ICMW October 12

International coal prices turn weak 2

Indias H1 coal production up 8.14% 4

Indias Jul-Sep steam coal import price trend 6

Steam coal price movements 7

Fall in Indias pithead coal stock in Sep 9

Coal Production shortfall to be 200 mt by 2016-17 10

Indian power utilities Sep coal import down 11-12

NTPC floats IFBs to procure 7 mt imported coal 13

Indias Sept coal imports from SA up marginally 15-16

Sharp fall in Chinas coal imports from SA in Sept 17

India adds 870 MW generation capacity in Sept 27

Coal stock at power plants falls marginally 29

DVC raises concern over coal quality 30

Spot coking coal prices firm up in October 34

Indian steel makers disappointed with BHPs pricing 35

Indias Jul-Sep coking coal import price trend 36

Coking coal price movements 37

Chinese buying of coking coal yet to commence 38Indias coking coal production falls in Sept 39Met coke prices rebound marginally 46VISL extends bid submission date for MAM coke 47Indian refiners reduce pet coke prices 51CRH terminates talks to buy stake in JP Cement 58Coal handling by Indian ports marginally up in Sep 65Spot/Forward e-auction details in Sep 67-77Coal stock at power plants 86Imported coal received at power plants 80Indias coal production details (September) 83-87Met coke import data (Jul-Sep) 88-89PCI coal import data (Jul-Sep) 90Pet coke import data (Jul-Sep) 91-92Steam coal import data (Jul-Sep) 93-105Coking coal import data (Jul-Sep) 106-115Anthracite coal import data (Jul-Sep) 116Import data from ports (Oct11-Sep12) 117-119

Vol IV | Issue XII | October 31, 2012

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INDIA COALMarket Watch

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Contact us: Have a question or comment about our coverage? A news tip or input on coal markets or prices? Dont hesitate to contact ICMW and Coal Insights to share your thoughts. Email : [email protected]

CONTENTS

Subscription: Pranab Chattaraj, Tel: +91 91633 48256, Email: [email protected]

TM

October 31, 2012 2

India Coal Market Watch

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Contd. on next Pg

International coal prices turn weak in October on low Chinese demandICMW

Coal prices in leading international markets fell sharply in October on low demand, particularly from China, and doubts over growth in global economy after a comparatively stable trend in September.Indias appetite for imported coal though seemed reasonably during the month, but overall tendency continue to remain that of wait and watch as South African coal prices slipped to 34-month low of $78/ton. Incidentally, internationally coal prices remained weak in June and July, but stabilised to some extent in August and in September, largely on expectation of revival in demand. It was expected that there would be revival in demand, particularly from China, Europe and India, in October but the current trend indicates that Chinese are still reluctant to enter into big purchase.According to data available with ICMW, Chinas coal imports from South Africa fell gradually between August and September after touching a high of 2.11 million tons (mt) in July. The import of coal by China from South Africa fell to 0.90 mt in August and further to 0.66 mt in September.The apathy shown by China led to sharp decline in not only South African coal prices, but that of Australian as well as Indonesian coal prices. On the other hand, import from South Africa by India increased marginally in September to 1.75 mt from 1.65 mt in August and 1.70 mt in July. The price of South African coal (6000 Kcal/kg NAR) fell to around $78/ton on October 30, reflecting a decline of more than 7% compared with $84.60/ton quoted on October 1. Similarly, Australian steam coal prices (6300 Kcal/kg GAR), fell to $80.50 per ton as on October 30, down $2.50 compared with a high of $83/ton quoted on October 4 and $82/ton on October 1. Earlier, on October 15, the price of Australian steam coal had slipped to $75.25/ton, but recovered later on indications of fresh enquiries from China and Japan.Unlike Australian coal prices, the price of Indonesian coal fell in one way downward direction during the month. While Indonesian coal of 5900 Kcal/kg GAR fell to around $70.45/ton on October 30 from a high of $72.50/ton on October 1. The material with 5000 Kcal/kg GAR specification slipped to $54.45 from $56.50 a ton at the beginning of the month.

South African pricesHowever, South African miners expect that demand for coal from China and India will rise significantly as prices hit $80 per ton levels and high cost producers, particularly in Australia, likely to struggle with current price levels and may opt to cut production.We are seeing good support as levels hit $80/ton with improved buying interest from India and new enquiry from China, an official of a leading mining company told ICMW.The key focus will be on Australian price levels which triggered the recent falls in API4 when we saw NewC softening. We believe that as prices hit $80/ton, new buying interest is generated, he said.Asked if current levels will lead to production cuts, the official said, Many miners will struggle with current price levels, especially high cost producers in Australia. Cuts will follow although timing depends on what mechanism producers may have used to protect forward revenues.Besides India and China, the official also believes that demand from Europe may also rise if there is cold winter.If we experience a cold winter in Europe, this will only enhance coal burn. Coal is the most competitive source of energy in Europe at the moment. High gas prices and a low cost of carbon mean all European generators will burn coal if they are able to do so at present, the official felt.

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Days of record commodity prices unlikely to return: BHPICMW

The days of record commodity prices enjoyed by the industry over the past nearly a decade is unlikely to return as supply shortage driven by Chinas rapid growth had now largely been filled, the Chief Executive of BHP Billiton Marius Kloppers was quoted as saying by Financial Times.What this means is that the record prices we experienced over the past decade driven by the demand shock will not be there to support returns over the next 10 years, he said, adding, prices would return to long term levels.Kloppers comments came recently after the resources company reported record production from its petroleum division.The company had also reported strong figures from its Australian coking coal operations, where production rose 10 percent to 8.9 million tons over the previous quarter.However, the companys iron ore production from its mines in Pilbara region of Western Australia slipped to 43.4 million tons for the quarter from 44.7 million tons in the prior quarter.

Indonesian pricesThe weak trend witnessed in October notwithstanding, Indian traders feel that the prices of Indonesian coal are unlikely to soften further despite weakness in demand.I do not think there is further scope for decline in Indonesian coal prices. Already small mines in the interiors of Indonesia have either stopped production or have significantly reduced production as they were incurring losses at current price levels, the official said.Moreover, a kind of cartelisation has taken place among mid-level and small miners following which they are not selling coal below a particular price. This is a new trend in Indonesia which is being witnessed from the beginning of September. Under such circumstances, I dont think coal prices in Indonesia will fall further despite the lack in demand, the official added.

ForecastICMW understands that if China continues to remain aloof from the market, the prices in international markets will fall further in November and South African coal prices may test $75/ton levels. However, current trend indicates that China has resumed buying of coal from internatinal market during the past 10-15 days, although at a lower levels and if this turns out to be true, coal prices may firm up, but only marginally.Following is the indicative price of coal from various origin in October on various dates:

Description Specification 30.10.2012 25.10.2012 17.10.2012 15.10.2012 09.10.2012 27.09.12South African Steam Coal

6000 Kcal/kg NAR

78.00 79.80 80.15 82.00 85.80 84.00

Australian Steam Coal

6300 Kcal/kg GAR

80.75 81.60 77.75 75.35 79.80 84.00

Indonesian Steam Coal

5900 Kcal/kg GAR

70.45 70.65 71.90 72.10 70.40 72.60


5000 Kcal/kg GAR

54.45 54.50 55.00 55.60 55.80 56.40


4200 Kcal/kg GAR

38.00 37.90 38.20 38.60 38.90 39.20


3800 Kcal/kg GAR

33.00 33.10 33.20 33.30 33.20 33.20

Contd. from previous Pg

October 31, 2012 4


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Confusion of Chinas coal import from South AfricaICMW

Indias H1 coal production up 8.14%ICMW

There is a little bit of confusion within the industry circle over the recent figures reported about import of South African coal by China.According to information provided to ICMW by one of the promoters of Richards Bay Coal Terminal (RBCT) of South Africa, only 656,361 tons of coal was exported through the terminal to China in September and around 895,239 tons in August.However, media reports quoting Chinese customs data claimed that China took delivery of around 1.82 mt of South African coal in September at average CFR price of $104.52 per ton.The report also claimed that September imports were the highest since December 2011.Now the question is being raised as to which data one should follow. How come China took delivery of 1.82 mt South African coal when only around 1.5 mt was shipped from RBCT in August and September, an industry official said.However, ICMW understands that higher delivery in September was due to a sharp surge in shipments in July. In fact, about 2.11 mt of coal was shipped from RBCT for China in July and it is estimated that a large number of vessels that might have sailed in July were unloaded at Chinese ports only in September.

Indias coal production during the first six months (April-September) of 2012-13 rose by 8.14% to 237.66 million tons (mt) from 219.77 mt during the corresponding period of 2011-12, according to provisional data available with ICMW.The production during the first half of current financial year was, however, 5.48% lower than the target of 251.43 mt as the production of Coal India Ltd (CIL), Singareni Collieries Company Ltd (SCCL) as well as captive coal blocks was lower than the target.The production during the first half was also affected to some extent by heavy rains in some of the producing areas like Orissa and Madhya Pradesh during the second quarter (July-September), according to an estimate by ICMW.Meanwhile, Indias coal production in September stood at 35.84 mt, down marginally from 35.93 mt produced in August, according to provisional data available with ICMW.The production in September this year was, however, 21.37% higher than 29.53 mt produced in September 2011, but lower than the target of 41.29 mt for the month, the data revealed.Following chart provides monthly coal production in FY13 and FY12 (in million tons):

Month 2012-13 2011-12

April 41.34 39.84

May 44.03 40.76

June 41.28 38.50

July 39.53 38.71

August 35.93 32.37

September 35.84 29.53

Total 237.66 219.77

Note: Figures may not tally due to rounding of decimals

Indias domestic coal production target for 2012-13 has been fixed at 574 mt, of which 464.1 mt is to be produced by CIL, 53.1 mt by SCCL and 57.2 mt by captive coal mines.

(See details on Pg. 83)

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CILs September production up marginally m-o-mICMW

The production of coal by Coal India Ltd (CIL), the worlds largest coal producing company, rose marginally in September after reporting a continuous decline during the past three months, according to provisional data available with ICMW.The companys coal production in September rose to 28.71 million tons (mt), up 0.45% from 28.58 mt produced in August and up 19.02% compared with 24.12 mt produced in September 2011, the data revealed.The companys coal production had fallen by 10.18% in August and by 3.81% in July.The companys coal production during the first six months (April-September) of 2012-13 stood at 191.57 mt, up 8.47% compared with 176.61 mt produced during the corresponding period of 2011-12.Following chart provides monthly break-up of CILs production (in million tons):

Month 2012-13 2011-12

April 33.8 32.65

May 35.57 33.02

June 33.08 30.64

July 31.82 31.17

August 28.58 25.01

September 28.71 24.12

Total 191.57 176.61


CILs washed coal output up m-o-m in SeptemberICMW

The production of washed coal by Coal India Ltd (CIL) increased to 0.21 million tons (mt) in September, up 10.53% from 0.19 mt produced in August, according to provisional data available with ICMW.The production in September was, however, 30% lower than the target of 0.30 mt for the month and also lower from 0.23 mt produced during September 2011, the data revealed.The production of washed coal by CIL during the first half (April-September) of 2012-13 stood at 1.33 mt, down from 1.37 mt produced during the corresponding period of 2011-12 and also significantly lower than the target of 1.82 mt for the period, it said.CILs washed coal production target for 2012-13 has been set at 3.78 mt. The production of washed coal during 2011-12 stood at 2.89 mt, as compared with 3.19 mt produced during 2010-11.

Following table provides monthly break-up washed coal in FY12 and FY13 (in million tons):

Name of Company

September August July June May April Total

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012-13 2011-12

BCCL 0.11 0.11 0.09 0.11 0.09 0.12 0.11 0.12 0.13 0.12 0.11 0.14 0.63 0.71

CCL 0.09 0.1 0.08 0.08 0.1 0.08 0.1 0.09 0.13 0.12 0.13 0.12 0.63 0.59

WCL 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.07 0.07

CIL 0.21 0.23 0.19 0.2 0.21 0.21 0.22 0.22 0.27 0.25 0.25 0.27 1.33 1.37


October 31, 2012 6


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3750

4000

4250

4500

4750

5000

July 1

- July

15

July 1

6 - Ju

ly 31

Aug 1

- Aug

15

Aug 1

6 - Au

g 31

Sep 1

- Sep

15

Sep 1

6 - Se

p 30

Period

Price

(in Rs

./ton)

W. Avg Price

Steam Coal Imports from Indonesiaduring July 12 - September 12

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

5500000

6000000

July 1

- July

15

July 1

6 - Ju

ly 31

Aug 1

- Aug

15

Aug 1

6 - Au

g 31

Sep 1

- Sep

15

Sep 1

6 - Se

p 30

Period

Quan

tity (in

tons

)

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

Price

(in Rs

./ton)

quantity in tons open high low close

Steam Coal Imports from Indonesiaduring July 12 - September 12

Indias July-September steam coal import price trendICMW

STEAM COAL IMPORTS THROUGH VARIOUS PORTS DURING JULY12 - SEPTEMBER12

Port

September'12 August'12 July'12

Quantity(In Tons)

Weighted Average

Price (Rs./Ton)

Quantity (In Tons)

Weighted Average

Price(Rs./Ton)

Quantity (In Tons)

Weighted Average

Price (Rs./Ton)

CHENNAI - - - - - -COCHIN - - - - 3,000 3,294ENNORE 247,826 5,104 696,678 5,230 296,688 5,628GANGAVARAM 240,983 4,248 251,877 3,371 604,173 4,579KANDLA 347,964 3,251 232,340 3,417 316,801 3,653

KOLKATA 66,898 3,498 34,329 3,491 137,632 4,786

MORMUGAO 114,139 3,171 131,777 4,457 60,947 3,872MUMBAI 294,748 5,739 303,816 6,086 426,573 6,590MUNDRA 972,281 4,968 1,143,415 5,166 700,573 4,702NEW MANGALORE 298,133 4,707 331,950 4,039 342,317 5,387PARADIP 712,126 4,412 595,728 5,066 373,745 5,065VIZAG 265,721 3,098 299,132 3,235 195,225 4,136Total Quantity Imported 3,560,819 4,021,042 3,457,673

Note: Understanding the Graph.On the X axis is the time period, the left Y-axis shows quantities imported and the right Y-aixs depicts FOB prices in rupess per ton. The bars in pink reflects the amount of quantites imported during the said periodThe black and white bars which are known as THE BODY represents the opening and closing price for the said period. If the bar is white, that reflects the closing price is higher than the opening price, and if the bar is black, it means the closing price is lower than the opening priceThe thin lines above and below THE BODY are known as TAILS and represent the highest and the lowest price for the said period

October 31, 2012 7


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50.00

55.00

60.00

65.00

70.00

75.00

80.00

85.00

90.00

95.00

100.00

2-Au

g3-

Aug

17-A

ug23

-Aug

28-A

ug4-

Sep

10-S

ep11

-Sep

12-S

ep13

-Sep

14-S

ep20

-Sep

21-S

ep24

-Sep

25-S

ep26

-Sep

28-S

ep2-

Oct

3-Oc

t4-

Oct

5-Oc

t9-

Oct

10-O

ct11

-Oct

12-O

ct16

-Oct

17-O

ct25

-Oct

26-O

ct29

-Oct

PRIC

E ($

/TON)

South African Coal (6,000 kcal/kg NAR) Australian Coal (6,300 kcal/kg GAR)Indonesian Coal (5,900 kcal/kg GAR) Indonesian Coal (5,000 kcal/kg GAR)

STEAM COAL PRICE TRENDS_FOB

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

15.00

16.00

17.00

2-Au

g3-

Aug

17-A

ug20

-Aug

23-A

ug28

-Aug

4-Se

p10

-Sep

11-S

ep12

-Sep

13-S

ep14

-Sep

20-S

ep21

-Sep

24-S

ep25

-Sep

26-S

ep28

-Sep

2-O

ct3-

Oct

4-O

ct5-

Oct

9-O

ct10

-Oct

11-O

ct12

-Oct

16-O

ct17

-Oct

25-O

ct26

-Oct

29-O

ct

PR

ICE

($

/T

ON

)

Richards Bay to India (West Coast) Kalimantan to India (West Coast)

Richards Bay to India (East Coast) Kalimantan to India (East Coast)

FREIGHT RATES

STEAM COAL PRICE MOVEMENTS

FOB PRICES ($/ton)Date South African Coal (6,000 kcal/kg NAR)

Australian Coal (6,300 kcal/kg GAR)

Indonesian Coal (5,900 kcal/kg GAR)

Indonesian Coal (5,000 kcal/kg GAR)

2-Aug 88.85 89.00 69.90 54.00 3-Aug 88.35 89.00 69.90 54.00 17-Aug 89.00 91.15 71.35 55.50 23-Aug 89.00 91.50 71.50 55.60 28-Aug 86.30 90.20 71.75 56.00 4-Sep 88.40 91.50 72.30 56.75 10-Sep 86.25 91.50 72.20 56.50 11-Sep 85.85 90.80 72.30 56.70 12-Sep 85.25 90.50 72.30 56.70 13-Sep 83.20 90.00 72.40 56.70 14-Sep 84.75 90.30 72.40 56.70 20-Sep 86.20 89.55 72.80 56.80 21-Sep 86.15 87.75 72.80 56.80 24-Sep 84.50 85.65 72.80 57.00 25-Sep 84.00 85.25 72.80 57.00 26-Sep 83.45 85.00 72.70 56.50 28-Sep 84.50 84.50 72.40 55.90 2-Oct 83.50 82.00 71.80 55.50 3-Oct 83.50 82.00 71.80 55.50 4-Oct 84.00 82.50 72.00 55.30 5-Oct 84.00 82.50 72.00 55.30 9-Oct 86.30 83.00 72.50 56.00 10-Oct 86.00 81.65 72.50 56.00 11-Oct 82.50 76.75 72.00 55.50 12-Oct 81.50 75.25 72.00 55.50 16-Oct 80.00 76.00 71.75 55.00 17-Oct 80.00 76.50 71.75 55.00 25-Oct 79.50 81.50 70.50 54.40 26-Oct 79.25 81.25 70.50 54.40 29-Oct 77.75 80.50 70.45 54.50

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SCCLs H1 coal production up 6.86%ICMW

Captive coal blocks H1 coal production 19.72% lower than targetICMW

The Singareni Collieries Company Ltd (SCCL) produced a total of 23.13 million tons (mt) of coal during the first half (April-September) of 2012-13, up 6.86% comared with 21.64 mt produced during the corresponding period of 2011-12, according to provisional data available with ICMW.The production during the first half of current financial year was, however, 3.99% lower than the target of 24.09 mt, the data revealed.SCCL has been given a target to produce 53.10 mt coal in 2012-13.The company produced a total of 3.85 mt coal in September, up 77.42% from 2.17 mt produced in September 2011, but lower from the production target of 4.19 mt for the month.Following table provides monthly break-up of coal production by SCCL (in million tons):

Month 2012-13 2011-12

April 3.17 3.51

May 4.27 3.98

June 4.23 4.13

July 3.74 3.88

August 3.88 3.98

September 3.85 2.17

Total 23.13 21.64


The production of coal from Indias captive coal mines, including that from mines of SAIL and Tata Steel, stood at 22.96 million tons (mt) during the first six months (April-September) of 2012-13, 19.72% lower than the target of 28.60 mt for the period, according to provisional data available with ICMW.The production during the first six months of 2012-13 was, however, 6.74% higher compared with 21.51 mt produced during the corresponding period of 2011-12, the data revealed.Going by the current trend, captive coal mines are set to miss their production target of 57.20 mt for 2012-13, industry experts believe.The production from captive coal mines in September stood at 3.29 mt, up only 1.54% compared with 3.24 mt produced in September 2011.The production during the month was 31.03% lower than the target of 4.77 mt for the month and also lower from 3.46 mt produced in August.The production by all the operating captive coal mines, including 30 mines that came into operation after 1993, during 2011-12 stood at 44.76 mt, much lower

CIL targets 8% production growth in 12th PlanICMW

Coal India Ltd (CIL), which witnessed near zero growth over the last three years, expects its production to grow by an average of 8% during the XII Five Year Plan period.We expect around 8% growth in production during the five year plan, a senior CIL official told ICMW on October 19.Earlier, former chairman N.C. Jha said last year that the company might reach the production level of 615 million tons (mt) in FY17, the terminal year of the 12th Plan.CIL has a production target of 464 mt for the current fiscal. At the rate of 8% annual growth, the company would reach around 630 mt of coal production by FY17, exceeding the target set earlier.

Contd. on next Pg

October 31, 2012 9


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Decline in Indias pithead coal stock 6th month running in SepICMW

than the target of 56 mt, but marginally higher than 43.07 mt produced in 2010-11.Going by the current trend, it is expected that 2012-13 production would not touch even 50 mt level.Following table provides monthly break-up of coal production by captive blocks (in million tons):

Month 2012-13 2011-12

April 4.38 3.68

May 4.19 3.76

June 3.97 3.73

July 3.97 3.65

August 3.46 3.38

September 3.29 3.24

Total 22.96 21.51

Note: Figures may not tally due to rounding of decimals and revision in figures, the details of which is not available with ICMW.

Lower production in recent months due to rains and comparatively higher availability of rakes led to decline in Indias pithead vendible coal stock for the six month running in September, according to provisional data available with ICMW.The pithead vendible stock declined by 7.69% on the last day of September to 50.40 million tons (mt) from 54.6 mt in August, 58.2 mt in July, 63.6 mt in June, 67.1 mt in May and 69.89 mt in April.However, the stock on the last day of September 2012 stood higher compared with a stock of 47.49 mt as on the last day of September 2011, the data revealed.Following table provides details of pithead vendible coal stock on various dates (in million tons):

Name of Company

As on 30.09.2012

As on 31.08.2012

As on 31.07.2012

As on 30.06.2012

As on 31.05.2012

As on 30.04.2012

As on 30.09.2011

ECL 1.89 2.30 2.8 3.2 3.5 3.7 2.69

BCCL 5.05 5.20 5.6 5.8 6.1 6.5 5.88

CCL 9.43 10.80 11.8 13.1 14 15.3 11.4

NCL 6.02 6.20 6.2 6 6.6 6.6 1.42

WCL 4.40 4.40 4.5 5.2 5.3 5.2 3.46

SECL 3.88 4.60 5.4 6.5 7.2 8.2 6.12

MCL 16.95 18.20 19.4 20.7 21 21.5 14.53

NEC 0.03 0.03 0.1 0.1 0.1 0.1 0.12

CIL 47.65 51.70 55.8 60.3 63.6 67.1 45.62

SCCL 1.10 1.20 1.2 1.4 1.5 1.7 0.78

Others* 1.65 1.80 1.2 1.8 2 1.1 1.09

All India 50.40 54.6 58.2 63.6 67.1 69.9 47.49

*Source: Various coal companies


Indias domestic coal despatches fall fourth month running in SeptICMW

Indias domestic coal despatches to various consuming sectors fell fourth month running in September after touching a high of 47.34 million tons (mt) in May, according to provisional data available with ICMW.The despatches in September stood at a low of 39.93 mt, 8.61% lower than the target of 43.69 mt for the month, but significantly higher than 33.01 mt despatched in September 2011.The despatches during the first six months (April-September) of 2012-13 stood at

Contd. on next Pg

October 31, 2012 10


CILs coal dispatches down 0.82% m-o-m in September ICMW

The coal dispatches by Coal India Ltd (CIL) in September 2012 witnessed a fall of 0.82% and stood at 32.6 million tons (mt) as compared to 32.87 mt in August, according to provisional data available with ICMW.However, the despatches during the month of September 2012 were up 18.37% compared with 27.54 mt despatched in September 2011.The data revealed that CILs dispatches stood at 36.11 mt in July 2012, 36.21 tons in June 2012 and 38.73 mt in May 2012.The dispatch target for September 2012 was 34.85 mt whereas in August 2012, the dispatch target was 36.09 mt.The offtake of coal by CIL, including colliery consumption, in September 2012 was 32.65 mt, down 0.79% from the offtake of 32.91 mt in August 2012.Following is the detail of coal dispatches to various consuming sectors (in million tons):

Sector Target for September 2012 Achieved for September

2012 Achieved for September

2011

Power 25.52 24.04 19.39

Steel+Cokeries 0.78 0.51 0.61

Cement 0.58 0.58 0.76

Fertilizer 0.19 0.19 0.17

Others 7.72 7.39 6.56

Total 34.85 32.6 27.54

Coal production shortfall to be 200 mt by 2016-17: RaoICMW

Domestic coal production will fall short of demand by around 200 million tons (mt) by the end of the Twelfth Plan (2016-17), Coal India Ltd (CIL) chairman S. Narsing Rao said on October 11.While domestic demand will reach around 1 billion tons, production can be augmented only up to the level of 750-800 mt, thereby leaving a gap of around 200 mt, Rao said at a panel discussion organised by Assocham and Financial Journalists Club (FJC), Kolkata.The demand can vary a little bit, but I dont expect domestic production to go beyond 800 mt by any means, he said, adding that the shortfall faced in the last few years will be there at least in the medium term.He, however, said that establishment of rail connectivity to unconnected mining blocks can help mitigate the crisis to a significant extent. To this end, the large blocks in far flung areas of Jharkhand, Chhattisgarh and Odisha should be connected by rail links, for which CIL is ready to invest. He also suggested setting up of power plants at pithead to reduce transportation costs of utilities.

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262.20 mt, up 7.27% from 244.43 mt despatched during the corresponding period of 2011-12, but 4.92% or 13.58 mt lower than the target of 275.78 mt for the period.Following table provides details of despatches (in million tons):

Name of Company

September August July June May April Total

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012-13 2011-12

CIL 32.6 27.65 32.9 30.5 36.1 35.7 36.2 34.1 38.7 35.2 37.7 37 214.28 199.93

SCCL 3.92 2.02 3.9 4.1 4 4.1 4.3 4.3 4.5 4.2 4.6 4.5 25.13 23.21

Others* 3.41 3.34 3.5 3.4 3.8 3.7 4 3.6 4.1 3.7 4 3.6 22.79 21.29

All India 39.93 33.01 40.2 38 43.9 43.5 44.5 41.9 47.3 43 46.3 45 262.2 244.43

*Excluding Meghalaya


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Assocham calls for deregulation of coal sectorICMW

APP wants CIL to import, welcomes price poolingICMW

Leading industry association Assocham has called for deregulation of the coal mining sector in India and said it would help mitigate the current coal crisis facing the industry.The industry should be given a foothold in coal mining sector. Private players should be given a level playing field, D.S. Rawat, secretary general, Assocham, said on October 11.Rawat was speaking at a panel discussion on Indian coal story current challenges and future outlook, organised by Assocham and Financial Journalists Club (FJC), Kolkata.He also welcomed foreign technology and investments in the mining sector, saying that technology upgradation would help the country to achieve efficient use of the natural resources.DVC chairman R.N. Sen, who was also present, said the government should allocate the abandoned blocks to state owned power producers like NTPC and DVC. There are a large number of abandoned blocks where statutory clearances are not required. At current level of prices, these blocks will be viable. If the government allocates those to state owned power producers like NTPC and DVC. There are a large number of abandoned blocks where statutory clearances are not required. At current level of prices, these blocks will be viable. If the government allocates those to state-owned utilities like us, it will help unlock significant amount of coal for other usages, he added.

The Association of Power Producers (APP), an apex body of major power utilities of the country, today urged Coal India Ltd (CIL) to go for importing coal for meeting the supply gap and welcomed the price pooling mechanism suggested by the government.Till such time that necessary policy interventions are introduced and domestic supply catches up with power sectors requirements (of coal), the gap will need to be filled by imports and by pricing adjustments or price pooling mechanism, Dr Ashok Khurana, director general, APP, said on October 11.While addressing a panel discussion on Indian coal story current challenges and future outlook, organised by Assocham and Financial Journalists Club (FJC), Kolkata, he said CIL should have no objection to the idea as price pooling will be revenue neutral for the coal miner.Meanwhile, the government should go for augmenting domestic production through mining developers and operators (MDO), opening up of the sector for private mining and policy for disposal of surplus coal, he said.However, as per current projections, there will be a shortfall of around 185 million tons (mt) of coal at the end of the Twelfth Plan (2016-17), he noted.

Indian power utilities September coal import down 26.34% m-o-mICMW

The import of steam coal by Indian power utilities, including imported coal based plants, in September 2012 stood at 3.02 million tons (mt), down by 26.34% from 4.1 mt in August, as per provisional data of Central Electricity Authority (CEA) available with ICMW.The import in September was lower than the target of 5.83 mt set by CEA for the month, but 0.37 mt higher than 2.65 mt imported in September 2011, the data revealed. During September 2012, imported coal based plants had brought in 1.67 mt of coal whereas during the previous month, the figure stood at 2.17 mt.The import during the first six months of 2012-13 stood at 24.97 mt, 28.66% lower than the target of 35 mt set for the period. However, imports during the first six

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Imported coal stock at ports for power utilities down m-o-m in SeptICMW

The stock of imported coal for supply to power utilities at various ports of the country fell by 43.13% to 0.298 million tons (mt) as on September 30, 2012 as compared to 0.524 mt as on August 31, 2012, according to a data of Central Electricity Authority (CEA).The stock of imported coal meant for supply to power utilities stood at 1.34 mt as on September 30, 2011, according to the data.The stock had been rising consistently from March 2012 from a level of 0.390 mt to 0.679 mt as on April 30, 2012 while on May 31, 2012 it stood at 0.705 mt but after witnessing a rise for four consecutive months, it had experienced a fall in July. Again the stock level moved up in the month of August but experienced a fall in September, according to data available with ICMW.

CIL invites bids for selection of consultant for importsICMW

Coal India Ltd (CIL) has invited bids from companies for appointing a consultant who will help CIL develop an agreement for supply of imported coal to power utilities that have a fuel supply agreement (FSA) with the state-run firm. CIL (Coal India) having finalised the FSA model and side agreement now looks forward for an advisory service to develop a legally-commercially enforceable agreement between all the parties concerned that is seller (coal company), the purchaser(power plant), the supplier (CIL) and the importing agency, CIL said in a notice inviting tender. Further, CIL also intends the advisory service provider to develop a suitable notice inviting tender (NIT) in line with the similar arrangements prevalent between the PSU/State, power utilities/industrial units and PSU/Government trading agencies like MMTC/STC/MSTC/PEC etc for supply of imported coal on end-to-end package service basis, it said. The package service under the NIT would include import of coal to Indian ports, arranging vessels, stevedoring, handling, storage, port clearances and delivery at power stations, the notice said.CIL has entered into a legally binding FSA with power utilities, under which it is committed to supply 80 percent of the contracted quantity. However, given the slow growth in coal production, the company is likely to face a supply shortfall with respect to the contracted volume.To fulfill its commitment, the company was asked by the coal ministry to consider meeting the shortfall through imports. Recently, the CIL board has approved the modified FSA without price-pooling with 65% domestic coal and 15% imported coal at cost plus basis.

months of current financial year were up 19.42% compared with 20.91 mt imported during the corresponding period of 2011-12, according to the data.CEA has set a target of 70 mt for coal import by power utilities, including 24 mt by imported coal based plants, for 2012-13.However, during 2011-12, imported coal based plants had brought in 17.61 mt of coal. The figure for imported coal based plants for 2010-11 stood at 8.08 mt, according to data available with ICMW.

Mahagenco scraps high CV coal tenderICMW

The Maharashtra State Power Generation Company Ltd (Mahagenco) has decided not to place order for high calorific coal against its tender floated sometime in August, an industry source said.The company has already placed orders for low CV coal, but has decided not to place order for high CV coal because of high price quoted by suppliers, the source claimed.

(See details on Pg. 80-81)

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NTPC floats IFBs to procure 7 mt of imported steam coalICMW

NTPC Limited, Indias largest power utility, has floated seven invitations for bids (IFBs) separately to procure a total of 7 million tons (mt) of imported steam coal for its various power plants, according to information available with ICMW. Out of the total amount of imported steam coal to be procured, 0.8 mt is for Simhadri and Ramagundam power plants, 1.25 mt for Dadri, Tanda & Unchahar plants and 0.8 mt for Rihand, Vindyachal & Singrauli power plants, the last date of bid submission for which is scheduled on November 15, 2012.Out of the remaining quantity, 0.4 mt of the material will be procured for Simhadri power plant, bids for which can be submitted till November 14, 2012.On the other hand, 1.25 mt will be procured for Farakka, Kahalgaon & Badarpur plants, 1.25 mt for Talcher Thermal & Talcher Kaniha plants, 1.25 mt for Korba, Sipat & Mouda plants bids for which can be submitted till November 16, 2012. The material to be procured should have GCV of 5,800-6,500 Kcal/Kg with up to 20% total moisture, 20% ash content on air dried basis and up to 0.9% Sulfur on air dried basis. The total amount of imported coal will have to be delivered to power stations over a four-month period, as per delivery schedule to be given to the successful bidder.ICMW had reported on September 28 that NTPC Limited, which had floated invitation for bids (IFB) for procurement of a total of 5.1 mt of imported steam coal for the utilitys 14 thermal power plants, had placed the order to MMTC Limited and Adani Enterprises after a prolonged delay.

Gupta Energy floats tender for 1.2 mt imported coal for TPSICMW

Gupta Energy Pvt Ltd, part of the Nagpur based Gupta Group, has invited bids for procurement of 1.2 million tons (mt) of imported steam coal during 2012-13 for its thermal power plant at Chandrapur district of Maharashtra.The tenders should be placed on FOR basis for Vimla Siding for its 660 MW thermal power plant at Usegaon village in Gugus (Chandrapur). Out of the 660 MW, 2x60 MW is operational and 2x270 MW is under erection stage.According to the document, the prospective bidders should have supplied 200,000 tons (in single year) of imported coal on FOR plant/siding basis. The last date for submission of bids is November 10, 2012. Asked why Gupta Group, which is a leading importer of coal in India, had to float a tender for its own TPS, a company source said, Gupta Coal procures coal for other generators from time to time, but currently our hands are full. So we decided to float a tender for our project.He however added that future requirements for Gupta Energys upcoming coal based generation units would also likely be procured through the tendering route. The upcoming TPS projects include a 500 MW unit near Ranchi, Jharkhand and another unit in Maharashtra. As for the Chandrapur project, 270 MW capacity would come up by another 12-18 months. But work is on in full swing and we expect to commission the plant ahead of schedule, the source said.


The company might go for re-tendering of high CV material after a decision to this respect is taken by its board of directors, the source added.On September 28, ICMW had reported that Mahagenco, which had floated a tender for procurement of 3.673 million tons (mt) of imported steam coal of 6300 Kcal/kg (ADB) and 4600 Kcal/kg (GAR) types, may not place the order.Incidentally, Mahagenco had received bids from four leading suppliers.This imported steam coal was to be procured by Mahagenco for its Nasik, Bhusawal, Khaparkheda, Chandrapur, Koradi and Parli Thermal Power Stations and the last date for submission of bids was scheduled on September 20, 2012.

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UltraTech in market for 0.1 mt steam coalICMW

Indias third largest cement maker, UltraTech, is in market to procure 100,000 tons of imported steam coal, an industry official said.The company has already completed offer stage work and is now busy with negotiation of price, the official said, adding, negotiation is likely to be completed within this month and delivery might start in December.UltraTech like many other cement makers of India has been encouraged to finalise their imported coal plans following sharp decline in South African coal prices in October. Cement makers in India generally prefers buying South African coal because of low cost on per GCV basis.

Malco in market for 0.1 mt steam coalICMW

Shree Cement to buy 0.3 mt pet coke instead of US steam coalICMW

Madras Aluminium Company Ltd (Malco) is in market to procure 100,000 tons of imported steam coal, an industry source said on October 25.Malco has invited offers from suppliers, but it is just the beginning of the entire process, the source said.The company might settle for Indonesian coal.

Shree Cement Ltd, Indias leading cement maker, has decided to buy around 300,000 tons of petroleum coke (Fuel Grade) instead of around 500,000 tons of US steam coal that it was planning to buy earlier for loading between November and January 2013, a company source told ICMW.Pet coke is cheaper right now compared with US steam coal and so we have decided to contract for five shipments of petroleum coke which would be loaded from the US Gulf between November 2012 and January 2013, the source said.The deal was finalised for petroleum coke with 6.5% sulphur during the last 10-15 days at CFR price ranging between $94 and $96 per ton, he added.Asked what prompted the company to buy petroleum coke instead of US steam coal for which they were negotiating earlier, the source said, Shree has got pet coke at low price.. so why buy steam coal at high price.Shree Cement will save a minimum 10-12% in per heat unit wise cost by procuring pet coke at around $94-$96 per ton CFR (7600 Kcal/kg NAR) over offered high sulphur US steam coal price of around $86 per ton CFR for 6000 Kcal/kg NAR, the official said. Earlier at the beginning of October, it had been reported by a section of international media that Shree Cement has finalised a deal to procure 0.5 million tons of US steam coal at around $102 per ton cfr, which was subsequently refuted by Shree Cements.On September 13, ICMW had reported that Shree Cement is in talks with some miners in the US to buy upto 500,000 tons of high calorific and high sulphur steam coal for delivery between January and June 2013. The deal was to be finalised in the week beginning on September 17, but Shree has now decided not to buy US steam coal as price quoted by the miners was believed to be slightly on the higher side.

Hindustan Zinc to procure 300,000 tons imported steam coalICMW

Hindustan Zinc Limited (HZL), a part of the Vedanta group, is set to procure around 300,000 tons of imported steam coal, according to information available with ICMW.The material to be procured may be of Indonesian/ US/ Columbian or Australian origin and the shipment period will be from October 2012 to December 2012 while the material will be discharged at the Navlakhi port.The imported coal should have GCV more than 5600Kcal/Kg (ARB), less than 18% total moisture, less than 15% ash content and less than 3.5% sulphur.Interested parties can submit their bids within October 17, 2012.

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Indian cement maker selling US steam coal ICMW

A leading Indian cement maker, which has earlier contracted to buy high sulphur US steam coal, is now re-selling the material in small or bulk quantities depending on the requirement in order to clear its stock, according to information available with ICMW.The cement maker has decided to re-sell the material which it had brought for its own use as it has managed to struck deals to buy alternative material at a substantially low cost, ICMW understands.An industry source told ICMW that the cement maker on October 26 sold around 1000 tons of US steam coal from its stock lying at Kandla port on the west coast of India at all inclusive price, including loading, of Rs 6100 per ton.The company has a stock of around 100,000 tons of US steam coal (believed to be Blacksville #2 Thermal coal) at present and fresh arrivals as per previous contracts will also take place. The cement maker is trying to sell the existing stock as well as those expected to arrive, the source said.

Indias coal import from Richards Bay Coal Terminal (RBCT) of South Africa rose marginally in September to 1,748,242 tons compared with 1,649,635 tons imported in August, and was also up by 41.6% compared with 1,234,605 tons imported in September 2011, according to data made available to ICMW by one of the promoters of the terminal.India accounted for 33.37% of the total coal exported through the terminal in September compared with 28.04% share in August. Its share in total export from RBCT in September 2011 stood at 24.91%.Indias coal imports from RBCT rose in September while it fell in August after

NEPA Limited, a Government of India undertaking, has floated a notice inviting tender (NIT) for procurement of 5,000 tons of good quality, handpicked, dry steamed, selected coal from the open market by road, according to information available with ICMW.The material to be procured should have GCV of 5200 Kcal/Kg(ADB), 10% total moisture and negligible amount of sulphur and the size of coal should not be less than 100 mm.

Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RRVUNL), a government of Rajasthan undertaking, has floated a notice inviting tender (NIT) for procurement of 0.27 million tons (mt) (+/-10%) of indigenous non-coking coal for delivery at Chhabra Thermal Power Station of RRVUNL, according to information available with ICMW.The tender document including detailed NIT, pre-qualifying requirement and specifications can be downloaded w.e.f 04.10.12 from the website www.rvunl.com.Interested parties can submit their bids till November 1, 2012 up to 2.30 pm while the bids will open on the same day at 3 pm.

Damodar Valley Corporation (DVC), which has planned to import 3 million tons (mt) of coal in 2012-13, is going to procure bulk of the requirement during the second half of the year, a top company official told ICMW.So far we have imported only 150,000 tons of coal. The remaining part will be imported in coming months, the official said.The power utility has placed the order to MMTC Ltd for Indonesian coal, he said.

Indias Sept coal imports from South Africa up marginally ICMW

NEPA floats NIT to procure 5,000 tons steam coal ICMW

RRVUNL floats NIT to procure 0.27 mt indigenous coalICMW

DVC to import bulk of requirement in H2ICMW

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witnessing rise in July and June. The import had fallen continuously between March and May 2012.Indias total coal imports from South Africa during the first nine months of 2012 stood at 14,703,740 tons, up 24.11% compared with 11,846,954 tons imported during the corresponding period of 2011.With the rise in imports during the first nine months, Indias share in total export through RBCT rose to 29.67% compared with a share of 27.15% during the corresponding period of 2011.In 2011, Indias coal import from South Africa stood at 16,132,140 tons, down 23.18% as compared with 20,999,761 tons in 2010.Following is the detail of Indias coal imports from RBCT during the first nine months of 2012 and 2011:

Indias coal imports from RBCT (In tons)Month 2012 2011

January 12,55,412 15,14,421

February 19,15,301 8,65,548

March 19,06,978 14,80,596

April 15,77,256 12,17,071

May 13,71,460 12,65,774

June 15,83,151 12,06,449

July 16,96,305 12,86,158

August 1,649,635 17,76,332

September 1,748,242 1,234,605

Total 14,703,740 11,846,954

RBCTs September coal exports down 10.95% m-o-mICMW

The export of coal through Richards Bay Coal Terminal (RBCT) of South Africa fell in September on decline in imports by China, according to data made available to ICMW by one of the promoters of the terminal.The export in September fell by 10.95% to 5,239,216 tons in September from 5,883,215 tons in August and was up 5.7% compared with 4,956,556 tons in September 2011.However, the export in August fell by 6.31% to 5,883,215 tons from 6,279,244 tons in July whereas the export in July was up 15.13% compared with 5,454,166 tons in June and was up 17.86% in June compared with 4,627,648 tons exported in May.The coal export through the terminal during the first nine months (January-September) of 2012 stood at 49,548,739 tons, up 13.57% compared with 43,629,165 tons exported during the corresponding period of 2011.Following is the detail of monthly coal export through RBCT in 2012 and 2011 (in tons):

Months 2012 2011

January 44,63,987 43,89,925

February 60,87,111 45,67,807

March 63,39,413 53,53,497

April 51,74,739 48,10,185

May 46,27,648 35,26,751

June 54,54,166 47,75,898

July 62,79,244 43,57,091

August 5,883,215 68,91,455

September 5,239,216 4,956,556

Total 49,548,739 43,629,165

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Sharp fall in Chinas coal imports from SA in September ICMW

Sharp fall in Asian & African countries coal import from SA in Sept ICMW

After witnessing continuous growth between May and July, the import of coal by China from Richards Bay Coal Terminal (RBCT) of South Africa fell sharply in September for the second consecutive month after August 2012, according to information available with ICMW.According to data made available to ICMW by one of the promoters of the terminal, Chinas coal import from South Africa in September stood at 656,361 tons from a high of 895,239 tons in August.The import by China from South Africa in September 2011 stood at 911,612 tons.The total coal import by China from South Africa during the first nine months of 2012 (January-September) stood at 10,086,776 tons, up 47.79% compared with 6,824,635 tons imported during the corresponding period of 2011.Following is the monthly detail of coal import by China from RBCT in 2012 and 2011 (in tons):

Months 2012 2011

January 3,16,365 4,52,714

February 9,64,421 6,24,189

March 12,51,086 4,51,391

April 8,14,535 5,04,834

May 13,50,027 3,28,712

June 17,30,684 7,77,147

July 21,08,058 12,68,822

August 895,239 15,05,214

September 656,361 911,612

Total 10,086,776 6,824,635

The import of coal by African and Asian countries, except India, from Richards Bay Coal Terminal (RBCT) of South Africa fell by 28.49% in September to 1,356,733 tons compared with 1,897,167 tons imported in August, according to data available with ICMW.The decline in September import was largely due to sharp fall in import by China even as import by UAE and Pakistan increased marginally.The import in September this year was down 27.49% compared with 1,871,169 tons imported in September 2011.The import by Asian and African countries from South Africa, however, stood at 21,202,276 tons during the first nine months (January-September) of 2012, up 27.45% compared with 16,635,170 tons imported during the corresponding period of 2011, the data revealed.Following is the detail of coal import from RBCT by Asian and African countries in 2012 and 2011 (in tons):

Country 2012 (Jan-Sept)2011

(Jan-Sept)September,

2012September,

2011 August, 2012 July, 2012

China 10,086,776 6824635 656,361 911,612 895,239 21,08,058Japan 304,996 318905 Nil La Reunion 368,405 313200 52,498 52,554 53,382 Malaysia 2,180,748 1852533 294,356 68,147 218,646 2,14,468Mauritius 388,541 502249 181,650 Nil Pakistan 408,397 493255 101,503 54,992 54,081 1,46,392Singapore 161,868 Nil South Korea 1,560,725 1,603,237 Nil 4,53,414Taiwan 4,286,978 2,949,342 324,414 4,90,123 3,27,231Thailand 143,591 0 Nil

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Togo 94,718 46,396 Nil UAE 782,093 1312409 252015 197,286 145,813 2,12,975Madagascar 289,316 33,000 Nil 49,500Ethiopia 47,101 Nil Maputo 53,166 Nil Dijibouti 44,857 Nil Senegal 353009 80,514 39,883 41,123Nigeria 33,000 Nil Total 21,202,276 16,635,170 1,356,733 1,871,169 1,897,167 3,553,161

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Coal export to Atlantic countries from RBCT falls in SeptemberICMW

The export of coal to Atlantic countries from Richards Bay Coal Terminal (RBCT) of South Africa fell by more than 15.36% in September to 1,977,427 tons from 2,336,413 tons in August, according to data available with ICMW.The exports in September this year was, however, higher by 18.79% compared with 1,664,680 tons exported in September 2011, the data revealed.The total export during the first nine months (January-September) of 2012 was down by 13.11% to 12,775,338 tons from 14,702,041 tons exported during the corresponding period of 2011.Following is the detail of coal export to Atlantic countries from RBCT during the first nine months of 2012 and 2011 (in tons):

Country 2012(Jan-Sept)2011

(Jan-Sept) Sep-12 Sep-11 August,2012 July,2012

ARA 3,035,438 2,834,395 816744 353,585 8,50,077 3,28,164

Argentina 91,688 94,225 Nil Nil

Brazil 652,538 519432 73721 152,782 95,493 52,533

Denmark 180,224 1181218 180224 151480 Nil Nil

France 203,826 462190 60487 1,43,339 Nil

Greece 27,500 Nil Nil

Ireland 38056 48,380 Nil Nil

Israel 3,454,116 2638453 333794 332132 3,28,278 4,88,700

Italy 2,068,737 2788073 112680 339708 3,64,320 Nil

Mexico 219,989 395764 1,37,497 Nil

Portugal 47,395 Nil Nil

Spain 1,319,883 2312252 167,003 334993 1,60,942 Nil

Turkey 1,047,001 1062877 232774 2,56,467 1,60,381

UK 321,241 251,987 Nil Nil

TBC 142,601 37900 Nil Nil

Total 12,775,338 14,702,041 1,977,427 1,664,680 2,336,413 1,029,778

CIL expected to report 25% PAT growth in Q2ICMW

Coal India Ltd (CIL), which posted a 7.85% growth in profit after tax (PAT) in the first quarter (Q1) of 2012-13, is expected to witness around 25% year-on-year growth in PAT at Rs 2,800 crore in the second quarter (Q2) this year.According to analysts tracking the stock, CILs Q2 revenue may grow at the rate of 12% year-on-year to Rs 14,700 crore. As for production growth, the market expects around 12% increase in Q2 FY13 to 90 million tons (mt). This however will show a decline from 102.47 mt recorded in Q1 FY13. Some analysts estimate a 3.7% quarter-on-quarter decline in blended realizations because of lower e-auction volumes of 10.5% against 12% in the first quarter of 2012-13 and lower e-auction realisations of Rs 2,350/ton compared to Rs 2,562/ton in the first quarter of 2012-13.

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Steam coal import via Kolkata up 94.87% m-o-m in SeptemberICMW

Steam coal import through the port of Kolkata stood at 66,898 tons in September, up by 94.87% from 34,329 tons in August, as per information available with ICMW.Total imports of steam coal for the six-month period ended September stood at 881,701 tons as compared to 1,707,903 tons imported during corresponding period of 2011-12.Following are the details of steam coal import via Kolkata:

Month 2012-13 (in tons) 2011-12 (in tons)April 205,201 185,911May 278,834 239,619June 158,808 350,258July 137,632 344,798August 34,329 252,849September 66,898 334,470October 227,277November 209,554December 155,166January 160,871February 178,449March 136,892Total 881,701 2,776,112

During September 2012, 62,602 tons came in from Indonesia at a price range of Rs 2820-Rs 4018($50-$71)/ton while the rest of 4296 tons came from Singapore at a price of Rs 3496($62)/ton.In August, the entire amount of steam coal came from Indonesia a price range of Rs 3,112 ($56)/ton and Rs 3,983 ($71)/ton. [$1 = Rs 55.90]

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Steam coal import via Paradip up m-o-m in SeptemberICMW

Import of steam coal through the port of Paradip stood at 712,126 tons in September, moving up 19.54% from 595,728 tons in August, and many times over 144,132 tons in September 2011, as per information available with ICMW.With this, the total import in the six-month period ended September 2012 stood at 3,213,338 tons whereas the figure stood at 3,164,985 tons during the corresponding period of previous fiscal.Following are the details of steam coal import via Paradip:

Month 2012-13 (in tons) 2011-12 (in tons)April 301,559 379,073May 618,017 752,816June 612,163 563,059July 373,745 1,077,516August 595,728 248,389September 712,126 144,132October 288,456November 282,216December 542,561January 271,109February 868,474March 747,839Total 3,213,338 6,165,639

During September 2012, 44519 tons of steam coal came from Australia at a unit price of Rs 5371($95)/ton, 576516 tons came from Indonesia within a price range of Rs 1701-Rs 8346($30-$149)/ton while the rest of 91091 tons came from South Africa within a price range of Rs 5736-Rs 5776 (about $103).However, in August, the lions share (467,035 tons) came from Indonesia, of which MMTC got in 191,890 tons. Of the remaining amount, 83,993 tons came from South Africa and 44,700 tons from Australia. (See details on Pg. 94)

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Steam coal import via Vizag drops m-o-m in SeptICMW

Steam coal import through the port of Vizag stood at 265, 721 tons in September 2012, down 11% from 299,132 tons in August, but more than 195,225 tons imported in July, as per a compilation by ICMW. The import of steam coal via the port stood at 2,319, 535 tons during the first six months (April-September) of 2012-13, about 25.5% lower than 3,114,369 tons imported during the same period last year.Following is the monthly break-up of steam coal imports via Vizag port during 2012-13 and 2011-12:

Month 2012-13 (in tons) 2011-12 (in tons)

April 996,610 854,564

May 491,841 788,630

June 71,006 220,566

July 195,225 314,029

August 299,132 458,299

September 265,721 478,281

October 880,616

November 573,883

December 684,133

January 735,522

February 420,995

March 958,229

Total 2,319, 535 7,367,747

Note: April 2012 and 2011-12 figures are combined import figures of Vizag and Gangavaram port whereas imports for May, June and July 2012 are standalone figures from Vizag.

During September 2012, around 249,721 tons came from Indonesia within a price range of Rs 2,059 ($36.64)/ton to Rs 4,188 ($74.84)/ton. The remaining 16,000 tons came from South Africa in two instalments of Rs 5,776 ($102.77)/ton and Rs 5,959 ($106.03)/ton.

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Steam coal import via Gangavaram falls m-o-m in SeptemberICMW

Steam coal import through the port of Gangavaram stood at 240,983 tons in September, moving down 4.33% from 251,877 tons in August, as per a compilation available with ICMW. With this, the total import of the material during the six-month (April-September) period stood at 1,641,416 tons. Following is the break-up of steam coal imports in 2012-13:

Month Quantity (in tons)

April -

May 4,89,599

June 54,784

July 604,173

August 251,877

September 240,983

Total 1,641,416

During September 2012, 160,983 tons came in from Indonesia within a price range of Rs 3198-Rs 3604 ($57-$66)/ton while the rest of 80,000 tons came from South Africa within a price range of Rs 5736-Rs 5858($103-$105)/ton.However, during August 2012, a total of 177,231 tons of steam coal came from Indonesia within a price range of Rs 2648 ($47.37)/ton to Rs 3441($61.56)/ton while the rest of 74,646 tons was brought in from South Africa at a price of Rs 4150 ($74.24)/ton. (See details on Pg. 96)

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Steam coal import via Ennore falls sharply m-o-m in SeptICMW

Steam coal import through the port of Ennore stood at 247,826 tons in September, down from 696,678 tons in August, as per information available with ICMW.During the first six months ended September 2012, a total of 1,714,475 tons was imported through the port.Following is the monthly break-up of steam coal imports via Ennore port in FY13:

Month 2012-13 (in tons)April -May -June 473,283July 296,688August 696,678September 247,826October November December January February March Total 1,714,475

In September, the entire quanity of steam coal was brought in from Indonesia within a price range of Rs 2367-Rs 6604($42-$118)/ton while in August 2012, the entire amount of the material was brought in from Indonesia within a price range of Rs 2757 ($49.32)/ton to Rs 6641($118.80)/ton.



Steam coal imports via Mormugao drop m-o-m in SeptICMW

Steam coal imports through Mormugao port fell to 114,139 tons in September this year compared to 131,777 tons in August, according to provisional data available with ICMW.The import of steam coal through the port during the first six months (April-September) of 2012-13 stood at 720,382 tons, as compared to 290,618 tons during the corresponding period of 2011-12.Following is the break-up of steam coal imports via Mormugao port during the first six months of FY13 and full FY12 (All quantities are in tons):

Months 2012-13 2011-12April 128689 15000May 232580 157995June 52250 53800July 60947 NilAugust 131,777 52323September 114,139 11500October 163176November 129272December 173158January 206223February 188085March 121209Total 720,382 1271741

Of the total imports in September 2012, 111,320 tons came from Indonesia at an assessed price range of Rs 3030/ton to Rs 3113 ($55.34-$55.64)/ton while the remaining 2,819 tons came from South Africa at a price of Rs 6571($116.92)/ton.However, of the total import during the month of August, 78,000 tons came from Indonesia at an assessed price range of Rs 3737/ton to Rs 3811($67-$68)/ton and the balance 53,777 tons came from South Africa at Rs 5415 ($97)/ton, the data revealed.

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Steam coal import via Kandla up 49.76% m-o-m in SeptemberICMW

Steam coal import via Mumbai drops 2.98% m-o-m in SeptemberICMW

Steam coal import through the port of Kandla stood at 347,964 tons in September, moving up 49.76% from 232,340 tons in August, as per information available with ICMW.Steam coal import through the port during the first six months (April-September) of 2012-13 stood at 1,735,586 tons, dropping around 10.9% from 1,948,809 tons in the corresponding period of 2011-12.

Month Imports in 2012-13 (In tons) Imports in 2011-12(In tons)

April 232,656 303,825

May 326,765 320,890

June 279,060 333,122

July 316,801 280,078

August 232,340 299,681

September 347,964 411,213

October 337,881

November 313,728

December 270,607

January 177,605

February 222,218

March 353,702

Total 1,735,586 3,624,551

Steam coal import through the port of Mumbai dropped 2.98% to 294,748 tons in September from 303,816 tons in August, as per provisional information available with ICMW.With this, the total import of steam coal in the six-month period of April-September stood at 2,519,119 tons. Imports during the corresponding period of previous year (2011-12) stood at 2,058,669 tons.Total steam coal imports in 2011-12 via Mumbai port stood at 4,173,654 tons whereas steam coal imports in September 2011 via the port stood at at 2,48,705 tons.Following is the break-up:


April 473,668 3,99,161

May 459,765 6,41,910

June 560,549 2,63,620

July 426,573 2,83,300

August 303,816 2,21,973

September 294,748 2,48,705

October 89,007

November 7,08,431

December 1,78,228

January 6,84,097

February 1,96,449

March 2,58,773

Total 2,519,119 4,173,654

During September 2012, the entire material came in from Indonesia in two consignments within a price range of Rs.3222-Rs.6855($59-$122) per ton whereas during August 2012, the entire material came from Indonesia in three consignments within a price range of Rs 4148 ($74)/ton to Rs 6872 ($122)/ton.

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Steam coal imports via Mundra port falls m-o-m in SeptICMW

The total steam coal import via Kandla port stood at 3,624,551 tons in 2011-12.During September 2012, 270,987 tons came in from Indonesia within a price range of Rs 2566-Rs 5151($46-$92) and the rest of 76,977 tons came from South Africa at a price range of Rs 2955-Rs 7082($52-$126).However, in August 2012, the lions share of the material, 213440 tons, came in from Indonesia at a price range of Rs 2,689 ($48.10)/ton and Rs 4129 ($73.87)/ton. The remaining 18,900 tons came in from South Africa at a price range of Rs 5524 ($98.82)/ton to Rs 6,974 ($124.76)/ton.

The import of steam coal through Mundra port on the west coast of India fell 14.97% in September to 972,281 tons from 1,143,415 tons in August, according to provisional data available with ICMW.The import of steam coal through the port stood at 4,305,575 tons during the first six months of 2012-13, down 31.75% compared with 6,308,787 tons imported during the corresponding period of 2011-12.Following is the break-up of steam coal imports via Mundra port during the first six months of FY13 and entire FY12:


April 346,020 1,051,023

May 539,397 1,215,098

June 603,889 828,633

July 700,573 821,594

August 1,143,415 1,240,959

September 972,281 1,151,480

October 825,367

November 528,725

December 825,319

January 515,351

February 226,926

March 295,221

Total 4,305,575 9,525,696

The import of steam coal through Mundra port in 2011-12 stood at 9,525,696 tons and going by the current trend, the total import of steam coal through the port is likely to be significantly down in 2012-13.During September 2012, 557370 tons of the material came from Indonesia within a price range of Rs 2611-Rs 7444 ($46-$132)/ton, 354911 tons came in from South Africa within a price range of Rs 5506-Rs 6379 ($98-$114)/ton while the rest of 60,000 tons came in from United States within a price range of Rs 5589-Rs 5671 ($100-$101)/ton.However, of the total material imported in August, 60,000 tons came from Canada in the price range of Rs 5528 ($99) to Rs 5589 ($100)/ton, while 163,580 tons came from Colombia at about Rs 5859 ($105)/ton. 517,128 tons came from Indonesia in the price range of Rs 2533 ($45) to Rs 7538($135)/ton. Another 378,248 tons of steam coal came from the South Africa in the price range of Rs 5306 ($95) to Rs 5962 ($107)/ton while the rest of 101 tons came from US at a unit price of about Rs 5620 ($101)/ton.


(See details on Pg. 102-103)


October 31, 2012 24


IFCAL extends bid submission date for procurement of anthracite coalICMW

Anthracite coal import via Kolkata falls m-o-m in SeptICMW

IDCOL Ferro Chrome & Alloys Limited (IDCOL), a wholly owned subsidiary of IDCOL and a Government of Orissa undertaking, has extended the bid submission date for procurement of anthracite coal till October 13, 2012 up to 4 pm, according to information available with ICMW.Earlier, the last date for submission of tender was scheduled on September 29, 2012 which has now been extended.IFCAL had floated the tender on September 10, 2012 to procure 200 tons of Anthracite coal for its plant at Jajpur, Odisha.The material to be procured should contain 13% ash, 84% Fixed Carbon, 0.7% Sulphur, 0.03% Phosphorus and 10% moisture while the size of the material should vary between 10-30 mm.

Anthracite coal import through the port of Kolkata fell to 2058 tons in September 2012 against 26,867 tons in August 2012 and 14,049 tons in the same month last year, as per information available with ICMW.With this, imports in the six-month period ended September stood at 45,048 tons. Imports during the corresponding period of previous year stood at 45,606 tons.Following is the month-wise break-up of imports of anthracite coal via Kolkata port:


April 191 596

May 20 3,000

June 15,521 7,377

July 391 17,296

August 26,867 3,288

September 2,058 14,049

October 7,284

November 12,300

December 96

January 938

February 4,710

March 1,230

Total 45,048 72,165

During September 2012, 504 tons came from China at a price of Rs 27690 ($493)/ton, 1534 tons came in from Ukraine within a price range of Rs 12263-Rs 12317 (about $219)/ton while the remaining 20 tons came from Vietnam at a price of Rs 29385 ($525)/ton.In August, the highest amount (26,247 tons) of the material came from Ukraine at assessed price range of Rs 10,245 ($183)/ton and Rs 13,174 ($236)/ton. Of the remaining amount, 600 tons came in from China in two instalments at prices of Rs 25,390 ($454)/ton and Rs 25,436 ($455)/ton; and only 20 tons came from Vietnam at a price of Rs 29,149 ($521)/ton. [$1 = Rs 55.90]


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Anthracite coal import via Vizag up m-o-m in SeptICMW

Anthracite coal import via Gangavaram sharply down m-o-m in SeptICMW

Import of anthracite coal through the port of Vizag stood at 23,426 tons in September 2012, up marginally by 6% against 22,093 tons in August, according to a compilation by ICMW.Import of the material stood at 87,305 tons during the first six months (April-September) of 2012-13, against 175,065 tons during the same period last year.Following is the monthly break-up of anthracite coal imports via Vizag port in 2012-13 and combined imports via Vizag and Gangavaram ports in 2011-12:


April 2,416 1,580

May 192 31,437

June 28,582 6,410

July 10,596 31,363

August 22,093 36,872

September 23,426 67,403

October 53,324

November 10,941

December 70,456

January 19,515

February 10,203

March 3,273

Total 87,305 3,42,776

During September 2012, there was only one consignment of the material brought from Russia at a price of Rs 11,877 ($217)/ton. Last month, 96 tons of the material came from China at a price of Rs 21,717 ($388.50)/ton while the remaining 21,997 tons came from South Africa at a price of Rs 8,715($155.90)/ton.

Anthracite coal import through the port of Gangavaram stood at only 1,000 tons in September, sharply down from 10,826 tons in August, as per a revised compilation available with ICMW.With this, the total import in the six-month period ended September stood at 16,004 tons. Following is the break-up of anthracite coal imports in 2012-13:

Month Quantity (in tons)

April -

May 2,304

June 1,374

July 500

August 10826

September 1000

Total 16,004

During September 2012, the entire quantity of anthracite coal came from Ukraine at a unit price of Rs 9540 ($169)/ton.However, during August the entire material came in two consignments from Ukraine within a price range of Rs 9,352($167)/ton to Rs 9,356 ($167)/ton.


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Anthracite coal imports via Chennai at 20 tons in SeptemberICMW

Anthracite coal import via Mundra at 2,078 tons in SeptICMW

Anthracite coal imports through Chennai port stood at 20 tons in September 2012 against 86 tons imported in August as per provisional information available with ICMW. During the first six months (April-September) of the current financial year (2012-13), total imports of anthracite coal via Chennai port stood at 358 tons as compared to 187,071 tons imported during the corresponding period of previous year (2011-12).Following table contains the month wise import figures of anthracite coal via Chennai port during 2011-12 and 2012-13:

Month 2012-13 2011-12

Apr 208 -

May - -

Jun 24 64,750

July 20 112,321

Aug 86 10,000

Sept 20 -

Oct -

Nov -

Dec 15,500

Jan 8

Feb 40

Mar 96

Total 358 202,715

During September 2012, the entire material came from Vietnam at a unit price of Rs 29,385 ($522)/ton whereas in August 2012, out of the total quantity, 20 tons came in from Vietnam at a price of Rs 29,149 ($521)/ton whereas the remaining 39,886 tons came from Spain at a price of Rs 39,886 ($714)/ton.

Import of anthracite coal via Mundra port stood at 2,078 tons during the month of September 2012 while during the previous month (August 2012), the import figure stood at nil, according to provisional data available with ICMW.During the month, the entire material came from Ukraine at a unit price of Rs 12,452 ($222)/ton.In September 2011 too, there was no import of anthracite coal through the port.

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A total of 870 MW of power generation capacity was added in India during the month of September 2012 taking the total installed generation of the country to 207876.04 MW, a provisional data prepared by the Central Electricity Authority (CEA) revealed.The capacity addition in August was 550 MW.With this total power generation capacity added during the first six months of 2012-13 (April-September) stood at 7576 MW, as per CEAs revised data.The capacity addition of 870 MW in September was in thermal power sector in private sector companies Meenakshi (150 MW) at Thamminapatnam TPP in Tamil Nadu, Adani Power Limited (660 MW) at Tirora TPP Ph-I in Maharashtra and GEPL (60MW) at GEPL TPP Phase I in Maharashtra.In August 2012 also, the entire capacity addition of 550 MW was in thermal power sector also in private sector companies BPSCL (250 MW) at Bina TPP Unit 1 in Madhya Pradesh and Vidharba Ind. Power Ltd (300 MW) at Butibori TPP Unit 1 in Maharashtra.Following is the detail of capacity addition during the first six months of 2012-13 and full financial year 2011-12 (in MW):

Months 2012-13 2011-12

April 1760 735

May 1070# 550

June 2376 2224

July 950 1660

August 550 1200

September 870 786.5

October 345

November 2807

December 1158

January 895

February 972

March 5482*

Total (Apr-Sept) 7576 6369

Total (Apr-March) 7576 18814.5*

*As reported by CEA, the capacity addition in March was 5482 MW, but the total figure for 2011-12 was increased by them to 20501.70 MW instead of 18814.50 MW following revision in March 2012 figures. # CEA had earlier reported that capacity addition in May (2012-13) was 1070 MW, but it appears that the figures have been revised to 1130 MW.

Indias power generation in September fell to 73077.91 million units (MU), down from 74338.11 MU generated in August, according to provisional statistics of the Central Electricity Authority (CEA).The generation in September was significantly lower than the target of 75971 MU, the data revealed.The power generation in September 2011 or the corresponding month of previous financial year was 70497.50 MU against the target of 71238.75 MU, which means year-on-year generation was up only marginally.

India adds 870 MW power generation capacity in SeptemberICMW

Indias September power generation falls m-o-mICMW

October 31, 2012 28


The countrys power generation during the first six months (April-September) of 2012-13 stood at 455543.96 MU, up 0.71% compared with the target of 452334 MU for the period and up 4.69% compared with 435131.89 MU generated during the corresponding period of 2011-12.Of the total generation in September 2012, 54986.55 MU (49172.99 MU in September 2011) was from thermal sector, 2657.92 MU (2679.95 MU) from nuclear sector, 14504.64 MU (17744.41 MU) from Hydro sector and Bhutan imports was 928.80 MU (900.15 MU).The actual generation was lower than the target of 58432 MU for thermal sector but higher than 14022 MU for hydro sector. However, it was lower from 2676 MU for nuclear sector but higher than 841 MU from Bhutan import.In August 2012, the generation stood at 56687.72 MU from thermal sector, 2579.08 MU from nuclear sector, 14036.04 MU from Hydro sector and Bhutan imports was 1035.27 MU.

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Indias power sector utilities received a total of 33.65 million tons (mt) of coal in September 2012, 22.45% higher than 27.48 mt received during the same month in 2011, according to provisional data compiled by the Central Electricity Authority (CEA).Of the total quantity received during the month, indigenous coal was 30.64 mt, 31.22% higher than 23.35 mt received during the corresponding month of 2011. The imported coal received by the power utilities in September 2012 stood at 3.02 mt, 26.69% lower than 4.12 mt received in September 2011, the data showed.The power utilities had received received a total of 35.11 million tons (mt) of coal in August 2012, which means the receipt in September was down by 4.16%.Coal consumption by power utilities in September 2012 was estimated at 31.07 mt, compared with 27.82 mt in September 2011 and 32.18 mt in August 2012.The power utilities have received 213.48 mt of coal during the first six months (April-September) of 2012-13 as compared to 190.57 mt during the corresponding period of 2011-12.On the other hand, coal consumption by power utilities during entire 2011-12 was estimated at 406.77 mt, compared with 377.88 mt in 2010-11.

More than 30,000 MW of thermal power generation capacity is lying stranded in India, due to the shortage of domestic coal, high costs of imports and poor logistics, according to the Association of Power Producers (APP).By my estimates, more than 30,000 MW generation capacity is currently stranded due to fuel unavailability and pricing issues, said Dr Ashok Khurana, director general of APP.However, a top official of the power ministry said the capacity of projects stranded could reach 60,000 MW.Besides the coal crisis, the financial plights of discoms, which have accumulated debt of Rs 200,000 crore, also affected new projects coming up in the Indian power sector growth, they said.

Indias power utilities received 33.65 mt coal in September ICMW

Over 30,000 MW generation capacity strandedICMW



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Indian coal companies Coal India Ltd (CIL) and Singareni Collieries Company Ltd (SCCL) despatched a total of 26.79 million tons (mt) of coal to the power sector in September 2012, according to provisional data compiled by the Central Electricity Authority (CEA).These two companies had despatched 20.87 mt of coal to the power sector in September 2011, the data showed.The despatches in August 2012 stood at 27.32 mt, which means September despatches were down by 1.94% or 0.53 mt less compared to August 2012.Of the total despatches in September 2012, CIL despatched 23.95 mt, while the balance 2.84 mt was despatched by SCCL. In September 2011, 19.39 mt was despatched by CIL while SCCL had despatched 1.48 mt to the power utilities.In August 2012, CIL despatched 24.45 mt, while the balance 2.87 mt was despatched by SCCL.During the first six months (April-September) of 2012-13, the total dispatches stood at 174.32 mt, up 12.85% as compared to 154.47 mt despatched during 2011-12.

The stock of coal at 89 power plants monitored by Central Electricity Authority (CEA) fell marginally to 8.26 million tons (mt) as on October 7, compared with a stock of 8.64 mt as on September 30, as both indigenous and imported coal stock declined. According to the data of CEA, the stock of imported coal with 89 power plants fell to 0.474 mt as on October 7 from 0.56 mt on September 30 whereas indigenous coal stock fell to 7.79 mt as on October 7 from 8.07 mt on September 30. However, on September 23, stock of imported coal and domestic coal stood at 0.560 mt and 8.29 mt, respectively while on September 16, the figures stood at 0.578 mt and 8.82 mt, respectively. The total number of plants facing critical coal stock situation of less than seven days stood at 47 on October 7 moving up from 35 on September 30 and 37 on September 23 while it stood at 32 on September 16. However, the number of plants facing super critical coal stock situation of less than four days rose to 32 on October 7 compared with 22 plants facing super critical coal stock situation on September 30, while the figures stood at 23 and 19 on September 23 and September 17, respectively.

Adhunik Power & Natural Resources Ltd (APNRL), the power arm of Kolkata based Adhunik Group and a step down subsidiary of the listed Adhunik Metaliks, the flagship company of the Adhunik Group, has commissioned the first 270MW unit of its 2x270 MW coal fired thermal power plant, the company said in a statement.The power plant was inaugurated by Arjun Munda, chief minister of Jharkhand, at a function in the Saraikela-Kharsawan district of Jharkhand.APNRL has signed a Power Purchase Agreement (PPA) with the Jharkhand State Electricity Board (JSEB), Power Trading Corporation, Tata Power Trading Company, and West Bengal State Electricity Distribution Company aggregating around 435 MW. The Company has been provided long term transmission open access and has executed Bulk Power Transmission Agreement with Power Grid for 450 MW, the statement said. The Company will operate this power project by utilising coal from its captive mines at Ganeshpur non-coking coal block in the Latehar District of Jharkhand which is expected to be operational by the second quarter of FY14. Until the commissioning of the Ganeshpur coal block, the company has obtained tapering coal linkages from Coal India Limited (CIL).

Indian coal cos despatched 26.79 mt coal to power sector in September ICMW

Coal stock at power plants falls marginally w-o-wICMW

Adhunik commissions 270 MW thermal power plant ICMW

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October 31, 2012 30


Damodar Valley Corporation (DVC), which holds three captive coal blocks, is aiming to produce more than 2 million tons (mt) of coal during the current fiscal year (2012-13), a top company official told ICMW.Production from Barjora (North) is expected to be around 2 mt, while that from Bermo, an old block, would be less than 1 mt, the official said. Currently, the company is planning to increase production from Bermo in coming years.Two other captive blocks, namely Khagra Joydev and Gondulpara (allotted jointly with Tenughat Vidyut Nigam Ltd), are yet to come to the production stage.The state power utility is facing land acquisition problems in Khagra Joydev and forest clearance issues in Gondulpara. The company has joined hands with EMTA Group to raise coal from its newly acquired coal blocks.

The Damodar Valley Corporation (DVC) is concerned over the coal quality being supplied to its plants by Coal India Ltd (CIL) subsidiaries and has called for immediate measures to redress the same.The quality of coal being supplied is of major concern for us. Only a few days ago, we received a rake full of mud and muck. We couldnt unload it and had to ask for replacement, R.N. Sen, chairman, DVC, said, while addressing a panel discussion organised by Assocham and Financial Journalists Club (FJC), Kolkata.He also resented the ad-hoc shift from UHV based pricing to GCV based pricing by CIL and said the problem with grade slippage and poor coal quality has not been redressed. Even today, the coal quality is not measured scientifically through a bomb calorimeter, but through a conversion formula. Most of the mines do not have the instruments required for GCV measurement. There are still boulders and mud mixed in coal supplied.He said he didnt expect the grade slippage problems to be addressed even after the signing of Fuel Supply Agreements (FSA) with power utilities. There will still be boulders. If they assure us the impurity will be contained to a certain limit, we will be grateful, Sen added.

At a time when price pooling is being looked at as a possible solution to the severe coal crisis facing the power sector, the West Bengal power ministry has expressed its strong objection to the mechanism, saying that this will go against the interest of the state.We oppose the price pooling mechanism strongly. This will do no good to the people of West Bengal. We will oppose the idea to the extent possible, Malay K. De, principal secretary, department of power, government of West Bengal, said on October 11.The price pooling mechanism will essentially cross-subsidise power plants that came up without due consideration to the fuel cost factors and hence faced viability problem, he said while addressing a panel discussion organised by Assocham and Financial Journalists Club (FJC), Kolkata. The state of West Bengal had surplus power but couldnt sell it because of the lack of buying capacity of other state utilities.

DVC to produce over 2 mt from captive blocks in FY13ICMW

DVC raises concern over coal qualityICMW

WB govt against price pooling ICMWPO

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The company has also executed Fuel Supply Agreement (FSA) in this respect and has started receiving coal under linkage.APNRL plans to invest Rs 3151.51 crore in the first phase of the project. The equity requirement is being funded by IDFC, SBI Macquarie and Adhunik whereas a consortium of lenders led by State Bank of India have funded the debt requirement of the project.


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NTPC Ltd, which engaged Thiess India Pvt Ltd as contract miner for the Pakri Barwadih block, has asked to enhance the peak production capacity at the Jharkhand block.According to information available with ICMW, the power utility was in dialogue with Thiess to enhance the capacity to 18 million tons per annum (mtpa) from 15 mtpa planned earlier.The MDO has started working towards achieving the enhanced capacity for the block, sources said. The Pakri Barwadih block is expected to start producing coal from late 2012 or early 2013.On November 30, 2010, the Pakri Barwadih block was awarded to Thiess India by NTPC for development and production. This was reportedly the largest contract ever awarded to Thiess and one of the largest ever awarded by NTPC.

The controversial report on coal block allocation by the Comptroller and Auditor General (CAG) of India has affected the banking sector lending to power utilities and also coal user segments which are grossly dependent on domestic production, D.S. Rawat, secretary general, Assocham, said on October 11.The loss as computed by CAG is a notional figureexcept for a few blocks, nobody has started production yet, he said while addressing a panel discussion organised by Assocham and Financial Journalists Club (FJC), Kolkata.Subsequent to the controversy, the government has decided to revisit all captive block allocations made since 1993. This has created problem for the banking sector that lent funds to projects that are c

Documents

ICMW October 12