“There is interest also from nontraditional business companies who weren’t there in the mining sector previously. They are also showing interest,” said M Nagaraju, Joint Secretary and the nominated authority of Ministry of Coal.
“After the launch, we had few interactions with the business community, received number of queries so far and whatever interests we have received are also very unprecedented,” Nagaraju, the key ministry official working on the auction process, said.
The reasons behind such interest are not hard to find. The current situation of oversupply and falling demand of coal is but a small blip. And when the economy recovers from the current pandemic-induced slowdown, and stranded power plants get new lease of life and begin generation, country would need coal much more than Coal India can manage to produce, believes PS Bhattacharyya, former chairman of Coal India Ltd.
Commercial mining would also bring a sea-change to the way coal is handled and transacted in the country.
In a duopoly situation, it’s a sellers’ market and the one-sidedness of the transactions is seen in the Fuel Supply Agreements that Coal India and Singareni Collieries sign with its customers.
The FSAs would become a thing of the past, or at least get renegotiated while the coal market as a whole would largely depend upon short term transactions rather than long term transactions, believes Yogesh Daruka, Partner-Power & Utilities, Mining, PwC.
“We are already seeing many companies pressurising Coal India to rework the terms of their FSAs and make them more evenly balanced,” he said.
There would be more short-termed market-linked transactions on coal after commercial coal is available.
There would be impact on the socioeconomic aspects also as many of the blocks selected are in backward areas of the country.
Diese Geschichte stammt aus der July 2020-Ausgabe von Coal Insights.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der July 2020-Ausgabe von Coal Insights.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
SCCL's coal production up 64% in Q1
Coal production by SCCL during Q1 FY22 stood at 15.57mt, 64% higher than 9.50 mt achieved in Q1 FY21.
The UK to end thermal coal use in October 2024
The deadline to phase out coal from Great Britain’s energy system has been brought forward by a year as part of the UK government’s decision to go further in driving down emissions and tackling climate change.
Coal handled by major ports up 38.5% in Q1
The 12 major Indian ports handled 39.37 million tons (mt) of coal (thermal + coking) during April- June of FY22, up by 38.5 percent from 28.42 mt recorded in the corresponding quarter of FY21, according to data released by the Indian Ports Association (IPA).
Cement sector sees demand revival
Retail demand was under pressure during the first two months of FY22 with April and May production falling by 12 percent and 17 percent respectively month-on-month (m-o-m) as per Index of Industrial Production data.
Indian Railways' coal handling up 42% in Q1
Indian Railways in April-June of FY22 transported 157.78 million tons (mt) of coal, up by 42.4 percent from 110.80 mt handled in corresponding quarter of FY21.
CIL's coal production up 2.4% in Q1
Coal India’s (CIL) coal production during April-June quarter (Q1) of FY22 was up by 2.4 percent to 124 million tons (mt) as compared to 121 mt achieved during the same quarter last fiscal (FY21), according to (provisional) data released by the company.
India's May coal imports up 20% y-o-y
Coal and coke imports in May 2021 were up 20.44 percent year-on-year (y-o-y), according to import data available with Coal Insights. Imports rose to 19.92 million tons (mt) from 16.54 mt during May of previous year.
There is still a long way to go to squeeze coal out: BP
There are worrying signs that last year’s Covid-induced dip in carbon emissions will be short lived as the world economy recovers and lockdowns are lifted, says Bernard Looney Chief Executive Officer of BP in the recently published Statistical Review of World Energy 2021 published by the company.
“Growing Infrastrcuture is a big opportunity for OTR Tires in India”
India is now considered to be the largest market for Off-the-Road Tires (OTR) used in construction & mining industry. The opening up of the coal sector has provided further push to the potential usage of such tires. And Balkrishna Industries Ltd, a global player with diversified portfolio under the BKT brand across agriculture, industrial, construction, earthmoving, mining and port is set to seize the opportunity. Rajiv Poddar, Joint Managing Director, Balkrishna Industries Ltd., tells Arindam Bandyopadhyay of Coal Insights about the opportunities and outlook for the sector and the company.
SCCL's coal production up 69% in May
After putting up a dismal performance last year, Singareni Collieries Company Ltd (SCCL) has started the new fiscal on a high note. Coal production by SCCL in May 2021 surged to 5.44 million tons (mt), about 68.56 percent higher than 3.23 mt achieved in the same month last year, according to (provisional) data released by the company.
