedanta Resources Plc - India
  • Bukit Asam (Persero) Tbk - Indonesia
  • TGV SRAAC LIMITED, India
  • EMO - The Netherlands
  • Sojitz Corporation - Japan
  • Ministry of Finance - Indonesia
  • Peabody Energy - USA
  • GHCL Limited - India
  • TRAFIGURA, South Korea
  • HSBC - Hong Kong
  • CIMB Investment Bank - Malaysia
  • PetroVietnam Power Coal Import and Supply Company
  • Coal Orbis AG
  • Deloitte Consulting - India
  • World Bank
  • SRK Consulting
  • Baramulti Group, Indonesia
  • Jaiprakash Power Ventures ltd
  • Vizag Seaport Private Limited - India
  • Tanito Harum - Indonesia
  • The Treasury - Australian Government
  • Australian Coal Association
  • TNB Fuel Sdn Bhd - Malaysia
  • ASAPP Information Group - India
  • Samtan Co., Ltd - South Korea
  • Enel Italy
  • NALCO India
  • New Zealand Coal & Carbon
  • Geoservices-GeoAssay Lab
  • Wilmar Investment Holdings
  • Rashtriya Ispat Nigam Limited - India
  • Humpuss - Indonesia
  • OPG Power Generation Pvt Ltd - India
  • Savvy Resources Ltd - HongKong
  • Timah Investasi Mineral - Indoneisa
  • Thomson Reuters GRC
  • Orica Australia Pty. Ltd.
  • Mercator Lines Limited - India
  • Barasentosa Lestari - Indonesia
  • Moodys - Singapore
  • Kumho Petrochemical, South Korea
  • Malabar Cements Ltd - India
  • Cebu Energy, Philippines
  • Sakthi Sugars Limited - India
  • Power Finance Corporation Ltd., India
  • Indian School of Mines
  • Bahari Cakrawala Sebuku - Indonesia
  • Miang Besar Coal Terminal - Indonesia
  • Star Paper Mills Limited - India
  • Jorong Barutama Greston.PT - Indonesia
  • Central Electricity Authority - India
  • Indorama - Singapore
  • Posco Energy - South Korea
  • JPMorgan - India
  • IBC Asia (S) Pte Ltd
  • Lanco Infratech Ltd - India
  • PLN Batubara - Indonesia
  • Singapore Mercantile Exchange
  • PLN - Indonesia
  • McConnell Dowell - Australia
  • Minerals Council of Australia
  • Mitsubishi Corporation
  • Alfred C Toepfer International GmbH - Germany
  • Directorate General of MIneral and Coal - Indonesia
  • Ince & co LLP
  • Meenaskhi Energy Private Limited - India
  • South Luzon Thermal Energy Corporation
  • Leighton Contractors Pty Ltd - Australia
  • Chamber of Mines of South Africa
  • Gresik Semen - Indonesia
  • ICICI Bank Limited - India
  • Energy Development Corp, Philippines
  • MS Steel International - UAE
  • Shenhua Group - China
  • UOB Asia (HK) Ltd
  • Asmin Koalindo Tuhup - Indonesia
  • Independent Power Producers Association of India
  • Latin American Coal - Colombia
  • Sindya Power Generating Company Private Ltd
  • Runge Indonesia
  • Mercuria Energy - Indonesia
  • J M Baxi & Co - India
  • Intertek Mineral Services - Indonesia
  • AsiaOL BioFuels Corp., Philippines
  • Bank of America
  • Cargill India Pvt Ltd
  • GVK Power & Infra Limited - India
  • Ministry of Transport, Egypt
  • Bulk Trading Sa - Switzerland
  • Idemitsu - Japan
  • Romanian Commodities Exchange
  • Platts
  • Coal and Oil Company - UAE
  • Maruti Cements - India
  • Pinang Coal Indonesia
  • Clarksons - UK
  • European Bulk Services B.V. - Netherlands
  • Gujarat Mineral Development Corp Ltd - India
  • Manunggal Multi Energi - Indonesia
  • The India Cements Ltd
  • Salva Resources Pvt Ltd - India
  • Total Coal South Africa
  • Parry Sugars Refinery, India