Centre
Auctioned 31 Coal Mines; Another 42 Coal Mines allotted to State Entities
Potential
Revenue Generation of over Rs 3.44 Lakh Crore Estimated During Life Time of Mines
to the Coal Producing States
Over
Rs 1395.69 Crore Transferred to Coal Bearing States
Coal
Production & Off-Take by CIL grew by 8.8% & 9.8% in First 8 Months of FY
16 ; Gears up for One Billion Tonne Output by 2020
The year 2015 will be written in golden letters in the annals of history
of coal sector in the country for the coal mines auction conducted in an
efficient & transparent way. The success
of coal block auctions carried out by the new government has proved that its
decision to conduct a “fair and transparent” bidding for coal mines has
benefitted the country in a big way because India has actually hit a gold mine
with the recently concluded auctions.
In order to laid down robust & transparent system after the Supreme
Court order, an Ordinance was promulgated to legally enable the Government to re-allocate
204 coal mines cancelled by the court and ensure smooth transfer of right,
title and interests in the mine along with its land and other associated mining
infrastructure to the new allocatee to be selected through an auction or
allotment to Government companies, as the case may be. The
Parliament passed the Coal Mines (Special Provisions) Bill 2015 on
20th March,2015 which replaced the Ordinance. Under the provisions of the Coal Mines ( Special Provisions) Act
,2015, the Central Government has so far successfully auctioned in three tranches
31 coal mines and allotted 42 coal mines/Blocks to Central or State
Government Companies .
The auction of coal mines has been universally hailed to be a success,
which has not only ensured that there is no disruption in the economy in the
wake of the order of the Supreme Court , but have also set new benchmark for
efficiency and transparency.It is estimated that Rs 3.44 lakh crore
of likely revenue to States through coal mines e-auctions & allotments over
30 years from just the three rounds of auction. The fourth round of auction of 8 coal mines ( Schedule III) for
non-regulated sector has also been announced.
Out of 34 operating coal mines auctioned/ allotted, nine mines
have started coal production and have registered over 5Mt output and rest all
expected to begin production in next 2/3 months.
Coal Indian Ltd ( CIL)production jumped 8.8 per cent to 321.38 mt
during April-November period of current fiscal while off-take soared by 9.8
percent.
In a historic decision, in order to meet the
requirements of the industry, improve coal quality, promote efficiency as well
as save the environment, CIL will supply 100% crushed coal to its customers
from 1st April, 2016. The
Ministry has decided to ensure supply of quality fuel by supplying crushed coal
from Ist January next year. CIL has also started the process of setting up 15
coal washeries to supply clean coal Grade 10 and above from October 2017.
Rationalisation of linkages has been done so far for 19 thermal
coal plants resulting in annual saving of Rs 1423 crore in freight cost.
Details of Important initiatives & achievements of Ministry of
Coal are as follows:
Coal Mines Auction & Allocation :
Under the provisions of the Coal Mines (Special
Provisions) Act, 2015, the Central Government has so far successfully auctioned
31 coal mines and allotment of 42 coal mines/Blocks to Central or State
Government Companies . The auction and allotment proceeds from 73 coal
mines (31 Coal blocks through auction & 42 coal blocks through allocation)
have touched over Rs 3.44 lakh crore over the life of the mine, which shall be
devolving entirely to the coal producing States.
Revenue which would accrue to
the coal bearing State Government concerned comprises of Upfront payment as
prescribed in the tender document, Auction proceeds and Royalty on per tonne of
coal production. The estimated revenue which would accrue to coal bearing state
during the life of mine/lease period from the Auction of 31 Coal Mines is Rs.
1,96,698 crore. In addition, an estimated amount of Rs. 1,48,275 crore would
accrue to coal bearing States from allotment of 42 coal mines to Central and
State PSU’s. Further, the benefit to consumers in terms of reduction of
electricity tariffs is likely to be about Rs. 69,310.97 crore.
In the first half of the budget session, both the houses of
Parliament passed the Coal Mines (Special Provisions) Bill 2015 and thus the
ordinance became an act of Parliament.
Key highlights of Coal Mines (Special Provisions) Act 2015 are as
follows:
- The new Act
has provisions for allocation of coal mines through a transparent bidding
process i.e. E-auction.
- The
E-auction of coal blocks will ensure the continuity in coal mining
operations and will promote optimum utilisation of coal resources.
- The new Act
also facilitates E-auction of coal blocks for private companies for
captive use and allots mines directly to state and central Public Sector
Undertakings (PSUs).
- It has
provisions that propose strong measures for rehabilitation and
compensation for displaced persons.
- It enables
sale of coal specially to small, medium and cottage industries which will
increase employment & incomes in these sectors.
In the coal sector, Indian companies & Indian subsidiaries of
foreign companies will be eligible for commercial mining. This provision is
expected to attract global mining giants and make the sector more competitive
and cost-effective.
*one coal mine is regionally explored and accordingly no estimates
have been made.
Under the “Auction by Competitive bidding Rules,2012” , 10
regionally explored coal blocks have been allotted to Central/State Government
Companies . In addition, 4 regionally explored lignite blocks have also been
allotted to Government companies of Government of Gujarat .
An amount of Rs 1395,69,77046.25 Crore received on account of
upfront & monthly payment ( up to Oct 31st 2015)has already been
transferred to coal bearing States concerned.
Out of 34 Scheduled –II coal mines auctioned (17) and allotted (17),
9 coal mines have come under production. Production from these 9 coal mines up
to September 2015 is 4.823 Million Tonnes (Prov.) Remaining mines are in
different stages of obtaining various clearances.
Fourth round of auction, which will commence from January 2016
will auction nine Schedule- III coal mines earmarked for Non-regulated Sector i.e. Iron & Steel, Cement and Captive Power
Plants.
Coal Production:
The production of raw coal during first half (April-September) of
2015-16 was 275.29 Mte compared to 264.54Mte during the corresponding period
last year. The overall growth in coal production during April-September 2015 was
4.1%.
CIL records volume increase in coal production and off-take
(Apr-Nov 2015)
Coal production and coal off-take by
Coal India Limited (CIL), the state sector coal mining company, grew by 8.8%
and 9.8% respectively during April-November 2015 on a year-on-year comparison. CIL
increased its production by almost 26 Million Tonnes during April-November 2015
compared to same period previous fiscal, continuing its upward swing in
production. The impetus laid on off-take also paid result as the volume
increase in coal off-take during the period has been 30.44 Million Tonnes.
CIL as a whole produced 321.38 Million Tonnes of coal during
April-November 2015 against 295.40 Million Tonnes last year same period the
growth being 8.8%. Almost all the coal producing subsidiaries of CIL registered
positive growth in production. Coal off-take was 341.13 Million Tonnes
during April-November 2015 period compared to 310.70 Million Tonnes same period
last year, registering a growth of 9.8%.
|
Facet
|
Apr-Nov 2015
|
Apr-Nov 2014
|
Increase in absolute terms
|
Growth
|
|
Production
(in Million Tonnes)
|
321.38
|
295.40
|
25.98
|
8.8%
|
|
Off-take
(in Million Tonnes)
|
341.13
|
310.70
|
30.44
|
9.8%
|
The
increase in coal off-take of 30.44 Million Tonnes during April-November 2015 is
two-and-a-half times more than that of 12.09 Million Tonnes achieved during
same period last year.
In
coal production, CIL posted a rise of 26 Million Tonnes during April-November
2015 as against 20.69 Million Tonnes in the same period previous year.
Reduction
in Coal Imports:
Higher coal production has resulted in lower coal imports. The
coal imports have been coming down by 4.56% since last year.
|
Month Wise Import of Coal during 2015-16
|
|
|
|
(Quantity in Mte & Value in Million Rs.)
|
|
2015-16 (Provisional)
|
|
|
2014-15
|
Growth%
|
|
Month
|
Quantity
|
Value
|
Quantity
|
Value
|
in Qty
|
|
April
|
15.84
|
77517
|
16.14
|
84584
|
-1.88
|
|
May
|
21.35
|
95348
|
15.86
|
79765
|
34.62
|
|
June
|
17.26
|
77393
|
16.89
|
86576
|
2.20
|
|
July
|
12.82
|
58284
|
17.88
|
89693
|
-28.30
|
|
August
|
13.93
|
62763
|
14.17
|
74945
|
-1.69
|
|
September
|
12.64
|
60277
|
17.30
|
85989
|
-26.94
|
|
October
|
14.52
|
65180
|
15.30
|
78080
|
-5.10
|
|
April-October
|
108.36
|
496762
|
114
|
579632
|
-4.56
|
|
Source : DGCI&S
|
|
|
|
|
Coal
Stocks at TPPS:
Coal stock inventory at coal fired power utilities of the country
is also at comfortable levels. As of November ending 2015 there is not a single
power utility in the country at super critical level and only 1 at critical
level, with coal stocks at thermal power stations at a comfortable level of
around 27 Million Tonnes which is 21 days coal stock.. At the same period,
November ending 2014, the coal stocks at power utilities was 10.85 Million
Tonnes accounting for 7 days stock. 50 Power utilities were at critical level
then of which 30 were super critical.
Coal Quality:
A number of steps have been taken to ensure quality of coal
produced. To address the issue of dispute between coal companies and power
utilities and to improve quality of coal, new rules for Third Party Sampling
have been introduced. According to the new rules, the authorized
representatives of power plant and Coal Company shall jointly witness the
process of sample collection as per BIS standards by Third Party Agency
appointed by CIMFR. The agency needs to communicate the analysis report within
18 working days of the sample collection. Also, the Government has decided that
from 1st January 2016 onwards coal will be transported after being crushed to
requisite level.
Coal
Washeries:
The Government has also decided to transport coal above G10 level
only after being washed from 1st October 2017. The decision is taken
to tackle the quality issue of the coal produced. In order to meet the rising
demand, CIL has been setting up 15 new washeries with a total capacity of 112.6
Mty. Out of these washeries, six are Coking Coal washeries with total capacity
of 18.6 Mty and nine Non-Coking washeries of 94.0 Mty. Apart from these 3
washeries of 11.6 Mty are under construction.
Rationalization
of Coal Linkages :
Inter-Ministerial Task Force (IMTF) was constituted in June ,2014
to review rationalisation of linkages . Based on IMTF recommendations, rationalization
of coal sources for 15 Thermal Power Plants (TPPs) has been achieved under
Stage I. Movement of 19 MT coal has been rationalized resulting in annual
recurring saving of Rs 877 crore on transportation cost. Under Stage II
proposals, transportation of 2.4 MT coal has been rationalised for 4 TPPs,
resulting in potential recurring savings of Rs 563 crore per annum.
Fuel Supply Contracts by CIL:
An Inter-Ministerial Committee (IMC) has been constituted in the
Ministry in January 2015 to consider various models including auctioning of
coal linkages/LoAs through competitive bidding as the selection process and to
recommend the optimal structure that would meet the requirements of all
stakeholders.
Opening of Separate e-Auction window exclusively for Power &
Non Power Sectors :
A 5MT e-auction window
has been opened for Long and Medium term PPA Holders with floor price of CIL
notified price plus 20 % premium. Another 5 MT e-auction window has been opened
for Short term PPA or “ No PPA” holders with floor price of CIL notified price
plus 40% premium.
Similarly , a separate e-auction window exclusively for non-power
sector for a quantity of 4 MT is being opened by CIL wherein the present MoU
non-Power consumers may also participate along with other non-power consumers.
This window shall be available only for end users of non-power sector and
therefore traders shall not be permitted to participate in the same.
CIL Gearing up for One Billion Tonne Coal Production Mark :
Coal
India Limited (CIL), had unveiled its road map, of strategies to be adopted, to
attain the one Billion Tonne (BT) coal production mark by 2019-20. With the
projected coal demand of the country hovering around 1,200 Million Tonnes (MTs)
by 2019-20, at an envisaged growth rate of 7 per cent, CIL is expected to chip
in one BT, of which 908 MTs is the expected contribution from the indentified
projects. The process of identification of projects to share the balance
quantity, to top up the one BT mark, is also underway. The two CIL subsidiaries
Sambalpur based Mahanadi Coalfields Limited and the Bilaspur based South
Eastern Coalfields Limited are expected to play a pivotal role in CIL’s quest
of attaining the one BT production with 250 MTs and 240 MTs respectively. The key issues that the coal miner is
basically relying on are timely completion of three critical railway lines and
timely land acquisition and green clearance.
CIL has assessed a tentative capital investment of Rs 57,000 crore
for next five years to ramp-up its coal production to 908.1Mt. from production
level of 494.80 Mt in 2014-15 as part of the road map for production of IBT
coal by 2019-20.
WCL to open 36 mines in 36 months; Ramp up production targets to
100 mts by 2020
In order to help CIL to achieve its stupendous
coal production target of one billion tonnes by FY 2020, Western Coalfields
Limited is planning to enhance its coal production by 150%. It has already opened 10 mines in the last 10 months and will be
opening 26 mines in next 26 months. With this planned expansion, WCL has
revised its goal from 60 mt to 100 mt of coal by 2020 by enhancing its
production by 150%.
NLC Ltd on Growth Path :
Neyveli
Lignite Corp (NLC) has reached the 30.60 MTPA of Lignite mining capacity as on
31.10.2015 . It has enhanced its power generation capacity from 2740 MW (as on
March 2015) to 4263.50 MW inclusive of 10 MWsolar and 13.5 MW wind power . NLC
has set high growth target to become a 19,000 MW power company by 2025 with
its own fuel security from its lignite and coal mines
MoUs with Railways & State Governments :
In order to
maintain the planned growth in production and evacuation of coal , Memorandum of Understandings (MOUs) have been signed among
Ministry of Railways (MoR), Ministry of Coal (MoC) and Governments of
Odisha ,Jharkhand and Chhattisgarh for development of rail
infrastructure through formation of a Joint Ventures (JVs) .
Coal
Projects Monitoring Portal (e-CPMP) :
Coal Projects Monitoring Portal (e-CPMP) has been established in
the Ministry to fast track clearances and pending issues of coal projects at
State Government as well as Central Ministries .
Contribution
to Swachh Bharat Abhiyaan :
The Coal Ministry in association with Ministries of Power and New
& Renewable Energy were committed to construct a total of 1 lakh toilets in
Government Schools within one year. CPSUs namely NTPC, REC, PGCIL, PFC, NHPC,
SJVNL, THDC, NEEPCO, CIL, NLC and IREDA participated in the Swachh Bharat
Abhiyaan. The three ministries collectively completed construction of more than
1.28 lakh numbers of toilets in schools across the country in short span of one
year, surpassing the commitment of 1 lakh toilets. Out of these , 55,286
toilets were constructed by CIL & its subsidiaries.
RM/PS/ND