Page 2 - Coal Sector

Core sector growth slows to 4.3% annually in November, betters Oct numbers

The output of eight key infrastructure sectors slowed down to 4.3 per cent in November 2024 against 7.9 per cent growth registered a year ago, according to official data released on Tuesday. On a monthly basis, the production growth of these sectors was higher than the 3.7 per cent expansion recorded in October 2024. In November, production of crude oil and natural gas contracted. The production growth of coal, refinery products, fertiliser, steel, and electricity moderated to 7.5 per cent, 2.9 per cent, 2 per cent, 4.8 per cent, and 3.8 per cent, respectively, against 10.9 per cent, 12.4 per cent, 3.3 per cent, 9.7 per cent and 5.8 per cent in November last year. However, cement output rose to 13 per cent in the month under review. The growth of core sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 4.2 per cent during April-November this fiscal. It was 8.7 per cent in the same period last fiscal. The eight core sectors

Govt issues allocation order to Hindalco Industries for coal mine in Odisha

The government on Friday said it has issued allocation order for a coal mine in Odisha to Aditya Birla Group firm Hindalco Industries Ltd. The government issued the vesting order for the Meenakshi coal mine that has a peak rating capacity of 12 million tonnes per annum (MTPA). This follows the signing of the agreement for development and production of coal mine last month. The Meenakshi coal mine, a fully explored block, has geological reserves of 285.23 million tonnes (MT). The block is likely to generate an annual revenue of Rs 1,152.84 crore, based on its peak rated capacity (PRC), the coal ministry said in a statement. With an estimated capital investment of Rs 1,800 crore, the mine will significantly augment domestic coal production and contribute to strengthening energy security, it said. The development of the block is likely to provide employment to about 16,224 individuals, both directly and indirectly, contributing to the economic growth in the region. "This initiative

Coal exchange on anvil, work underway to raise output to meet demand

The coal sector is likely to witness a spate of activities in the upcoming year from launching maiden coal exchange to facilitating trading and rate determination of dry-fuel to meet the booming demand of the economy. The government also intends to work more closely in the area of coal gasification as it is on a high priority list for energy transition. Coal gasification is a cleaner option compared to burning of coal as it facilitates utilisation of the chemical properties of dry fuel. Talking to PTI, Coal Additional Secretary Rupinder Brar said that "the demand (for coal) is extremely important. And we do see demand growing in India considering the growing size of the economy... Therefore, coal will also definitely be required and we are conscious of that and are working towards that". The efforts will be to continuously augment coal output and align it with the demand, she said. Brar said the pre-2014 policy on mine allocation has been disbanded and now the government gives blo

Govt imposes import restrictions on low ash metallurgical coke for 6 months

The government has imposed import restrictions on low ash metallurgical coke for six months from January 1 to June 30, 2025, according to a notification. The government has also imposed quantitative restrictions (QR) on the imports from certain countries, including Australia, China, Colombia, Indonesia, Japan, Poland, Qatar, Russia, Singapore, Switzerland, and the UK. Based on the recommendations of the directorate general of trade remedies (DGTR) in April this year, "....import of low ash metallurgical coke have been placed under restriction as per the country-wise QR for a period of six months, effective from January 1, 2025 up to June 30, 2025," the Directorate General of Foreign Trade (DGFT) said in a notification. It said the imports would be allowed only against an import authorisation issued by the DGFT for the specified country during the six months. However, the coke with high ash content (above 18 per cent) is outside the scope of this restriction. The country wise ...

India's coal-power plant growth holds near five-year high at 4 GW in 2024

India's dependence on the dirtiest fossil fuel will likely continue for years, despite plans for the rapid deployment of clean power capacity

Coking coal import cannot be substituted fully, says CIL MD Prasad

CIL Chairman and Managing Director P M Prasad on Monday said coking coal import cannot be substituted fully, but some part of it can be reduced. Coking coal, also known as metallurgical coal, is used to produce coke, a key component in steel-making process. As per the data compiled by mjunction services ltd, India's coal import in 2023-24 was 268.24 MT, which includes 57.22 MT coking coal and 175.96 MT non-coking coal. Speaking during stakeholders' consultation on mining operators-cum-developers (MDO) and Star Rating of Coal Mines Award Ceremony, the CMD said coking coal import cannot be substituted fully, but some part of it can be reduced. The coking coal import can be brought down if its production through domestic sources is increased, he noted. He further said achieving coal production of 1.5 billion tonne in the next four to five years is not a small thing and in order to achieve this output, mining projects have to be awarded to MDOs. Import of thermal coal can be reduced

India exploring ways to import Mongolian coking coal via Russia: Report

Mills in India, the world's second-biggest producer of crude steel, grappled with volatile Australian supplies of coking coal last year, and the government sent delegations to Mongolia

Senior IAS officer Vikram Dev Dutt assumes charge as new coal secretary

Vikram Dev Dutt on Monday assumed the charge as the coal secretary. Dutt succeeds V L Kantha Rao who currently serves as the mines secretary. Dutt, a 1993-batch IAS officer of the AGMUT (Arunachal Pradesh-Goa-Mizoram and Union Territory) cadre, earlier served as the Director General of the Directorate General of Civil Aviation (DGCA), the coal ministry said in a statement. Prior to Rao, Amrit Lal Meena served as the coal secretary. Meena was repatriated to his home cadre Bihar, where he was appointed as the chief secretary. Meena is a 1989-batch officer of the Indian Administrative Service. The Appointments Committee of the Cabinet had approved Meena's repatriation to his parent cadre on the request of the Bihar government, said a personnel ministry order dated August 30.

Russia aims to boost coal exports to India amid growing fuel demand

China remains the biggest buyer of Russian coal but Moscow has said India may overtake it by the start of the next decade

Refex Industries plans to raise Rs 928 cr via preferential issue of equity

Chennai-based Refex Industries Ltd on Thursday said it is planning to raise Rs 927.81 crore via preferential issue of equity and convertible warrants for investment in subsidiary companies, loan repayment and capex, among others. The funding is proposed at an opportune time as Refex continues to innovate in logistics for ash management, addressing environmental challenges associated with thermal power plant operations, the company said. Refex has a presence across sectors such as ash and coal handling and electric vehicle mobility. "Refex proposes to raise funds to the tune of Rs 927.81 crore, by way of preferential issue of equity and convertible warrants, to certain investors, under 'promoter' and 'non-promoter' category," the company said in a statement. Outlining the proposed fundraise plan, the company said of the total issue size of Rs 927.81 crore, Rs 530 crore are to be mopped up from high-net-worth individuals (HNIs) and family offices. It further said the promoter group

India needs more time for transition from coal in its energy mix: Experts

As the UK officially shut down its last remaining coal power plant on Monday, policy experts said coal will continue to be a part of India's energy mix for the next few decades, given that it is still a developing country with significant energy needs. The UK on Monday closed its last coal power plant, becoming the first G7 nation to do so amid calls for a global coal-free energy system by 2040. The world's first coal power plant opened in London in 1882, and until 2012, coal accounted for 39 per cent of the UK's electricity generation. Global energy think tank Ember said the closure of the UK's last coal plant means that more than a third of OECD countries are now coal-free, with three-quarters expected to eliminate coal power by 2030, in line with global climate goals aimed at limiting warming to 1.5 degrees Celsius. The International Energy Agency's (IEA) "Net Zero by 2050" report recommends that developed countries phase out unabated coal by 2030, while developing countries sho

Govt asks coal block holders to start production in auctioned mines

The Centre on Thursday said that it has asked the coal block allottees to take necessary steps to put to production mines that were auctioned recently. The coal ministry on Wednesday reviewed the status of coal mines that were auctioned and are in different stages of process completion. "The 71 coal blocks are in various stages of obtaining regulatory clearances. These blocks are distributed across nine states Arunachal Pradesh, Assam, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, and West Bengal," the Coal Ministry said in a statement. The meeting was chaired by Coal Additional Secretary Rupinder Brar. The comprehensive review focused on highlighting the government's commitment to ramp up domestic coal production. "This strategic review underscores the Ministry's proactive approach to addressing hurdles in coal blocks operationalisation in order to meet India's growing energy needs," the statement said. By focusing on these mines, the government aims to maximise

Coal supply to power sector falls 5.4% to 58.07 mn tonnes in August

Coal supply to the power sector in August dropped 5.4 per cent to 58.07 million tonnes (MT) as compared to the year-ago period, according to an official statement on Tuesday. The supply of coal to the power sector was 61.43 MT in August of the previous fiscal year. "In August 2024, the supply to the power sector was 58.07 MT, slightly lower than the 61.43 MT recorded in August 2023," the coal ministry said in a statement. Coal supply to the power sector remains a key priority, the ministry said. Between April and August this fiscal year, supply to the power sector reached 338.75 MT, registering a growth of 4.13 per cent over the 325.33 MT supplied during the year-ago period. In terms of coal supply across the country during the April to August 2024, it stood at 412.69 MT, with an increase of 5.17 per cent compared to 392.40 MT during the corresponding period of the last financial year. In August, however, coal supply fell slightly to 69.94 MT, compared to 75.19 MT in August of t

Coal production increases by 6.48% to 384.08 mn tonnes in April-August

The country's coal production rose by 6.48 per cent to 384.08 million tonne (MT) in the first five months of the ongoing fiscal. The production was 360.71 MT in April-August FY24. The figures for the period under review are provisional. The production of CIL, which accounts for over 80 per cent of the domestic coal output, rose to 290.39 MT during April-August FY25, marking a growth of 3.17 per cent year-on-year, the coal ministry said in a statement. Coal production from captive and other entities rose to 68.99 MT in April- August FY25 from 52.84 MT a year ago. The cumulative coal dispatch up to August was at 412.07 MT against 391.93 MT during the same period of FY24.

Coal production increases by 7% to 370.67 mn tonne in April-August

The country's coal production rose by 7.12 per cent to 370.67 million tonne from April to August 25, an official statement said on Tuesday. Coal production was 346.02 MT in the year-ago period. "Ministry of Coal has achieved upswing in overall coal production up to 25th August 2024. The cumulative coal production for 2024-25, as on August 25, 2024, has significantly increased to 370.67 MT, compared to 346.02 MT during the same period in FY 2023-24," it said. The overall coal dispatch was 397.06 MT as on August 25, 2024, in the current financial year, registering year-on-year growth of 5.48 per cent. Coal dispatch to the power sector rose to 325.97 MT from 313.44 MT in the year-ago period. "This ensures a steady supply of coal to meet the energy requirements of the power sector," the statement added. The overall coal stock position, including pitheads at mines, thermal power plants, and in transit, reached 121.57 MT as of August 25, 2024. This represents a substantial increase of

NCI declines 3.48% in June, indicates sufficient availability in market

Indicating sufficient coal availability in the market, the National Coal Index (NCI) dropped 3.48 per cent to 142.13 points in June 2024. The NCI was at 147.25 points in June 2023, the coal ministry said in a statement on Friday. This fall indicates sufficient availability of coal in the market to meet the growing demands. NCI is a price index that combines coal prices from all sales channels, including notified prices, auction prices and import prices. It considers prices of coking and non-coking coal of various grades transacted in the regulated (power and fertilizer) and non-regulated sectors. Established with the base year as fiscal 2017-18, NCI serves as a reliable indicator of market dynamics, providing valuable insights into price fluctuations. Additionally, the premium on coal auctions indicates the pulse of the industry, and the sharp decline in coal auction premium confirms the sufficient coal availability in the market. The growth of 14.58 per cent in the country's coa

Coal production increases by 6.69% to 74.07 mn tonnes in July: Govt

India's coal output rose by 6.69 per cent year-on-year to 74.07 million tonnes (MT) in July, the government said on Thursday. The country's coal production was 69.42 MT in the corresponding month of previous fiscal, the coal ministry said in a statement. Cumulative coal dispatch witnessed a significant boost in July 2024, touching 79.54 MT, compared to 76.05 MT recorded in July 2023, registering a growth rate of 4.58 per cent. In a separate statement, the ministry said that vesting orders were issued for 10 strategically important coal mines, marking a significant advancement in the nation's coal production capabilities. This initiative, which includes one fully explored and nine partially explored mines, is set to enhance energy security and drive economic growth across the states of Jharkhand, Chhattisgarh, West Bengal, and Madhya Pradesh, it said. Coal and mines minister G Kishan Reddy urged the successful bidders to focus on increasing coal production and reducing imports.

Coal production from captive, commercial coal mines grow by 35% in Apr-Jun

The government on Wednesday said that coal production from the captive and commercial coal mines grew by 35 per cent to 39.53 million tonnes (MT) in the first quarter of this fiscal. The coal production from captive and commercial coal mines was 29.26 MT in the first quarter of FY24. "Similarly, dispatch has shown a growth of 34.25 per cent YoY, from 34.07 MT in Q1 of FY24 to 45.68 MT in Q1 of FY25," the coal ministry said in a statement. The coal output for the power sector has seen a substantial increase, rising from 25.02 MT in the first quarter of last year to 30.16 MT in the first quarter of this year, marking a 20.5 per cent year-on-year growth. The government said that it remains firmly committed to assisting all coal block allottees to overcome challenges and optimise their operations. The primary goal of the coal ministry is to significantly augment coal production, ensuring a consistent and reliable supply to meet the nations' escalating energy needs. "Through collabora

Coal India's production increases by 8% during the first quarter

The Union Ministry of Power has mandated the import of coal for blending at thermal power plants to continue till October 2024

Pralhad Joshi: From mining coal to building green energy and food security

Joshi is considered a trusted ally by MPs across parties and this has helped him push for coal reforms in states and get support from various departments such as railways and shipping