Coal shortages will be a thing of the past and India won’t need to import dry fuel by 2017, except to meet requirements of the power plants located near coastal area, Union Minister Piyush Goyal said on Monday (16 November).“I have been on record to say that I judged that by 2017, India should not need to import coal except for those coastal plants where it is very difficult to transmit coal. I am fairly confident the era of shortages is over,” Goyal said addressing at a KPMG event ENrich 2015. “At next level of UDAY we are looking at complete ability to exchange coal or to swap coal, complete synergy in the in power and coal sectors so that coal is used most efficiently by the most efficient power plants at the nearest location and power is transmitted rather than coal,” said the Minister for Coal, Power and New & Renewable Energy.Coal imports are declining and they fell for the fourth consecutive month in October by 5.1 per cent to 14.52 million tonnes (MT) over same month year ago. In September the import of dry fuel dropped by 27.16 per cent to 12.6 MT on rise in domestic production. India had imported 212.103 million tonnes of coal worth over Rs 1 lakh crore last fiscal. The government is eyeing to achieve 1.5 billion tonnes of coal production by 2020. India is the third-largest producer of coal after China and the US with 299 billion tonnes of resources and 123 billion tonnes of proven reserves, which may last for over 100 years. Later, Goyal tweeted, “A quasi sovereign fund is being launched for renewable energy with an RFP soon for appointing the fund manager.” The minister thinks that the renewable energy capacity target of 175 GW by 2022, is not only doable but necessary also in view of energy security of the country. He said,”Energy has to reach the last man at affordable prices. Way forward is energy efficiency, low power prices.” The minister also said that South India benefited by 5000 MW of additional power in last 18 months and 20,000 MW additional transmission capacity in pipeline. As per the minister’s view with launch of discoms revival schemes UDAY, REC and PFC can lend USD 20 billion for areas like transmission, renewables etc. He also tweeted, “250 million tonnes of coal washeries in pipeline. Standard design of washeries to leverage economies of scale.” Goyal also said that the government is working with the NITI Aayog to draw a blue print for energy policy in the country. Oil Minister Dharmendra Pradhan said the government is working on a comprehensive energy policy with NITI Aayog which will elaborate about energy mix of the country till 2050. Piyush Goyal and Dharmendra Pradhan released a KPMG India report titled ‘The Rising Sun – Disruption on the Horizon’. The report highlighted that solar energy could scale up substantially to be a significant energy source by 2025, with the market penetration of solar power expected to be 5.7 per cent (54 GW) by 2020 and 12.5 per cent (166 GW) by 2025. India aims to reduce emission intensity of its GDP by 33- 35 per cent by 2030 from 2005 levels, and solar power is likely to contribute 4 per cent towards this target, the report states. It also talked about how the scale up and competitiveness of solar power could disrupt the traditional generators. The disruptive force is expected to start being felt from 2017 and may accelerate post 2020. In some states, which are promoting solar (and also wind power) aggressively, conventional coal generators could see their Plant Load Factors (PLFs) fall by as much as 10-15 per cent by 2020, as solar replaces coal-fired generation in the daytime hours. This effect may speed up post 2020 with the annual addition of large amounts of solar (estimated to exceed by 20 GW per year by 2022-23). The report also highlights that the price for solar power has seen a decline; today, in India, solar prices are within 15 per cent of the coal power prices on a levelised basis and, it is expected that that by 2020, solar power prices would be approximately 10 per cent lower than coal power prices. The solar rooftop power, today, is already competitive compared to grid power for many consumers and, as per the report, if combined with storage, it could be cheaper than grid power after 2022 for a large section of the consumers and drive a considerable shift to rooftop power. A Solar House that is self-sufficient in energy terms could be a reality within the coming decade. (PTI)
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Looking at utilising underground mines more efficiently, CIL has invited bids from consultants for preparing a study on a range of issues, including raising output, as the state-owned firm gears up to meet the ambitious production target of 1 billion tonnes. There are 227 working underground mines and 28 mixed mines under Coal India Ltd. "CMPDI, on behalf of Coal India Ltd (CIL), invites offers/bids through e-tendering from academic/research institutions and/or consultancy firms/organisations of India or abroad for providing consultancy services for 'study on underground coal mining in CIL - problems, potential, technology, modernisation, production and safety'," according to a tender document dated November 2, 2015. About Rs 762 crore is likely to be invested in the underground coalmines in the ongoing fiscal. Coal and Power Minister Piyush Goyal had earlier said that as against the output target of 37.6 million tonnes (MT) from the underground mines last fiscal, CIL had produced a little over 35 MT. The scope for augmenting production from the underground mines, he had said, was limited on account of difficult geo-mining conditions, non-availability of large size deposits for adopting mass production technologies, inadequate experience in mechanisation of underground mines. He had said that the major constraints in increasing coal production from underground mines, include lack of appropriate technologies to mine coal from thick and steeply inclines and multiple seams, heavy pumping out of water and adverse roof conditions. The government has set an ambitious 1 billion tonnes coal production target for CIL by 2020. It accounts for over 80 per cent of the domestic coal output. (PTI)
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Meghalaya Chief Minister Mukul Sangma has been lobbying New Delhi to lift a ban on dangerous, small-scale coal mining operations in his state, without disclosing that his wife owns several mines there, according to documents seen by Reuters.So-called "rat-hole" mining practised in Meghalaya state killed thousands of workers, including children, before the ban was imposed in April last year. At its peak the state produced coal worth $4 billion a year, or about a tenth of India's total production, nearly all from this form of small-scale mining.In half a dozen letters to the central government, Sangma's administration has asked for help to revoke the ban imposed on rat-hole mining in the state by the National Green Tribunal (NGT), India's environment court.Sangma argues that the industry forms a large part of the impoverished state's income and the prohibition violates tribal law. He also plans to propose an alternative plan to regulate mining and address the court’s environmental concerns.In the letters, he does not say that his lawmaker wife, Dikkanchi D. Shira, owns six mines in the state. However, Sangma has said his family's interest in the mines was publicly known.A senior central government official with direct knowledge of the matter confirmed that Sangma had not talked about his family's ownership of the mines during discussions with New Delhi.In an interview, Sangma denied any conflict of interest.He said he had declared his family's interest in the mines to the election commission during state elections in 2013, as required under the country's polling laws. He had told the president of his political party about the mines as well."I was fortunate to get married to a rich wife, who inherited the mines," Sangma said.He said his wife's mines were in "running condition", but they stopped extracting coal after he first became chief minister of the state in 2010. Sangma has held several ministerial positions since 1998.There is no law on conflict of interest in India for ministers.An expert said Sangma's actions violate the government’s code of conduct that calls for ministers and their immediate families to sever ties with any business that depends "on licenses, permits, quotas, leases, etc., received or to be received from the government concerned."The code is not legally binding and carries no penalties for violations. "If your wife owns a certain mine, and you as the chief minister are writing letters, then it's a case of the office of the chief minister being used in support of a private business," said Ashutosh Kumar Mishra, executive director of Transparency International in India.Sangma said his push did not violate the code. "We know our responsibilities," he said, but declined to elaborate.Worker DeathsPrivate coal mining in Meghalaya, estimated to have 576 million tonnes or 0.2 percent of the country's total reserves, started in 1894. The practice became illegal in the 1970s, when India nationalised coal mines and gave state-run Coal India <COAL.NS>, the world's top coal miner, a monopoly.Still, private miners continued to operate there and the federal government did not interfere, given the state's remote location and the low quality of its coal.Nearly all mines in Meghalaya use the rat-hole mining method. Workers, often children, go down hundreds of feet on bamboo ladders and dig out coal from narrow, horizontal seams. There are frequent accidents. It also pollutes water bodies and kills fish.Impulse Social Enterprises, a non-profit that filed a petition in the National Green Tribunal that led to the ban, said 10,000 to 15,000 people were believed to have died in rat holes between 2007 and 2014 in Meghalaya.P.B.O. Warjri, Meghalaya's top bureaucrat, acknowledged workers had died in mining accidents. He did not say what steps the government had taken.Despite the NGT’s ban, some mines continue to operate.A visit in September to Sutnga village in the state’s main mining area showed cranes lifting coal out from a rat hole, while men filled two trucks for transport.Sangma told Reuters he will act against anybody found violating the court order.(Reuters)
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Simar SinghPiyush Goyal, Union Minister of State for Power, Coal, New and Renewable Energy on Monday said that state-owned Coal India Limited has clocked in a 9.4 per cent growth rate during the first half of the current fiscal year and expressed confidence that it would certainly achieve the targeted growth of 50 million tonnes in the annual production. The union minister also claimed that the company had achieved an impressive growth rate in the previous year which was more than the accumulated growth in production during the previous four years when the UPA was in power. Goyal was in Nagpur to inaugurate two open cast projects of the Western Coalfields Limited (WCL) at Dinesh and Yekona in the industrial Umped area. He said that the inauguration marked the fulfilment of the assurance that he had previously given, that one new mine would be opened per month. Cumulatively, the two projects, at their peak, are estimated to add to the current coal production capacity by 6.75 million tonnes. Out of this around 5.7 million tonnes of coal will be given to Maharashtra State Power Company (Mahagenco) and other powerhouses and is expected to generate an additional 1400 megawatts. Goyal added that these projects would provide job opportunities for 1,773 people and open up hundreds of indirect employment opportunities.
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India is talking to South Africa to buy coal mines there to feed its expanding steel industry, Coal Secretary Anil Swarup said, adding that New Delhi also hopes to stop imports of coal used to generate power in three years as domestic output jumps. After years of poor production crippling power supply, state-run Coal India is boosting output at a record pace to meet Prime Minister Narendra Modi's goal of connecting to the grid millions of Indians who still make do with kerosene lamps. But India, which wants to triple its steel capacity to 300 million tonnes by 2025, does not have enough reserves of coking or steelmaking coal, prompting Coal India to look at assets abroad, Swarup told the Reuters Global Commodities Summit on Monday. "They are presently in negotiations with people in South Africa," Swarup said. "We imported around 80-90 million tonnes of coking coal last (fiscal) year and if that is the amount that can come through a mine owned by Coal India, it would consider it." Swarup declined to give any investment figure but said money was not an issue for Coal India, which had cash and bank balance of more than $8 billion for the year ended March 31. Overall coal imports into India, the world's third-largest buyer, fell for the third straight month in September in a country used to seeing shiploads coming in as new power plants started. Coal India's output grew 32 million tonnes to 494.2 million tonnes in the fiscal year 2014/15, the biggest volume rise in its four-decade history. "In three years we should be able to mine (all the power-generating) coal we require," Swarup said. "The quality of coal that is not available will still be imported." India is looking to more than double its total coal output to 1.5 billion tonnes by the end of this decade, with 500 million coming from the private sector. Swarup said India is working out details to open up the nationalized sector and allow private companies to mine and sell coal. The turnaround in India's coal industry has been a highlight of Modi's tenure in office since May last year, and the prime minister is keen that output grows further. "We are reasonably satisfied (with the coal resurgence), though there is still a long way to go," Swarup said. But environmentalists are worried the world's third-largest polluter is leading a pan-Asian dash to burn more of the dirty fossil fuel amid international efforts to contain global warming. Global investment banks are under pressure from environmental groups to steer clear of India's plan to raise as much as $3.3 billion from selling a 10 percent stake in Coal India. Swarup said the environment was a non-negotiable issue. He said India was planning to plant more trees than it cuts during coal mining operations, wash coal to improve its quality, push renewable energy and promote other "clean-coal" technologies. (Reuters)
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Sutanu Guru analyses the largely ignored story of coal imports. If you look at headlines of newspapers or have the courage to watch prime time TV news debates, there is not much that Prime Minister Modi is doing right. This is not the place to analyze the political cum ideological war that is being waged at the moment. But ticked away in an obscure corner is a news item that should make Modi smile a bit. According to statistics released by the government, coal imports declined by about 27 per cent to less than 13 million tons in September, 2015 as compared to last year. This is primarily because the much maligned (justifiably) Coal India has managed to do very well in bringing coal out of the mines it operates. Coal happens to be the least talked about but biggest failures of the UPA government. It is a toxic legacy that makes a mockery of the Indian economy trying to secure energy security. When Dr. Manmohan Singh became Prime Minister of India in 2004, the import bill for coal imports was about Rs 5,000 crores. The amount of coal imported back then was about 23 million tons. Even that was a disgrace for the Indian economy as the author had written in an opinion piece in 2006. After all, depending on whose data you believe, India has the third, or fourth largest reserves of coal in the world. Every Tom, Dick and Harry knows that when it comes to oil, the Indian economy, like so many others,mis critically dependent on imports. But coal? One would have expected the economist Prime Minister Dr. Singh to do something about it. What did he do? No, I am not talking about the coal block allocation scam that has forever tarnished his image and legacy. I am talking about coal imports. By the time Dr. Singh bid goodbye to office, coal imports had gone up by about 10 times to touch 200 million tons and the import bill had shot up about more than 16 times to a figure well in excess of Rs 80,000 crore. This should be considered an even bigger scandal than the coal allocation scam. The UPA regime merrily kept allocating coal blocs to all and sundry since 2006, if not earlier. The ostensible idea or rationale was that coal blocs allotted to private sector companies would reduce dependence on coal imports and improve energy security in the Indian economy. Yet, coal imports kept rising and touched almost 200 million tons by 2014. When the Supreme Court cancelled all the coal allocations, there were “thoughtful” opinion pieces on how this would lead to a dramatic fall in coal production and a simultaneous increase in imports. For most of 2014, the “thought” leaders seemed to be correct as coal imports showed no signs of abating. But almost everyone missed the actual data. The fact is, state owned Coal India and its various subsidiaries account for an overwhelming share of coal output in India. Ever since Indira Gandhi nationalized coal in the 1970s, that has been the fact. And it is a significant increase in output from Coal India that has led to a gradual tapering down of imports. But the fact that coal imports still amounted to almost 13 million tons in September is a scandal. India currently produces about 650 million tons of coal a year. The Modi government has publicly announced that it wants output to increase to 1.6 billion tons by 2019. Do remember, coal blocs have been allotted again to private players through a bidding process. Who knows, this might become a rare success story of a government policy? But then, since we are obsessed with beef exports, who has the time for coal imports?
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The Australian government on Thursday (15 October) reissued an environmental permit for construction of one of the world's biggest coal mines to Adani Enterprises, after clearing concerns about two rare outback species. The decision by Environment Minister Greg Hunt removes one hurdle for Adani to proceed with the stalled A$10 billion ($7 billion) project in the undeveloped Galilee Basin that could generate billions of dollars in export revenue for Australia. Shares in Adani jumped as much as 13 per cent in Mumbai on news of the reissued permit, but analysts said it would be hard to justify the project at a time when coal prices are mired at an eight-year low. "You can't see anything being developed in the short term," said Patersons Securities analyst Matthew Trivett. Adani, which wants to ship 40 million tonnes of coal a year in the mine's first phase, declined to comment on Thursday on when it aims to start producing, previously targeted for late 2017. The company has battled opposition from green groups since starting work on the project five years ago. A court in August temporarily blocked progress on the mine following a claim Adani failed to take into account the welfare of the yakka skink and ornamental snake. Hunt said the reissued environmental permit imposed conditions including improving the habitat of an endangered finch, protecting groundwater and providing A$1 million for conservation research. The project's proponents argue it is needed if Indian Prime Minister Narendra Modi is to keep his promise to bring electricity to hundreds of millions of people living off the grid. Critics are concerned greenhouse gases from burning coal will hinder efforts at combating global warming. Several international banks have said they will not provide financing for coal mining in the Galilee Basin, while Standard Chartered and Commonwealth Bank of Australia pulled out of the project in August. "Minister Hunt is sacrificing threatened species such as the Black Throated Finch and precious ground water resources for the sake of a mine that simply does not stack up economically," Ellen Roberts, co-ordinator of the Mackay Conservation Group, said on Thursday. Adani, which stills needs state government approvals including a mining lease and permission to dredge for a port, has yet to line up funding. "It is certainty over the remaining approvals that is now key to the company progressing its plan," Adani Australia said in an emailed statement. While a push in India to rely more on solar and wind power and domestic coal has raised questions over the viability of the project, Adani has said the majority of Carmichael production had been pre-sold, guaranteeing revenue.(Reuters)
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The Australian government on Thursday reissued an environmental permit for construction of one of the world's biggest coal mines to India's Adani Enterprises, after clearing concerns about two rare outback species. The decision by Environment Minister Greg Hunt opens the way for Adani to proceed with the A$10 billion ($7 billion) project in the undeveloped Galilee Basin that promises to generate billions of dollars in export revenue for Australia. Shares in Adani jumped as much as 13 percent in Mumbai on news of the reissued permit. Adani, which wants to ship 40 million tonnes of coal a year in the mine's first phase, has battled opposition from green groups since starting work on the project five years ago. A court in August temporarily blocked progress on the mine following a claim Adani failed to take into account the welfare of the yakka skink and ornamental snake. "The conditions I have imposed take into account issues raised by the community and ensure that the proponent must meet the highest environmental standards," Hunt said in a statement. The conditions include protecting and improving habitat for an endangered finch, protecting groundwater and providing A$1 million in funding for research to improve conservation of threatened species in the Galilee Basin. The project's proponents argue it is needed if Indian Prime Minister Narendra Modi is to keep his promise to bring electricity to hundreds of millions of people living off the grid. Critics are concerned greenhouse gases from burning coal will hinder efforts at combating global warming. Several French and German banks have said they will not provide financing for coal mining in the Galilee Basin, while Standard Chartered and Commonwealth Bank of Australia pulled out of the project in August. "Minister Hunt is sacrificing threatened species such as the Black Throated Finch and precious ground water resources for the sake of a mine that simply does not stack up economically," Ellen Roberts, co-ordinator of the Mackay Conservation Group, said on Thursday. Adani, which stills needs state government approvals including a mining lease and permission to dredge for a port, has yet to line up funding. "It is certainty over the remaining approvals that is now key to the company progressing its plan to deliver mine, rail and port projects in Queensland that will deliver 10,000 direct and indirect jobs, and A$22 billion in taxes and royalties," Adani Australia said in an emailed statement. While a push in India to rely more on solar and wind power and domestic coal has raised questions over the viability of the project, Adani has said the majority of Carmichael production had been pre-sold, guaranteeing revenue. (Reuters)
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