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 Anushka Jain

Divija Pandel

Manohara Reddy

P

Mounika Ch

Saksham Nijawan

Shashank Vyas

Vijay Mohan R

Coal Price Equilibrium for Domestic

and International

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Coal Price History

Pricing of coal was controlled by the Central Gvt

Since 1945

In March 1996, the government gradually deregulate

the price of the various types and grades of coal

In 2000, Coal pricing was totally deregulated afterthe colliery control order, 2000 and was decided by

Coal India Limited

Price of coal depend on the input cost, mining cost,

inflation and other factors. Price of coal is done on Gross Calorific value

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Typical Price Clause

Basic Prices Other Charges

• Transportation Charges

• Sizing/Crushing Charges

• Rapid Loading Charges

• Washing Charges

Statutory Charges Royalties

National Clean Energy

cess

Stowing Exercise Duties

Exercise Duty

Levies etc,. If any

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Price Equilibrium (Excel

Work)

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Risk involved Supply and Demand curve gap has been increasing, no

where meeting limited and Exhausting Indian coal resources will force India

to depend more on imports

Coal import burden impacts India current account deficit and

rupee CIL and Gvt of India target an average 8% growth in

production from 2012, Which leaves no extractable coal

supplies by 2030

With current reserves of only 17 years remaining and noreasonable plan for coal addition the price and reliability

becomes a major risk factor to recently completed plants

and new investments

Newly commissioned coal based thermal power plantsdesigned for high quality coal and so dependent on imported

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Ways to increase Supply

Operational or sustenance issues

Fund raising

Proper incentive and security of tenure.

Performance Improvement

Modern mechanisms must be explored and

implemented in Indian mines.

 All the minerals are not reported as per UNFC

classification. Hence, there is low level of confidence

among investors to invest in explored areas.

Training camps, State Governments

 Cost for running the training camps could be met by

the state as well as through mandatory paid

registrations.

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Ways to increase Supply Key administrative issues

Long queue of mining applications pending at different levelswith the state and centre: This is a deterrent for future

investments.

Mandate Time-bound, State and Centre

Independent departments and ministries at the state and

central levels

Single window clearance agency (SWCA)

Large number of compliance reports to be filed by the

investors to CCO,, DGMS, tribunals, state and central

agencies. Online web portals, State or central government

Online payment mechanism for royalty

Multiple registration requirements for miners, transporters,

traders and end-users

Single point registration facility preferably through an online

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Ways to increase Supply Regulatory issues

Lack of policy support for transfer of mining concessions Premium assets, dormant assets can be developed to

increase supply in domestic market. Blocking of resources JV with private mining companies or fresh applications may

be invited through Gazette notifications.

Lack of incentives for exploration Extended the same benefits and incentives which are

available to the oil and gas sector under the new explorationlicensing policy (NELP).

Fiscal issues

Poor connectivity of mining areas and poor evacuationfacilities infrastructure facilities through PPP, State or Centre

Infrastructural issues Geo-referencing has not been done properly

Formation of State nodal agency to accredit companies fordigitisation activities for required miners.

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 Production

Improvementin Technology,Transport andInfrastructure

Lower per tonof ore cost

HighProductionRealised

LowerEnvironmentalDegradation

High Rate ofReturns

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Use of high end technologies for Efficiency

management

Steam flow path modification

Steam turbine and boiler upgrades

Improved Plant control

Repowering

Higher Steam parameters

Dedicated railway lines

Establishing of coal washeries Modern Excavating Machines

Ways to increase coal production

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National Perspective plan for Renovation,

Modernisation, Life extension of Thermal power

plants 200/210/250/500 MW contributes about 60% of total

generation are about to finish there normal operating life

 Potential for enhancing rated capacity by 4-8 % andEfficiency by 8-10%

Ways to increase coal Production

247/537/565

(660 MW) 

170/537/537

(500 MW) 

‘0

2 

‘0

7 

‘2

2 

‘1

7 

‘1

2 

Xth

Plan 

XIth

Plan 

XIIt

h

Plan

XIII

th

Plan

‘0

0 

247/565/593

(660/800

MW)

280/600/620

(800-1000MW) 

320/600/620

(800-1000MW) 

   G  r  o  s  s   E   f   f   i  c

   i  e  n  c  y ,

   G   C   V

   B  a  s   i  s

38%

39%

43%

42%

41%

40%

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  -strategies

Long term off-take contracts with coal producers Australia

Indonesia

Russian Federation

 Acquisition of assets in foreign lands exploring two blocks in Mozambique’s Tete province

two coal assets in Australia, CIL will reportedly be in a position

to import 28 million tones per year of high quality coal

Colombia South Africa

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Thank You