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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, 01 July 20
COLOMBIA'S COAL EXPORT VOLUMES HAVE STEADILY DECLINED IN RECENT YEARS - BANCHERO COSTA
Colombia is the world’s fifth largest seaborne exporter of coal, coming after Australia, Indonesia, Russia and the USA.
Export ...
Wednesday, 01 July 20
MARKET INSIGHT - INTERMODAL
It was beginning of 2020 – close to 6 months from now – when we first experienced the huge impact of the COVID 19 outbreak on Ship Repa ...
Monday, 29 June 20
INDONESIAN COAL AT THE MERCY OF THE DRAGON AND TIGER - GHEE PEH | IEEFA
Coal sector analysts have been busy in recent months mapping the negative impact of low coal prices from the COVID-19 pandemic on Indonesian coal c ...
Monday, 29 June 20
FALLING DEMAND IN CHINA AND INDIA SIGNAL TOUGH TIMES AHEAD FOR INDONESIAN EXPORTS - GHEE PEH | EEFA
Assessing the Impact on Indonesian Coal Companies
The bad news for Indonesia’s coal companies is that they are likely to have ...
Monday, 29 June 20
INDIA COAL IMPORT OUTLOOK: WEAK DEMAND, IMPORT SUBSTITUTION, EXPECT 20% YOY DECLINE - GHEE PEH | IEEFA
For India, the coal demand indicators have clearly turned negative.
According to Argus Media, since the government declared a ...
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- International Coal Ventures Pvt Ltd - India
- The Treasury - Australian Government
- Ministry of Mines - Canada
- Borneo Indobara - Indonesia
- Deloitte Consulting - India
- Orica Mining Services - Indonesia
- Therma Luzon, Inc, Philippines
- ASAPP Information Group - India
- Posco Energy - South Korea
- Bhushan Steel Limited - India
- Aditya Birla Group - India
- Kepco SPC Power Corporation, Philippines
- Siam City Cement PLC, Thailand
- South Luzon Thermal Energy Corporation
- Mintek Dendrill Indonesia
- Gujarat Electricity Regulatory Commission - India
- AsiaOL BioFuels Corp., Philippines
- Australian Coal Association
- Energy Link Ltd, New Zealand
- Gujarat Sidhee Cement - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Simpson Spence & Young - Indonesia
- Formosa Plastics Group - Taiwan
- Kaltim Prima Coal - Indonesia
- Energy Development Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- The University of Queensland
- Indian Oil Corporation Limited
- IEA Clean Coal Centre - UK
- Uttam Galva Steels Limited - India
- CNBM International Corporation - China
- Vizag Seaport Private Limited - India
- Goldman Sachs - Singapore
- Georgia Ports Authority, United States
- VISA Power Limited - India
- Barasentosa Lestari - Indonesia
- White Energy Company Limited
- Heidelberg Cement - Germany
- Cigading International Bulk Terminal - Indonesia
- Indika Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Wood Mackenzie - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Videocon Industries ltd - India
- Indonesian Coal Mining Association
- Salva Resources Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Billiton Holdings Pty Ltd - Australia
- Sakthi Sugars Limited - India
- Port Waratah Coal Services - Australia
- Eastern Energy - Thailand
- SN Aboitiz Power Inc, Philippines
- Tamil Nadu electricity Board
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- PNOC Exploration Corporation - Philippines
- Interocean Group of Companies - India
- Kumho Petrochemical, South Korea
- Timah Investasi Mineral - Indoneisa
- Standard Chartered Bank - UAE
- Ind-Barath Power Infra Limited - India
- SMC Global Power, Philippines
- New Zealand Coal & Carbon
- Vedanta Resources Plc - India
- Orica Australia Pty. Ltd.
- Minerals Council of Australia
- Central Electricity Authority - India
- Sindya Power Generating Company Private Ltd
- Grasim Industreis Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Bulk Trading Sa - Switzerland
- Bhoruka Overseas - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Chamber of Mines of South Africa
- Wilmar Investment Holdings
- Global Green Power PLC Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- European Bulk Services B.V. - Netherlands
- Petron Corporation, Philippines
- Sical Logistics Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Medco Energi Mining Internasional
- Vijayanagar Sugar Pvt Ltd - India
- SMG Consultants - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Metalloyd Limited - United Kingdom
- Indian Energy Exchange, India
- Chettinad Cement Corporation Ltd - India
- Antam Resourcindo - Indonesia
- Larsen & Toubro Limited - India
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kartika Selabumi Mining - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GMR Energy Limited - India
- MS Steel International - UAE
- Anglo American - United Kingdom
- Price Waterhouse Coopers - Russia
- Pendopo Energi Batubara - Indonesia
- Marubeni Corporation - India
- The State Trading Corporation of India Ltd
- Leighton Contractors Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Iligan Light & Power Inc, Philippines
- Economic Council, Georgia
- Ceylon Electricity Board - Sri Lanka
- Oldendorff Carriers - Singapore
- Star Paper Mills Limited - India
- Merrill Lynch Commodities Europe
- Straits Asia Resources Limited - Singapore
- Maheswari Brothers Coal Limited - India
- Manunggal Multi Energi - Indonesia
- Riau Bara Harum - Indonesia
- Agrawal Coal Company - India
- Electricity Authority, New Zealand
- Trasteel International SA, Italy
- London Commodity Brokers - England
- Global Coal Blending Company Limited - Australia
- Thiess Contractors Indonesia
- Edison Trading Spa - Italy
- Altura Mining Limited, Indonesia
- Renaissance Capital - South Africa
- Maharashtra Electricity Regulatory Commission - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Singapore Mercantile Exchange
- Bhatia International Limited - India
- TeaM Sual Corporation - Philippines
- Alfred C Toepfer International GmbH - Germany
- Meralco Power Generation, Philippines
- Electricity Generating Authority of Thailand
- Parliament of New Zealand
- Bangladesh Power Developement Board
- Thai Mozambique Logistica
- Coal and Oil Company - UAE
- Mercator Lines Limited - India
- Indogreen Group - Indonesia
- Bayan Resources Tbk. - Indonesia
- Cement Manufacturers Association - India
- Eastern Coal Council - USA
- Mjunction Services Limited - India
- Binh Thuan Hamico - Vietnam
- Dalmia Cement Bharat India
- GAC Shipping (India) Pvt Ltd
- Central Java Power - Indonesia
- Commonwealth Bank - Australia
- Power Finance Corporation Ltd., India
- Karaikal Port Pvt Ltd - India
- Sojitz Corporation - Japan
- Ambuja Cements Ltd - India
- Baramulti Group, Indonesia
- Lanco Infratech Ltd - India
- Samtan Co., Ltd - South Korea
- Ministry of Transport, Egypt
- PowerSource Philippines DevCo
- CIMB Investment Bank - Malaysia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Malabar Cements Ltd - India
- Meenaskhi Energy Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- ICICI Bank Limited - India
- Banpu Public Company Limited - Thailand
- Indo Tambangraya Megah - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- GN Power Mariveles Coal Plant, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Xindia Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Attock Cement Pakistan Limited
- Rio Tinto Coal - Australia
- Bharathi Cement Corporation - India
- Coastal Gujarat Power Limited - India
- Latin American Coal - Colombia
- Intertek Mineral Services - Indonesia
- Madhucon Powers Ltd - India
- Ministry of Finance - Indonesia
- Makarim & Taira - Indonesia
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Rashtriya Ispat Nigam Limited - India
- Tata Chemicals Ltd - India
- Mercuria Energy - Indonesia
- GVK Power & Infra Limited - India
- Australian Commodity Traders Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Carbofer General Trading SA - India
- San Jose City I Power Corp, Philippines
- Global Business Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Globalindo Alam Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- Siam City Cement - Thailand
- IHS Mccloskey Coal Group - USA
- Jindal Steel & Power Ltd - India
- Parry Sugars Refinery, India
- Sarangani Energy Corporation, Philippines
- Africa Commodities Group - South Africa
- McConnell Dowell - Australia
- LBH Netherlands Bv - Netherlands
- Planning Commission, India
- Romanian Commodities Exchange
- Jorong Barutama Greston.PT - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- OPG Power Generation Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Independent Power Producers Association of India
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