We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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.
|
|
Saturday, 11 September 21
RECORD CHINESE COAL FUTURES SIGNAL NEED TO BOOST OUTPUT - REUTERS
China’s coal prices have climbed to a record high, signaling the need for more production in the short term, even as the government tries to ...
Saturday, 11 September 21
IN 2022, EIA EXPECTS U.S. COAL PRODUCTION TO INCREASE BY 47 MMST TO 648 MMST
U.S. Coal production accordng to EIA's forecast, totals 601 million short tons (MMst) in 2021, 66 MMst more than in 2020, EIA's Short-Term ...
Wednesday, 08 September 21
FITCH RATINGS RAISES THERMAL COAL PRICE ASSUMPTIONS ON TIGHT SUPPLY
Fitch Ratings has increased all its Qinhuangdao 5,500kcal/kg price assumptions and short- and medium-term Newcastle 6,000kcal/kg price assumptions ...
Wednesday, 08 September 21
COAL IS STILL KING; INDONESIAN COAL PRICE REFERENCE ABOVE $150 FOR FIRST TIME IN HISTORY
COALspot.com: The Indonesian Coal Price Reference rose dramatically from US$ 127.05 in February 2011, to a peak of US$ 150.03 in September 2021, be ...
Wednesday, 08 September 21
MARKET INSIGHT - INTERMODAL
Last August was extremely hot in the dry bulk market with rates rising at levels that we have years to witness. The dry bulk index exceeded the 4,0 ...
|
|
|
Showing 486 to 490 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Parry Sugars Refinery, India
- IHS Mccloskey Coal Group - USA
- Banpu Public Company Limited - Thailand
- Orica Australia Pty. Ltd.
- ASAPP Information Group - India
- Intertek Mineral Services - Indonesia
- SMG Consultants - Indonesia
- Indonesian Coal Mining Association
- Sical Logistics Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Borneo Indobara - Indonesia
- Ind-Barath Power Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- Power Finance Corporation Ltd., India
- Star Paper Mills Limited - India
- Trasteel International SA, Italy
- The Treasury - Australian Government
- Siam City Cement PLC, Thailand
- Bhatia International Limited - India
- Bhoruka Overseas - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Kalimantan Lumbung Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Thai Mozambique Logistica
- Timah Investasi Mineral - Indoneisa
- South Luzon Thermal Energy Corporation
- New Zealand Coal & Carbon
- Attock Cement Pakistan Limited
- Videocon Industries ltd - India
- TeaM Sual Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Africa Commodities Group - South Africa
- Central Java Power - Indonesia
- McConnell Dowell - Australia
- Bhushan Steel Limited - India
- Bayan Resources Tbk. - Indonesia
- Orica Mining Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- CNBM International Corporation - China
- Merrill Lynch Commodities Europe
- Baramulti Group, Indonesia
- Madhucon Powers Ltd - India
- Essar Steel Hazira Ltd - India
- Ministry of Mines - Canada
- Rashtriya Ispat Nigam Limited - India
- PetroVietnam Power Coal Import and Supply Company
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Planning Commission, India
- India Bulls Power Limited - India
- Price Waterhouse Coopers - Russia
- Minerals Council of Australia
- Tamil Nadu electricity Board
- Uttam Galva Steels Limited - India
- Australian Commodity Traders Exchange
- Coalindo Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Simpson Spence & Young - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Anglo American - United Kingdom
- Independent Power Producers Association of India
- Dalmia Cement Bharat India
- Romanian Commodities Exchange
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- Standard Chartered Bank - UAE
- Cement Manufacturers Association - India
- Globalindo Alam Lestari - Indonesia
- Vizag Seaport Private Limited - India
- Indian Oil Corporation Limited
- Marubeni Corporation - India
- Xindia Steels Limited - India
- Larsen & Toubro Limited - India
- Meralco Power Generation, Philippines
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Singapore Mercantile Exchange
- Oldendorff Carriers - Singapore
- Meenaskhi Energy Private Limited - India
- Therma Luzon, Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Kumho Petrochemical, South Korea
- Indogreen Group - Indonesia
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Sarangani Energy Corporation, Philippines
- Global Business Power Corporation, Philippines
- Tata Chemicals Ltd - India
- LBH Netherlands Bv - Netherlands
- Rio Tinto Coal - Australia
- Indian Energy Exchange, India
- Gujarat Sidhee Cement - India
- Holcim Trading Pte Ltd - Singapore
- ICICI Bank Limited - India
- Energy Link Ltd, New Zealand
- Posco Energy - South Korea
- PTC India Limited - India
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- Bukit Baiduri Energy - Indonesia
- Aditya Birla Group - India
- Ministry of Finance - Indonesia
- Maheswari Brothers Coal Limited - India
- Eastern Coal Council - USA
- Sakthi Sugars Limited - India
- CIMB Investment Bank - Malaysia
- Sojitz Corporation - Japan
- Neyveli Lignite Corporation Ltd, - India
- Antam Resourcindo - Indonesia
- Salva Resources Pvt Ltd - India
- Renaissance Capital - South Africa
- Kideco Jaya Agung - Indonesia
- Georgia Ports Authority, United States
- Edison Trading Spa - Italy
- Economic Council, Georgia
- Kapuas Tunggal Persada - Indonesia
- SMC Global Power, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Parliament of New Zealand
- Mercator Lines Limited - India
- Directorate Of Revenue Intelligence - India
- Altura Mining Limited, Indonesia
- Mintek Dendrill Indonesia
- Kaltim Prima Coal - Indonesia
- Bangladesh Power Developement Board
- Semirara Mining and Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Jindal Steel & Power Ltd - India
- Coal and Oil Company - UAE
- The State Trading Corporation of India Ltd
- Sinarmas Energy and Mining - Indonesia
- GVK Power & Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Energy Development Corp, Philippines
- Electricity Generating Authority of Thailand
- Electricity Authority, New Zealand
- Bulk Trading Sa - Switzerland
- Coastal Gujarat Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Bukit Makmur.PT - Indonesia
- London Commodity Brokers - England
- Malabar Cements Ltd - India
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Commonwealth Bank - Australia
- Ministry of Transport, Egypt
- Indika Energy - Indonesia
- Grasim Industreis Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Kepco SPC Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- VISA Power Limited - India
- Savvy Resources Ltd - HongKong
- Bharathi Cement Corporation - India
- Lanco Infratech Ltd - India
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- GAC Shipping (India) Pvt Ltd
- Riau Bara Harum - Indonesia
- Interocean Group of Companies - India
- Kobexindo Tractors - Indoneisa
- Petron Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Mjunction Services Limited - India
- Toyota Tsusho Corporation, Japan
- Thiess Contractors Indonesia
- OPG Power Generation Pvt Ltd - India
- Makarim & Taira - Indonesia
- Barasentosa Lestari - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Electricity Regulatory Commission - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Australian Coal Association
- GN Power Mariveles Coal Plant, Philippines
- Manunggal Multi Energi - Indonesia
- Port Waratah Coal Services - Australia
- The University of Queensland
- Bank of Tokyo Mitsubishi UFJ Ltd
- Wood Mackenzie - Singapore
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Alfred C Toepfer International GmbH - Germany
- Ambuja Cements Ltd - India
- Kartika Selabumi Mining - Indonesia
- Medco Energi Mining Internasional
- Karbindo Abesyapradhi - Indoneisa
- Central Electricity Authority - India
- AsiaOL BioFuels Corp., Philippines
- Sindya Power Generating Company Private Ltd
- Samtan Co., Ltd - South Korea
- Carbofer General Trading SA - India
- Deloitte Consulting - India
- Vedanta Resources Plc - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mercuria Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GMR Energy Limited - India
- Semirara Mining Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- Eastern Energy - Thailand
- Jorong Barutama Greston.PT - Indonesia
- Siam City Cement - Thailand
- Latin American Coal - Colombia
|
| |
| |
|
