Coal Sector India

 Published On: Oct, 2013 |    No of Pages: 250 |  Published By: Indian Petro Group | Format: PDF
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Coal, accounting for over 50% of the country’s primary energy production needs, dominates India’s energy mix. International reports have shown that this trend will continue for the foreseeable future and coal will remain the mainstay of power generation for the world at large and India in particular despite considerable growth likely to occur in renewable and nuclear energy generation.

Tremendous increase in demand

As the choice fuel for power generation in the country, the demand for coal has shown tremendous increase in the recent past. The supply of coal, however, has been unable to keep pace due to various constraints and bottlenecks creating problems for the coal consuming industries such as power, steel, cement and others. The power sector is the worst hit by this widening coal demand supply gap resulting in many capacities being stranded or performing below optimum levels.

Unlikely that coal targets will be met

The Ministry of Coal is making all out attempts to bridge this gap and is experimenting with various measures to help resolve the fuel shortage problem. While the Ministry has set an ambitious target of increasing the country’s coal production by 36 million tonnes per annum by the end of the 12th Five Year Plan (2012-2017), it is unlikely this target will be met. Notably, Coal India Limited that controls about 80% of the production in the country could only produce about 452 MTs (million tonnes) of coal in 2012-13 missing its initial target of 464.10 mt.

Is private partnership the way forward?

Apart from formulating policies that will help producers tide over various hurdles and constraints, the Government has also taken steps to encourage private investments in coal mining through the Public-Private Partnership (PPP) route and by allocating coal blocks for captive consumption. Though this process has been slow the government is hopeful of positive outcomes in the long run.

To give a clear picture of all these intricacies involved in the coal sector of India and give readers a complete understanding of the Indian coal industry, EnergylineIndia presents its report titled “Coal Sector in India 2013”.

About the Report

The report analyzes all the important aspects of the industry including present and future production and imports, industry-wise coal consumption, global and Indian pricing scenario, captive coal mining, legal and regulatory structure, government policies affecting the sector, companies operating in the Indian coal industry, their expansion plans and financial details including future projections.

This report collates data, information and opinions from various sources – government, international organizations, and industry bodies. It has been designed to present up to date information and analysis in a clear and easy to use manner. Extensive data in the form of tables, charts and figures has been included to serve as a ready reference for information on the coal industry.

Significant Highlights

Profile of the global coal market while contextualizing it in India’s perspective.
Policy and Regulatory structure that governs Indian coal sector
Mapping of coal availability in India
Sources of domestic supply
Overview of captive mining
International sources of coal supply – including profiles of the major supply countries
A detailed look at the lignite sector in India
An analysis of demand for coal from various sectors, and the dynamics that govern coal demand in India
Evolution, current and likely future scenario of coal Pricing in India
A detailed look at the various modes and infrastructure for coal transportation in India
In-depth profiles of Coal India Limited, Singareni Collieries Company Limited and Neyveli Lignited Corporation

Key take-aways

The report contains exclusive insights and data updates regarding the current state and future of Indian coal industry. Readers will benefit from extensive data, comprehensive industry coverage and unique analysis, presented in easy-to-read and illustrative charts, tables and graphs.

Table of Contents

1. India Energy Overview
Primary Energy & Energy-GDP Elasticity
Energy Fuel Mix
Natural Gas

2. Global Scenario
Global Coal Reserves
Global Coal Production
Global Coal Demand/Consumption
World Coal Trade
International Coal Prices
Important Coal countries
United States of America (USA)

3. Legal and Regulatory Structure
Regulatory Structure
Ministry of Coal
Coal Controller’s Organization
Geological Survey of India
Energy Coordination Committee
Ministry of Environment and Forests (MoEF)
Private participation and Captive Coal Mining
Laws and Provisions Governing Mining
Reconnaissance and Prospecting
Mining Lease
Quality Control
New Coal Distribution Policy
Foreign Investment
Mining and the Environment
Environmental Laws Governing Mining Activities
The Environment (Protection) Act
The Air (Prevention and Control of Pollution) Act and the Water Act
Water (Prevention and Control of Pollution) Cess Act
The Forest (Conservation) Act
The Wildlife (Protection) Act
Environmental Clearances
Approval Process for Coal Mining
Mines And Minerals (Development And Regulation) Act, 1957

4. Coal Supply
Resource Classification
Joint Ore Reserves Committee (JORC)
Indian Standard Procedure (ISP)
Classification of Coal Based on Depth
Classification of Coal into Grades
Classification of Non-coking Coal
Grades of Coking Coal
Grades of Semi-coking and Weakly Coking Coal
Type and Category-wise coal Reserves (MT)
Lignite Classification
Classification based on Grade
Production (Coal & Lignite)
Coal production in India
Coal production in India by Company (MT)
Coal production by state (MT)
Methods of Coal Production
Underground vs Open Cast
Lignite Production
Lignite production in India
Lignite Production in India by Company (MT)

5. Captive Mining
Historical Background
Allocation of captive coal blocks
Legal provisions for captive mining
Allotment of Captive blocks to a consortium
Mining of Coal from captive blocks
Conditions Imposed on Captive Miners
Guidelines on Disposal of Coal (during development phase)
De-allocation/Cancellation of Mining Lease
Performance Review of Captive Mining
Issues/Challenges in captive coal mining

6. Coal Imports
India’s Coal Imports – by type of coal (MT)
Import Sources
South Africa

7. Coal Demand in India
Demand Overview

8. Coal Pricing
Historical background
Current Pricing Scenario
Determinants of Coal prices
Coal Quality
Mode of Sale
FSA (Fuel Supply Agreement)
E-Auction (introduced under NCDP 2007)
Memorandum of Understanding- MoU (pricing of higher quality coal)
Coal Price Pooling

9. Coal Transportation
Modes of Transport
Merry-Go-Round (MGR) System
Other Modes of Transport
Issues and Concerns

10. Coal Companies in India
Coal India Limited
Ownership and Structure
Description of the Coal Mines
Coal Transportation
Future Plans
SCCL – Singareni Collieries Company Limited
Future Plans
Financial Performance
Neyveli Lignite Corporation Limited (NLC)
Lignite Production and Exploration
Future Plans

List of Tables

Table 1.1: India GDP growth rate
Table 1.2: Primary energy consumption in India
Table 1.3: Energy Elasticity Scenarios
Table 1.4: Projections of Total Primary Commercial Energy Requirements (mtoe)
Table 1.5: Installed Generation capacity in India by source (MW, 2002-2013)
Table 1.6: Fuel wise energy consumption
Table 1.7: Top Coal Exporters (2011) million tonne
Table 1.8: Top Coal Importers (2011) million tonne
Table 1.9: State-wise distribution of Coal Reserves in the country (mt)
Table 1.10: Crude oil reserves in India (MT)
Table 1.11: Crude oil imports and petroleum product exports (MT)
Table 1.12: Natural Gas Production in India (2004-05 to 2011-12) in million cubic metres
Table 1.13: Import of LNG in India (2004-05 to 2011-12)
Table 1.14: Nuclear power generation in India
Table 1.15: Renewable energy generation in India
Table 2.1: Global proved coal reserves (MT)
Table 2.2: Global coal production
Table 2.3: Global Coal Consumption
Table 2.4: Region-wise Coal Consumption (MTOE)
Table 2.5: Global Coal Prices (USD per tonne)
Table 2.6: Reserves of Select Countries
Table 2.7: Production of Select Countries
Table 2.8: US Coal Key Basins Summary
Table 3.1: Foreign Investment in Coal and Lignite
Table 3.2: Typical timeline for an Open Cast mine with forest cover
Table 3.3: Average Environmental Delays in approval process
Table 4.1: State-wise Distribution of Coal Reserves in India (MT)
Table 4.2: Lignite Reserves in India (MT)
Table 4.3: Geological Resources of Indian Coal: by Category and Depth as on 1.4.2012 (MT)
Table 4.4: Coal Production in India (MT)
Table 4.5: Coal Production in India by Company
Table 4.6: Coal Production by State (MT)
Table 4.8: Lignite Production in India (MT, 2001-12)
Table 4.9: Lignite Production in India by Company (MT)
Table 5.1: Captive Coal Blocks Allocated until September 18, 2012
Table5.2: Year-wise and Sector-wise Allotment of Captive Coal Blocks - (till 31.03.2012)
Table 5.3: State-wise and Sector-wise Allotment of Captive Coal Blocks - (till 31.03.2012)
Table 5.4: Production from captive blocks
Table 5.5: Captive Mine Production Targets and Achievement in the Eleventh Five Year Plan
Table 6.1: India Coal Imports by type of Coal (MT, 2002-12)
Table 7.1: Coal demand in India (MT, 2008-13)
Table 7.2: Region-Wise Installed Generation Capacity (MW)
Table 7.3: Coal consumption trend for power generation in India (MT)
Table 7.4: Power Deficit in India
Table 7.5: Power generation in India
Table 7.6: Per capita steel consumption in countries around the world
Table 7.7: Coking Coal demand from Steel Industry (MT, 2008-13)
Table 7.8: Cement production and dispatch in India (MT, 2001-11)
Table 7.9: Coal demand from cement industry (MT, 2008-13)
Table 7.10: Cement industry Coal demand forecast (2012-17)
Table 7.11: Coal requirement including cement and captive power (2012-17)
Table 8.1: CIL’s coal prices after revision on May 27, 2013
Table 8.2: Pithead run of mine price of non-coking coal applicable for Western Coalfields Limited
Table 8.3: Pithead run of mine price of NLW coal applicable for Bharat Coking Coal Limited
Table 8.4: SCCL Coal Prices March 7, 2013 onwards
Table 8.5: CIL's Off-take Breakup
Table 8.6: Coal availability from CIL (million tonnes)
Table 8.7: CIL linked capacity and coal to be supplied by CIL up to 2014-15
Table 9.1: Mode-wise coal dispatch of CIL and SCCL (2011-12)
Table 9.2: Quantity of Coal Transported through Rail (2005-12)
Table 9.3: Corridor Projects under implementation at Eastern and Western Corridor
Table 9.4: Project Connectivity Works by Indian Railways
Table 9.5: Coal handled at the major ports over the past 5 years (MT)
Table 9.6: India’s Largest Private Ports and their Capacity targets.
Table 10.1: CIL’s Coal Resources and Reserves as per JORC (MT)
Table 10.2: CIL’s Coal Resources and Reserves as per ISP (MT)
Table 10.3: Coking and Non-Coking Coal Production by CIL (MT)
Table 10.4: Open cast and Underground Coal Mine Production of CIL (MT)
Table 10.5: Mine-wise Production of Coking and Non-Coking Coal by CIL (MT)
Table 10.6: Beneficiated Coal Production by CIL (MT)
Table 10.7: Sales of Beneficiated Coal (Rs. Million)
Table 10.8: Subsidiary-wise Mining Operations of CIL
Table 10.9: Details of CIL’s Coal Fields
Table 10.10: Raw Coal Dispatch of CIL by Industry (MT)
Table 10.11: Mode-wise Raw Coal Dispatch by CIL (MT)
Table 10.12: Cost Structure of CIL for Transporting Coal from a Mine to a Dispatch Point
Table 10.13: Employee Remuneration and Benefits Expense Details for CIL
Table 10.14: SCCL’s Coal Reserves at Godavari Valley Coalfield as on April 1, 2010 (MT)
Table 10.15: SCCL Reserves District-wise and Depth-wise (as on 01-04-10)
Table 10.16: Plan-wise Performance of SCCL
Table 10.17: Underground and Opencast Production by SCCL (lakh tonnes)
Table 10.18: SCCL’s performance over 5 years
Table 10.19: Financial Performance of SCCL over 10 years
Table 10.20: Industry-wise supply of coal by SCCL in 2010-11 (Tonnes)
Table 10.21: NLC’s Existing Lignite Mines and Power Projects
Table 10.22: NLC’s Overall Performance
Table 10.23: Lignite Reserves in India as on April 01, 2010 (MT)
Table 10.24: Lignite Reserves of NLC
Table 10.25: Lignite Reserves explored in India over last 4 years (MT)
Table 10.26: NLC’s Lignite production by mine (lakh tonnes)
Table 10.27: Plant-wise Power Generation at NLC (MU)
Table 10.28: Existing Thermal Power Stations of NLC and their Distribution Mix
Table 10.29: NLC’s Projects expected to come up by 2012

List of Figures

Figure 1.1: World Primary Energy Consumption (mtoe)
Figure 1.2: World Crude Oil Production, Consumption, import/Export (million tonne)
Figure 2.1: Coal production in USA (MT)
Figure 2.2: Coal Consumption (MTOE)
Figure 2.3: Primary Energy Fuel-wise Consumption in 2011 (%)
Figure 2.4: Coal Production in Russia (MT)
Figure 2.5: Coal Consumption (MTOE)
Figure 2.6: Primary Energy Consumption in 2011 (%)
Figure 2.7: Japan’s Primary Energy Consumption in 2010 (%)
Figure 2.8: Consumption of Coal by Japan (MTOE)
Figure 2.9: Top 5 Coal Importers (2011 in MTOE)
Figure 2.10: Japan's Total Coal Imports (MTOE)
Figure 3.1: Flow chart for grant of reconnaissance lease
Figure 3.2: Flow chart for prospecting lease
Figure 3.3: Flow chart for obtaining mining lease
Figure 3.4: Clearance Process
Figure 3.5: EIA process for category A projects in India
Figure 3.6: EIA process for category B projects in India
Figure 4.1: Year-wise up-gradation of inventory of geological resources of Indian coal (MT)
Figure 5.1: Coal Production from Captive Mines (MT)
Figure 6.1: Australia’s Coal Production (MT)
Figure 6.2: Primary Energy Consumption of Australia in 2011 (%)
Figure 6.3: Coal Consumption in Australia (MTOE)
Figure 6.4: Coal Production in South Africa (MT)

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