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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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- Karaikal Port Pvt Ltd - India
- Cement Manufacturers Association - India
- Gujarat Sidhee Cement - India
- Siam City Cement - Thailand
- Ambuja Cements Ltd - India
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Simpson Spence & Young - Indonesia
- Electricity Generating Authority of Thailand
- PetroVietnam Power Coal Import and Supply Company
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- Jindal Steel & Power Ltd - India
- Petron Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Port Waratah Coal Services - Australia
- Marubeni Corporation - India
- Kepco SPC Power Corporation, Philippines
- Romanian Commodities Exchange
- Kartika Selabumi Mining - Indonesia
- Lanco Infratech Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- McConnell Dowell - Australia
- Salva Resources Pvt Ltd - India
- Eastern Energy - Thailand
- Siam City Cement PLC, Thailand
- Directorate Of Revenue Intelligence - India
- Carbofer General Trading SA - India
- PNOC Exploration Corporation - Philippines
- Heidelberg Cement - Germany
- Mintek Dendrill Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Merrill Lynch Commodities Europe
- Trasteel International SA, Italy
- GN Power Mariveles Coal Plant, Philippines
- Maheswari Brothers Coal Limited - India
- Global Green Power PLC Corporation, Philippines
- Ministry of Finance - Indonesia
- Bhushan Steel Limited - India
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- SMC Global Power, Philippines
- Bharathi Cement Corporation - India
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- Central Electricity Authority - India
- Kapuas Tunggal Persada - Indonesia
- Commonwealth Bank - Australia
- GAC Shipping (India) Pvt Ltd
- Altura Mining Limited, Indonesia
- Intertek Mineral Services - Indonesia
- Indogreen Group - Indonesia
- GMR Energy Limited - India
- Kobexindo Tractors - Indoneisa
- Bulk Trading Sa - Switzerland
- The Treasury - Australian Government
- New Zealand Coal & Carbon
- Formosa Plastics Group - Taiwan
- London Commodity Brokers - England
- Vijayanagar Sugar Pvt Ltd - India
- Star Paper Mills Limited - India
- CIMB Investment Bank - Malaysia
- Asmin Koalindo Tuhup - Indonesia
- Larsen & Toubro Limited - India
- MS Steel International - UAE
- CNBM International Corporation - China
- Planning Commission, India
- Chamber of Mines of South Africa
- Wilmar Investment Holdings
- Bahari Cakrawala Sebuku - Indonesia
- OPG Power Generation Pvt Ltd - India
- Edison Trading Spa - Italy
- Billiton Holdings Pty Ltd - Australia
- Videocon Industries ltd - India
- Australian Coal Association
- Wood Mackenzie - Singapore
- Bangladesh Power Developement Board
- Bukit Makmur.PT - Indonesia
- Vedanta Resources Plc - India
- Kideco Jaya Agung - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Independent Power Producers Association of India
- Kalimantan Lumbung Energi - Indonesia
- Thai Mozambique Logistica
- Energy Development Corp, Philippines
- Bhoruka Overseas - Indonesia
- Posco Energy - South Korea
- Savvy Resources Ltd - HongKong
- Tata Chemicals Ltd - India
- India Bulls Power Limited - India
- Metalloyd Limited - United Kingdom
- Indonesian Coal Mining Association
- Orica Australia Pty. Ltd.
- Grasim Industreis Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Singapore Mercantile Exchange
- Eastern Coal Council - USA
- Ceylon Electricity Board - Sri Lanka
- Makarim & Taira - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- San Jose City I Power Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Renaissance Capital - South Africa
- Jorong Barutama Greston.PT - Indonesia
- PTC India Limited - India
- Leighton Contractors Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Ministry of Mines - Canada
- Sree Jayajothi Cements Limited - India
- Meenaskhi Energy Private Limited - India
- PowerSource Philippines DevCo
- Globalindo Alam Lestari - Indonesia
- Goldman Sachs - Singapore
- VISA Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Xindia Steels Limited - India
- Parry Sugars Refinery, India
- Bhatia International Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Georgia Ports Authority, United States
- TeaM Sual Corporation - Philippines
- GVK Power & Infra Limited - India
- AsiaOL BioFuels Corp., Philippines
- Indian Energy Exchange, India
- Samtan Co., Ltd - South Korea
- Sojitz Corporation - Japan
- Therma Luzon, Inc, Philippines
- Riau Bara Harum - Indonesia
- Orica Mining Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Africa Commodities Group - South Africa
- Medco Energi Mining Internasional
- Madhucon Powers Ltd - India
- Iligan Light & Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- Aditya Birla Group - India
- Parliament of New Zealand
- Latin American Coal - Colombia
- Kaltim Prima Coal - Indonesia
- South Luzon Thermal Energy Corporation
- Rio Tinto Coal - Australia
- Antam Resourcindo - Indonesia
- Oldendorff Carriers - Singapore
- Baramulti Group, Indonesia
- Aboitiz Power Corporation - Philippines
- Semirara Mining Corp, Philippines
- The University of Queensland
- Coalindo Energy - Indonesia
- Power Finance Corporation Ltd., India
- Cigading International Bulk Terminal - Indonesia
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- Indian Oil Corporation Limited
- Sarangani Energy Corporation, Philippines
- Thiess Contractors Indonesia
- Toyota Tsusho Corporation, Japan
- Semirara Mining and Power Corporation, Philippines
- White Energy Company Limited
- Malabar Cements Ltd - India
- SMG Consultants - Indonesia
- Meralco Power Generation, Philippines
- Mercator Lines Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Central Java Power - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Coastal Gujarat Power Limited - India
- Global Coal Blending Company Limited - Australia
- Indika Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Global Business Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Uttam Galva Steels Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Straits Asia Resources Limited - Singapore
- Australian Commodity Traders Exchange
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
- Sical Logistics Limited - India
- Manunggal Multi Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Alfred C Toepfer International GmbH - Germany
- Pendopo Energi Batubara - Indonesia
- Ministry of Transport, Egypt
- Indo Tambangraya Megah - Indonesia
- Minerals Council of Australia
- Sakthi Sugars Limited - India
- IEA Clean Coal Centre - UK
- Mercuria Energy - Indonesia
- Deloitte Consulting - India
- ICICI Bank Limited - India
- The State Trading Corporation of India Ltd
- Gujarat Electricity Regulatory Commission - India
- European Bulk Services B.V. - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Borneo Indobara - Indonesia
- Economic Council, Georgia
- Bukit Asam (Persero) Tbk - Indonesia
- Rashtriya Ispat Nigam Limited - India
- ASAPP Information Group - India
- Attock Cement Pakistan Limited
- Timah Investasi Mineral - Indoneisa
- Barasentosa Lestari - Indonesia
- Interocean Group of Companies - India
- Price Waterhouse Coopers - Russia
- Sinarmas Energy and Mining - Indonesia
- Banpu Public Company Limited - Thailand
- Directorate General of MIneral and Coal - Indonesia
- Electricity Authority, New Zealand
- Bukit Baiduri Energy - Indonesia
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