Page 2 - Coal Policy

Coal fuels India's power demand as growing economy crushes green hopes

Electricity consumption in India is growing at the fastest rate of any major economy, driven by rising temperatures and incomes, which have pushed up sales of power-intensive appliances like ACs

Coal India likely to report production of around 773.7 MT in FY24

Coal India Ltd is likely to report production of around 773.7 million tonnes (MT) for the 2023-24 fiscal, which will be close to a 10-per cent growth over last year, company sources said. However, it is expected to fall short of the target of 780 million tonnes. Coal offtake is expected to stay restricted to 753 million tonnes, nearly 90 per cent of the target of 780 million tonnes, they said. The miner will announce its production and offtake numbers later on Monday. The company's dry fuel supplies to thermal power plants touched the 610.8-million tonne mark on Wednesday, surpassing the target for this sector. Coal India Chairman P M Prasad in a recent investor concall projected a shortfall in the wake of some land-related production hurdle in South Eastern Coalfields Ltd. All other subsidiaries, however, topped its targets. The largest coal producer in the world registered its highest-ever production of 703.2 MT in the 2022-23 fiscal. The target for the next fiscal year has be

Inter-ministerial committee pitches for higher tax on coal imports

Recommends rationalising GST compensation cess on coal

Continue importing 6% of coal needs till June, govt tells gencos

Logistical challenges, higher power demand nudge govt to extend import mandate

Private Indian firms look to bet big on coal-fired power after long absence

The potential investments, which have not been previously reported, could cumulatively cost billions of dollars and demonstrate renewed appetite in an industry seen by many as financially unattractive

Govt to increase coal-fired capacity in 2024 by 14 GW: Power Ministry

The south Asian nation failed to achieve a target to add 175 GW of renewable power capacity by 2022. The planned coal-fired capacity increase in 2024 will exceed its 2023 renewables increase of 13 GW

Metallurgical coal manufacturer body flags import of cheap met coke

Association of producers and suppliers of metallurgical coal on Monday expressed concerns over the "influx of met coke at prices below the domestic cost of production" and sought the government's intervention to resolve the issue. Metallurgical coal is a grade of coal that can be used to produce good-quality coke. The prevailing import rate for metallurgical coke in India is USD 395 per tonne, while the production cost for domestic met coke manufacturers is around USD 460 per tonne. This significant pricing gap has led to an influx of over 3.6 million tonnes of inexpensive met coke imports during 2022-23, posing a substantial challenge to India's merchant met coke sector, The Indian Metallurgical Coke Manufacturers' Association (IMCOM) said. "To maintain a sustainable ecosystem in the met coke industry, we suggest that the Indian government impose quantitative restrictions on overseas met coke imports. Such restrictions across various countries could potentially curtail total impor

JSW Energy proposes to top Adani's bid for coal-power plant: Report

In a letter, JSW Energy has asked India's insolvency court to allow it to participate in an auction for the Amarkantak project

Govt plans financial support for coal gasification, higher production

Rolling out a policy to provide financial support for coal gasification projects, augmenting production and promoting underground mining activities are among the government's priorities for the coal sector, which is key to meet the country's rising electricity demand. Besides, efforts will be made to bring more captive and commercial coal mines into operation, improve the quality of the dry fuel and transportation infrastructure for environmental sustainability. Digitisation of mine records is also on the cards. In an interview to PTI, Coal Secretary Amrit Lal Meena said the government has already notified two policies with respect to coal gasification and plans to provide financial support as well as tax incentives for such projects. The ministry of coal has set a target to gasify 100 Million Tonnes (MT) of coal by FY 2030 in line with its energy transition plans. "Now, we are coming out with a policy for certain financial support and tax incentives (for coal gasification projects

Govt to focus on coal-fired power generation in 2024 for energy security

India will focus on setting up more coal-fired power projects as well as keep adding renewable generation capacity to achieve 24x7 electricity supply for all in 2024 amid economic expansion and the need to ensure energy security in these times of rising geopolitical uncertainties. In a reflection of ambitious plans, the Union power ministry has planned a whooping 91 GW of coal-based thermal power generation capacity entailing an investment of Rs 7.28 lakh crore over the next few years. Talking to PTI, Union Power and New & Renewable Energy Minister R K Singh said, "24X7 supply of power is right of the consumer. Similarly, energy security is of paramount importance for us. You have seen what happened in Europe due to the Russia-Ukraine war." At present, average power supply across India is 23.50 hours in urban areas and 22 hours in rural areas, he said. Singh also said that the coal-based thermal power capacity will insulate the country from any geopolitical disruption and ensure ..

Govt plans to expand coal power fleet to meet soaring demand: Report

Coal is likely to account for the lion's share of this expansion, as gas-fired electricity generation is currently unviable due to the high costs of the fuel

COP28 and the coal question

Before India and China can commit to a future without coal, there are geopolitical and technological hurdles that need to be resolved

COP28: India refrained from signing on global renewable energy pledge

India refrained from signing the pledge to triple global renewable energy capacity by 2030 as the draft text mentioned phasing out coal, which New Delhi doesn't support, according to sources in the Indian delegation. India and China both on Saturday refrained from signing the pledge at the COP28 climate summit to triple the world's renewable energy capacity by 2030 even though New Delhi already committed to it as part of its G20 presidency. During the UN's climate talks here, 118 countries committed to tripling the global renewable energy capacity by 2030 in a highly endorsed initiative. A source in the Indian delegation said that India refrained from signing the pledge as the draft text mentioned phasing out/down coal, which New Delhi doesn't support. India has been asking countries to agree to phase down all fossil fuels rather than a narrower deal to phase down coal. The source said that India has already delivered a deal on the tripling of renewable energy capacity at the G20

Coal production increases 11% to to 84.53 million tonnes in November

India's coal production rose by 11.03 per cent to 84.53 million tonnes (MT) in November compared to 76.14 MT in the corresponding month of the previous fiscal. The production of Coal India Ltd (CIL) increased by 8.74 per cent to 65.97 MT in November 2023 over 60.67 MT in November last fiscal, the Coal Ministry said in a statement. CIL accounts for over 80 per cent of domestic coal output. "The cumulative coal production (up to November 2023) has seen a quantum jump to 591.28 MT (provisional) in FY'23-24 as compared to 524.53 MT during the same period in FY' 22-23 with a growth of 12.73 per cent," the ministry said. The country's coal dispatch increased to 81.63 MT (provisional) last month in comparison to 74.87 MT (provisional) recorded in November last fiscal, registering a growth rate of 9.02 per cent. "The cumulative coal dispatch (up to November 2023) has seen a significant jump to 623.04 MT (provisional) in FY'23-24 compared to 557.80 MT during the corresponding period in ...

India's green dilemma: Struggle for renewables as China powers up with coal

Poor planning by Indian policymakers, coupled with unbridled optimism for renewables, caught India unawares, industry officials noted

National Coal Index increases to 143.91 points in September: Coal Ministry

The National Coal Index (NCI), which reflects the change in price of coal, has increased by 3.83 points to 143.91 points in September 2023, an official statement said. This increase was on account of a temporary rise of coal prices in global markets, Ministry of Coal said in a statement. "The NCI is marginally up by 3.83 points to 143.91 in September 2023, the first time increase since April 2023. The NCI is used to determine the premium on a per tonne basis or revenue share (on a percentage basis) based on a market-based mechanism," the ministry said. The National Coal Index (NCI) had been rolled out on June 4, 2020 by the Ministry of Coal and it is a price index which reflects the change in price of coal in a particular month relative to the fixed base year. The index is meant to encompass all transactions of raw coal in the Indian market. This includes coking and non-coking of various grades transacted in the regulated (power and fertilizer) and non-regulated sectors. The ...

Coal ministry asks DFS to classify coal under infrastructure sector

The coal ministry on Saturday said it has requested the Department of Financial Services (DFS) to consider classifying coal under infrastructure sector, a move which will ensure financing of commercial coal mines. This reclassification would allow banks and financial institutions to formulate policies more effectively to meet the increasing requirements of the coal sector in a time-bound manner, the ministry said while noting that coal is likely to remain a primary source of energy in the foreseeable future. "Banks have expressed their willingness to finance coal mines, provided project viability and equity infusion visibility were demonstrated through detailed business plans," the ministry said in a statement. The government has also invited response from companies having coal mines to determine the quantum of financing imperative towards mine development and operationalization, along with the associated timelines meeting the requirement. This collated information has been shared .

AIPEF demands withdrawal of ministry's order extending coal import deadline

The All India Power Engineers Federation (AIPEF) on Thursday demanded withdrawal of the power ministry's order extending coal imports till June 30, 2024, saying there is no shortage of the dry fuel in the country. In an October 23 notification, the government asked imported coal-based power plants to operate at full capacity until June 30, 2024, amid a surge in electricity demand and inadequate domestic coal supplies. Earlier, the directive was extended till October 31, 2023. The government in March this year issued the first directive under Section 11 of the Electricity Act to ISB (imported-coal based) plants. AIPEF Chairman Shailendra Dubey demanded that the power ministry's directive be withdrawn and the more economic indigenous coal be utilized instead as there is no shortage of indigenous coal. The body said if at all any coal is to be imported, the ministry should bear the extra cost of that coal since the more economic alternative of Indian coal was already available in stoc

Rising domestic demand, higher volumes augur well for Coal India stock

India is seeing all-time high peak power and energy demand growth (21 per cent, 15 per cent YoY in Aug'23) and seeing increasing shortage during non-solar hours

To avert coal woes, Railways to lower coastal shipping freight rates

First-mile, last mile rail freights account for 71% of coastal shipping costs