Coal economics

By RAVI KUMAR SINGH

R130209056

Power generation of India

COAL AND TYPES• Coal is a readily combustible black or brownish-black sedimentary rock normally occurring in

rock strata in layers or veins called coal beds

GRAPHITE

ANTHRECITE

BITUMINOUS

SUB-BITUMIOUS

LIGNITE

Highest grade of coal but not use as a fuel

grade between bituminous coal and anthracitethe highest rank

used primarily as fuel in steam-electric power generation

Between bituminous and lignite

Coal field In India

Grading of coal

• GRADE UHV RANGE - K.CAL / KG

• A Exceeding 6200 • B Exceeding 5600 but not exceeding 6200 • C Exceeding 4940 but not exceeding 5600 • D Exceeding 4200 but not exceeding 4940• E Exceeding 3360 but not exceeding 4200• F Exceeding 2400 but not exceeding 3360• G Exceeding 1300 but not exceeding 2400

• The formula for calculation of UHV shall be as follows:• UHV = 8900 - 138(A + M) • where A = Ash M = Inherent Moisture in coal determined under standard conditions of 60% RH & 40

Degree C basis

DEEP-SEATED COAL DEPOSITS

• The total geological resources of Indian coal up to a depth of 1700 m (meters) in seams of 0.9 m or more in thickness, as on 1 January 2009, as reported by the GSI (Geological Survey of India) is 288 BT (billion tones).

• Mining restricted above the level in depth of 300 m. only jharia coal field depth level is 0-600 m

• almost 60% belongs to the 0-300-m depth range

• both opencast and underground mines are restricted to the depth of 300 m

Indian coal overview• According to the 2010 BP Statistical Energy Survey

• India had end 201o coal reserves of 58600 million tones, 7.09% of the world total.

• India had 2010 coal production of 557.57 million tones, 6.2% of the world total

• India had 2010 coal consumption of 245.82 million tones oil equivalent, 7.49% of the world total

• India's coal is characterized by high ash content, but the quality has other useful qualities such as low sulphur content (generally 0.5%), low iron content in ash, low refractory nature of ash, low chlorine content and low trace element concentration

• 88 % coal production through coal India ltd.

• Coal India is India's largest taxpayer.

• Total 190 captive coal block allotted to various public and private sector.

• 96 captive to public and rest of to private ,48 % allotted to power sector and 86 coal block

coal pricing

• Domestic coal price between 1100 rs to 2800 rs ( power industry)

• Coal price fixed by according to grade and colliery wise..

• Only sccl and cil permitted to fix e, f, g grade of non cocking coal price.

• Captive coal block owner has right to sell coal in open market

Pricing and charges

Transport model – conveyor, aerial, ropeway are included levy for surface transport charges

Economic evaluation of coal resource

TAX AND DUTIES

SALE TAX

ROYALIT

Y

PRE-WIEGH-BIN

EXCISE

DUTY

FOREST LAND ADJUSTMENT

25 /- • FOREST LAND ADJUSTMENT

25 /- • PRE-WEIGH BIN

10 /- • SHUNTING CHARGES

27 /- • FUEL SURCHARGE

50 /- • CLEAN ENERGY CESS

ALL CHARGES PAYABLE ON PER TONNES

COAL ISSUIED TO INDUSTRIES

CAPTIVE POWER; 12.20

POWER ; 16.90

CEMENT; 5.30

PAPER MILL; 5.10

IRON; 6.70

METAL AND ALLOY; 3.00

CHEMICAL; 2.30

% OF TOTAL COAL

EXPORT AND IMPORT OF COAL

• INDONESIAN COAL

japankorea

chinaindia

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%japan; 39.80%

korea; 16.30%

china; 9.50%india; 9.40%

export to Asian country's coal share in %

Netherlands31%

United Kingdom29%

France25%

Italy15%

European country coal share %

Total Asia

Total Europe

Brazil Mexico South Africa

Other0.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

COAL SHARE %

COAL SHARE %