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Foreign Customers kindly click here The Indian coal industry faces shortage of supply akin to the gas industry a decade ago. As per Infraline’s estimates, the domestic shortage of coal would be around 300 MT by the end of the XII Five-Year Plan. This demand-supply mismatch is likely to widen drastically over the medium to long-term. As a result of this scenario, many Indian companies are scouting, and some have succeeded in acquiring global coal assets. While such coal imports would address the supply needs, it would still face the risks associated with prices, country’s politics, economy and associated infrastructure.Even the recent proposal on pooled-pricing of coal to leverage the costlier foreign coal is not an appropriate solution, as it is likely to add huge national cost and discourage domestic mining. The bottom line is that the productivity of domestic mining companies is abysmally poor when compared globally. What India needs is reforms in opening the coal mining sector to private participation.
The MMDR Amendment Act, 2010 in the last fi scal paved the way for introducing competition in coal mining. The Ministry of Coal (MoC) recently issued the draft guidelines for allocation of captive coal blocks on competitive basis. Against the earlier preference- based practice, the new blocks will be offered with reserve price tags set by MoC on the basis of the assessed resourcefulness of the blocks. Moreover, the bidders whose end-useplants are in same State as the notifi ed block would be given a due weightage while evaluation. Successful bidders would have to explore, develop, operate, and close the mines, which would create huge business opportunities for other players in the mining industry. New entrants without deep pockets for acquiring global coal could now opt for domestic captive blocks in order to minimise their costs and risks.
InfralineEnergy through its second annual edition of “CAPTIVE COAL BLOCKS IN INDIA – 2011” investigates the captive coal space in a 360 degree perspective. The preliminary sections are contemplated to showcase the ground realities of the industry supported by updated facts and fi gures. Statistical models are used to forecast the demand for coal under various scenarios, assess the supply position from declared production and planned imports so as to deduce the precise demand that captive coal can address. Such demand sizing is indispensable for macrolevel business decisions and is the only thing investors would ever need.
Based on recent block-wise status and developments, the further sections will trace the trends set by the allocation done so far. Though of different nature and varying quantum, captive coal similar to imported coal, faces certain unquantifi able risks demanding premium-returns unless assessed and mitigated in time. In addition to the comprehensive block-wise details and trends on so far allocation, the report will bring out the primary-research outputs on end-use projects, de-allocated blocks, distressed blocks and blocks in line for future allocation. Over and above, the exclusive issue map on uncertainties and challenges, impact analysis of the proposed competitive bidding mechanism, industry opinions, comparative analysis of different sourcing options and economics of Captive Mining will altogether set an innovative path fi nding guide to all stakeholders
Industry-fi rst analysis on
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Key Questions Answered
Table of Contents :1. The Dynamics of Indian Coal Industry – Historical TrendsContribution to India’s energy-mixEstimated and Proven ReservesExtractable Reserve Base from Geological, Technical andEconomical PerspectiveDemand and Supply PositionProduction and Consumption PatternLong-term and Short-term PricesImports and Trading TrendsWashing and Blending TrendsTransportation Environment
2. Coal Demand Supply Outlook - 2020Forecasted Aggregate Demand for CoalPlanned Domestic ProductionPlanned ImportsEstimated Unmet Demand
3. Captive Coal Block – The Marquee AssetDefl ated Fuel Supply and Price RisksPricing Power - Competent Cost Advantages to EUPsCaptive Coal Vs Imported Coal Vs Linkage Coal – A ComparativeAnalysis
4. Trends in Block Allocation & ProductionAnalysis on the Blocks Allocated and Development Status– Year-wise– State-wise– Industry-wise– Developer-wise– Capacity-wise– EUP-wise– Grade-wise– Current Status-wise– Production-wise– Mine-type wise
5. Investments Planned and Proposed in Captive Coal SegmentKey Players Ahead in InvestmentsProposed InvestmentsFinancing Arrangements and OptionsIndustry Case-studies
6. Risks Associated with Captive MiningRisks Faced by Developers – Qualitative AnalysisMitigating TechniquesBest Industry Practices
7. Business Case AnalysisEnabling Policy FrameworkValue-chain in Captive Coal Block DevelopmentCoal Mine Life Cycle– Major Milestones– Sequence of Operations– Time-lines InvolvedCapital Cost of Coal Mining ProjectsCost, Production and Revenue Sharing ArrangementsExisting Business Models– EPC Model– Outsourcing– Joint Venture– Hybrid Structure– Group Captive Mining
8. Issues and Challenges in Captive Coal Block DevelopmentConcerns in Allocation and Award ProcessIssues from the Perspective of Government, Lenders, Owners andDevelopers– Land Acquisition and R&R Issues– Infrastructure and Exploration Issues– Environmental and Legal Issues– Lack of Expertise to Develop Mines– Financing Issues– Lack of Appropriate Business StructureOther Intangible IssuesCollated Issue-map for Captive Mining
9. Business Opportunities in the Value ChainEPC Companies in Mining, WashingTechnology ProvidersEquipment ManufacturersLogistics ProvidersAssociated Mine InfrastructureTechnical Consultants
10. Impact of Recent Developments in Coal Mining SpaceMMDR Bill - Thrust on Competition and Profi t Sharing– Linking 26% Profi t Sharing with Mineral Value– Analysis on Future Entry and ParticipationImpact Analysis of Competitive Bidding Guidelines– Proposed Changes in Award Process– Industry Opinions on Competitive BiddingEnvironmental Policy Changes– MoEF Guidelines– Impact on Recent Coal Mining Projects– Current Policy StancePlanning Commission’s Pooled-Pricing Mechanism– Infl uence on Captive MiningCIL’s Coal for Long Term Off-take (CLTO) Import Model– Evaluating the Sustainability– Infl uence on Domestic ProductionLatest Initiatives and Strategies of MoC
11. Emerging Business Models for Private Sector ParticipationNewer Technologies - UCG, CTL, CBM DevelopmentDiverting and Trading Surplus Coal – On the AnvilMerchant Mining Model - New ParadigmPrivatisation – The Next TransitionExports
12. Key Research Findings
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