TOPICTOPIC

INTERNATIONAL TRADE OF THERMAL COAL AND ITS IMPACT ON ENERGY SECTORS IN INDIA

OBJECTIVEOBJECTIVEFollowing are the objectives of the study

CONTENTCONTENT

INTRODUCTIONINTRODUCTION

Criteria Duration Commitment and Penalties Coal Imports Force majeure clause

GOVERNMENT POLICY FOR COAL BLOCK DISTRIBUTION

FSA (FUEL SUPPLY AGREEMENT) WITH COAL INDIA

FACTORS INFLUENCING COAL FACTORS INFLUENCING COAL PRODUCTION IN INDIAPRODUCTION IN INDIA

Nationalization Process of Coal Mines in India Coal Resources in India during last 5 years

Contribution of State Run PSU Coal India Ltd.

CURRENT SCENARIO

…….... FACTORS INFLUENCING COAL FACTORS INFLUENCING COAL PRODUCTION IN INDIAPRODUCTION IN INDIA

DEMAND & SUPPLY OF COAL FOR THE POWER SECTOR

GOVERNMENT POLICY IMPACT

GEOGRAPHICAL IMPACT

SOCIAL ISSUESENVIRONMENT ISSUES

POOR QUALITY & STANDARD OF RESERVES

CORPORATE INEFFICIENCYR1 R2 R3 R4 R5 R6 RBQ

Government Policy 1 5 3 2 2 67.95%

Environment Issue 7 3 2 1 69.23%

Socio Economic Issue 8 3 1 1 82.05%

Low Quality of Coal 2 2 6 3 37.18%

Corporate Inefficiency 2 3 8 25.64%

Inability to Coal India Ltd. 4 1 3 3 1 1 68%

…….... FACTORS INFLUENCING COAL FACTORS INFLUENCING COAL PRODUCTION IN INDIAPRODUCTION IN INDIA

INTERNATIONAL TRADE OF COALINTERNATIONAL TRADE OF COALCOAL PRODUCTION ACROSS THE GLOBE

… … INTERNATIONAL TRADE OF COALINTERNATIONAL TRADE OF COAL Coal Transportation Coal Prices Analysis of Sampling based on questionnaire

FACTORS INFLUENCING PRICE OF COAL

FACTORS OF STOCK OUT

R1 R2 R3 R4 R5 R6 RBQCoal Price 11 2 97.43%Availability of vessel of right size and price

2 2 5 2 2 50%

Exporting Country coal policy 1 2 4 5 1 50%Port Clearance Facility 1 5 5 2 73.07%Unstable foreign currency 2 6 1 4 57.69%Current account deficit of the country

2 11 19.23%

For procurement through import

For domestic product stock out

SWOT ANALYSISSWOT ANALYSIS

INTERNATIONAL COAL PRICE & ITS IMPACT ON INTERNATIONAL COAL PRICE & ITS IMPACT ON DOMESTIC COST OF ENERGYDOMESTIC COST OF ENERGY

FIGURE 12: PRICE MOVEMENT (TABLE CONTENT: COAL, AUSTRALIAN THERMAL COAL, 12000 – BTU/POUND, LESS THAN 1% SULPHER, 14% ASH, FOB NEWCASTLE/PORT KEMBLE, US DOLLARS PER METRIC TON

Month Price Change Month Price Change Month Price Change

Feb-10 100.92 - Oct-11 127.92 -3.00% Jun-13 88.67 -5.65%

Mar-10 101.12 0.20% Nov-11 121.91 -4.70% Jul-13 82.78 -6.64%

Apr-10 107.3 6.11% Dec-11 119.53 -1.95% Aug-13 82.46 -0.39%

May-10 107.28 -0.02% Jan-12 124.78 4.39% Sep-13 83.16 0.85%

Jun-10 105.2 -1.94% Feb-12 125.38 0.48% Oct-13 85.08 2.31%

Jul-10 102.84 -2.24% Mar-12 115.14 -8.17% Nov-13 88.13 3.58%

Aug-10 96.19 -6.47% Apr-12 110.99 -3.60% Dec-13 90.36 2.53%

Sep-10 101.68 5.71% May-12 102.68 -7.49% Jan-14 87.44 -3.23%

Oct-10 104.41 2.68% Jun-12 93.42 -9.02% Feb-14 81.74 -6.52%

Nov-10 114.81 9.96% Jul-12 94.54 1.20% Mar-14 78.58 -3.87%

Dec-10 126.74 10.39% Aug-12 97.5 3.13% Apr-14 78.02 -0.71%

Jan-11 141.94 11.99% Sep-12 95.31 -2.25% May-14 78.95 1.19%

Feb-11 137.53 -3.11% Oct-12 87.7 -7.98% Jun-14 76.59 -2.99%

Mar-11 135.14 -1.74% Nov-12 92.03 4.94% Jul-14 73.66 -3.83%

Apr-11 131.25 -2.88% Dec-12 99.51 8.13% Aug-14 73.86 0.27%

May-11 127.63 -2.76% Jan-13 99.4 -0.11% Sep-14 70.65 -4.35%

Jun-11 128.67 0.81% Feb-13 101.72 2.33% Oct-14 68.26 -3.38%

Jul-11 129.38 0.55% Mar-13 97.48 -4.17% Nov-14 67.02 -1.82%

Aug-11 128.71 -0.52% Apr-13 94.03 -3.54% Dec-14 66.9 -0.18%

Sep-11 131.88 2.46% May-13 93.98 -0.05% Jan-15 66.54 -0.54%

Feb-15 65.79 -1.13%

……INTERNATIONAL COAL PRICE & ITS IMPACT INTERNATIONAL COAL PRICE & ITS IMPACT ON DOMESTIC COST OF ENERGYON DOMESTIC COST OF ENERGY

THE FINDINGSTHE FINDINGS

CONCLUSION & RECOMMENDATIONS CONCLUSION & RECOMMENDATIONS