Page 2 - Coal Policy

Govt plans financial support for coal gasification, higher production

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

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

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

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

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

COP28 and the coal question

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

COP28: India refrained from signing on global renewable energy pledge

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

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

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

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

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

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

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

Coal ministry asks DFS to classify coal under infrastructure sector

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

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

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

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

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

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

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

Will not face shortage of coal this year, even during Monsoon: Pralhad

India will not face any shortage of coal this year even during the monsoon, Coal and Mines Minister Pralhad Joshi said on Tuesday. No matter what is the demand this year, the government is prepared to meet the same, the minister said at a conference on underground coal mining here. "I assure the country on behalf of Coal India and the coal ministry that there will not be any shortage of coal even in the monsoon this time," he said. The preparation is good and it is "our responsibility" to meet the entire demand this year, Joshi said. Speaking to PTI on the sidelines of the event, the minister said while 35 million tonne (MT) coal is at thermal power plants, 65 MT is lying at pit heads of Coal India and private miners and another 10-12 MT is in various stages of transportation. On the movement of coal through rakes, Joshi said the ministry is working in close coordination with Railways for movement of the dry fuel from pit heads to locations. Earlier, the minister also unveiled Co

Expensive coal imports, logistics may result in higher electricity bills

An unnamed senior executive said that expensive imports combined with increased transportation costs may lead to an increase of 40 paise per kilowatt hour (kWh)

Despite no-carbon ambitions, G7 fails to set date for ending coal power use

More aggressive moves to reduce carbon emissions remain a highlighted difficulty for G7 as the world's major industrialised economies continue to clash on coal

CIL coking coal production sees quantum leap of 8MT, rises by 17% in FY23

The production of coking coal by Coal India Ltd (CIL) rose by 17.2 per cent year-on-year (y-o-y) to 54.6 million tonnes (MT) in 2022-23. The state-owned miner had produced 46.6 MT coking coal during the preceding 2021-22 fiscal, it said in a statement. "The quantum leap was a whopping 8 MT. This assumes significance at a time when the Ministry of Coal has asked CIL to elevate the output of this category of coal to 105 MT by 2030 in a bid to reduce its imports and forex outgo," it said Subsidiary companies Bharat Coking Coal Ltd (BCCL) and Central Coal Fields (CCL) together accounted for almost the entire output of 54.3 MT in 2022-23. While BCCL produced nearly 33.7 MT during FY23, CCL contributed 20.6 MT. Coking coal is an important feedstock in steel making. In India, its mineable reserves are scarce and also its quality inadequacy for direct use in steel making necessitates washing. During FY23 coking coal imports were to the tune of 56 MT, down by 1.1 MT compared to 57.1 MT in

Govt launches 7th round of coal mine auctions; 106 mines for sale

Defence Minister Rajnath Singh on Wednesday launched the seventh round of auctions for commercial mining of coal blocks, putting 106 mines under the hammer. Of the total mines offered under the seventh round, 61 blocks are partially explored and 45 mines are fully explored. As many as 95 non-coking coal mines, 10 lignite mines and one coking coal mine are being offered in the latest round of auction. In his address, Singh said coal is considered black gold which plays an important role in strengthening the economy of the country. "Our energy consumption has grown in the last few years and will continue to grow. And to meet this need we will have to start taking efforts from today," he said. The ongoing auctions of coal blocks are a step towards energy security, Singh said. Details of the mines, auction terms, timelines etc. can be accessed on the MSTC auction platform. The auction shall be held online through a transparent two-stage process, on the basis of percentage revenue sha

Tata Power seeks regulator nod to raise tariffs and offset fuel cost surge

A spike in coal prices has increased cost of generation

What is coal gasification and why is India investing in it heavily?

On Novemebr 3, Union Finance Minister Nirmala Sitharaman launched the biggest ever coal mine auction of 141 mines in India

CoalMin launches largest-ever commercial coal auction of 141 mines

The coal ministry has auctioned close to 64 coal mines to date under commercial auction