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.
|
|
Tuesday, 26 October 21
CHINA'S COAL-RICH SHANXI BEEFS UP COAL PRODUCTION - XINHUA
Major coal producers in north China’s Shanxi Province, a leading coal-producing region of the country, have beefed up production to ensure en ...
Tuesday, 26 October 21
ENERGY CRISIS SHOWS COAL IS AN EXPENSIVE AND UNRELIABLE SOURCE OF ELECTRICITY GENERATION - IEEFA
Any knee-jerk reaction that urges more investment in coal completely misses the point
India is teetering on the brink of joining a growing glo ...
Tuesday, 26 October 21
CHINA TO INVESTIGATE ENERGY INDEX PROVIDERS IN BID TO TAME COAL PRICES - REUTERS
China said on Monday it will investigate energy price index providers as it urged coal industry participants to “strictly” meet contrac ...
Tuesday, 26 October 21
THERE IS PLENTY OF COAL AND GAS IN THE WORLD BUT A VOLATILE MARKET IS NOBODY'S FRIEND - IEEFA
Gas will be winding its way out of the energy system
Gas prices are continuing to surge around the world. The cost of gas is at unpr ...
Tuesday, 26 October 21
AUSTRALIA EXPORTED 51.6 MLN TONNES OF COAL TO INDIA IN FIRST 10 MONTHS, 19% OF ALL AUSTRALIAN COAL EXPORTS; CHINA WAS THE DESTINATION FOR JUST 0.7% - BANCHERO COSTA
2020 proved to be a truly terrible year for global seaborne coal trade. In 2021 things started pretty badly, but we are seeing increasing signs of ...
|
|
|
Showing 431 to 435 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- VISA Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Maheswari Brothers Coal Limited - India
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Electricity Authority, New Zealand
- Intertek Mineral Services - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Economic Council, Georgia
- Power Finance Corporation Ltd., India
- Kalimantan Lumbung Energi - Indonesia
- Meralco Power Generation, Philippines
- Sojitz Corporation - Japan
- Sree Jayajothi Cements Limited - India
- Orica Australia Pty. Ltd.
- GVK Power & Infra Limited - India
- Kumho Petrochemical, South Korea
- Holcim Trading Pte Ltd - Singapore
- Planning Commission, India
- Mercuria Energy - Indonesia
- Heidelberg Cement - Germany
- Edison Trading Spa - Italy
- Indogreen Group - Indonesia
- Star Paper Mills Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement - Thailand
- Port Waratah Coal Services - Australia
- McConnell Dowell - Australia
- ICICI Bank Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Oldendorff Carriers - Singapore
- Vizag Seaport Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Finance - Indonesia
- Mercator Lines Limited - India
- Chamber of Mines of South Africa
- Larsen & Toubro Limited - India
- Commonwealth Bank - Australia
- Xindia Steels Limited - India
- Energy Development Corp, Philippines
- Orica Mining Services - Indonesia
- Indika Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- LBH Netherlands Bv - Netherlands
- Grasim Industreis Ltd - India
- Carbofer General Trading SA - India
- Parliament of New Zealand
- Jaiprakash Power Ventures ltd
- Lanco Infratech Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- MS Steel International - UAE
- Coal and Oil Company - UAE
- Indo Tambangraya Megah - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Iligan Light & Power Inc, Philippines
- Coastal Gujarat Power Limited - India
- Latin American Coal - Colombia
- Antam Resourcindo - Indonesia
- OPG Power Generation Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Kapuas Tunggal Persada - Indonesia
- London Commodity Brokers - England
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
- Indian Oil Corporation Limited
- Cigading International Bulk Terminal - Indonesia
- Malabar Cements Ltd - India
- Tata Chemicals Ltd - India
- Posco Energy - South Korea
- Billiton Holdings Pty Ltd - Australia
- Gujarat Sidhee Cement - India
- Price Waterhouse Coopers - Russia
- Central Electricity Authority - India
- Vijayanagar Sugar Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Bulk Trading Sa - Switzerland
- Neyveli Lignite Corporation Ltd, - India
- IEA Clean Coal Centre - UK
- Romanian Commodities Exchange
- Semirara Mining Corp, Philippines
- Baramulti Group, Indonesia
- PNOC Exploration Corporation - Philippines
- Madhucon Powers Ltd - India
- Parry Sugars Refinery, India
- Tamil Nadu electricity Board
- Toyota Tsusho Corporation, Japan
- Miang Besar Coal Terminal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- The University of Queensland
- Directorate Of Revenue Intelligence - India
- Standard Chartered Bank - UAE
- Samtan Co., Ltd - South Korea
- Binh Thuan Hamico - Vietnam
- Global Business Power Corporation, Philippines
- Goldman Sachs - Singapore
- GMR Energy Limited - India
- San Jose City I Power Corp, Philippines
- Interocean Group of Companies - India
- GAC Shipping (India) Pvt Ltd
- Indonesian Coal Mining Association
- PTC India Limited - India
- Coalindo Energy - Indonesia
- CNBM International Corporation - China
- Pendopo Energi Batubara - Indonesia
- Wood Mackenzie - Singapore
- Energy Link Ltd, New Zealand
- Karaikal Port Pvt Ltd - India
- SMC Global Power, Philippines
- Attock Cement Pakistan Limited
- Vedanta Resources Plc - India
- Marubeni Corporation - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhushan Steel Limited - India
- Central Java Power - Indonesia
- Banpu Public Company Limited - Thailand
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- New Zealand Coal & Carbon
- Sindya Power Generating Company Private Ltd
- Agrawal Coal Company - India
- PetroVietnam Power Coal Import and Supply Company
- Mjunction Services Limited - India
- Eastern Coal Council - USA
- Bangladesh Power Developement Board
- Global Green Power PLC Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Georgia Ports Authority, United States
- Sical Logistics Limited - India
- Ind-Barath Power Infra Limited - India
- Renaissance Capital - South Africa
- SMG Consultants - Indonesia
- Chettinad Cement Corporation Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Kobexindo Tractors - Indoneisa
- Siam City Cement PLC, Thailand
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
- Makarim & Taira - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Simpson Spence & Young - Indonesia
- Singapore Mercantile Exchange
- Thiess Contractors Indonesia
- Global Coal Blending Company Limited - Australia
- Africa Commodities Group - South Africa
- Sarangani Energy Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Mines - Canada
- India Bulls Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Karbindo Abesyapradhi - Indoneisa
- Essar Steel Hazira Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Mintek Dendrill Indonesia
- Indian Energy Exchange, India
- Bhatia International Limited - India
- IHS Mccloskey Coal Group - USA
- Electricity Generating Authority of Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Transport, Egypt
- Thai Mozambique Logistica
- Meenaskhi Energy Private Limited - India
- South Luzon Thermal Energy Corporation
- Australian Commodity Traders Exchange
- Alfred C Toepfer International GmbH - Germany
- SN Aboitiz Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Petron Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Deloitte Consulting - India
- The State Trading Corporation of India Ltd
- The Treasury - Australian Government
- Riau Bara Harum - Indonesia
- Minerals Council of Australia
- Wilmar Investment Holdings
- TNB Fuel Sdn Bhd - Malaysia
- Altura Mining Limited, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Manunggal Multi Energi - Indonesia
- Trasteel International SA, Italy
- Kepco SPC Power Corporation, Philippines
- White Energy Company Limited
- Australian Coal Association
- Ambuja Cements Ltd - India
- Therma Luzon, Inc, Philippines
- Bukit Makmur.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Borneo Indobara - Indonesia
- Salva Resources Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Videocon Industries ltd - India
- Metalloyd Limited - United Kingdom
- Savvy Resources Ltd - HongKong
- Aboitiz Power Corporation - Philippines
- Bayan Resources Tbk. - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Merrill Lynch Commodities Europe
- Uttam Galva Steels Limited - India
- Formosa Plastics Group - Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PowerSource Philippines DevCo
- Medco Energi Mining Internasional
- Anglo American - United Kingdom
- Independent Power Producers Association of India
- European Bulk Services B.V. - Netherlands
- Gujarat Electricity Regulatory Commission - India
- Aditya Birla Group - India
- Eastern Energy - Thailand
- Timah Investasi Mineral - Indoneisa
- Bhoruka Overseas - Indonesia
|
| |
| |
|
