Centre searching for new domestic coal consumers
"The government is now looking for new consumers for the surplus coal. "So far, out of the 67 coal blocks whose allocation was cancelled by the government, 29 have been auctioned. Nagpur: As production of coal in the country has surpassed the demand, government is searching for new consumers for the surplus output. Once the policy on commercial use is cleared, more blocks will be put up for auction too," he said.Goyal said so far captive use of coal blocks is allowed to the private entities. We are open to the idea of exporting coal.
https://www.nyoooz.com/news/nagpur/784030/centre-searching-for-new-domestic-coal-consumers
Coal India to set up methanol plant in WB
World’s largest coal miner CIL will diversify into coal to chemical business and is planning to set up a coal—based methanol plant in West Bengal.
“Coal India (CIL) intends to diversify into new ‘Coal to Chemical business’ domain by converting the high calorific value, low ash thermal coal into chemical,” an official said.
To implement the new strategy, premises of its existing Dankuni Coal Complex in West Bengal has been identified as the location for setting up a coal to methanol complex by using the good quality coal from Raniganj coalfield, the official said.The methanol plant, the official said, would be set up through coal gasification route.“The first step to this new venture will be pre—qualification of coal gasification licensors who can produce Syngas of required composition for production of methanol utilising the Raniganj coal,” the official added.
CIL, the official said, has also invited an expression of interest from internationally reputed technology licensors having the requisite coal gasification technology and those willing to provide the technology for production of synthesis gas (Syngas) on commercial basis.
“The licensor should be capable of providing basic design package for coal gasifiers and associated equipment, including coal preparation for gasifying coal from Raniganj coalfield with ash content up to 28 per cent on commercial basis,” he said adding that the objective is to process Raniganj coal for gasification to produce Syngas for methanol production.
The government had earlier said the domestic coal gas can be used as feedstock for producing urea and other chemicals that can help limit the country’s import bill by USD 10 billion in five years and reduce carbon emission.
Coal Secretary Susheel Kumar had earlier said that India’s dependence on petroleum and natural gas can be brought down or done away with if the country manages to extract gas from coal.
177 mines of Coal India downgraded on quality concerns
The national coal quality watchdog has downgraded 177 of Coal India Ltd’s 413 mines, potentially impairing the monopoly miner’s profitability, starting from the current year. The downgrades took effect 1 April.
A total of 2,636 samples from the miner’s seven subsidiaries were examined and that led to the downgrading of 177 mines, said a key official at Coal Controller’s Organization (CCO)—the watchdog.
A few mines were upgraded too, added this person, asking not to be identified.
Admitting the downgrade, key Coal India officials said the miner’s focus in the current year will be on quality of coal, and that in most cases downgrading was by 1-2 grades only. The company’s profitability will surely be impacted by the move, but it is too early to assess to what extent, the Coal India officials said, asking not to be named.
There will be a negative impact in the short run, said Goutam Chakraborty, an analyst (metals and mining) with Emkay Global Financial Services Ltd. “However, at the same time, the impact may not be too significant going forward,” he added.
Because of the downgrade, Coal India’s realization from the 177 coal mines will decline whereas the cost of mining will remain unchanged or inch up due to inflation.
Coal grades are determined by the gross calorific value of the fuel. Earlier, Coal India used to determine the grade on its own.
After years of bickering between power producers and Coal India over grades and quality slippages, the union government agreed to start a process of independent inspection of coal for quality.
Since the Central Institute of Mining and Fuel Research started monitoring quality, the slippages have declined, said Ashok Khurana, the secretary general of lobby group Association of Power Producers.
Cases of recurrent slippages were referred to the Coal Controller’s Organization and that led to the downgrading of 177 mines, according to Khurana.
“The results of the past year have been encouraging and several power producers have benefited,” he added.
Coal reforms pay off, power cost dips
Coal sector reforms initiated by the Narendra Modi government are beginning to pay. Initiatives to improve coal quality and efficiency in the supply chain have brought down the cost of power from coal-fired plants in spite of revisions in coal prices, central cess and railway freight in the last three years.
Decline in the cost of power has accrued mainly from power stations burning less coal to generate each unit of electricity on assured quality of domestic fuel.
There is also import substitution worth Rs 23,349 crore, which saves fuel costs. Since cost of coal makes up 54-60 per cent of the price charged by power producers and is passed on to consumers, coal consumption has a bearing on tariffs and environmental dividend in terms of emissions.
According to government data, power stations are now burning 8 per cent less coal than they used to do three years ago for each unit of electricity.
http://energy.economictimes.indiatimes.com/news/coal/coal-reforms-pay-off-power-cost-dips/58214651
Expect debt to reduce by Rs 3,000 cr in FY18: JSPL
In an interview to CNBC-TV18, Ravi Uppal, MD & CEO of Jindal Steel and Power Ltd (JSPL) spoke about the latest happenings in his company and sector.
"We are always looking at the various options which are in interest of our stakeholders to see how the loans can be reduced and we have the favourable debt equity ratio", he said.
He expects the growth to go up for the steel industry because the government has put huge amount of investment in the infrastructure sector in particular.
On reducing debt, he said, "First step is to make sure that we do not add any debt and second is to reduce the debt through a gradual process".
At the end of FY18, the debt should be reduced by about Rs 3,000 crore, he added.
Tata Steel eyes branded entry into home segment
With its retail operations gaining momentum, Tata Steel has begun lining up products which will enable it to penetrate the home-segment with branded offerings. The items include steel doors, windows and customised-wardrobes. Some products have been launched on a pilot-basis.
Tata Steel, which stepped into organised steel retailing in 2006 with a store (stocking downstream products of national and international makes) has now identified retail, brands and solutions, as a major vertical which will have an increasing share in its product-basket.
“Till the late 1990s, Tata Steel used to be a B2B company,” said Peeyush Gupta, vice president, steel (marketing & sales), Tata Steel. “In the early 2000s, we thought of approaching the end-consumer.” This endeavour saw the gradual expansion of Tata Steel’s branded product portfolio. From a 5% share in the sales turnover in 1999-2000, the proportion has grown to 45% in 2016-17.
Higher margins
Branded products also mean higher margins, even as it provides a cushion against market volatility. “It does not undergo the cycles experienced in the B2B play,” Mr. Gupta said.
To consolidate gains from the retail thrust, Tata Steel is also offering solutions and services which provide spin-off benefits, open future revenue-streams and keep retail sales from hitting a plateau, at a time when the company’s production and sales are increasing with the commencement of newer capacities as in Kalinganagar.
“A wood-finished steel door is one such ready-solution that we are offering to people who are building houses. The product is innovative — with a wood-like look and the sound of wood, and comes complete with latches and locks. The installation charge is included in the price, as is the steel-frame. The product is fire-safe.” said Mr. Gupta.
Branded as Pravesh Doors, the product is available in the eastern and northern parts of the country and will be seen in the south by July, followed by the west, he said.
To a question on areas where Tata Steel would like to mark its retail presence in the home-segment, Mr. Gupta said : “We would look only at items which can be converted to steel ... we will get into the furniture space.. our point of entry is wardrobes, which will replace wooden ones”.
Tata Steel has test marketed this in north India . “It will come in a big way, under the Cyan brand,” Mr. Gupta said.
Steel toilets
The company also counts among its innovations the Nest-In range of products which includes the easy-to-erect steel-body toilets, currently being used in the Swacch Bharat movement and also in cyclones and earthquake-hit areas.
“This is a complete construction solution and we have many more such in the pipeline,” Mr. Gupta said.
While the home-segment products are sold through distributors, Nest-in is sold directly.
Tata Steel closed FY17 with sales of 10.9 million tonnes, with B2C sales of 1.6 million tonnes. It recorded a and a double-digit growth in the services and solutions business.
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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