Goyal concerned India importing coal despite surplus
Lamenting that India continues to import coal from overseas despite having surplus fuel, Union Power and Coal Minister Piyush Goyal said on Thursday that Coal India has set a target of replacing 15 million tonnes (MT) of imported coal with indigenous fuel in 6 months.
"It is very unfortunate that India continues to import coal from other countries inspite of the fact that we are a coal surplus nation today," Goyal said at an event here.
"This is because our power plants have been designed not to function on indigenous coal," he said, urging his audience to come up with new ideas for finding a sustainable solution to this challenge.
In this connection, he said state miner Coal India has set a target to replace about 15 MT of imported coal with indigenous produce in the next six months.
About power decentralisation initiatives, Goyal said that apart from shifting to renewable energy, focus is now on distributed energy production, where consumers themselves can start generating power.
"In fact, the rooftop solar power programme will be expanded from 300 MW today to 40,000 MW in the next six years. It will not only provide energy security but will also give support to thousands of people living in areas inaccessible to grid based power supply," he said.
Meanwhile, the Asian Development Bank (ADB) said on Tuesday it will extend a $500 million loan for augmenting installation of solar rooftop systems in India.
Referring to the climate change issue, Goyal said India believes that fighting climate change is a global responsibility.
"We are very concerned to see how the developed world is going to respond to this challenge in terms of demand side management of their consumption," he said.
http://timesofindia.indiatimes.com/city/delhi/Goyal-concerned-India-importing-coal-despite-surplus/articleshow/54681794.cms
Fresh capacity set to worsen supply glut in steel market
Steel makers believe construction demand will revive by the time fresh steel capacity comes on line in the next two years, dismissing fears that an oversupply will depress prices.
Finished steel consumption in India advanced at a mere 1.3% to 33.74 million tonnes (mt) in the five months from April to August, according to the Joint Plant Committee (JPC), a government body which collates iron and steel data. Current industry capacity is around 115mt.
India’s top three steel firms Tata Steel Ltd, Steel Authority of India Ltd (SAIL) and JSW Steel Ltd are adding fresh capacities in phases. “If demand in the sector has to catch up with supply, it has to grow at double the pace of supply in the remaining part of FY17, which looks unlikely as there’s already significant capacity addition taking place and they are going to be ramped up in subsequent months,” said Goutam Chakraborty, an analyst at brokerage Emkay Global.
At present, exports are helping Indian producers and any disruption to that can create an oversupply situation, he pointed out. “Last year, imports seized the whole of Indian steel demand growth; this heightened the capacity overhang,” said Prakash Kumar Singh, chairman, SAIL.
Singh is confident demand will rebound on the back of better growth in the construction sector, helped by smart cities, expansion of road and railway networks and indigenization of defence and heavy engineering.
“We expect that in the coming years, there will be a spurt in steel demand and there is no factor which is stopping that rebound,” he said, pointing out that “India is the only bright spot, where 5% growth in demand is expected in years 2016 and 2017.”
JSW on 28 July reaffirmed its forecast of a 25% growth in volume to 15.75 million tonnes per annum (mtpa) of crude steel, and sales of 15 mtpa of saleable steel for fiscal 2017. It plans to have 40 mtpa of steel-making capacity by 2025.
“Everybody is producing more. While the demand has grown, it hasn’t grown enough to cover the capacity. But it’s a matter of time. Steel capacities are always added in steps,” said T.V. Ravindran, managing director at Tata Steel Ltd on the sidelines of company’s June quarter results on 12 September.
Exports of finished steel rose 23.6% to 2376mt in the first six months of the current fiscal over a year ago, shows World Steel Association data.
Tata Steel’s Kalinganagar plant, the largest by revenue, will be adding 3mt of fresh capacity over the next two years. Of this, a million tonne is likely to be available in fiscal 2016-17 itself. JSW Steel has commissioned a new capacity of 3.7mt, of which 80-85% will be utilized in the current fiscal itself. SAIL will add 2.5mt to its existing 12.5mt by end of this fiscal, taking it up further to 17mt the following year.
http://www.livemint.com/Industry/WVFtYoR37oF83juIlR6OMN/Fresh-capacity-set-to-worsen-supply-glut-in-steel-market.html
India expects ArcelorMittal JV to start production in two years
India expects a joint venture between state-owned Steel Authority of India Limited (SAIL) and ArcelorMittal to start producing automotive-grade steel in two years, a government official said on Tuesday.
Officials from the two companies are due to meet on Thursday to take forward talks about a proposed Rs 60 billion ($902 million) plant that will produce 1.2 million tonnes of steel per year to begin with, Steel Secretary Aruna Sharma told Reuters.
SAIL and ArcelorMittal, the world's largest steel producer, signed a preliminary agreement in May last year to expand in what is one of the world's fastest growing steel markets and a major car exporter.
"In another two years it should be in the manufacturing stage, provided we freeze everything within one and a half months and in December we take off," Sharma said. "We will go more for import replacements. We have solutions for it."
She said the government was working on raising demand for steel in India - whose per-capita consumption of about 60 kg is less than one-third of the global average - by replacing concrete with steel in major infrastructure projects.
The World Steel Association expects India's steel demand to rise 5.4 percent this year and next, even as countries such as China see a decline.
Apart from ArcelorMittal, India's growing steel demand is also keeping other major companies such as South Korea's POSCO interested, despite regulatory hurdles and difficulties acquiring land.
http://timesofindia.indiatimes.com/business/india-business/India-expects-ArcelorMittal-JV-to-start-production-in-two-years/articleshow/54679627.cms
Nine mineral blocks to be put up for auction soon, says Balvinder Kumar
A total of nine mineral blocks put on auction including two from Karnataka iron ore plots with excellent response up to 100 percent bidding over reserve price, Secretary, Ministry of Mines, Balvinder Kumar said at an ASSOCHAM event.
"A total of nine blocks have been put on successfully auction including two from Karnataka iron ore plots and total seven blocks are being put up to auctions by state government of Karnataka and we expect extremely good response in these seven mineral areas," said Kumar while inaugurating an ASSOCHAM conference on 'India Mining Summit 2016'.
The bids for the first iron ore in Karnataka were 90 percent above the reserve price. In the second mine, the bid was almost 100 percent over reserve price and these are very encouraging results.
He further said, the Government will be getting above Rs. 25000 crore by the way of royalties etc over the period of 50 years.
On the issue of aluminum industry minimum import duty hike or minimum import price (MIP), Kumar said, we are examining this matter in great depth and two-three rounds of discussions have taken place with different segments of aluminum industry. So, either we may go for MIP or alternatively to increase the import duty but we want to develop consensus among the different segment of aluminum industry. We are working on it and in next 15 days will take decision on this issue.
By end of this fiscal year, minimum 40-50 mining leases to be auctioned by various states. 15 category C mines were re-auctioned, earlier cancelled by Supreme Court.
If we see exports, exports have increased tremendously. In 2015-16, it was 5.32 billion tonne in this fiscal we have already bypassed that figure. Imports have also decreased sharply as against 2015-16 about seven billion tonnes and now this has reduced to 1.022 billion tonnes.
The overall mineral growth this year is about 10.6 percent in first five months. Iron Ore production has increased by 32 percent.
"Backward districts to get 200-400 crore every year, the huge amount will be spent on social economic development of these areas and these district area soon see transformation in their overall development scenario and many of these districts are maoist affected," added Kumar.
We are going to monitor all the mining area through the satellite imaginary. We are also going to launch mobile app where anybody can upload photo of illegal mining," said Kumar.
The automation of mining plan with online web portal giving real-time base data across all states, said Kumar.
Mining industry is in the phase of recovery where many reforms are taking place. Mining provides direct employment to 2.6 billion people. On real time basis, one can see production of all minerals across states.
Government signs allotment pacts with state PSUs for 7 coal mines
Government has allotted seven coal mines to state-government companies, including Singareni Collieries Company Ltd (SCCL), for undertaking commercial mining and sale of the dry fuel.
"Allotment agreements have been executed (between Nominated Authority and coal block allottees) with regard to five coal mines, out of eight coal mines earmarked for allotment to state PSU's of coal-bearing host states for sale of coal," an official said.
Among the allotted blocks, Baitarni West coal mine in Odisha was given to Odisha Mining Corporation Ltd, Dahegaon/Makardhokra--IV mine in Maharashtra was alloted to Maharashtra State Mining Corp Ltd, Maharashtra State Mining Corp Ltd and Gourangdih ABC block in West Bengal was alloted to West Bengal Mineral Development & Trading Corp Ltd, the official said.
Patal East in Jharkhand has been alloted to Jharkhand State Mineral Development Corp Ltd and Penagaddppa mine in Telangana alloted to Singareni Collieries Company Ltd.
"In addition, out of eight coal mines earmarked for allotment to PSU's of non-host States for sale of coal, allotment agreements have been executed for two coal mines," the official added.
The two mines are Madanpur South mine in Chhattisgarh to Andhra Pradesh Mineral Development Corp Ltd and Suliyari mine in Madhya Pradesh to Andhra Pradesh Mineral Development Corp Ltd, the official said.
The allotment of coal blocks is part of government's decision to open up the coal sector for commercial mining. The Centre had earmarked 16 blocks for allotment to state PSUs for carrying out production and sale of the dry fuel.
Of the 16 blocks, five mines are in Madhya Pradesh, three in Telangana, two blocks each in Chhattisgarh, Jharkhand and Maharashtra, and one each in Odisha and West Bengal.
Of these blocks, eight have been identified for the host states, the remaining are for other than host state.
The decision to open up coal sector is in line with the government's target of doubling coal production to 1.5 billion tonnes by 2020.
NTPC to expand solar goal, slow thermal power, BNEF says
India’s largest power generator, which is spearheading Prime Minister Narendra Modi’s ambitious clean-energy goals, is expanding its solar target and slowing down development of its coal-based plants on concerns that the cost of renewables will be cheaper than conventional energy.
NTPC Ltd. will expand its target of setting up 10-gigawatts of solar capacity, chairman Gurdeep Singh told Bloombergin an interview. It will also support building of 15 gigawatts of solar capacity by buying power from producers and selling it to distribution companies. It is exploring new opportunities such as solar-equipment manufacturing, solar parks and electric vehicle-charging infrastructure.
“The discussions have just started and we are exploring multiple options,” Singh told BNEF. “One of my concerns now is reverse grid-parity, with solar power cost poised to be lower than coal-based power.”
NTPC, which has over 47 gigawatts of capacity mostly fired by fossil fuels, is leading Modi’s solar energy target of installing 100 gigawatts by 2022 by committing to buy clean power in federal government-driven auctions. The generator has also sought bids for building 100 megawatts of wind capacity, as part of its plan to increase it to 1 gigawatt in two years, Singh said.
NTPC has 24,000 megawatts of coal capacity in different stages of construction and enough land for another 5,000 megawatts, where construction is yet to start, according to Singh.
“As of now, we don’t intend to acquire any fresh land for coal-based power plants,” he said. “This year, we will commission 4,500 megawatts, and a similar capacity next year.”
NTPC will add 2,000-2,500 megawatts each year after four to five years, he said.
Solar outstrips coal in past six months of UK electricity generation
Electricity generated by solar panels on fields and homes outstripped Britain’s ageing coal power stations over the past six months in a historic first.
Climate change analysts Carbon Brief found more electricity came from the sun than coal from April to the end of September, in a report that highlighted the two technologies’ changing fortunes.
Solar had already eclipsed coal for a day in April and then for the whole month of May, with coal providing zero power for the first time in more than 100 years forseveral days in May. The latest milestone saw an estimated 6,964 gigawatt hours (GWh) generated by solar over the half-year, or 5.4% of the UK’s electricity demand. Coal produced 6,342GWh, or 4.7%.
Solar power generated more electricity than coal in the six months running up to the end of September
The trend will not continue into winter because of solar’s seasonal nature, but the symbolic records reveal the dramatic impacts solar subsidies and environmental penalties for coal have wrought.
Increases in the carbon floor price last year have driven three major coal power plants - Longannet, Ferrybridge C and Rugeley – to close earlier this year. That came on top of a similar amount of coal power being closed between 2012 and 2014 because upgrading the stations to meet higher air pollution standards was deemed uneconomic.
A fourth coal plant, Eggborough near Selby in North Yorkshire, was expected to close in February but won a reprieve after it signed a 12-month contract to provide backup capacity to the grid. But the power station’s future after that contract is unclear, and its owners are now consulting on whether to demolish it and build a gas-fired one in its place.
According to trade body Energy UK, there are 10 coal power plants left in the UK. One is currently closed for conversion to biomass, one only operates in winter and another (Eggborough) only provides reserve power when needed.
Solar has grown rapidly in the last six years, though figures published last week by the Office for National Statistics showed installations had crashed after the government came to power and cut the industry’s subsidies.
A spokeswoman for the Solar Trade Association (STA) said: “This is a valuable milestone on the road to renewables overtaking fossil fuels. It is a testament to just how effective the British solar industry has been at installing clean and reliable power and at bringing down costs.”
The government said last week that solar power could produce electricity more cheaply than the price agreed for a new nuclear power station at Hinkley Point, but officials suggested solar would have additional costs for the National Grid.
But a new report for the STA, published on Tuesday, concluded that integrating many more solar panels into the grid would not add excessive costs to accommodate the fact the sun doesn’t always shine and backup power is required to cover solar.
“With intermittency costs today of around £1.3/MWh for solar [with around 10-12GW of solar installed], increasing to £6.8/MWh with a substantial 40GW of solar on the system by 2030, we would suggest these costs do not provide a strong argument against the further build out of renewable generation,” said the report, by the consultancy Aurora.
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Anurag Singal
Sr. Manager-Business Development
EMIL, Aditya Birla Group
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