CCAI Newsletter July-18

Published on : 28.07.2018 Price: 40/W H E R E S E R V I C E A N D D E D I C AT I O N J O I N H A N D S

Vol. XLVI No. 16 July 2018 CCAI Monthly Newsletter July 2018

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From the Editor’s Desk As per recent data coal supply has improved over the past two months but coal stock levels are yet to recover as demand from the power and non-power sectors remain strong.

Power Ministry has recently allowed States to import coal to meet the ongoing demand. Hence, India’s coal imports have surged in July to meet the demand of thermal power as reported by Indian Ports.

It has been said by the Hon’ble Coal Minister that Government is constantly trying to ramp up production and the recent decision by Power Ministry to import coal is temporary.

Same sentiments have been echoed by Coal India Limited to ensure supply of sufficient quantity of coal to meet the requirement of power and other sectors so that they do not suffer any loss of production due to coal shortage.

Ongoing mismatch in demand and supply situation is lying heavy on Power and Non-power Sectors both. Only a balanced supply mechanism would be able to avert crisis.

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Content Vol. XLVI No. 16 July 2018

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30 |Monthly Summary of Domestic Coal 32 |Energy Generation Report 34 |Monthly Summary of Imported

Coal & Petcoke

36 |Production and Offtake Performance of CIL and Subsidiary Companies

37 |Overall Domestic Coal Scenario CCAI Monthly Newsletter July 2018

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CONSUMERS’ PAGE Present Coal Scenario Coal India has increased its production by 10.5% yoy to 40.56 mn tonne in the month of July 2018. This brings the total production for the period of April-July 2018 to 177.43 mn tonne, an increase of 14.1% yoy.

Coal offtake for the same month was higher by 8.9% at 48.25 million tonnes compared to 44.29 million tonnes in July 2017. Thus offtake for the period of April-July 2018 rose 11% to 201.68 million tonnes compared to 181.71 million tonnes in corresponding period of previous year.

Consumers’ Concern 1. Coal Stock Position Though coal supply has improved over the past two months, coal stock levels are yet to recover as demand from the power and non-power sectors remains strong. All-India stock levels stood at 15.77mn tonne at the end of July 2018, an increase of 6.5% since May, 2018. Number of thermal power plants having a critical coal stock situation has come down to 13 at present.

2. Applicability of revised bid prices under Spot e-Auctions consequent to any revision in notified price of coal Coal consumers have requested CIL not to enforce the proposal to its customers as this may be unjustified.

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3. Power Companies with and without PPAs have urged to start Auction under Shakti Scheme Power Plants without assured coal supply but with PPAs could not take part in Auction due to various reasons, have urged to commence Auction to provide them the opportunity to win long term supply assurance.

Similarly, non-PPA holders have also requested for commencing Auction for them as per provisions of Shakti Scheme

4. Request to expedite coal supply by rail from BCCL and MCL

Companies both in the Power and Non-power Sector are not getting adequate coal supply from Bharat Coking Coal Limited (BCCL) and Mahanadi Coalfields Limited (MCL) by rail mode.

Considering this, they have requested CIL to advise BCCL and MCL for providing relief in this regard.

5. Request for resuming normalcy in coal supply by rail from SECL and CCL Coal consumers are facing shortage of coal due to scanty supply by rail mode from Korba and Korea Rewa region of South Eastern Coalfields Limited (SECL) and RCM and KDH siding of Central Coalfields Limited (CCL).

Therefore, they have requested to establish a balanced supply mechanism otherwise abrupt demand would jeopardize the supply plan of the Subsidiaries.

6. Reconciliation at regular intervals is needed for refund or adjustment of balance amount

ers are not satisfied with the quality specially from these two Subsidiary Coal Companies resulting in loss to the Power Plants.

9. Under loading of coal in rakes Under loading even in the tune of 300 to 400 tonne of coal resulting in idle freight is a direct load to the consumers. Before 2009, it had been compensated by the coal companies as under loading rebate but now this has been restricted to stencil carrying capacity only

10. Overloading penalty Customers have to pay penalty for overloading and that is quite higher than the normal freight. Therefore loading should be done as per the chargeable carrying capacity fixed by the Railways

11. CHP or SILO loading For ensuring time bound efficient loading of coal, both Power and Non-power Sectors have requested CIL & Subsidiaries for loading only through Silo or rapid loading mechanism. Advanced Coal Handling Plants (CHP) should be put in place

Reconciliation against advance payment should be done at regular intervals otherwise it takes inordinate time to get back the adjusted amount.

12. Consumers urge WCL to conduct Exclusive e-Auction for Non-power Sector including 7. Delay in issuance of credit CPPs notes against GCV slippage In case of GCV slippage in different subsidiaries, inordinate delay in issuance of credit note is resulting in stuck up of funds.

Consumers in the Non-power sector are unable to run their plants smoothly due to shortage of coal as they have not been offered sufficient quantity in Spot e-Auction.

Therefore, coal consumers are requesting Subsidiary Coal Companies for timely release of credit notes as it is done in case of debit notes

Therefore, they have urged WCL to offer more coal to Non-power Sector consumers by conducting Exclusive e-Auction.

8. GCV slippage repeatedly foun Power Consumers are repeatedly complaining of GCV slippage from different areas of ECL and BCCL. In spite of Third Party Sampling & Analysis, consumCCAI Monthly Newsletter July 2018

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POWER Modi govt sets up high-level com- not be the most suitable response to deal with massive stressed assets in the power sector. mittee to prevent stressed power assets worth Rs 2.5 lakh cr from Government sees 2.5% surplus becoming NPAs power availability in current fiscal In line with the recommendations of private electricity producers and the ministry of power, the government has decided to set up a high-level empowered committee headed by the cabinet secretary to prevent stressed assets worth Rs 2.5 lakh crore from becoming non-performing assets (NPAs).

Representatives from the ministries of power, coal, finance and railways along with lenders having major exposure to the sector would also be part of the committee. The department of financial services, in its latest report, had acknowledged the fact that the stress is caused by factors cutting across sectors, and recommended that a high-level panel be set up to expeditiously resolve such issues.

The committee would deliberate on the possible changes regarding fuel allocation policy, regulatory framework, provisioning norms in the insolvency and bankruptcy code and asset restructuring company regulations that might be required to salvage the sector, the government said.

The finance ministry had said the RBI’s “one-sizefits-all approach� under its February 12 circular may

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The country is seen to have 2.5% surplus power available in FY19 than the peak demand of 180.7 giga-watts (GW. The government agency anticipates conventional power capacity addition of 9,626.2 MW during the fiscal, comprising 8,216.15 MW of thermal, 910 MW of hydel and 500 MW of nuclear power. The gross energy generation from conventional power plants has been assessed as 1.3 billion units (BU), reflecting a growth of 4.5%.

Rise in power demand is good news for the sector which is currently mired in the stressed asset issue.

Power Ministry mulls Rs 50 crore reward for discoms under Saubhagya The power ministry is mulling a reward of Rs 50 lakh for state utilities employees and a grant of Rs 50 crore for discoms which will meet household electrification target under Saubhagya scheme at the earliest.

Under the Rs 16,320 crore Pradhan Mantri Sahaj Bijli Har Ghar Yojana - ‘Saubhagya’ scheme launched last year in September, the government aims to electrify all 3.6 crore un-electrified households by December-end.

The ministry will form different group of states based on the parameters like geography and number of households to be electrified. Among each group, the state completing the task of 100 per cent household electrification at earliest will be rewarded. In each group, only the top performer will be rewarded.

The move is aimed at incentivising state discoms to compete against each other to give a push to achieve the objective of 100 per cent household electrification under ‘Saubhagya’ Scheme.

Peak power deficit in April-June at 0.7 per cent: Minister R K Singh Peak power deficit during April-June, 2018-19 was 0.7 per cent while overall electricity deficit stood at 0.6 per cent during the quarter, Parliament was informed.

As much as 170.76GW electricity was supplied during peak hours against the demand of 171.97 GW during the quarter, resulting in a deficit of 0.7 per cent, Power Minister R K Singh said in a written reply to Lok Sabha.

Overall, 323.41 GW electricity was supplied against the demand of 325.42 GW during the quarter, which translated into a deficit of 0.6 per cent, as per the provisional estimates of Power Ministry.

In 2017-18, the peak power deficit was 2 per cent while overall electricity deficit was 0.7 per cent across the country

Union Power Minister R K Singh has recently red flagged coal shortage for power plants for the next 2-3 years and allowed states to import the fuel.

Goyal said there had been constant growth in coal production and dispatches by the Coal India and explained that at times imports might be needed as a stop-gap arrangement for states to meet sudden rise in demand.

Goyal said coal production had registered a 15.2 per cent growth during the first quarter ended June 2018 to 136.87 million tonnes and supply to power plants also jumped by 15.4 per cent to 122.84 million tonnes during the quarter.

This resulted in lower coal imports by the power industry by nearly 15 per cent during April-May this year.

The Coal India is trying to rationalise coal supplies to power companies based on demand and stock lying with them in order to optimise power generation in the country, a company official said.

The company is also planning to limit supplies with low PLF and high stock with utilities generating more with low stock, he said

NTPC may abandon two units if states renege on PPAs NTPC may not go ahead with the construction of the upcoming 1,980-MW Nabinagar-2 and 1,600-MW Katwa thermal power generating units in Bihar and West Bengal, respectively, until it receives “re-confirmation” from the beneficiary states if they still require power from these projects. Power purchase agreements (PPAs) for these projects were signed with West Bengal, Bihar, Odisha, Sikkim and Jharkhand in 2010.

Coal import call by power ministry temporary: Piyush Goyal Coal Minister Piyush Goyal has said that the recent decision of the Union Power Ministry to allow states to import coal is temporary in nature.

“We are constantly trying to ramp up production. Allowing states to import coal is temporary in nature,” Goyal told when asked about the Union Power Ministry asking states to import coal in the wake of coal shortage.

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The development comes after Odisha’s energy minister Susanta Singh recently requested Union power minister RK Singh to cancel PPAs between the state and NTPC for the aforementioned power plants, along with the 1,320-MW Pirpainti project, on the back of surplus generation capacity in the state.

“NTPC is presently not pursuing the Pirpanti project,” a company spokesperson told.

Power tariff for these projects will be decided by the Central Electricity Regulatory Commission when they start to supply electricity after their completion.

Sources said that Odisha has to pay around `1,000 crore every year to NTPC as ‘fixed cost’ even if they do not evacuate electricity from the Farakka, Kahalgaon and Barh units, based outside the state.

Private power producers allege CIL selling more coal through e-auctions Private power producers have alleged that Coal India is selling increased quantities of coal through e-auctions and have sought to stop e-auction sales till the company’s supply obligations to the power sector to generate low cost power are met.

Ashok Khurana, director general of Association of Power Producers alleged that generators with supply contracts are receiving less than 75% of their stipulated requirements leading to severe shortage of the dry fuel at power plants. Instead, the country’s coal supplier is offering additional quantities through e-auctions that fetch a premium over the notified price.

The Association recently apprised the coal and power ministry of the issue and urged them to take it up on a priority basis.

A senior Coal India executive said the coal producer has ample production capabilities and there is no supply shortfall at pit head plants but non-pit head plants suffer from stock shortage due to logistics and law & order issues although we are ready to supply their full contracted quantity.

Rest of the coal that cannot be sent to power plants is auctioned and it is mostly carried through roadways on trucks, the Coal India executive added.

In fact, Coal India offered the auction route for stressed power assets to help the latter survive the onslaught of financial institutions..

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India now has too much electricity — and it has a cost With the successful push for tapping the renewable energy, India, which once faced electricity shortage now has too much of it. India’s gross electricity capacity is much higher than the demand. “For a change, shortfalls have fallen dramatically and there is talk of “surplus” power,” sources said.

However, as every electricity grid operates in a balance between supply and demand, usually with a slight surplus of capacity to meet eventualities and uncertainty—too much surplus becomes expensive, the report warned. One the biggest problems could be having a surplus average energy but not having surplus capacity all the time.

“Renewable Energy (RE) creates particularly acute issues for the grid since it is both variables as well as likely available only at specific times,” the report said, adding that the target of 175GW renewable energy production by 2022 is “top-down”, set by the central government, and doesn’t incorporate much (if any) feedback by DisComs on how much power of what type is needed by that year.

“…load-shedding is often an economic issue where state utilities (the distribution companies, or DisComs) are not buying sufficient power because they are cash-strapped and bleeding money,” the report added. Moreover, another challenge is that the coalbased capacity has grown at over 12% annually, double the growth rate of power demand. This creates a lot of overhang that impacts grid economics.

The challenge is also the targeted 175 GW of RE is disproportionately concentrated in a handful of states. Karnataka already has almost 5 GW of solar and more of wind, far ahead of its targets. “The entire systems planning has to shift from one of managing scarcity to managing surplus, at least for parts of the day or year,” the report said

Decline in coal imports by power plants of India The decline in coal imports by India’s power plants points to distress in an increasing number of generators and a domestic supply shortfall.

Imports by power stations fell about 15 percent from a year ago in the first two months of the fiscal year to March caused mainly by a 32 percent drop in overseas purchases by plants designed to use imported coal, according to calculations based on data from Central Electricity Authority, a unit of the power ministry. Higher coal prices and a weaker rupee forced them to cut generation. At the same time, plants that use domestic coal saw a 35 percent spurt in imports as they tried to bridge a shortfall in domestic supply.

A court order last year barred some Indian power plants that use imported coal and have fixed-tariff contracts from passing on an increase in fuel costs to customers. Adani Power Ltd.’s 4.6 gigawatt plant at Mundra in Gujarat, which runs mostly on imported coal, used merely 6 percent of its capacity during April and May, power ministry data show. Essar Power’s 1.2 gigawatt imported coal-fired generator in the same state was closed during the months. Average thermal coal prices at Australia’s Newcastle port, considered an Asian benchmark, have risen about 25 percent in the period from a year ago.

While the Union Government seeks to discourage imports of thermal coal and sees the decline as an achievement, rising domestic supplies are failing to keep pace with demand. Plants designed to run on Indian coal are now increasingly importing the fuel for

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blending, as state miner Coal India Ltd. fails to meet requirements.

Gujarat panel to look at stressed power assets Coming to the rescue of private power players, the Gujarat government announced the formation of a High Powered Committee (HPC) to look into the hardships faced by stressed power assets and find a sustainable solution in a time-bound manner.

The committee, formed by the Gujarat government through a Government Resolution (GR), comprises of three members — former Supreme Court Justice, R K Agrawal as its Chairman, former Deputy Governor of RBI, SS Mundra, and former Chairman of CERC, Pramod Deo. SBI Capital Markets, Mumbai, will provide secretarial support to the committee, which is asked to finalise recommendations within two months. Gujarat government’s nodal officer is appointed from Energy and Petrochemicals Department.

The committee is asked to examine and analyse the hardships faced by the developers of power projects, Coastal Gujarat Power Ltd (CGLP), Adani Power Ltd (APL) and Essar Power Gujarat Ltd (EPGL), on account of change in Indonesian regulations and subsequent orders in the matter. Also the committee is empowered to seek additional details, clarifications from the relevant parties as required..

Uttar Pradesh annuls 1000 MW solar auction without citing any reason Uttar Pradesh cancelled a 1000 MW solar auction it held earlier this month without citing any reasons but industry sources said it could be because the state government felt the tariff quoted was too high.

The Uttar Pradesh New and Renewable Energy Development Agency (Upneda) held the reverse auction on July 11, at which winning tariffs varied between Rs 3.48 and Rs 3.55 per unit. This was more than a rupee higher than the lowest-ever tariff of Rs 2.44 per unit, and even markedly higher than the winning tariff of Rs 3.32 per unit at the previous auction in UP conducted by Solar Energy Corporation of India (SECI) in June. Industry sources attributed the increased tariff to higher risk factor in dealing with UP-based agen-

cy (Upneda), the poor financial health of UP discoms (from which payments have been a problem in the past) as well the difficulties of land acquisition in the state. But the UP government clearly felt otherwise and has annulled the auction results

Solar energy scheme will double farmer income: Delhi CM Arvind Kejriwal Private companies will be allowed to put up solar panels in Delhi’s agricultural lands, letting farmers earn up to Rs 1 lakh per acre as rent, Chief Minister Arvind Kejriwal announced, terming it as a model that can be emulated across the country to double their income. The decision taken by the AAP Cabinet, aimed at consolidating the party’s rural vote base, comes within days of the government initiating the process to let Delhi’s villages have more land as non-agricultural land.

The power generated under the ‘Mukhyamantri Kisan Aay Badhotri Solar Yojana’, which will be implemented in the next “eight to nine months”, will be bought by various Delhi government departments at around Rs 4 per unit, which is cheaper than the current rate of procurement of around Rs 9 per unit, the CM said at a press conference.

“The panels will be put up at a height of 3.5 meters so it will not affect farming activities. A maximum of one-third of a farmer’s land can be used by the companies. A farmer earns around Rs 30,000 per acre annually. This scheme will let them earn three to four times more,” Kejriwal said.

Delhi, which is predominantly urban, has around 34,700 hectares of crop area currently, following a steady decline of around 34 per cent since 2000.

Around 0.71% of the city’s working population is engaged in the farming sector, according to the state economic survey

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CCAI Monthly Newsletter July 2018

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DOMESTIC CIL has taken various measures to improve coal supply: Jha

tonnes in July, according to vessel-tracking and port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts.

Coal India Limited chairman, Anil Kumar Jha said CIL was taking various measures to improve coal supply to power and steel sector.

The data was filtered to include only cargoes that have already unloaded, are awaiting or currently discharging, or are expected to arrive before the end of the month. The final figure for July may be adjusted, but it’s likely that the month will be near the previous record of 19.85 million tonnes, from July 2015, or top the second-best figure of 19.65 million from June 2016.

Effective measures are being taken to ensure supply of sufficient quantity of coal to meet the requirement of power and steel sector, so that they do not suffer any loss of production due to coal shortage, he told reporters at Rajarappa in Ramgarh district.

“We have effective and better plan to increase coal production as well as coal supply with new coal projects in view of rising demand of coal,” the CIL chairman said.

Jha said that future of CIL is bright as government has taken various initiatives to increase coal output as well as supply of coal to meet requirement of coal in various industries in India.

India’s coal imports surge in July, despite advancing prices

The rising imports come even as coal prices surge on the back of strong demand from China, the world’s biggest importer, and other Asian countries including Japan.

India’s top 12 major ports reported a 19.32 per cent surge in imports of thermal coal to 28.28 million tonnes during April-June this year, sources said.

The Centre-owned ports had handled 23.7 million tonnes of thermal coal in the corresponding period of the previous financial year.

India’s coal imports appear to have surged in July and may even come close to a monthly record as it grapples with domestic transport woes and rising demand for electricity.

Prices for thermal coal used in power generation have scaled multi-year peaks so far in 2018, with the Australian benchmark weekly Newcastle Index hitting $122.57 in the week to July 22, the highest since September 2011 and up 18 per cent since the end of last year.

Coal imports are on track to reach 19.7 million

However, Australia isn’t a major supplier of thermal

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coal to India, with the bulk of its exports to the South Asian nation being coking coal. India’s main supplier of thermal coal is Indonesia, where prices have also been rising, but perhaps not quite so dramatically as for the higher-quality Australian grades.

CIL earns 39% premium on 6.38 mt auctioned coal Coal India has managed an average premium of 39% on 6.38 million tonnes of coal it auctioned to sponge iron customers, helping the state-run coal monopoly get additional annual revenue of Rs 1,248 crore for five years, a company executive said.

If these supply contracts were awarded on nomination basis, it would have earned about Rs 350 crore less, the executive said. That is because the average price realised at the auction was Rs 1,955.8 per tonne, while the average notified price of the coal on offer was Rs 1,407.6 per tonne.

The price is 59% higher than what is charged to power sector consumers.

Coal India sold 88% of the 7.27 million tonnes in contracts for a minimum period of five years in the auction that spanned 18 days from June 26, the executive said. Mahanadi Coalfields, one of the largest subsidiaries of the company, got a 50.6% premium over the notified price for 2 million tonnes of coal that was offered and fully booked. This will help it raise sales by Rs 311.31 crore a year.

South Eastern Coalfields, which offered 3 million tonnes of a higher grade coal, got a premium of 44.8% over notified price, which will help it add Rs 719.26 crore a year to its revenue. Eastern Coalfields managed a premium of 31.3% by offering half a lakh tonne of coal that would fetch the company around Rs 16 crore annually. It managed an average price of Rs 4,145 per tonne at the auction.

STEEL Steel firms breathe easy as raw material prices likely to stay range-bound Prices of steel-making raw materials are likely to move in a narrow range during the financial year 2018-19 due to increased supply pressure from major producing countries.

A recent study by ratings agency India Ratings and Research forecasts prices of steel-making raw materials, including iron ore and coking coal, to remain range-bound during the current financial year. The study estimates benchmark iron ore with 62 per cent Fe fines at Qingdao (China) to average at $65 a tonne for the current and next financial years. Similarly, coking coal prices (imports from Australia to China) are likely to average marginally lower at $170 a tonne for the current financial year.

The average domestic iron ore prices (65 per cent and above Fe lumps) surged by 41.1 per cent year-on-year (y-o-y) to Rs 3,328.8 a tonne during April 2017-February 2018, while the international prices (iron ore fines China 62 per cent Fe) increased by 1.7 per cent y-o-y to $69 a tonne during the financial year 2017-18.

Domestic iron ore prices are believed to have increased on account of higher steel demand in the country. Further, the suspension of operations at mines in Odisha due to non-payment of penalty for illegal extraction of ores also resulted in price hikes in January 2018.

India’s finished steel export slumps over 33 per cent in AprJun India’s export of finished steel slumped by 33.7 per cent to 1.351 million tonnes (MT) during the first quarter of the current fiscal, according to a report.

The country had exported 2.037 MT finished steel during the same quarter a year ago, the Joint Plant Committee said in its latest report.

The JPC, under the Ministry of Steel, is the only institution in the country that collects and maintains data on domestic steel and iron industry.

“At 1.351 MT, export of total finished steel was down by 33.7 per cent in April-June 2018 over same period of last year,” the report said.

Union Steel Minister Chaudhary Birender Singh had earlier said that India should export at least six to seven per cent of its total steel production.

As against the export, import grew by 10.9 per cent to 1.893 MT in April-June quarter of 2018-19, compared to 1.707 MT in the year-ago period.

The total output of finished steel for sale in the quarter under review stood at 26.720 MT, up 4.4 per cent from 25.605 MT the country had produced in the three-month period last year.

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India’s consumption of total finished steel surged 8.4 per cent to 23.422 MT during April-June 2017 as against 21.598 MT in the same period last fiscal.

Demand and consumption of steel expected to grow 5.7% year on year A spurt in automobile production and infrastructure development has led to a boost in growth of metals and mining sectors. In particular, the government thrust on road and infrastructure projects has given a rise in demand for steel with consumption expected to grow 5.7% year on year to 92.1 million tonne by 2018. This is leading to a growth in demand for value added steel and steel producers need to gear up to cater to the growing demand. This was discussed at Metals Conclave 2018, an industry event organised by the Bengal Chamber, in the city.

Indian steel now is on a growth path the likes of which has not been seen before. According to world steel figures, India is the only country exhibiting a growth of 6-7%, with the rate of growth touching 8% last year.

As one of the few countries trying to move to mid income group from low income group, India is seeing demand for more value added steel. Indian steel producers have got a lot of challenge in augmenting their capacities for high end market.” Sushim Banerjee, Director General, INSDAG said at the meet.

The Conclave, in its opening session, focused primarily on the future demand for steel by the end user and the extent to which Indian steel industriesNSE 0.00 % are prepared for it. Subsequent sessions focused on the various sectors ensuring steel intensive growth in India, enhancing steel usage and challenges and opportunities in reviving skill infrastructure in the steel sector..

Government to auction 12 mineral blocks in August, September The government plans to auction 12 mineral blocks, including eight iron ore mines, in the next two months, according to an official document. Of the 12 blocks to go under the hammer in August and September, three are graphite blocks in Jharkhand, one is a limestone block in Andhra Pradesh and the remaining eight are iron ore mines in Karnataka, the document said.

While the graphite and limestone blocks will be put up for auction next month, the remaining eight blocks would go under the hammer in September. With regard to the iron ore blocks, only the end-users engaged in the production of sponge, pig iron, steel and

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pellets will be eligible to take part in the auction, it said.

For the limestone mine auction, both greenfield and brownfield cement plants for captive consumption within the state will be eligible to participate. In case of the blocks in Jharkhand, the notice inviting tender (NIT) was out in May while in the case of iron ore blocks, the government came out with NIT in January.

The NIT for the limestone block was out in April. The Centre had earlier said it was considering granting all approvals, including environmental clearance, to mineral blocks before putting them up for sale, a move that may give a push to the auctions. The statement came soon after Niti Aayog said all approvals concerning the mines should be taken before their auctions. The government had earlier said unless issues related to green clearances and land rights are addressed upfront, India may not make much progress in auctioning of mineral blocks in the future.

CEMENT Ambuja Cements gains 6% on strong June quarter results Shares of Ambuja Cements were trading higher by 6% at Rs 222 per share on the BSE at 09:30 am, after the company reported a better-than-expected a 27% year on year growth in standalone net profit at Rs 4.99 billion in June quarter (Q2CY18), on account of higher cement sales and lower expenses. It had profit of Rs 3.92 billion in year ago quarter.

Net sales during the quarter rose 4% to Rs 29.27 billion against Rs 28.17 billion in the corresponding quarter of previous year. Cement sales volume rose 5% to 6.37 million tonnes from 6.05 million tonnes a year earlier, Ambuja Cements said in a release.

Analysts on an average had expected profit of Rs 3.17 billion on net sales of Rs 29.72 billion for the quarter.

EBITDA (earnings before interest, taxes, depreciation and amortization) The stock has underperforming the market by falling 11% in past three months, as compared to 7% rise in the S&P BSE Sensex

NCLAT junks cement-makers’ plea against CCI’s Rs 67-bn cartelisation fine

The National Company Law Appellate Tribunal (NCLAT) dismissed cement manufacturers’ plea, challenging the order of fair trade regulator CCI to impose a penalty of Rs 67 billion for alleged cartelisation. A two-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya dismissed a batch of petitions by over 11 cement-makers.

The appeals are dismissed, said the NCLAT, which now is an appellate authority over the Competition Commission of India (CCI). In August 2016, CCI had slapped approximately Rs 67 billion penalty on 11 cement firms including UltraTech, ACC, Ambuja, Ramco and JK Cement as well as the industry body Cement Manufacturers Association (CMA) for indulging in cartelisation. This was challenged by the cement makers before the Competition Appellate Tribunal, which had on November 22 stayed CCI’s direction to pay 10 per cent of the penalty within a month of the order

UltraTech Cement to invest Rs. 500 cr in waste-heat recovery plants UltraTech Cement plans to set up five waste-heat-recovery plants with an investment of Rs. 500 crore.

The new plants, coming up at select manufacturing units, will have a cumulative capacity to generate 63 MW power and will take its overall capacity from the waste-heat recovery process to 121 MW. The company will be able to meet 50 per cent of its power requirement from these plants.

Improving efficiency Atul Daga, Chief Financial Officer, told the company has been taking various measures to bring down overall costs by improving efficiency. The waste-heat recovery plants will bring down the power cost to 50 paise per unit from Rs. 4 when they go on stream in two years, he added. This will also protect the company from sudden swings in thermal coal prices

RAILWAYS CIL’s Northern Coalfields, Indian Railways to invest up to Rs 6,000 crore in tracks Coal India subsidiary Northern Coalfields and the

railways are jointly investing about Rs 6,000 crore in Madhya Pradesh to lay new tracks and turn the existing ones into dual gauge, a move the coal behemoth hope will help it sell an additional 15 million tonnes of the fuel.

Northern Coalfields has 11 operational mines in Moher Basin of Madhya Pradesh’s Singrauli district.

The mines are surrounded by power plants of NTPC, Lanco and state-owned power companies with aggregate capacity of 14,400 MW. More than half of the coal produced at these mines is delivered to these power plants through dedicated rail tracks.

The country’s upcountry consumers are expected to get about 32 million tonnes of coal this year.

A senior Northern Coalfields’ executive said the company has decided to invest about Rs 1,150 crore this year in expanding its production capabilities.

“The plan is to expand production capability so that we can send more coal once the railway expansion projects are complete,” the executive said.

The plan includes doubling the production capacities of its Jayant and Dudhcihua coal blocks to 20 million tonnes per annum. Expansion projects also include jacking up Bina coal blocks’ production capacity from 7.5 million tonnes to 10.5 million tonnes

Southern Railway records 48% increase in freight loading Southern Railway has recorded a 16 per cent increase in ‘originating freight’ above the targeted value of 8 million tonnes during the first quarter of the financial year ending June this year. It is a 48 per cent increase compared to the corresponding period last year, a railway press release said.

Originating freight means goods that has been loaded from Southern Railway zone and transported to other locations.

“Southern Railway loaded 9.32 million tonnes of originating freight during first quarter of the financial year ending June 2018.

Significantly, the loading has surpassed the Railway Board’s target of 8.01 million tonnes by 16 per cent,” the release said. “Further, there is a growth of 48 per cent in freight loading compared to the corresponding period of the financial year 2017-18. Coal constituted 62 per cent of the total freight,” it said. Dolomite and Limestone loaded at Chennai Port saw an increase of 133 percentage this quarter, it added.

CCAI Monthly Newsletter July 2018

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GLOBAL Indonesia unlikely to change coal supply, pricing rules until 2019

and its economy has benefited from rising demand and prices for the dirty fuel - which hit $104.65 a tonne in July - their highest level since May 2012.

Indonesia is unlikely to change its rules on domestic coal supply and pricing until 2019, Coordinating Maritime Minister Luhut Pandjaitan said, amid government talks on how Southeast Asia’s biggest economy can increase export revenues.

The proposed changes are part of Indonesia’s efforts to increase these benefits, to reduce the country’s current account deficit amid the threat of a global trade war that could further weaken the rupiah, one of the worst performing currencies in emerging Asia having lost 6 percent this year.

Pandjaitan was referring to proposed revisions to rules introduced in March requiring Indonesian coal miners to sell 25 percent of their thermal coal output to domestic buyers, with a price capped at $70 per tonne for coal sold to state electricity utility Perusahaan Listrik Negara (PLN).

“Even if this happens it will probably be next year at the earliest we can do it,” he said.

Any revisions would need to be discussed with the coal and power industry beforehand, and any impacts on state revenue would need to be calculated, Pandjaitan said.

The government is looking at revising domestic coal supply and pricing rules “to see how much money (Indonesia) can get from here,” he said, referring to government efforts to increase export revenue.

Indonesia is the world’s top exporter of thermal coal,

18 | CCAI Monthly Newsletter July 2018

Ukraine coal stocks at power plants drops 16.1% to 1.3 million mt: ministry Coal stocks at Ukraine’s power plants fell 16.1% month on month to 1.3 million mt as of July 30, the energy and coal industry ministry reported.

Reserves of thermal coal, which is widely used at the country’s thermal power plants, fell 12.3% to 1 million mt as of July 30 from 1.14 million mt as of July 2.

At the same time, stocks of anthracite, a type of coal with the highest calorific content, at power plants decreased by 29% to 294,600 mt from 414,700 mt, the ministry reported.

Inventories of coal are currently much lower than

a year earlier, when power plants had a total of 2.12 million mt of coal as of July 31 2017, comprising 1.39 million mt of thermal coal and 725,200 mt of anthracite.

The government held an emergency meeting to discuss what measures need to be taken to ensure power plants are prepared for the high-demand season

Government to revoke coal price cap policy The government plans to revise its domestic market obligation (DMO) on coal price next week during a high-level meeting with President Joko “Jokowi” Widodo, with among considerations being to increase state revenue from coal, the efforts of which are currently hampered because of the formula.

Deputy Energy and Mineral Resources Minister Arcandra Tahar said that the ministry would lead a team to find a new formula for the DMO on coal policy.

“We didn’t cancel the policy [DMO for coal], but the government has decided to cancel the price cap [selling price for power plants] and to find another formula,” he said. The DMO is a policy that obliges coal miners to allocate 25 percent of production for the domestic market and to cap the selling price at no higher than US$70 per ton for state-electricity firm PLN’s coal-fired power plants.

However, the price cap for coal has resulted in state revenue taking a hit, as the selling price of coal is lower than the market price, which is currently around $100 per ton.

Australia’s coal power stations ‘at the end of the line’ Australia’s coal power stations are not fit for a 21st century power system with almost 100 breakdowns at fossil fuel power stations in the seven-month period to the end of June 2018.

Climate Councillor and energy sector veteran with more than 40 years experience, Professor Andrew Stock said, ‘by 2030, 55 per cent of coal power stations in Australia will be over 40 years old. These ageing coal stations are increasingly unreliable and expensive to operate, risking blackouts and higher consumer power costs.’ ‘Extending the life of old coal power stations is extremely expensive. For example, it would cost almost a billion dollars to extend the life

of the Liddell power station for just five years,’ said Professor Stock.

‘Australia’s ageing coal power stations are becoming increasingly unreliable and prone to breaking down in extreme weather events. Their many recent failures show old coal cannot be depended upon to provide a reliable supply of electricity for the next two decades,’ he said. ‘Australia must urgently plan for a future without our ageing coal fleet. Fossil fuels can’t compete with renewables and storage when taking into account pollution, cost, reliability and health outcomes,’said Professor Stock

India’s Coal Shortage Is U.S. Miners’ Gain The proverb seems to be true for India’s Coal supply woes.

The country’s power ministry has advised all provinces to start importing coal for the next three years in order to operate their power plant which, in turn, is music to the ears of coal miners in the United States.

According to a report, U.S. miners, otherwise struggling to find buyers, may end up exporting 104 million tons of coal in 2018 — up 7.2% from a year ago.

In April alone, India purchased almost 7 million tons, which was one-fifth of all U.S. coal exports. For the last few years, power plants in India have cut back on coal imports because of the fall in the value of the rupee, the rise in global prices, and increasing reliance of consumers on green energy. Facing a major coal crunch, Indian coal ministry officials feel there’s no way out but to go ahead with larger imports.

The Central Electricity Authority of India (CEA) has said in response to a power ministry directive to take stock of coal supply that government-run thermal power plants must import coal to fill the gap in domestic supply. By the CEA’s own reckoning, India needed to buy only 20 MT of coal from abroad. The power sector’s requirement for coal is estimated at 615 MT for fiscal year 2019. According to the CEA, the coal stock at power plants had depleted to 15.3 MT in June 2018 — sufficient to power plants for an average of only nine days, compared with the normal

Missing benchmark for coal price leaves Asian utilities confused The failure of Tohoku Electric Power and Glencore to agree on a new contract for the annual supply of therCCAI Monthly Newsletter July 2018

| 19

mal coal leaves electric utilities in Thailand, Taiwan, South Korea and other Asian markets without a reliable benchmark for coal prices.

The Japanese utility and Swiss-based miner abandoned talks in June regarding thermal coal supplies for fiscal 2018 ending March 2019, surprising other utilities that were waiting for a conclusion to the protracted negotiations.

The breakdown has robbed the Asian power industry and other sectors of a long-established benchmark for thermal coal prices, signaling a potential change for determining price. Glencore controls much of Australia’s coal supply, which accounts for three quarters of Japan’s thermal coal imports. The aborted negotiations will have far-reaching effects on Asia’s coal market. Other coal producing countries, including Indonesia and Russia, use the annual deal between the two companies as the basis for their own negotiations.

Industry observers say this is the first time in more than a decade that talks between the two companies were halted

US coal sector suffers after dip in production numbers The U.S. has been one of the major producers of coal in the recent years, but it seems like the country is facing a few struggles as of late. According to recent data by the Energy Information Administration, the U.S. coal output numbers are experiencing a dip, which is currently one of the worst performances of the sector to date. The July 7 breakdown of the weekly U.S. coal production came in at an estimated 13 million st. With the new numbers, coal production has dropped down by 11.1 percent, and when compared to the numbers from the same time period last year,

20 | CCAI Monthly Newsletter July 2018

it was 4.1 percent higher. This is currently the highest week-on-week drop year. Prior to this, coal production during the week before June 2 saw a 10 percent decrease as well. That posed as the second lowest week of production this year.

The states contributing to the overall production of coal are also seeing lower output numbers. The Powder River Basin that is used by Wyoming and Montana fell 8.6 percent compared to last week’s numbers, accumulating roughly 5.9 million st. It is also 2.2 percent down compared with the year-ago week data. Looking at the yearly number, the two states output is estimated to drop by 4.5 percent from last year, producing 335 million st

Indonesia’s coal output rises in H1 amid price hike Indonesia carried out vigorous coal production in the first half of this year as global prices rose to a higher level. Indonesian energy and mineral resources ministry said that the country substantially produced 163.44 million tons of coal from January to June, up 18 percent on year. On export, Indonesia shipped 94.68 million tons of coal offshore during the first half of this year, spokesman of the ministry Agung Pribadi said.

The official added that rising global prices have spurred demand for the commodity, one of Indonesia’s major export products. Indonesia set an export target of 371 million tons of coal this year, according to him. On output target, Indonesia looks to produce about 425 million tons of coal this year, according to the ministry.

Indonesia is the world’s top thermal coal exporter with its coal reserve of about 26.2 billion tons, according to the ministry

CCAI Monthly Newsletter July 2018

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IN PARLIAMENT GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA Q. No. 26. AUCTIONING COAL MINES

18.07.2018 SHRI V. ELUMALAI: Will the Minister of COAL be pleased to state: (a) whether the Government is currently working out the modalities with other Ministries on the topic of auctioning of coal mines to private sector entities for commercial mining and if so, the details thereof; (b) whether any material outcome is unlikely in the near future as CIL is likely to remain the dominant commercial coal supplier in India despite initial steps have been taken towards the creation of a competitive coal market in India; and (c) if so, the details thereof ?

ANSWER MINISTER OF RAILWAYS, COAL, FINANCE AND CORPORATE AFFAIRS

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(SHRI PIYUSH GOYAL) (a): The methodology for auction of coal mines/ blocks for sale of coal under the provisions of the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957 has been approved by the Government and Order in this regard has been issued on 27.02.2018. A copy of the Order is attached with the reply. (b) & (c): The methodology would ensure distribution of natural resources in a fair and transparent manner within the ambit of existing law and shall also provide fair play and develop a rational approach in the auction of coal mines. Auction of coal mines for sale of coal is expected to bring efficiency into the coal sector due to increased competition and deployment of best possible technology into the sector including in Coal India Limited (CIL) and its subsidiaries.

Q. No. 29. DEMAND FOR COAL

18.07.2018 DR. P. VENUGOPAL :

Will the Minister of COAL be pleased to state: (a) whether even in the most adverse scenario, as of second quarter of 2017, it appears that the demand for coal in India, as a source of primary energy, shall expand until 2030 and perhaps beyond, if so, the details thereof; (b) whether this would be at lower compound annual growth rate of 3 per cent compared to 6 per cent in the last five years; and (c) if so, the details thereof?

ANSWER MINISTER OF RAILWAYS, COAL, FINANCE & CORPORATE AFFAIRS (SHRI PIYUSH GOYAL) (a)to(c):Yes, Madam. As per study report of M/s KPMG Advisory Services entrusted for formulating “ Coal Vision 2030� for coal sector by Coal India Limited (CIL), as of second quarter of 2018, it appears that the demand for coal in India, as a source of primary energy, shall expand until 2030 and perhaps beyond.

The report estimates overall coal demand to be 13001900 MT by 2030.

As per Coal Vision 2030, in the long term, the overall coal demand is expected to reach 1.46 BT by 2030 at a CAGR of 4.2% from 2020 as compared to a CAGR of 5.4% achieved in actual demand during the last five years (from 2013-14 to 2017-18).

ANSWER MINISTER OF RAILWAYS, COAL, FINANCE & CORPORATE AFFAIRS (SHRI PIYUSH GOYAL) (a) & (b): A decision has been taken in the meeting held on 25.01.2018 in the Ministry of Power that all Power Plants located within 20 km from pithead shall construct elevated closed belt conveyor within next 2 years i.e. up to 1st April 2020. The conveyor is environmental friendly operation as it will check dust pollution caused during coal transportation by trucks and shall free up railway rake for coal supply to far away power plants.

Q. No. 65. COAL FOR THERMAL PLANTS 18.07.2018 SHRIMATI KAMLA DEVI PAATLE: Will the Minister of COAL be pleased to state: (a) the number of thermal power plants in the country including Chhattisgarh and the quantity of coal required annually to run these plants; (b) the goal set and achieved for coal production company-wise during the current year and the last three years; (c) the reasons for not achieving the goal during the said period; (d) whether the Government has launched any scheme to increase the production of coal; and (e) if so, the details thereof?

ANSWER

Q. No. 54. SUPPLY OF COAL TO POWER STATIONS 18.07.2018

MINISTER OF RAILWAYS, COAL, FINANCE & CORPORATE AFFAIRS (SHRI PIYUSH GOYAL)

SHRI K.ASHOK KUMAR:

(a): As on 30.06.2018, there are total 267 thermal power plants in the country which include plants based on Coal/Lignite, Gas and Diesel. Out of these, 28 thermal power plants are in the State of Chhattisgarh. The estimated quantity of coal required during 2018-19 based on the generation target by the coal based thermal power plants in the country for 201819 is 656 Million Tonnes (MT) including about 74 MT by the coal based power plants in Chhattisgarh. (b): The target and actual coal production of Coal India Limited (CIL) and its subsidiaries for the last three years and the current year are as follows:

Will the Minister of COAL be pleased to state: (a) whether the Government has decided to supply coal power stations near mines through piped conveyor belt system in the near future and if so, the details thereof; and (b) whether this move will check dust pollution caused during coal transportation by trucks to such plants and freeing upon railway rakes for supplies to faraway units and if so, the details thereof?

CCAI Monthly Newsletter July 2018

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Figures in MT) 2015-16

2016-17

2017-18

2018-19

Coal Company

Target

Actual

Target

Actual

Target

Actual

Target 2018-19

Target (1st Qtr

Actual (1st Qtr.)

ECL

42.13

40.21

46.94

40.52

47.00

43.57

46.76

10.75

11.00

BCCL

35.85

35.86

37.00

37.04

40.50

32.61

38.00

8.74

7.67

CCL

60.60

61.32

67.00

67.04

70.50

63.40

68.70

15.80

11.44

NCL

78.10

80.22

82.00

84.10

89.00

93.02

95.00

21.85

24.60

WCL

45.10

44.82

48.00

45.63

48.50

46.22

49.70

11.43

9.64

SECL

137.00

137.93

149.67

140.00

153.80

144.71

159.50

36.69

39.95

MCL

150.00

137.90

167.00

139.21

150.00

143.06

151.50

34.85

32.45

NEC

1.22

0.49

1.00

0.60

0.70

0.78

0.84

0.19

0.12

CIL

550.00

538.75

598.61

554.13

600.00

567.36

610.00

140.30

136.87

(c): Reasons for non-achievement of target by Coal India Limited is mainly because of problems in land acquisition, delay in obtaining Forest Clearance & Environmental Clearance, Rehabilitation & Resettlement issues, evacuation constraint & local Law & Order problems.

Q. No. 81. COAL PRODUCTION 18.07.2018

(d)& (e): The progress of production of CIL is reviewed regularly. CIL has been directed to work out a definite action plan to ensure higher production and offtake in future. CIL has also been directed to ensure that necessary clearances for the existing coal mines are in place which will help in increasing the coal production in the short/medium term and also operationalizing the newly allocated coal mines for further increasing production in the medium term. New rail lines are being laid for smooth evacuation of increased coal production from the mines of growing coalfields of SECL, MCL and CCL.

(a) the quantity of coal produced by the Neyveli Lignite Corporation Limited (NLC) from various operational mines during the last three years and its value in rupee;

24 | CCAI Monthly Newsletter July 2018

SHRI SANKAR PRASAD DATTA: Will the Minister of COAL be pleased to state :

(b) the income earned by NLC during the corresponding period and the funds allocated by the Government for welfare/ development of their employees and people/area around it; (c) whether the Government has designed any mechanism to provide adequate machinery and manpow-

er support for exploitation of all the coal mines of NLC; and (d) if so, the details thereof and the quantity and value of coal expected to be produced during the next three years?

ANSWER MINISTER OF RAILWAYS, COAL, FINANCE AND CORPORATE AFFAIRS (SHRI PIYUSH GOYAL) (a): At present only lignite mines are operated by NLC India Limited (NLCIL). The total quantity of Lignite produced by NLCIL from various operational mines (three Lignite Mines at Neyveli, Tamilnadu and one Lignite Mine at Barsingsar, Rajasthan) during the last three years and corresponding value of Lignite produced is given below : Lignite Production in Lakh Tonnes (LT)

Value of Lignite produced in Rupees Crore

2015-16

254.51

5700.00

2016-17

276.17

6994.85

2017-18

251.53

5515.76

Year

(b): NLCIL is an integrated company and most of its lignite produced is used for captive consumption in its lignite fired thermal power plants.

A small quantity of raw lignite is being sold to meet the requirement of surrounding small scale industries and lignite is supplied to an Independent Power Producer (250 MW) by way of a Fuel Supply Agreement. NLCIL earns most of its revenue from the sale of power generated in its power plants.

The total income earned by NLCIL during the last three years is given below: (Rs Cr.)

Total revenue

Year

Profit Before tax

Profit AfterTax

2015-16

7177.20

1856.07

228.00

2016-17

9327.16

3027.56

2368.81

2017-18

9083.05

2689.70

1848.78

No specific funds are allocated from Government, however being a profitable PSU, it spends for the upliftment of surrounding villages under Corporate Social Responsibility scheme, as per Department of Public Enterprises guidelines. In this regard, during 2017-18, NLCIL has spent Rs. 43.59 cr. which is 2.36% of Profit After Tax. (c & d): In all three NLCIL Lignite Mines at Neyveli, Tamil Nadu, mechanized SME (Specialized Mining Equipments) and CME (Conventional Mining Equipments) technology is used for the production capacity as envisaged in the approved Mining Plan.

In Barsingsar Lignite Mine at Rajasthan, mining is done with CME technology. All the operating Mines of NLCIL are provided with adequate machinery as well as manpower for supporting the exploitation of Lignite.

The total quantity of Lignite production expected in the next three years and value of Lignite is as follows:

Year

Lignite Production anticipated (LT)

Projected Value of Lignite Production (Rs Cr.)

2018-19

246.90

5063.12

2019-20

268.60

5569.21

2020-21

268.60

5541.26

Budget Estimates Figures for 2018-19 and proposed targets for 2019-20 and 2020-21 have been considered for production of Lignite.

Value of Production has been arrived at based on average value of power tariff and lignite price of 201718.

CCAI Monthly Newsletter July 2018

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Q. No. 119. DEMAND FOR COAL 18.07.2018 SHRI RAMDAS C. TADAS: SHRI CHANDRA PRAKASH JOSHI: Will the Minister of COAL be pleased to state: (a) whether any rise in the demand for coal has been registered during the last three years; (b) if so, the details of the steps taken by the Government to meet this demand; (c) whether the Government has constituted any study group on demand for coal in future; and (d) if so, the details thereof along with the objectives thereof?

tion in the short/medium term and also operationalizing the newly allocated coal mines for further increasing production in the medium term. New rail lines are being laid for smooth evacuation of increased coal production from the mines of growing coalfields of SECL, MCL and CCL. (c)&(d) :As a part of the strategy to evolve a long term policy in the coal sector, CIL engaged KPMG to prepare a ‘Vision Document 2030’ for coal sector in India. The broad scope for the said Vision document includes Demand and Supply scenarios for 2020 and 2030, Technology requirements for the coal and lignite sector, Advancement in coal and lignite mining, SWOT analysis of the sector and Action Plan for the sector over this period.

Q. No. 140. MULTIPURPOSE COAL DISTRIBUTION SYSTEM 18.07.2018

ANSWER

SHRI MANOJ TIWARI: SHRI HARI OM PANDAY: SHRI SANTOSH KUMAR:

MINISTER OF RAILWAYS, COAL, FINANCE & CORPORATE AFFAIRS (SHRI PIYUSH GOYAL)

Will the Minister of COAL be pleased to state:

(a):The all India demand of coal during last three years is given below:Year Actual Demand (MT)$

2015-16 836.39

2016-17

2017-18 (Provisional)

837.23

899.69

$ Actual Demand (Dispatch+Import). (b): Due to concerted and co-ordinated efforts, the offtake / dispatch of coal of CIL has increased from 488.86 MT in 2014-15 to 580.04 MT in 2017-18. The progress of production of CIL is reviewed regularly.

CIL has been directed to work out a definite action plan to ensure higher production and offtake in future. CIL has also been directed to ensure that necessary clearances for the existing coal mines are in place which will help in increasing the coal produc-

26 | CCAI Monthly Newsletter July 2018

(a) whether the Government has any proposal to set up “Multipurpose Coal Distribution System” in the country; (b) if so, the details thereof; (c) if not, the reasons for the delay; and (d) the details of the plan outlay for the aforesaid proposal and the time by which it will be implemented ?

ANSWER MINISTER OF RAILWAYS, COAL & FINANCE AND CORPORATE AFFAIRS (SHRI PIYUSH GOYAL) (a) to (d): There is no proposal to set up Multipurpose Coal Distribution System. However,enabling provisions have been made in the Coal Mines (Special Provisions) Act, 2015 for allocation of coal mines

by way of auction and allotment for the sale of coal.

The methodology for allotment of coal mines under the provisions of the Coal Mines (Special Provisions) Act, 2015 to Central / State Public Sector Undertakings for sale of coal has been approved by the Government. In addition, the methodology for auction for coal mines/blocks for sale of coal under the provisions of the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957 has also been approved by the Government.

Q. No. 217. SWAPPING OF COAL 18.07.2018 SHRIMATI JAYSHREEBEN PATEL: Will the Minister of COAL be pleased to state: (a) whether the Government of India is aware about the agreement of swapping of coal with Gujarat Government/Gujarat State Electricity Corporation Ltd. (GSECL) with NTPC to reduce the burden of transportation cost of fuel; (b) if so, whether the Government of India / Western Coalfields Limited (WCL) would supply the coal to GSECL at notified rated only and not on cost plus, as the same shall not be viable to GSECL as cost will increase; (c) if so, the time-frame to allocate more coal from WCL to GSECL to cater to its requirement at notified rates only;

tion of the Standing Linkage Committee (Long Term) dated 11.08.2014, an agreement for swapping of coal linkage was signed between Gujarat State Electricity Corporation Limited (GSECL) and NTPC in November, 2014 for swapping of 1.0 MT of coal. As per the agreed terms, GSECL offered its South Eastern Coalfields Limited (SECL) linked coal to NTPC Korba STPS and the coal imported by NTPC was to be supplied to GSECL plant to avoid criss-cross movement of domestic and imported coal.

This led to a potential annual savings of Rs. 458 crore to GSECL. The swapping arrangement was continued till import of coal by NTPC upto 2016-17.

The Inter-Ministerial Task Force (IMTF) constituted in June, 2014 for a comprehensive review of existing coal sources and also to see the feasibility for rationalization of these sources with a view to optimize transportation cost recommended for shifting of 1.2 MTPA coal linkage of GSECL from SECL to Western Coalfields Limited (WCL), leading to annual potential savings in transportation cost of about Rs. 100 crore to GSECL. Though Coal India Limited (CIL) had advised WCL to execute Fuel Supply Agreement (FSA) for 1.2 MT of coal with GSECL, but due to non-availability of sufficient coal at notified price, WCL is supplying coal to GSECL at notified price under MoU on best effort basis.

(d) whether transfer/swapping will be based on heating value terms; and

Meanwhile, WCL has offered to sign FSA with coal mix of notified and cost-plus basis. Till such time, supply of coal from WCL on best effort basis is continued.

(e) if so, whether the WCL will allow the third party to do the sampling and analysis at loading?

(d): The transfer of coal is not based on heat value term.

ANSWER

(e): Coal supplied to GSECL from WCL is covered under Third Party Sampling and analysis at loading point for which a Tripartite Agreement between WCL, GSECL & CIMFR (Third Party Agency) has already been concluded.

MINISTER OF RAILWAYS, COAL, FINANCE AND CORPORATE AFFAIRS (SHRI PIYUSH GOYAL) (a) to (c) : Yes, Madam. In line with the recommenda-

CCAI Monthly Newsletter July 2018

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Q. No. 221. SHORTAGE OF COAL 18.07.2018 SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI): Will the Minister of COAL be pleased to state: (a) whether power plants both in the public and private sectors are facing shortage of coal; (b) if so, the details thereof; and (c) the steps the Government is taking to advise the Coal India Ltd., to meet the demand of power plants so that the industrial output like steel plants is not affected?

ANSWER MINISTER OF RAILWAYS, COAL, FINANCE & CORPORATE AFFAIRS (SHRI PIYUSH GOYAL) (a) & (b): There is no shortage of coal for the Power Sector. In the beginning of 2018-19, Coal India Limited (CIL) had a pithead stock of 55.55 Million Tonne (MT) and stock at power house end was 16.27 MT. In the 1st Quarter of 2018-19, CIL dispatched a record quantity of 122.2 MT coal to Power Sector, thereby achieving a growth of 15% over the dispatch in the corresponding period of last year. The growth in dispatch of coal to Power Sector has helped coal based generation to achieve positive growth of 5.3% in the 1st Quarter of 2018-19. (c): Coal supplies to Power sector is monitored regularly by an Inter Ministerial Sub Group comprising representatives of Ministries of Power, Coal, Railways, Shipping, Central Electricity Authority, NITI Aayog, CIL etc. This sub-group has been meeting periodically, at times twice every week, in order to take various operational decisions for meeting any contingent situations relating to Power Sector including critical coal stock position for power plants. A committee of Secretary (Coal), Secretary (Power) and Member (Traffic), Railway Board has been jointly reviewing the coal transportation and supply on a regular basis. The CIL has been advised to work out a definite action plan for higher production & off-take during the current quarter and to ensure that necessary clearances for the existing coal mines are in place which will help in

28 | CCAI Monthly Newsletter July 2018

increasing the coal production in the short / medium term and in operationalising the newly allocated coal mines for further increasing production in the medium term.

Q. No. 290. STRESSED COAL BASED POWER PLANTS 19.07.2018 SHRI K. ASHOK KUMAR: Will the Minister of POWER be pleased to state: (a) whether NTPC has floated a tender to acquire commissioned stressed coal based power plants, if so, the details thereof; (b) whether at present out of 40 GW stressed coal based power generation capacity, about 12 GW capacity worth around Rs. 50,000 crore was commissioned after April 1, 2014 and is eligible under this tender; and (c) if so, the details thereof?

ANSWER THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER AND NEW & RENEWABLE ENERGY ( SHRI R. K. SINGH ) (a) to (c) : NTPC has invited Request for Proposal (RFP) on 25.11.2017 from interested parties i.e. Promoters/Lenders or Authorized Financial Intermediaries of the Power Generation Companies/Independent Power Producers/ Developers to offer their operating domestic coal based thermal power assets in India meeting the specified criteria in RFP. Any power asset, having Commercial Operation Declaration (COD) date between 01.04.2014 and date of notification of RFP, was eligible to participate in the RFP, besides meeting other qualification requirements. Out of 40 GW stressed capacity project (as per information provided by Department of Financial services), a total of 12690 MW capacity projects have COD between 01.04.2014 and the date of notification of RFP by NTPC.

With Best Compliments From:

Sharda Ma

( )

COAL MERCHANTS, IMPORTERS & HANDLING AGENTS INDIA SOUTH AFRICA INDONESIA SINGAPORE HONG KONG NIGERIA

UGF 1& 2, Kanchenjunga Building, 18 Barakhamba Road, New Delhi-110001, India P : +91 11 23354046/47 F : +91-11-23354047 E : corporate@shardamaa.com W : www.shardamaa.com

MONTHLY SUMMARY OF DOMESTIC COAL Comparative Price of Domestic Coal: Power/Non-power. *The price shown in the Chart below is without: (a) Surface Transportation Charges. (b) State specific taxes. (c) Coal company or area wise charges if any. (d) Evacuation Facility Charges INR 50 per tonne w.e.f. 00:00 of 20.12.2017 GCV (Kcal/kg) (Mid-value)

G3-6400-6700

G5-5800-6100

G7-5200-5500

G10-4300-4600

G11-4000-4300

G12-3700-4000

Basic ROM price (Rs./te)

3144/ 3144

2737/2737

1926/2311

1024/1228

955/1145

886/1063

Tentative Ex-Mine Price*

4447/4447

3941/3941

2932/3411

1809/2063

1724/1959

1638/1858

COAL The Ministry of Coal has launched the Coal Mine Surveillance & Management System (CMSMS) and ‘Khan Prahari’ mobile application. The basic objective of CMSMS is reporting, monitoring and taking suitable action on unauthorised coal mining activities.

While taking stock of coal supply situation in the country, Union Coal Minister Piyush Goyal asked Coal India to focus on meeting coal demand, particularly that of power sector.

State-owned Coal India is exploring the possibility of restricting fuel supplies to power plants saddled with large stocks but operating at low capacity utilisation. The plan is to divert supplies from these plants to the ones running at higher capacity but faced with low stocks, a Coal India executive said.

India’s coal imports appear to have surged in July and may even come close to a monthly record as it grapples with domestic transport woes and rising demand for electricity.

Coal India Limited chairman, Anil Kumar Jha said CIL was taking various measures to improve coal supply to power and steel sector. Effective measures are being taken to ensure supply of sufficient quantity of coal to meet the requirement of power and steel sector, so that they do not suffer any loss of production due to coal shortage, he told reporters at Rajarappa in Ramgarh district.

Coal India has managed an average premium of 39% on 6.38 million tonnes of coal it auctioned to sponge iron customers, helping the state-run coal monopoly get additional annual revenue of Rs 1,248 crore for five years, a company executive said.

RAILWAYS Domestic thermal coal availability will improve significantly in the second half of the year with the completion of the 45-km Tori-Shivpur rail link, in Jharkhand, helping evacuation of at least 10 rakes (of 3,800 tonne each) daily from the vast Magadh and Amrapali reserves. Though targeted to be readied in July, sources said, it may be delayed by a month or two due to excessive rains.

Coal India subsidiary Northern Coalfields and the railways are jointly investing about Rs 6,000 crore in Madhya Pradesh to lay new tracks and turn the existing ones into dual gauge, a move the coal behemoth hope will help it sell an additional 15 million tonnes of the fuel.

Annual average rakes provided by Railways to CIL for transportation of coal has increased from 212.8 (rakes/day) in 2015-16 to 229.2 (rakes/day) in 2017-18. Transportation by other modes (MGR, Belt and Rope) by CIL have also increased from105.52 million tonne in 2015-16 to 110.22 million tonne in 201718. Therefore, there is adequate transportation facility to transport coal to the destination.

POWER Eastern India might face a shortage of power supply, from the ongoing protest by local villages at the Rajmahal mine in Jharkhand. It is one of the largest coal mines in the region and the source of fuel for

30 | CCAI Monthly Newsletter July 2018

two big thermal power units — Farakka (2,100 Mw) in West Bengal and Kahalgaon (2,340 Mw) in Bihar.

As Delhi reeled under sweltering heat, its peak power demand touched an all-time high of 7,016 MW. The Delhi power minister said necessary arrangements were in place to meet further increase in power demand.

Peak power deficit during April-June, 2018-19 was 0.7% while overall electricity deficit stood at 0.6% during the quarter, Parliament was informed. As much as 170.76GW electricity was supplied during peak hours against the demand of 171.97 GW during the quarter, resulting in a deficit of 0.7%, Power Minister R K Singh said in a written reply to Lok Sabha.

Solar power tariffs in the country could go up if the commerce ministry’s proposal to slap 25% import duty on solar cells shipped from China and Malaysia for the next two years is accepted by the government.

CEMENT Despite a robust demand, cement companies’ profits are expected to come under pressure in June quarter due to a sharp rise in input costs especially that of pet coke and diesel. Led by a sustained pickup in infrastructure spending and firm rural demand, sales volume of top cement producers such as UltraTech Cement, ACC, Ambuja Cement, Shree Cement, JK Cement, JK Lakshmi Cement, India Cement and Ramco Cement are expected to register an average 20 per cent growth in the June quarter.

Indian cement production maintained is strong start to year, recording growth in April and May – although growth dropped back into single figures in May after four months of double-digit growth between January and April. April growth was 16.51% year on year with production of 27.2 million t, while May production was 25.87 million t, a 5.2% increase on the previous year. Total production to date now stands at 134.9 million t, compared to 117.1 million t over the first five months of 2017.

Birla Corporation plans to increase its cement production capacity to 20Mt/yr by 2021. At present it has a capacity of 15.5Mt/yr. The company plans to increase its capacity by both expanding existing units and building new ones.

STEEL Indian steel prices, which climbed in lockstep with a rebounding economy, have made an about-turn as output bound for overseas returns home amid the threat of an escalating global trade war. Monsoon rains that affect construction locally have also kept demand restrained Steel prices of long products, such as TMT bars, billets and ingots, have dropped around Rs 4,000-4,500 per tonne in the last 15 days and could fall further through August and September, said industry insiders. While demand for flat products is stable, experts say that producers are facing pressure to lower prices.

Union Steel Minister Chaudhary Birender Singh said the 25% tariff imposed by the US on steel import can ‘indirectly’ affect the domestic sector. US President Donald Trump has imposed a 25% import tariff on steel and 10% on aluminium. Singh had earlier said the US’ levy of heavy tariffs on imported steel and aluminium would not have any major impact on steel production in India as steel export to US was only 3.3% of total exports.

Prices of steel-making raw materials are likely to move in a narrow range during the financial year 201819 due to increased supply pressure from major producing countries. A recent study by ratings agency India Ratings and Research forecasts prices of steel-making raw materials, including iron ore and coking coal, to remain range-bound during the current financial year.

India’s export of finished steel slumped by 33.7 % to 1.351 million tonnes (MT) during the first quarter of the current fiscal, according to a report. The country had exported 2.037 MT finished steel during the same quarter a year ago, the Joint Plant Committee said in its latest report.

CCAI Monthly Newsletter July 2018

| 31

32 | CCAI Monthly Newsletter July 2018

6780

54.76

Source CEA

TOTAL

68.81

55.45

14

JULY-2018

1265000

5000

13

NUCLEAR

BHUTAN IMP

38500

130000

ACTUAL*

56.02

HYDRO

2

1091500

PROGRAM

274791.51

0

THERMAL

Category

TOTAL

BHUTAN IMP

45403.42

NUCLEAR

HYDRO

222608.09

1

4

2632

104992

590

15454 102325.39

886.02

15784.32

3470.97

82184.08

3 86316

ACTUAL*

PROGRAM

62.4

60.31

15

ACTUAL SAME MONTH 2017-18

98106.69

982.5

15454.47

3042.2

78627.52

5

ACTUAL SAME MONTH 2017-18

JULY-2018

97.46

150.17

102.14

131.88

95.21

6

% OF PROGRAM (4/3)

AN OVERVIEW

60.42

59.22

16

PROGRAM

67.85

61.64

17

ACTUAL*

60.96

59.61

18

ACTUAL SAME PERIOD 2017-18

APRIL 2018 - JULY-2018

PLANT LOAD FACTOR (%)

Monitored Target Capacity Apr 2018 to (MW) Mar 2019

THERMAL

Category

SUMMARY- ALL INDIA

104.3

90.18

102.13

114.09

104.52

7

% OF LAST YEAR (4/5)

418338

1515

48969

11428

356426

8

PROGRAM

GENERATION (GWH)

ACTUAL*

10

ACTUAL SAME PERIOD 2017-18

421310.42

1735.34

47359.64

13469.01

406086.25

1968.6

51724.24

12101.53

358746.43 340291.88

9

PERIOD : JULY-2018

100.71

114.54

96.71

117.86

100.65

11

103.75

88.15

91.56

111.3

105.42

12

% OF LAST % OF PROGRAM YEAR (9/10) (9/8)

APRIL 2018 - JULY-2018

ENERGY GENERATION REPORT

MONTHLY SUMMARY OF IMPORTED COAL & PETCOKE Coal Price Index COAL

(kcal/kg)

Price - FOB

Price - FOB

Monthly Change (USD)

South Africa

6000 NAR

USD 106.46

INR 7310

2.15

South Africa

5500 NAR

USD 88.38

INR 6068

0.76

Australia

5500 NAR

USD 74.51

INR 5116

-6.77

Indonesia

5000 GAR

USD 66.71

INR 4580

-0.91

Indonesia

4200 GAR

USD 35.91

INR 2465

-12.69

USA

6900 NAR

USD 84.89

INR 5828

~

PET COKE

Sulphur

Price

India-RIL(Ex-Ref.)

-5%

INR 9600

Saudi Arabia (CIF)

+ 8.5%

INR 7467 ($109)

USA (CIF)

- 6.5%

INR 7896($115)

Exchange Rate

Change (Monthly)

USD/INR 68.657

0.70

Coking Coal Price: Semi Soft

Low Vol PCI

Mid Tier PCI

FOB Aus

Premium Low Vol CFR China

FOB Aus

HCC 64 MID Vol CFR China

FOB Aus

FOB Aus

FOB Aus

CFR India

FOB N China

185.60

193.38

170.38

182.56

129.86

129.36

128.48

355.50

339.00

South Africa: • Junior miners are finding business across South Africa’s border easier to conduct than inside the country, especially in the coal sector which is not where you’d expect a start-up business to thrive considering the opposition of civil society to the fuel.

• Australia-listed South32’s South African Energy Coal’s production totaled 7.11 million mt in the AprilJune quarter, down 4% year on year but 5% higher than the January-March total, the company said.

South32’s South African Energy Coal business saw production total 7.11 million mt in the April-June quarter.

• Coal is used to generate 80 percent of South Africa’s electricity. It only has one NPP with a capacity of 930 megawatts, and has been plagued by blackouts over the past decade, affecting the economy.

34 | CCAI Monthly Newsletter July 2018

MET COKE 62% CSR

Australia: • Benchmark Australian thermal coal prices have risen 40 percent this year so far, breaking through $120 per metric ton for the first time since 2012.

• Coal generation could make up as little as 6% of Australia’s electricity mix by 2040 That’s according to a new report from the Australian Energy Market Operator (AEMO), which suggests a combination of solar, wind, storage, gas and transmission investment would need to produce 90TWh of energy to fill the gap left by coal.

• Australian miner Stanmore Coal saw 1.13 million mt of production in fiscal 2017-2018 (July-June), against a guidance of 1.2 million mt, the company said. With first coal from its Isaac Plains East operation expected in August, it’s tipping a more than 50% rise in output in the current fiscal year, it said in its quarterly report.

• Peabody’s North Goonyella underground coking coal mine is set to have its mine life extended to 2026. The extension comes with the introduction of a new mining area, North Goonyella South.

Indonesia: • Indonesia carried out vigorous coal production in the first half of this year as global prices rose to a higher level. Indonesian energy and mineral resources ministry said that the country substantially produced 163.44 million tons of coal from January to June, up 18 percent on year.

• Indonesia’s Ministry of Energy and Mineral Resources set its July thermal coal reference price, also known as Harga Batubara Acuan or HBA, at a six-year high of $104.65/mt, recording a rise of 8.3% month on month, and 32.6% from a year ago.The ministry had set the price for June at $96.61/mt, and for July 2017 at $78.95/mt. The HBA was last set higher in April 2012 at $105.61/mt.

• Indonesia’s trade ministry has decided to postpone for six months the application of rules requiring coal export shipments to use Indonesian insurance, ministry officials said. The decision is the second time the rules, issued in October and due to come into effect on Aug. 1 has been postponed.

• This year’s coal production in Indonesia is likely to top last year’s figure of 461 million tons. In fact, coal production in 2018 may also exceed the production quota that was set by the Indonesian government as the nation’s coal miners are eager to boost coal production amid stronger coal prices.

USA:

• The U.S. has been one of the major producers of coal in the recent years, but it seems like the country is facing a few struggles as of late. According to recent data by the Energy Information Administration, the U.S. coal output numbers are experiencing a dip, which is currently one of the worst performances of the sector to date.

• US coal train loadings rose to an averaged 100.2 trains/day for the week ended July 21, up from 98.2 trains/day the week prior, Surface Transportation Board data showed. Trains per day dropped 0.6% from the year-ago week, the smallest fall from 2017 for the past nine weeks. Total loadings for the most recently concluded week are also 2.4 trains/day above the entire 2017 average of 98.6 trains/day.

Pet Coke: • The worldwide market for Petroleum Coke (Petcoke) is expected to grow at a CAGR of roughly xx% over the next five years, will reach xx million US$ in 2023, from xx million US$ in 2017, according to a new GIR (Global Info Research) study.

• Supreme Court of India conditionally allowed import of Petcoke for 4 industries - Cement, Limestone, Calcium Carbide, Lime Klin. The decision on import will be vetted by EPCA in the next hearing in the month of October.

Shipping: • Wetter than normal weather in recent months has slowed coal shipments from one of the main producing regions in Indonesia, the world’s top thermal coal exporter, according to weather data, brokers and analysts, supporting prices of the fuel.

• The big bright spot for US coal miners is located halfway around the world. India almost tripled its imports of the rock from America in the first quarter from a year earlier, helping fuel its fast-growing economy and making it the largest foreign buyer of US coal, according to the US Energy Information Administration.

• India’s top 12 major ports reported a 19.32% surge in imports of thermal coal to 28.28 million tonnes during April-June this year, latest report from Indian Ports Association (IPA) has said. The Centre-owned ports had handled 23.7 million tonnes of thermal coal in the corresponding period of the previous financial year.

• Coal exports from terminals in Virginia’s Hampton Roads region were at a four-month low 3.56 million st in June, down 5.1% from 3.75 million st in May and the lowest since 3.55 million st in January, Virginia Maritime Association data showed.

• Freight costs for coal delivery from Russian southern and northwestern ports rose in July compared with June amid early start of grain exports from Russia’s Azov and Black Sea ports and a sudden shortage of available vessels in Baltic and Barents Sea ports.

CCAI Monthly Newsletter July 2018

| 35

PRODUCTION AND OFFTAKE PERFORMANCE OF CIL AND SUBSIDIARY COMPANIES COAL PRODUCTION (Figs in Mill Te) JULY'18

SUB CO. ACTUAL THIS YEAR

APR'18 - JULY'18

ACTUAL SAME % MONTH LAST GROWTH YEAR

ACTUAL THIS YEAR

ACTUAL SAME MONTH LAST YEAR

% GROWTH

14.09

11.25

25.2

ECL

3.09

2.39

29.2

BCCL

2.33

1.97

18.3

10

8.81

13.6

CCL

3.5

3.16

10.7

14.94

13.34

12

NCL

8.07

6.91

16.9

32.67

28.11

16.2

WCL

1.67

2.05

-18.5

11.31

10.18

11.2

SECL

11.73

9.95

17.8

51.67

41.67

24

MCL

10.16

10.24

-0.8

42.61

42.09

1.2

NEC

0.02

0.02

13.7

0.14

0.09

63

CIL

40.56

36.69

10.6

177.43

155.53

14.1

OFFTAKE (Figs in Mill Te) SUB CO.

JULY'18

APR'18 - JULY'18

ACTUAL SAME ACTUAL THIS % MONTH LAST YEAR GROWTH YEAR

ACTUAL THIS YEAR

ACTUAL SAME MONTH LAST YEAR

% GROWTH

ECL

4.14

3.78

91

12.75

12.26

27.7

BCCL

3.61

2.83

78

11.13

9.08

16.5

CCL

6.9

5.3

77

21.25

17.68

10.7

NCL

8.16

7.78

95

25.13

24.35

11.9

WCL

4.85

4.56

94

14.93

13.61

22.2

SECL

13.85

13.71

99

42.63

40.59

8

MCL

13.72

11.6

85

42.25

35.69

7

NEC

0.04

0.04

93

0.15

0.17

-20.1

CIL

55.28

49.59

90

170.2

153.43

11.7

36 | CCAI Monthly Newsletter July 2018

OVERALL DOMESTIC COAL SCENARIO Coal Production (in MT) Company

June, 2018

June, 2017

% Growth

April- June, 2018

April- June, 2017

% Growth

CIL

44.9

39.7

13.1%

136.9

118.8

15.2%

SCCL

5.0

4.8

3.1%

10.914.6

14.3

1.6%

Overall Offtake (in MT) Company

June, 2018

June, 2017

% Growth

April – June, 2018

April – June, 2017

% Growth

CIL

49.6

45.8

8.2%

153.4

137.4

11.7%

SCCL

5.3

5.25.0

6.2%

16.9

15.6

8.5%

Coal Despatch to Power (Coal and Coal Products) (in MT) Company

June, 2018

June, 2017

% Growth

April – June, 2018

April – June, 2017

% Growth

CIL

39.8

35.1

13.5%

122.2

106.5

14.8%

SCCL

4.84.2

4.34.1

113.2%

13.8

12.9

7%

Spot E-auction of Coal (in MT) Company

Coal Qty. Allocated June, 2018

Coal Qty. Allocated June, 2017

Increase over notified price

Coal Qty. Allocated April - June, 2018

Coal Qty. Allocated April-June, 2017

Increase over notified price

CIL

3.62

3.21

80%

10.50

9.69

86%

Special Forward E-auction for Power (in MT) Company CIL

Coal Qty. Allocated June, 2018

Coal Qty. Allocated June, 2017

Increase over notified price

Coal Qty. Allocated April - June, 2018

Coal Qty. Allocated April - June, 2017

Increase over notified price

-

2.45

-

14.17

18.39

81%

Exclusive E-auction for Non- Power (in MT) Company

Coal Qty. Allocated June, 2018

Coal Qty. Allocated June 2017

Increase over notified price

Coal Qty. Allocated April - June, 2018

Coal Qty. Allocated April - June, 2017

Increase over notified price

CIL

1.50

-

134%

3.38

4.32

73%

Special Spot E-auction (in MT) Company

Coal Qty. Allocated June, 2018

Coal Qty. Allocated June, 2017

Increase over notified price

Coal Qty. Allocated April - June, 2018

Coal Qty. Allocated April - June 2017

Increase over notified price

CIL

-

0.35

-

-

0.35

-

CCAI Monthly Newsletter July 2018

| 37

Note

38 | CCAI Monthly Newsletter July 2018

CCAI Monthly Newsletter July 2018

| 39

REGISTERED

40