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8/9/2019 coal report em new.pdf
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A STUDY OF INDIAN
COAL SECTOR
PRESENTED TO
DR. Y C JOSHI
GHPIBM
PREPARED BY:
DHAVAL BARIA (14048)
AAKASH PRAJAPATI
(14041)
DIPALI MAKWANA
(14049)
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Table of ContentsIntroduction ............................................................................................ 3
Objectives ............................................................................................... 4
Coal: choice for Indian energy ................................................................ 4
Factors which led up to nationalization of coal industry in India ............ 9
Import of coal ....................................................................................... 12
Important observation about coal import............................................... 14
Export of Coal ....................................................................................... 16
Legislation ............................................................................................ 16
Core Sector ........................................................................................... 18
Non Core Sector Industries ................................................................... 19
International Co-Operation ................................................................... 23
The Indian coal sector: Challenges and future outlook.......................... 24
Bibliography ......................................................................................... 26
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Objectives:
1. To understand current scenario of coal in India
2. Coal consumption in various firm for specific uses
3.
Coal is limited resource what next after coal
Coal: choice for Indian energy
COAL is the most important and abundant fossil fuel in India. It accounts for 55%
of the country's energy need. The country's industrial heritage was built upon
indigenous coal.
Commercial primary energy consumption in India has grown by about 700% in the
last four decades. The current per capita commercial primary energy consumption
in India is about 350 kgoe /year which are well below that of developed countries.
Driven by the rising population, expanding economy and a quest for improved
quality of life, energy usage in India is expected to rise. Considering the limited
reserve potentiality of petroleum & natural gas, eco-conservation restriction on
hydel project and geo-political perception of nuclear power, coal will continue to
occupy centre-stage of Indiasenergy scenario.
Indian coal offers a unique ecofriendly fuel source to domestic energy market for
the next century and beyond. Hard coal deposit spread over 27 major coalfields,
are mainly confined to eastern and south central parts of the the country. The
lignite reserves stand at a level around 36 billion tones, of which 90 % occur in the
southern State of Tamil Nadu
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Demand and supply scenario:
Sector wise coal production in India:
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Industry structure
Currently, the government enjoys a monopoly in producing coal with over 90% of
the production coming from government-controlled mines. The policy for captive
mining was introduced in 1993. This opened the coal sector to private investment,although no promising progress has been made in the captive coal blocks allotted
by the government. Out of the 200 allocated blocks (22 have been de-allocated),
only 30 mines have commenced production due to various reasons. The combined
production from these was merely 36.30 MT in FY 2010-11 against a target of 104
MT. Contentious issues, availability of geological data, land acquisition and R&R,
environment clearances, mining lease, etc. are the primary reasons behind the
dismal production. Currently, coal block auction is proposed and detailed
mechanism is being formulated for transparency and efficient processing.
Current scenario
India is the worlds fifth largest energy consumer, accounting for 4.1% of the
global energy consumption. Maharashtra is the leading state in electricity
generation. The current per capita consumption of energy in India is 0.5 toe against
the global average of 1.9 toe, indicating a high potential for growth in this sector.
Of the total electricity consumed in the country, approximately 80% is produced
from coal.
Steel sector
Coal is an essential input in the production of steel. In 2011, the world crude steel
production reached 1,518 MT, reflecting a growth of 6.2% over 2010. The per
capita finished steel consumption in 2011 is estimated at 215 kg for world and 460
kg for China, while that for India it is estimated currently at 55 kg (provisional).
This clearly indicates scope for increasing the per capita steel consumption, a
factor which correlates to the coking coal availability and production within the
country. India has very limited reserves of coking coal which is a key raw materialfor the production of steel. Coking coal accounts for only 15% of the countrys
overall proven coal reserves. The Jharia coalfield, located in the state of Jharkhand,
holds the majority of the coking coal reserves The Indian steel industry has been
facing acute shortage of coal for the last several years. As per the report of the
Working Group of Coal and Lignite for the 12th Five Year Plan, the steel
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production by 2016-17 is projected to be 105 MT. The corresponding requirement
of coking coal for this quantity of steel is worked out at 67.2 MT in 2016-17.
Distribution of coking coal to steal plant:
Every year requirement of indigenous coking coal is being determined on the basis
of the target of hot metal production fixed by the ministry of Steel collectively as
well as individually for every Steel Plant in the Country. Requirement of coal coal
is being derived proportionately and with the help of prescribed norms in relation
with the hot metal production. Accordingly, Ministry of Steel advise Coal India
about their total requirement of indigenous coking coal for the year. CIL then
indicates to Steel Authority the total quantity of coking coal that could be supplied
during the year.
Allocation of coking coal was earlier made by the Coal controller on month to
month basis according to CIL offers for the same period. However vide
amendment carried out by the Central Government to the Colliery Control Order
1945, the Government had exempted the prices and distribution of coking coal
from the provisions of Colliery Control Order. Consequently the supply of coking
coal are being made by the coal companies them selves on the basis of linkages
established by a competent linkage committee or on the basis of then existing
commitments.
Cement sector
India is the second largest producer of cement in the world. Large amount of
energy is required during the production of cement and coal is used as an energy
source. During the process, coal is usually burnt in the form of powder. Around
450g of coal is consumed to produce 900g of cement. The cement industry is the
third largest consumer of coal in the country. Due to the high cost and inadequate
availability of oil and gas, coal is used as the main fuel in the industry. However, in
the last few years due to rapid adoption of the dry process, the specificconsumption of coal for producing cement has reduced significantly. It has also
improved efficiency in cement kilns and increased the use of fly ash (produced in
power plants) and granulated slag (produced in blast furnaces of steel plants) in the
production of cement (Coal Vision, 2025).
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Coal demand trend of cement industry in India via-a-via cement production
Electricity sector:
India is the worlds fifth largest energy consumer accounting for 4.1% of the
global energy consumption
The current per capita energy consumption in India is 0.5 toe against the against
the global average of 1.9 toe indicating high potential for growth in this sector.
Total electricity consumed in india approximately 80% is produced from coal.
Nationalization of Coal Mines
Right from its genesis, the commercial coal mining in modern times in India has
been dictated by the needs of the domestic consumption. On account of the
growing needs of the steel industry, a thrust had to be given on systematicexploitation of coking coal reserves in Jharia Coalfield. Adequate capital
investment to meet the burgeoning energy needs of the country was not
forthcoming from the private coal mine owners. Unscientific mining practices
adopted by some of them and poor working conditions of labour in some of the
private coal mines became matters of concern for the Government. On account of
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these reasons, the Central Government took a decision to nationalize the private
coal mines.
The nationalization was done in two phases, the first with the coking coal mines in
1971-72 and then with the non-coking coal mines in 1973. In October, 1971, the
Coking Coal Mines (Emergency Provisions) Act, 1971 provided for taking over in
public interest of the management of coking coal mines and coke oven plants
pending nationalization.
This was followed by the Coking Coal Mines (Nationalization) Act, 1972 under
which the coking coal mines and the coke oven plants other than those with the
Tata Iron & Steel Company Limited and Indian Iron & Steel Company Limited,
were nationalized on 1.5.1972 and brought under the Bharat Coking Coal Limited
(BCCL), a new Central Government Undertaking. Another enactment, namely the
Coal Mines (Taking Over of Management) Act, 1973, extended the right of theGovernment of India to take over the management of the coking and non-coking
coal mines in seven States including the coking coal mines taken over in 1971.
This was followed by the nationalization of all these mines on 1.5.1973 with the
enactment of the Coal Mines (Nationalization) Act, 1973 which now is the piece of
Central legislation determining the eligibility of coal mining in India
Factors which led up to nationalization of coal
industry in India
Nationalization of coal industry in India in the early seventies was a fall out of
two related events. In the first instance it was the oil price shock, which led the
country to take up a close scrutiny of its energy options. A Fuel Policy Committee
set up for this purpose identified coal as the primary source of commercial energy.
Secondly, the much needed investment needed for growth of this sector was not
forthcoming with coal mining largely in the hands of private sector. The objectives
of Nationalization as conceived by late Mohan Kumar amangalam were;Conservation of the scarce coal resource, particularly coking coal, of the country
by
Halting wasteful, selective and slaughter mining.
Planned development of available coal resources.
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Improvement in safety standards.
Ensuring adequate investment for optimal utilization consistent with growth needs.
Improving the quality of life of the work force.
Moreover the coal mining which hitherto was with private miners suffered with
their lack of interest in scientific methods, unhealthy mining practices etc. The
living conditions of miners under private owners were sub-standard.
Coal Resources
Inventory of Geological Resources of Coal in India: As a result of
exploration carried out up to the maximum depth of 1200m a cumulative total of301.56 Billion tons of Geological Resources of Coal have so far been estimated in
the country as on 1.4.2014.
The details of state-wise geological resources of coal are given as under:
State
Proved (Mt) Indicated (Mt) Inferred (Mt) Total
(Mt)
West Bengal 13403 13022 4893 31318
Jharkhand 41377 32780 6559 80716
Bihar 0 0 160 160
Madhya Pradesh 10411 12382 2879 25673
Chhattisgarh 16052 33253 3228 52533
Uttar Pradesh 884 178 0 1062
Maharashtra 5667 3186 2110 10964
Orissa 27791 37873 9408 75073Andhra Pradesh 9729 9670 3068 22468
Assam 465 47 3 515
Sikkim 0 58 43 101
Arunachal Pradesh 31 40 19 90
Meghalaya 89 17 471 576
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Nagaland 9 0 307 315
Total 125909 142506 33149 301564
Status of Coal Resources in India during Last 5 years
The increase/up gradation of coal resources in the country during last 5 years is
furnished in table below:
As on Geological Resources of Coal (In Million tones)
Proved Indicated Inferred Total
1.1.2009 105820 123470 37920 267210
1.1.2010 109798 130654 36358 276810
1.1.2011 114002 137471 34390 285862
1.1.2012 118145 142169 33183 293497
1.1.2013 123182 142632 33101 298914
1.1.2014 125909 142506 33149 301564
Coal production, distribution, and Coal production:
Through sustained programme of investment and greater thrust on application of
modern technologies, it has been possible to raise the production of coal from alevel of about 70 million tons at the time of nationalization of coal mines in early
1970's to 565.64(P) million tons (All India) in 2013-14.
Coal India limited and its subsidiaries accounted for 462.42 million tons during
2013-14 as against a production of 452.21 million tons in 2012-13 showing a
growth of 2.3%.
Singareni Collieries Company Limited (SCCL) is the main source for supply of
coal to the southern region. The company produced 50.47 million tons of coal
during 2013-14 as against 53.19 million tons during the corresponding period last
year. Small quantities of coal are also produced by TISCO, IISCO, DVC and
others.
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Coal distribution and marketing:
The Marketing Division of CIL coordinates marketing activities for all
its subsidiaries. CIL has set up Regional Sales Offices and Sub-Sales Officeselected places in the country to cater to the needs of the consuming sectors in
various regions.
Coal Companies/Coal India Limited is allocating coking coal to steel plants for
their requirements. For core sector, sale of coal is guided by linkages and
allocations by the competent authorities.
For non-core Sector consumers, with a view to reaching the benefit of decontrol of
coal as per Colliery Control Order, 2000, Coal India Limited has decided to
authorize its subsidiary companies to formulate their own system and procedure for
sale of coal to this sector. The new policy of Coal India Limited is aimed at
providing a simplified, transparent and customer-friendly system and procedure. In
the new policy framework the system of linkage and sponsorship for the purpose of
coal supply to non-core sector is being done away with. In the emerging new
policy framework for coal sale to non-core sector, stress is being given on bilateral
agreement between supplying subsidiary company and consumer for well defined
commitment on the part of both buyer and seller.
Import of coal
As per the present Import policy, coal can be freely imported (under Open General
Licence) by the consumers themselves considering their needs based on their
commercial prudence.
Coking Coal is being imported by Steel Authority of India Limited (SAIL) and
other Steel manufacturing units mainly to bridge the gap between the requirement
and indigenous availability and to improve the quality. Coal based power plants,
cement plants, captive power plants, sponge iron plants, industrial consumers and
coal traders are importing non-coking coal. Coke is imported mainly by Pig-Iron
manufacturers and Iron & Steel sector consumers using mini-blast furnace.
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Details of import of coal and products i.e. coke during the last five years is as
under: (in million tons)
Coal
2009-10 2010-11 2011-
12
2012-
13
2013-14 2014-15
Coking Coal 24.69 19.48 31.80 32.56 37.19 10.87
on-coking
Coal
48.56 49.43 71.05 105.00 131.25 38.59
Coke 2.35 1.49 2.36 3.07 4.19 1.17
Total Import 75.60 70.40 105.21 140.63 168.44 49.45*
* Import upto June 2014
The current duty on imported coal as amended on 28.2.2004 is as under:-
Import Duty Type of coal
Coking having up to 12% ash 0%
Coal having ash 12% and more 5%
Coke 5%
Non-Coking Coal 5%
Note: With effect from 9.1.2004 the Central Government has withdrawn the
Special Additional Duty.
Trend in coal import
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Important observation about coal importChina and India becoming the highest gross net importer of coal
India was traditionally coking coal importer due to unavailability of good quality
coking coal for steel, but situation has changed in favor of non-coking steel for lastfive years with non-coking coal import rising from countries like Indonesia and
south Africa.
Further, coal washing capacity in country has not increased sufficiently, due to
various reasons, to generate required quantity of washed coal for consumption,
particularly for steel plant. This necessities the import of high quality coal to meet
the requirement of steel plants.
Risks involved in coal imports
There are certain factors which can significantly affect the project economics.
Some of the key risks involved are discussed below:
In case of acquisition, profile of the asset and timing of acquisition is important.
Acquisition of wrong asset (where profile mismatch may be in terms of size,
quality, developmental time required etc.) may result in heavy costs as huge sum of
money is to be paid upfront.
Due Diligence of asset: While due diligence of source is necessary for reliability
of coal supply, it becomes more important in case of asset acquisition. If detailed
technical, financial, tax and other due diligence are not carried out, correct price
may not be assessed resulting in heavy losses.
Commercial Contract: For reliability of long term supply, it is necessary that
detailed contract is drafted to ensure that roles and responsibilities of the parties are
clearly identified. This should also detail obligations and provisions for non
performance. Contract should have enough enforcing provisions and deterrent for
ensuring performance by each party.
Coal Prices: FOB price of coal forms more about 60-80% of landed cost of coal.
Coal Prices in Global coal market has seen significant variation. Over past five
years, a coal price has seen about 300% increase and standard deviation of coal
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Export of CoalCoal is under Open General Licence (OGL) list. India exports coal to the
neighbouring countries to meet their demand of coal. The traditional buyers of
Indian coal are Nepal, Bangladesh and Bhutan. Export to Nepal and Bhutan is
done in rupee exchange as per the protocol between the two countries and with
Bangladesh it is done in US Dollar. Export of coal to the neighbouring countries
was earlier canalized through the Mineral and Metal trading Corporation, but for
the last few years it has been decanalised. Export of coal by CIL is made through
tender route The quantum of coal exported by CIL during 2002-03 to the
neighbouring countries was 12,650 tons. During 2003-2004 the quantity of coal
exported by CIL was 35,831 tons (Provisional).
Policy frame work
Eligibility to do Coal Mining
Under the provisions in Section 3 (3) of Coal Mines (Nationalization) Act, 1973,
Coal mining was mostly reserved for the public sector. Amendments to Coal Mines
(Nationalization) Act, 1973 have been done to facilitate captive mining in
approved end-use industries. The parties eligible to do coal mining in India without
the restriction of captive consumption are:
i. The Central Government, a Government company (including a StateGovernment company), a Corporation owned, managed and controlled by the
Central Government.
ii. A person to whom a sub-lease has been granted by and economic
development in a coordinated manner and that the coal produced by the sub-lessee
will not be required to be transported by rail.
Legislation:
COAL INDIA (REGULATION OF TRANSFERS AND VALIDATION) Act,
2000
The private coal mines of the country were nationalized in two phases during
1971-1973. In the first phase coking coal mines were nationalized. In the second
phase non-coking coal mines were nationalized. Even since the nationalization of
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Corporation (MECL) have also been engaged for carrying out Promotional
Regional Exploration.
In the second stage, Detailed Exploration is carried out. Central Mine Planning and
Design Institute Ltd. (CMPDI) directly as well as through Mineral ExplorationCorporation, State Govts. and private agencies carry out detailed exploration, for
the purpose of mine planning and exploitation of coal reserves for meeting the
demand of different sectors of the economy. The detailed exploration in the
command area of SCCL is carried out departmentally. Priorities of various
projects/blocks, taken up for Detailed Exploration, are decided taking into account
factors like emerging demand and its location, availability of infrastructure for coal
evacuation and techno-economics of the mine development including coal quality.
Coal linkages
PRESENT POLICY REGARDING COAL LINKAGE
The Linkages of coal demand is primarily done with the objective of planning of
coal supplies, keeping in view indigenous coal resources as well as the need to
supply fuel of appropriate quality to the consumers and at the same time making
the most economic use of the available capacity for production and of coal.
The system of Linkages as in vogue, both for core and non-core sector consumers
(as it has been evolved over the years) has proved to be immensely useful in
fulfilling its objectives. The usefulness and effectiveness of the linkage system is
best diverse coal consuming sector, spread over the country, from coalfields having
differential growth in production. The Linkage Policy as applicable for different
consuming sector is detailed in all its related aspects as follows:
Core Sector
STANDING LINKAGE COMMITTEE (LONG TERM) FOR POWER &CEMENT SECTORS
The consumers desiring linkage for supply of coal should apply for linkage to the
SLC (long Term). The consumers should route the application through the
concerned Ministry to the Chairman, SLC (LT). For example, for setting up a
Power Plant, the application has to be routed through the Central Electricity
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Authority and Ministry of Power. In case of cement unit, it has to be routed
through the Ministry of Industry , Ministry of Industrial Policy & Promotion. . The
SLC (LT) has the Additional Secretary in the Ministry of Coal as the Chairman.
Other members of the SLC (LT).are representatives of CIL, representatives of
SCCL, CMPDIL, Railways, Planning Commission, Central Electricity Authority,Ministry of power and representative of Ministry of Industry, Dept. of Industrial
Policy & Promotion (as the case may be). The Committee decides the linkage of
coal for source of supply, quantum of coal and the made of transportation.
Standing Linkage Committee (Short Term) For Power and Cement Sectors
The Additional Secretary in the Ministry of Coal, Govt. of India is the Chairman of
the Committee. Representatives of Coal India Limited, Central Electricity
Authority, Ministry of Power, Railways, Representatives of Singareni CollieriesCo. Ltd. are the member of SLC (ST) for power sector. In SLC (ST) for cement
sector besides Chief of Marketing of CIL, representatives of SCCL, Railways,
Ministry of Industry, Dept.of Industrial Development are the other members.
The committee meets in March, June, September and December each year to
review the coal supplies to Power and Cement Sectors in the quarter and finalise
the linkage to consumers in Power and Cement Sectors for the next quarter. Time
to time adjustment/incorporation in the quarterly linkages is done by the
Chairman, SLC(ST). Minutes of the meetings are drawn and circulated to all
concerned for implementation.
Non Core Sector IndustriesAt the time of nationalisation there was not system of obtaining confirmation of
CIL by any consumer with regard to coal availability and of coal specifications on
which the burning equipments were to the designed by the new industries. The
consumers were drawing coal supply from the sources convenient to them.
In 1978, it was agreed that CIL should decide the linkage to consumers who are
falling under non-core sector category keeping in view the rationalisaion of wagon
movement, proximately to the coal field, the design of the burning equipment and
availability of coal in various coal fields. To this effect, a circular was sent to all
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the State Governments informing them accordingly. Since them, `linkage Cell' has
been functioning at CIL. Later on, it was decided that such linkages should be
discussed and decided by a Committee called "Non-core sector Linkage
committee" (NCLC). This system was adopted in October, 1982 which still
continues.
Noncore sector consumers approach CIL in advance for granting linkage of coal to
their units, before installation of their burning equipments. The consumers have to
design the same keeping in view qualitative availability of coal. However, this
system had not been rigidly adhered to as a number of consumers approached CIL
for granting linkages only after installation of their burning equipments.
Consumers having a projected requirement upto 5000 MT of coal per month and
desiring drawal of coal from CIL are required to submit linkage application, in theprescribed Performa. Based on the scrutiny of technical data, linkage is issued.
Linkage issued remains valid for a period of two years by which time the
consumers are expected to start drawing supplies.
Normally movement of coal by rail is encouraged, although where ever necessary,
movement by road is resorted to. Consumers whose requirements are more than
500 Tons per month and are located beyond 250 Km from the linked source are
accorded linkage for supply by rail.
However, depending on operational/loading convenience relaxations are also
considered. Consumers located in the vicinity of coalfield are given coal by road
irrespective of quantity.
Linkages are granted for a range of grades suiting consumer's requirements, so that
desired flexibility in planning and execution of coal supplies can be maintained. It
is important to note that many of the supplying coal pilots/collieries load coal of
more than one grade in a rake.
In case any consumer does not draw supplies continuously for 24 consecutive
months, the linkage is treated as `snapped' Restoration of snapped linkages is done
by the concerned contact sales office.
Linkages are not granted to the seasonal industries like manual brick
manufacturing units.
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Consumer requiring coal, more than 5000 tons per month are required to obtain a
clearance from the ministry of coal before obtaining formal linkage by CIL which
is granted as per the above procedure as specified for consumers requiring less than
5,000 tons per month.
Requirements of consumers of Southern States like Tamilnadu, Karnataka, Kerala,
Andhra Pradesh, Pondicherry and Goa are normally met by the SCCL. In the event
any consumer located in these stated desire to obtain linkage from CIL source, the
same is allowed.
The above procedure is not applicable in case of manufacture of special smokeless
fuel (SSF) and cokery units (manufacturers of BH hard coke) for which separate
norms/ system exists, as follows:
Special Smokeless Fuel
Prospective entrepreneurs desiring to set up SSF plant based on patented
technology of CMPDIL, Ranchi are required to obtain recommendation from the
High level Committee (HLC) of the concerned State and if the HLC is not
functioning, from the concerned DI/DIC and formally apply to CIL-Marketing
Division in specified format for issuance of Coal Clearance. CIL-marketing, after
scrutiny of the application, and on confirmation from the supplying coal company
about availability of coal for proposed plant, issues coal clearance certificates infavour of the unit. Coal linkages are granted by the subsidiary coal companies after
meeting the requirements of operation of project report and for acquiring of design
packages etc., from CMPDIL-Ranchi on deposition of necessary fee to that office.
Pricing of Coal
Like in every other commodity, the price of domestic coal is determined by the
level of supply and demand. However, the response of overall demand and supplyto price variations is slow due to the structure of the coal industry as well as the
nature of the user industries. The two government-owned companies of India,
namely Coal India Ltd and Singareni Collieries Company Ltd, working in different
geographies, see their role as one of fulfilling the production targets fixed by the
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government and take up plans and projects to meet the targets, with very little
surplus to serve any unanticipated or sudden increase in demand.
1. Prior to 1.1.2000 the Central Government was empowered under section 4 of
the Colliery Control Order, 1945, as continued in force by the EssentialCommodities Act, 1955, to fix the grade-wise and colliery-wise prices of
coal. The prices of the administered grades of coal were last revised w.e.f.
17.6.94. The price notification had been amended in December 1995,
January 1996 and April 1996 to enhance the differential between run of
mine, steam and slack coal, to meet the increase in transportation charges
and also to provide for additional prices for coal produced from
Ramagundam OCP of SCCL and Rajmahal OCP of Eastern Coalfields
Limited, respectively.
2.
Following the recommendations of Bureau of Industrial Costs and Prices
(BICP), a decision was taken by the Government to deregulate the prices of
all grades of coking coal and A, B, & C grades of non-coking coal and this
decision was implemented with effect from 22.3.96. Subsequently in
consideration of a recommendation of the Committee on Integrated Coal
Policy, the Government decided to de-regulate the prices of soft coke, hard
coke and D grade of non-coking coal and this decision was implemented
with effect from 12.3.97.
3.
The Government also decided to allow CIL and SCCL to fix prices of E, Fand G grades of non-coking coal once in every six months by updating the
cost indices as per the escalation formula contained in the 1987 report of the
BICP and necessary instructions to this effect were issued to CIL and SCCL
on 13.3.97.
4. The pricing of coal was fully deregulated after the Colliery Control Order,
2000 was notified with effect pricing of coal from 1st January 2000 in
suppression of the Colliery Control Order, 1945. Under the Colliery Control
Order, 2000 the Central Government has no power to fix the prices of coal.5. However, the Ministry of Power has been writing to the Department of Coal
that in the absence of a regulatory mechanism, the prevailing monopoly
situation in the coal market will lead to arbitrary increase in price levels
affecting adversely the cost of generation and thereby electricity tariff which
has direct impact on the national economy. The Ministry of Power has been
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pressing for appointing an independent regulatory body for price
determination. Several State Governments and State Electricity Boards/
Undertakings have also raised the issue.
6. In view of the above, the Tariff Commission is being involved in pricing of
coal for the Power Sector and to suggest modalities for pricing of coal forother sectors.
7.
International Co-Operation
Foreign Collaboration
To meet country's growing demand for coal, foreign collaboration with theadvanced coal producing countries are considered for:
Bringing in new technologies both in underground and opencast sectors for
efficient management in the coal industry and skill development and training
etc.
Seeking bilateral funds for import of equipment , which are not
manufactured in the country
Bringing foreign financial assistance to meet the investment requirement
Keeping these objectives in view, Joint Working Group on coal had beenset up with France, Germany, Russia, Canada, Australia and China. Department of
Coal is also the nodal Department for the Joint Commission with Poland. The
priority areas, inter-alia, include acquisition of modern underground mining
technology, introduction of high productive opencast mining technology,
working underground in difficult geological conditions, fire control and mine
safety. Training of Indian personnel as well as assimilation of the technology are
an important consideration. With the liberalization of the economy, greater thrust is
being given to get the foreign investments /assistance on the basis of cost
competitiveness.
The latest policy pursued by CIL is to encourage technology up gradation
through Global Tender. Bilateral co-operation, although limited, continues to play
an important role for search of new technologies and process improvement.
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Cooperation with china (30th
June, 2003)
Cooperation with France 2002
Cooperation with UK 1997
Cooperation with Poland 1996
Cooperation with Kazakhstan 2010
Cooperation with South Africa
Cooperation with japan
Cooperation with USA
Cooperation with Australia
The Indian coal sector: Challenges and future outlookSteel sector Coal is an essential input in the production of steel. In 2011, the world
crude steel production reached 1,518 MT, reflecting a growth of 6.2% over 2010.
The per capita finished steel consumption in 2011 is estimated at 215 kg for world
and 460 kg for China, while that for India it is estimated currently at 55 kg
(provisional). This clearly indicates scope for increasing the per capita steel
consumption, a factor which correlates to the coking coal availability and
production within the country. India has very limited reserves of coking coal which
is a key raw material for the production of steel. Coking coal accounts for only
15% of the countrys overall proven coal reserves. The Jharia coalfield, located in
the state of Jharkhand, holds the majority of the coking coal reserves The Indian
steel industry has been facing acute shortage of coal for the last several years. As
per the report of the Working Group of Coal and Lignite for the 12th Five YearPlan, the steel production by 2016-17 is projected to be 105 MT. The
corresponding requirement of coking coal for this quantity of steel is worked out at
67.2 MT in 2016-17.
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Bibliography
www.pwc.com/india
IEA Publication
www.idsa.in/idsacomments/WhyCoalMattersinIndia_phosur_010610.html
http://www.coal.nic.in/welcome.html
http://www.indiacore.com/coal.html
http://www.india-briefing.com/news/indias-coal-industry-moves-privatization-
protests-trade-unions-9149.html/