The government on Wednesday approved a methodology for commercial mining of coal on revenue sharing basis. The decision was taken during the meeting of the Cabinet Committee on Economic Affairs (CCEA) under the chairmanship of Prime Minister Narendra Modi. The CCEA “has approved the methodology for auction of coal and lignite mines/blocks for sale of […]
Category: Coal
Centre goes for revenue-share model for coal auction
Indicating its readiness to forego a large part of its revenue from coal mining if it results in a jump in the country’s coal production, the government on Wednesday approved a new market-determined revenue share model for auctioning off coal assets, ending the fixed fee/tonne regime that turned off private investors, even as the sector […]
April coal output falls 16.5% to 46.5 MT
Coal production in the country fell 16.5% year-on-year (y-o-y) to 46.5 million tonn (MT) in April with output from Coal India (CIL) falling 11%, SCCL by 46% and captive production dropping 37% annually to 40.4 MT, 3 MT and 3.1 MT respectively, as power plants did not lift the fuel from the mines in the […]
Coal-fired power PLF touch all-time low of 42% in April
The utilisation level of coal-based power plants touched an all-time low in April, with their average plant load factor (PLF) standing at 41.9%, down from 63.1% in April 2019, amid falling electricity usage during the lockdown. PLF of private thermal power plants fell to 44% last month, nearly 14 percentage points lower than April 2019. […]
Coal India under financial stress as power sector dues mount
At a time when the government is bringing in reforms to end Coal India’s (CIL) monopoly while also allotting funds to enhance evacuation following the setting of a target of producing 1 billion tonne by 2024, power sector dues have put the mining monolith under financial stress. Some of the subsidiaries are forced to withdraw […]
FM Sitharaman Highlights: Cheaper air travel, higher defence FDI, commercial coal mining among major reforms
Nirmala Sitharaman press conference HIGHLIGHTS: Structural policy reforms in growth-oriented sectors was the key highlight of today’s reforms rollout as government liberalised crucial sectors for more investment, higher production and more jobs opportunities. FM Sitharaman in her address clarified that Atma Nirbhar Bharat Abhiyan is not about making India isolated. Today, the government announced reforms […]
Govt monopoly on coal finally ends; Nirmala Sitharaman okays commercial mining, other benefits
Finance Minister Nirmala Sitharaman today ended the government’s monopoly on coal by allowing commercial mining to introduce competition, transparency, and private sector participation through a revenue-sharing mechanism in the coal sector. In the fourth tranche of the announcement under the Atma-Nirbhar Bharat mission, FM Sitharaman removed the regime of fixed rupee/tonne pricing of coal. The […]
FM Nirmala Sitharaman’s big reforms push in mining, but no action on high levies
With 500 mining blocks to be auctioned – no timeline has been given, though – along with a Rs 50,000 crore investment to ramp up critical infrastructure, and significant improvement in the process of getting mining licenses, the government hopes to attract large investment in the sector. Even without including oil, mineral imports add up […]
Rs 50k-crore investment in coal infra
Going the whole hog in ushering in unrestricted commercial terms in India’s long-state-dominated coal mining business, the government on Saturday sought to buttress the policy liberalisation steps announced for the sector over the past couple of years, with a host of additional incentives for potential Indian and foreign investors. According to finance minister Nirmala Sitharaman, […]
India’s coal production to clock record 700 million tonnes in FY21: Anil Jain
India will produce a record 700 million tonnes of coal in the current fiscal ending March 2021, helping cut down on imports, Coal Secretary Anil Jain said. India produced 602.14 million tonnes of coal in 2019-20 fiscal, marginally lower than 606 million tonnes output in the previous year. “We are on track to producing 700 […]
CIL’s supply to power sector falls in March amid slump in coal demand
The supply of coal to the power sector by state-owned CIL registered a decline of eight per cent to 42.30 million tonne in March in the wake of slump in the fuel demand due to lockdown. CIL dispatched 45.84 million tonne (MT) of coal in the corresponding month of 2018-19, the coal ministry said in […]
Power producers seek deferment of Shakti coal auctions
With tepid electricity demand lowering utilisation levels of power plants, private power producers want Coal India (CIL) to defer the special auctions planned for plants without sufficient fuel supply contracts. These auctions are conducted under the Scheme for Harnessing and Allocating Koyala (coal) Transparently in India (Shakti), which was implemented to ease supply constraints faced […]