After Rajmahal disaster, CIL's outsourcing under a cloud
As outsourcing gathers steam in Coal India, questions are being raised over safety.
In the wake of the recent accident in the Rajmahal Open Cast Expansion Project in Jharkhand, which has so far claimed 18 lives, coal workers as well as the Directorate General of Mines Safety (DGMS) have raised concerns about lapses in workers' safety. Trade unions allege that safety aspects are often being overlooked, as Coal India is resorting to massive outsourcing of key mines and coal patches.
"Workers are being put at risk as Coal India is widening contractual mining," S Q Zama, secretary-general of the Indian National Mineworkers' Federation, said. He added security measures were not implemented by contractors while Coal India's inspection was not up to the mark.
Although Coal India is responsible for ensuring miners' safety, even in outsourced coal patches, it is the contractor who actually enforces measures. In case an irregularity is noticed, the contractor reports it to the company, which takes requisite measures. However, the implementation of this system has been questioned.
Asked if outsourcing was resulting safety lapses, Rahul Guha, director-general of mines, said, "There is no doubt about it. Indications of an impending accident were overlooked. It is a man-made disaster."
In its preliminary findings on the Rajmahal mine accident, the DGMS has found cracks had developed in the overburden dump, which was not brought to notice, resulting in the slide. The Rajmahal mine was contracted to Mahalaxmi Infracontract.
However, R R Misha, chairman of Western Coalfields, who has recently been given additional charge for Eastern Coalfields, under which the Rajmahal Open Cast Expansion Project operates, is of the view that the accident is not the result of overburden dump failure.
Coal workers have long been protesting against the rising tide of outsourcing in the company, highlighting inequality in wages and benefits and lapses in safety.
Coal India's contract workers accounted for 40 per cent of the production five years ago and this has now reached 55-60 per cent.
NTPC's foray into nuclear energy in DAE's court
TPC's efforts to get into nuclear power have slowed down even as the public sector power generation behemoth is focussing more on renewable energy.
A senior company official said the uncertainty due to higher tariff cost, along with some earlier 'legislative hurdles' are the reasons for lesser excitement for nuclear power projects.
The Parliament cleared the amendment to the Atomic Energy Act 1962 on December 31, 2015. This allowed the joint venture PSUs (public sector undertakeings) to build and operate nuclear power plants.
Impact of delay
NTPC officials BusinessLine spoke to said that ASHVINI — the joint venture between NTPC and Nuclear Power Corporation of India — was to be allocated the 2x700 MW Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP) project in Haryana. But due to delays in the amendment to the law, NPCIL decided to go ahead and build the plant itself.
In 2010, the then Department of Atomic Energy (DAE) Secretary, Srikumar Banerjee, had said that one of the sites identified by the DAE for the 2x700 MW plant would go to a NTPC and NPCIL joint venture company.
In 2011, NTPC-NPCIL formed the Anushakti Vidhyut Nigam Ltd (ASHVINI) with the objective of building nuclear power plants.
But the JV could not begin building nuclear power plants as the Atomic Energy Act did not allow joint ventures of PSUs for the same.
NTPC officials say that the expected power tariff from GHAVP is likely to be close to ₹10/kWh. Further, the plant will be commissioned in another 10 years.
High cost a concern
Assessing the subdued price of power in the country and the low price of renewable energy, officials said that the high tariff cost will be of concern when the plant is commissioned.
Considering that amendments to the Atomic Energy Act have been approved, it is now the prerogative of the DAE to allocate GHAVP to ASHVINI, according to NTPC officials.
In 2014, the estimated cost of the entire project of 28 GW, to be built in two phases, was envisaged at ₹20,594 crore.
http://www.thehindubusinessline.com/economy/ntpc-nuclear-energy/article9466853.ece
China top coal province sets out consolidation plan
China's Shanxi province, the country's top coal producer, plans to cap output and consolidate the industry around big producers over the next four years in a bid to boost efficiency, according to a blueprint by the provincial government.
Major producers will be set up with a separate focus on thermal coal, coking coal and anthracite, while smaller producers will be merged into larger ones, the local authority said on its official website (www.shanxi.gov.cn).
The province's annual coal output would be capped by 2020 at 1 billion tonnes and capacity at 1.2 billion tonnes annually by 2020. Shanxi produced nearly 1 billion tonnes of coal in 2015.
Shanxi, in the country's north, accounts for about a quarter of coal production in China, which has been working to curb overcapacity and a supply glut of the fossil fuel as part of a longer term plan to shift to cleaner fuels.
For thermal coal, which is used in power generation, Datong Coal Mining Group and China Coal Pingshuo Group will become the top hubs, each with an annual capacity of 100 million tonnes, the province said.
Shanxi's central region was expected to become a coking coal base. Shanxi Coking Coal [SHANXA.UL] would be the top producer, operating 107 mines with an annual capacity of 181 million tonnes. It also has coal washing capacity of 120 million tonnes.
The province currently supplies coking coal to China's top steel mills and also exports to Japan and Korea.
Shanxi's eastern regions will focus on anthracite, a high quality coal with fewest impurity and highest calorific value. Yangquan Coal Industry Group, Lu'an Mining Industry Group and Jincheng Anthracite Mining Group will be the top three producers tapping the province's largest mine Qinshui, the report said.
http://www.reuters.com/article/us-china-coal-shanxi-idUSKBN14T096
NTPC to step up sale on power exchanges
NTPC, the country's largest, state-owned electricity generator, is pushing sales in the spot market through a different model. It says it will increase its portion of sale on power exchanges and share the benefit with the respective power distribution companies (discoms). This could also lead to rate reductions. As prices in the spot market have dipped to as low as Rs 2 a unit, this is becoming attractive for the cash-short discoms
Steel Ministry seeks import duty reduction on coking coal, nickel
Ahead of the Union Budget 2017-18, the Steel Ministry has sought reduction in import duty on both coking coal and nickel -- vital components of steel making -- a move that may revive the sector, a top official said.
In an interview to PTI, Steel Secretary Aruna Sharma said the dependence on imports is particularly heavy on nickel, coking coal and gas.
"What we are discussing is whether there is need to take a re-look at their custom and import duties. This is still under discussions. Let's see how it moves out during the Budget," the Secretary said.
The Steel Ministry, in its recommendations to the Finance Ministry, has sought bringing down the import duty on coking, coal, nickel and gas, Sharma said.
While the import duty on nickel is five per cent, in the case of coking coal, it is 2.5 per cent now.
Sharma also said that in the future, the requirement of gas will increase in the manufacturing of pellets and added, "Like what the Prime Minister has said, tomorrow's economy is going to be gas-based."
Pellets are small balls of iron ore used in steel making.
To bring down the imports of coking coal, Sharma said that her Ministry was is discussions with the Coal Ministry to invest in washeries.
"There are two ways of tackling imports. One is to replace the imports with a better alternative fuel. So, we are in discussions with Coal Ministry to invest in washeries and the Coal Ministry has agreed to invest in them so the coking coal imports will come down by nearly 30 per cent which is a very good sign for the coming years," she said.
India has to heavily depend on import of coking coal, as the domestic quality has higher ash content which is unsuitable for the steel industry with present technology.
Asserting the need to go for electric-based or gas-based steel production, she said that "pellet making can easily shift to the gas-based thing if it is guaranteed at affordable prices."
"Now, with the Paris Convention, it is mandatory that we must bring down the carbon footprints. So, that is another alternative we are working on," she said.
Indian Steel Association (ISA), the industry body representing primary steel producers, has also urged the government to reduce import duty to zero on all the raw materials used for steel making.
Sanak Mishra, Secretary General of ISA said, they have also requested the government to reduce railway freight for the steel industry.
SAIL, India's largest steel maker, had recently said there is a need to develop indigenous sources of coking coal to meet requirements as the recent rise in the price of metallurgical coal was putting pressure on its operations.
Warm Regards
Anurag Singal
Sr Manager –Business Development
Essel Mining & Industries Ltd
14th Floor, Industry House
10,Camac Street –Kol-71
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