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Dear Readers,

At a time when leading coal mining companies world over, including those in China, have gone for stock exchange listing to raise funds, the Finance Ministry’s suggestion for considering an Initial Public Offering for Coal India Ltd (CIL) is a welcome step. Experience suggests that all companies have benefited after going public and the move by the Indian government will indeed benefit CIL as well.

Incidentally, at least four Chinese coal companies, China National Coal Group Corp., Shenhua Group, China’s largest coal mining firm, Yanzhou Coal Mining Co. Ltd, Heilongjiang Longmei Mining (Group) Co., Ltd., among others, had gone for overseas listing to raise funds in the last two years.

The move had not only benefited the companies, but also helped China increase its coal production capacity in a big way to match the growing demand. Even a majority of coal miners in the US, the UK, Australia, South Africa as well as in Indonesia are listed in stock exchanges.

In such circumstances, the listing in stock exchanges of India’s national coal producer, CIL, which is also the world’s single largest coal company, much bigger than the likes of BHP, Xstrata and Peabody, will improve its status and also bring it at par with well known names. Incidentally, the world’s second largest coal mining company is based out of China and its annual production is slightly less than 200 million tons.

In this issue of Coal Insights, we have covered the implications of proposed stock exchange listing of CIL at a time when it will have to increase its production to a staggering 521 million tons per annum by 2011-12 in order to meet domestic demand, compared with nearly 380 million tons produced in 2007-08.

The production plan has been revised recently by the new minister of state for coal and it is expected that the revised target would be over 550 million tons by 2011-12.

According to the revised production plan, CIL will have to increase its coal output at a CAGR of nearly 10 percent against the earlier growth plan of 6 percent. To meet the target, it is necessary that CIL starts implementing some innovative ideas and many feel IPO will be handy in achieving the target.

It is expected that an IPO will lead to increased professionalism and CIL will become more responsible to address the requirements of all the stakeholders, who quite often complain about the service quality of the company.

However, there seems to be some uncertainty regarding Coal India coming out with the proposed IPO as not only there is likely to be opposition from the Left, which is known to be against any move to dilute stake in any of the government companies, but even the company itself is not that keen on going ahead with the issue before getting the “Navratna” status.

The company first wants to get the coveted status and then go for IPO, but this strategy may not work in view of opposition by the Left, which feels that not only there should not be any kind of dilution in stake in any government company, but ‘Navratna’ companies should be specially exempted. So if CIL gets ‘Navratna’ status, the IPO plans may take a back seat.

Best regards,Editor

COAL INSIGHTS � JUNE 2008

COnTEnTs

Coal MaRKet FunDaMentals 8 Thermal coal prices touch record high 12 Coking coal prices likely to keep

soaring

CoveR stoRy

27 WCI suggests strategy for sustainable energy future

28 Essar to start CBM project in Durgapur

29 CVIfundsinsufficienttoacquireglobal assets

29 SECL against giving coal block part to private player

30 HIsmelt technology reduces dependence on coking coal

31 Coalministryfinalisingblueprintforregulator

32 MMTC invites bids for supply of coke and steam coal

33 New Coal Act planned for captive mining

CoRpoRate upDate

14 Coal India IPO plan hangs in balance16 Why should CIL go for the IPO?18 No IPO before Navratna: CIL chief

FeatuRe19 CoalblockidentifiedforCTLproject20 RioTintofilesfordiamondmining

lease in India21 Tata Power arm wins global honour21 PFC to invite proposals for Jharkhand

power project22 Indian steel cos close coal deals for

FY0922 RINL coking coal tie-ups23 CILconfidentofmeetingsteelcos

demand24 Coal as a fuel set to remain strong

globally26 State power utilities demand revision

in coal unloading norms

34 Coal India should try to create brand image: Ranganath

paRliaMent news37 Legislators’ coal queries

logistiCs44 Paradip Port to double coal handling

capacity

46 MCLconfidentofachieving15%output rise

poweR seCtoR upDate51 All India installed capacity52 All India energy generation

programme 57 Peak Demand/ Peak Met

(Provisional) 58 Power Supply Position (Provisional)

snapshot63 Lack of funds plague Tanzania coal

sector

Coal wiRe64 Domestic News70 International News

all inDia Coal Data 73 Coal Production Data

e-auCtion Data 78 E-auction details of CIL 79 E-auction by coaljuntion

Coal iMpoRt Data 82 Coking coal during April - June 200885 Non-Australian Coking Coal Imports

During 2007-08 87 Non-coking coal during April - June

2008

COAL INSIGHTS � JUNE 2008

LETTERs TO EDITOR

EditorCoal Insights

14 June 08

Your May issue of Coal Insights, which handled the issue of land acquisition in India with great sensitivity and in great detail, was thought provoking, to say the least.

Land acquisition has become a critical impediment in the industrialisation of India, and there is little doubt that uncertainties on land acquisition are costing the nation dearly both in terms of time and money. Very few realise that precious opportunities are being lost, which may not again come India’s way.

It may be misconstrued that I am only voicing the industry perspective, without any insight into the trials and tribulations of landowners who have to give up their land. Here, I would like to present my personal experience on the matter.

As the managing director of the then Ipitata Sponge Iron Ltd, which is now Tata Sponge Iron Ltd, a joint sector undertaking between the Orissa government and Tata Steel, I was personally involved in acquiring 310 acres of largely agricultural land in Bilaipada near Joda in the Keonjhar District of Orissa. This was done as far back as in 1980-82. Things may have been different 25 years ago, but the lessons that I learned are perhaps valid even today.

No amount of policy making and legislation can resolve the issue of acquiring the land belonging to farmers and villagers who have been living in an area for generations together. It is an emotional bonding, and emotions inevitably do not know logic. In Orissa for example, there is a tradition in some villages that they bury their dead within their premises, i.e. in the courtyard of their own residence. For them, to give up land for industrialisation becomes an extremely difficult emotional decision because of obvious reasons.

Yet, my own experience was that everything can be won over by faith and trust. It is possible to make them feel a part of the development and then acquire their land. In Ipitata’s case, more than 80 percent of the land was farmland in which paddy was grown. All that we promised was that irrespective of how much land was being acquired from any individual landowner, Ipitata would provide one job for the family. We kept our word and more than 200 wards or nominees of landowners were given jobs in Ipitata either before or soon after the plant commenced operation in 1986-87.

In the interim period, we also made sure that the landowner nominees were given jobs matching their skills by the contractors involved in erection of the plant. As the CEO, I faced no problem at all with the villagers during the five years that I was involved with Ipitata. I think it was the trust that the villagers had in me was responsible for the largely smooth stint.

One of the articles in your issue correctly focuses on trust as the key factor in acquisition of land. If the intentions of the

company involved are clear and honest, it is not very difficult to get the trust of innocent and simple villagers.

What spoils the whole atmosphere is the interference of politicians and other agencies that are busy looking after their own small gains and selfish interests. I am afraid no amount of R & R Policy initiated by CIL and other big agencies can get around this issue. Whether it is the Tata Motor’s project in Singur, or the Enron project in Maharashtra, or several other projects throughout India, the common thread in all land disputes is interference from politicians.

I was lucky that when I was in Orissa, the authorities were able to rise above their own immediate gains. I admit that things are not as easy as they sound. Simply offering compensation money, for instance, is no solution. Ours is a poor country, and here we are talking of dealing with often the poorest of the poor. Among a lot of other procedural problems, one is the sudden emergence of “relatives” after compensation money has already been paid!

I thought I should communicate my views as land acquisition is becoming a painful but a real obstacle to the industrialisation of India, and pertinent experience can always be helpful for policymakers. Amartya Sen himself pointed out that, “Manchester was once a village.” If we want to create many Manchesters in India, we cannot let these issues spoil the party.

I would also like to take this opportunity to say that all the publications of mjunction look great and maintain very high standards in their presentation and designing, as well as the quality of their content. I congratulate the Chief Editor, Kohinoor Mandal, and his entire team for this.

This is indeed a true reflection of the work culture at mjunction, which has been carefully nurtured by your Managing Director, Viresh Oberoi.

I feel proud that you are a part of the Tata family, with which I have been associated for the last 36 years. Kudos to all of you at mjunction.

Amit Chatterjee,Adviser to the MD,Tata Steel

I read Coal Insights regularly and thoroughly, and I feel it covers the coal industry extensively and effectively.

However, I would like to put in a word on how I feel the magazine can be improved further. I suggest you should highlight the expectations and perceptions of people in the country from coal companies. In fact, it would be really good if you can cover the expectations and perceptions of the common man who is in no way related to the coal business.

The general perception of Coal India now is not very encouraging. I feel Coal Insights can play a big role in improving the public perception of Coal India, whose contribution in India’s energy generation is enormous.

If you give the truth to people, at least Coal India will be projected correctly, as a company which supplies 80 percent of coal to fire all the thermal power stations in the country.

S.R. UpadhyayChairman cum Managing Director,Mahanadi Coalfields Ltd.

COAL INSIGHTS 8 JUNE 2008

COAL mARkET funDAmEnTALs

Global thermal coal spot prices touched record high levels this June after National Development and Reform Commission of China announced the price

control.. In order to meet brisk demand for electricity in the domestic

market, Chinese government announced the enforcement of such policies as setting the sales price of thermal coal at the highest contract price on June 19 as higher limit and prohibiting price hike of thermal coal for half years from June 19, 2008 to December 31 and raising electricity prices by 0.025 yuan per kWh.

The spot prices of both Australian and South African markets have soared since Chinese government announced the above policy on June 20.

The selling price has risen particularly at the Austrian market (loaded at Newcastle). The selling price on June 23 reached US$185.00, soaring by US$15.50 compared with the previous day. On the other hand, no change has been seen in the buying price. The price on June 23 increased US$1.00 to US$159.00.

At the South African market, both the selling and buying prices have soared. The selling price on June 23 increased US$5.00 to US$161.00 compared with the previous day. On the other hand, the buying price soared to US$146.00, increasing by US$11.00 from the previous day.

Due to historically soaring coal price, the suppliers in China could possibly shy away from selling coal with limit on the price in the domestic market. Subsequently, the demand and supply of thermal coal in China could possibly get stringent.

If so, coal imports in China would increase, which could contribute to further tight demand and supply of thermal coal in Asian area.

In addition to the concern over whether Chinese government issued Export License for coal or not, worrying factors have added to the demand and supply of thermal coal in Asian market, which has further tightened thermal coal markets both in Australia and South Africa.

There has been uninterrupted rise in thermal coal price since April 4 when the index was at 119.59 levels. Since then, price has just been on the rise. During May, globalCOAL NEWC index appreciated by more than 14 percent. According to the index, global thermal coal price touched $ 151.7 per ton for the week ended May 30.

This trend continued even further and touched record level of $162.66 per ton for the week ended June 20.

Rio Tinto Group said that coal prices are likely to go up in future all through next year on the back of robust demand.

According to available reports, thermal coal for delivery in northwest Europe rose to a record $175 a ton during the second week of June, as railroad and port bottlenecks in Australia and South Africa limited supply and demand rose.

It has been reported that major miners including Rio Tinto, Xstrata Plc and BHP Billiton are seeking to expand capacity at Australia’s Newcastle port. It has been learnt that shipments from the port in the week ended May 26 fell by 18 percent (w-o-w) and vessel queue rose once again to 39. The market is in a real tight scenario with tremendous summer demand emerging from the Asian markets.

Thermal Coal Prices Touch Record HighsArnab Mallick

globalCOAL NEWC index

2 May 2008 133.00

9 May 2008 133.63

16 May 2008 134.85

23 May 2008 138.35

30 May 2008 151.70

6 June 2008 158.53

13 June 2008 160.23

20 June 2008 162.66

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globalCOAL NEWC Index

COAL INSIGHTS 10 JUNE 2008

COAL mARkET funDAmEnTALs

Meanwhile, on June 4, the port had to stop ships from entering as a storm battered the New South Wales state coast, and this gave the final boost to the already rising thermal coal price to touch record highs.

But on a whole, infrastructure to support export at Newcastle port, the world’s largest coal export-harbour is far from a normal state at the moment. And global market is only seen to remain very tight in the medium term.

In addition to the severe infrastructure bottleneck in Australia, the coal supply scenario in South Africa is also severely alarming.

There are severe apprehensions that South Africa, the biggest supplier of steam coal to the European market, may not be able to meet the full demand of European Union and EU would be forced to buy coal from Australia or Indonesia that would lead to further increase in prices.

It has been reported in the media that South Africa is developing a strategy that may limit shipments to help ease a domestic power crisis.

Any cut in coal exports from South Africa will result in European consumers seeking volumes elsewhere, mainly Indonesia and Australia and this would further tighten the market.

Along with the Chinese buyer, the demand from Indian buyers is also very strong at the moment. Indian buyers, who have been trying to get into long term contract with global suppliers have been failing as suppliers are becoming unwilling to get into a contract when the market is very tight and prices are soaring at such a fast pace. This is making things worse on the domestic front as well.

Meanwhile, it has been learnt that Indonesia, a major coal producing nation, is seeking to enter into such type of long term contract wherein it will be in a position to benefit from any increase in the spot prices.

Simon Sembiring, director general of Coal and Mineral Resources at the ministry, has told media representatives that, “Existing sales contracts take account of annual price changes and ``that’s not fair and don’t reflect global market prices,’’ which can change anytime.”

According to him, the government expects mining companies in Indonesia to produce 261.61 million tons of coal next year which is more than the estimated 232 million tons this year.

In the meantime, domestic coal consumption may touch 75.4 million tons in 2009 from 52.6 million tons this year, he noted.

The globalCOAL RB index showed significant increase during May as well.

Outlook

The global coal market just does not seem to go right. The infrastructure bottlenecks in Australia have been heating the market for several months now.

On the other hand, global demand for thermal coal is robust. It became even strong with summer setting in Asia that created huge amount of coal for emerging markets in Asia, including India.

It is estimated that supply growth in China will be insufficient to keep up to the growing demand. This will further add to the existing tightness in the market.

Consequently, the upward pressure on the global thermal coal price will continue to persist over the next two month, at least.

In the short term, there is no sign of market cooling down. It would surely be tough for the suppliers to sustain such high levels in immediate future and there might be some easing against last few weeks. But market shall remain tight and price would sustain at relatively much high levels.

RB Index

2 May 2008 110.82

9 May 2008 113.18

16 May 2008 113.53

23 May 2008 121.06

30 May 2008 133.40

6 June 2008 130.15

13 June 2008 136.47

20 June 2008 144.00

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Week ended

RB Index

COAL INSIGHTS 12 JUNE 2008

COAL mARkET funDAmEnTALs

With the conclusion of long term agreement (LTA) for the current fiscal between global steel leaders and coking coal producers, Indian steelmakers too

managed to finalise delivery contracts for the financial year beginning July. Following the recently set benchmark of around $300 a ton by Japanese steel makers, the Steel Authority of India Ltd (SAIL) has signed an LTA at the same price.

SAIL has signed contracts with six to seven suppliers. It is estimated that SAIL would import 13-14 million tons in 2008-09. These contracts will cover more than 90 percent of its needs. The suppliers are based in Australia, New Zealand and the US. It is learnt that another leading private steel maker has also signed LTA and the price settled was around 15 percent more than the benchmark price.

Leading coke makers have also been finalising their deals. Pike River Coal Ltd has recently announced that it has settled selling price of its premium hard coking coal with two Japanese steel mills as well as Gujarat NRE Coke Ltd and Saurashtra Fuels Pvt Ltd at $300 per ton.

Meanwhile, Australian company Wesfarmers Ltd, has more than tripled the price it charges for Curragh Mine coking coal. It is expected to get prices as high as $300 a ton. According to the company’s statement, Queensland mine output will be within the forecast of 6.1-6.5 million tons for the year ending June 30.

Amid the tightness in the supply market, the demand is pretty robust and likely to remain so in the second half of the year. But continuing infrastructure bottlenecks in Australia and natural calamities at other parts of the globe may worsen the coking coal supply scenario. However, there are growing apprehensions about the shortage of export licence (EL) from China. There are rumours that the Chinese government might release additional EL of 21.20 million tons. But at this stage, it is not known when this will be released, or whether it shall be released at all.

The Tex Report said due to EL shortage, there have already been cases of cancellation of existing contracts for low volatile PCI coal and other types to Japan and South Korea and further delay in release of additional EL might trigger many such cancellations. Consequently, things are getting even tighter.

Meanwhile, as per a recent Tex Report article, contract negotiations on hard coking coal of Australia origin for fiscal 2008 between Japanese BFs and Xstrata Coal is facing difficulties as Xstrata is asking for a steep price rise, far exceeding the contract price that has been settled with other suppliers.

Global Trade Scenario

ImportsAccording to customs clearance statistics of China, coking coal imports of the country have gone down by 9.6 percent

(y-o-y) in April 2008 at 5.31 lakh tons, against previous year’s corresponding figure of 5.88 lakh tons.

South Korea imported 2.18 million tons of coking coal in April 2008 at an average price of $148.16 a ton. In May 2008, imports fell to 1.35 million tons at an average price of $206.26 a ton. According to Japan’s finance ministry, Japan imported 2.05 million tons of coking coal in March 2008 at an average price of $111.18 a ton. However, average import price of coking coal from China during the same period stood at $210.44 per ton. Meanwhile, Taiwan imported 4.96 million tons in April 2008 registering 22.9 percent y-o-y growth.

ExportsAustralia’s hard coking coal export during January-March 2008 has recorded over 13 percent decline (y-o-y) to 17.63 million tons from previous year’s comparable figure of 20.42 million tons. In April 2008, the US exported 3.90 million tons of coking coal at an average price of $131.71 per ton.

OutlookUBS AG has revised its forecast for coking coal price upwards by 50 percent for next year. It has put the figure at $300 per ton from the previous estimate of $200 per ton, primarily on the back of slow output growth from mines in Australia and Canada, and robust growth in demand from steel makers across the globe.

A Credit Suisse group analyst has estimated coking coal price to increase to more than $350 per ton on back of similar apprehensions. Merrill Lynch & Co. has also raised its forecasts for coking coal to $320 a ton next year, 78 percent more than the previous estimate. Macquarie Group Ltd has also said in a recent report that supply of coking coal will fall short of consumption this year also.

According to a recent Dow Jones report, New World Resources NV may increase its coking coal prices by as much as 40 percent next year to match international market rates.

Dow Jones cited Executive Chairman Mike Salamon said that the company is selling at an average price of $213 ton this year compared with world prices of about $300, leaving ``a lot of room to catch up.” New World, which produces about 6.7 million tons of coking coal annually, raised prices by 61 percent this year, Dow Jones said.

In a nutshell, our outlook remains the same as it has been over the last few months. The market is in an extremely tight state with contract prices seeing record levels. Interestingly, even at these high prices steel makers are finding it difficult to finalise contracts as suppliers are trying to make the most of the optimistic mood, thanks to the severe supply crunch.

SAIL signs LTA for $300 a ton

Coking coal prices likely to keep soaringArnab Mallick

COAL INSIGHTS 1� JUNE 2008

COvER sTORy

In what is being termed as another bold move after the fuel price hike, the UPA government is pushing for disinvestment in profit-making PSUs. This time, the list

includes the world’s largest coal producing company, Coal India Ltd (CIL).

In a letter, the Department of Disinvestment under Finance Minister P. Chidambaram, has asked the Coal Ministry to seriously consider selling 10 percent stake in wholly state-owned CIL through an initial public offer (IPO).

CIL has a paid-up capital of Rs 6,316 crore and has posted aggregate profits of Rs 9,576.22 crore in 2007-08, 12 percent higher than the previous financial year.

Besides detailed financial information on CIL, the Finance Ministry is understood have also sought the Coal Ministry’s assessment of the company’s valuation in today’s market condition.

Incidentally, the idea of IPO was first floated around two years back in the beginning of 2006. There was a proposal of partial stake sale of 5 percent in CIL through an IPO, which ran into rough weather due to political reasons. The Finance Ministry has now asked the Coal Ministry to reconsider the IPO proposal.

Meanwhile, the Coal Ministry is gearing up to seek a third party opinion on valuation. The IPO could be through a combination of issue of fresh shares and part sale of government equity. Either way, Coal Ministry sources admit that the move will trigger angry reactions from its Left allies who consider coal mining areas as their traditional strongholds.

CIL is the holding company of seven coal producing companies - Northern Coalfields, South Eastern Coalfields, Western Coalfields, Mahanadi Coalfields, Eastern Coalfields, Bharat Coking Coal and Central Coalfields. It is also the holding company of Coal Mining and Development Planning Institution, a research and development arm.

It is understood that the proposed IPO will be for CIL as a whole, and the subsidiaries will not be listed separately.

CIL’s equity base comprises 63.16 million equity shares of Rs 1,000 each. The shares of Rs 1,000 face value are likely to be split to a face value of Rs 10 each before the IPO. It is expected that through the IPO, the company will be able to mobilise funds to the tune of more than Rs 7,000 crore.

While the funds raised through fresh issue of shares would be used by CIL for its own expansion plans, that mopped up through sale of government equity would accrue to the government kitty.

As of now, it appears that the Coal Ministry under Prime

Fate of Coal India IPO

Plan Hangs In BalanCeCoal Insights Bureau

Minister Manmohan Singh has not yet taken any view of its own in the issue, and is waiting for inputs from CIL.

Doubts over IPOMany in the financial market circles, however, doubt whether the proposed IPO will ultimately materialise. The last time the UPA tried to push the disinvestment agenda through an IPO of Neyveli Lignite Corporation, it had to go back on a Cabinet decision since the alliance’s southern ally, the Dravida Munnetra Kazhagam, threatened to pull out.

Meanwhile, Coal Minister Santosh Bagrodia confirmed that the finance ministry had asked for some details about the company. “We have in turn asked CIL for information,” he said. However, it is said that since the present policy does not envisage disinvestment by the government in a Navratna company — a status which CIL is expecting shortly — the finance ministry’s proposal seems to be aimed at ensuring that the IPO precedes the Navratna status.

Last month, the finance ministry was faced with a similar situation when the follow-on public offer of NTPC Ltd, a Navratna company, came up. The ministry could not agree to the proposal as it was against the disinvestment policy.

Market analysts, however, said the environment was not conducive for any large IPO at this stage. “I am sure the finance ministry will have second thoughts about the IPO because they would also like to wait to have best possible valuation for the equity,” said a Mumbai-based analyst, citing the recent slide in the Sensex and the Nifty.

“Though the move may be part of the government’s overall strategy to raise funds (through profit making PSUs) but the actual implementation will be difficult till the market stabilises,” added the analyst.

COAL INSIGHTS 1� JUNE 2008

COvER sTORy

Coal India’s initial public offering (IPO) plan has been gathering dust for more than two years now. The then chairman Sashi Kumar first floated the plan that the

company should be allowed to tap the capital market. The proposal was then shelved due to political differences.

It was argued that the IPO will help the company raise funds for future expansion, which was not acceptable to some of the political parties on various grounds.

However, after a gap of more than two years, the proposal has been raised once again. Only this time it has come from the government itself, and not from the company management. This has baffled industry insiders, as the government recently refused a follow on issue to NTPC, another public sector biggie.

At a time when there is heated debate in favour of, or opposing the IPO, Coal Insights thought it prudent to dig slightly deeper and find out what could have been the reason for the government’s sudden change of mind, especially when its major ally – the Left – is dead against any kind of divestment in PSUs.

The Prime Minister’s initiative has been welcomed by industry circles as well as the media. In fact, the popular notion is that the government should divest stake in profit making PSUs and raise capital to cut its expenses by mobilising all its resources in order to check the spiralling inflation.

It is argued that with a paid-up capital of Rs 6,316 crore and posted aggregate profits of about Rs 9,576 crore, Coal India is fairly comfortable financially, and the government would be

able to raise a fairly good amount by divesting even a small part of it.

Similarly, the government should consider divesting from other profitable PSUs and investing the capital raised in development and infrastructure projects.

Others, however, feel that the IPO move is primarily to mop up funds to tide over the country’s financial problems. They have, in fact, likened this to selling family jewels to overcome a crisis that can be done by raising other resources!

It is also being said that a stake sale in chronically sick PSUs makes sense, but to privatise profit-making PSUs is clearly not in order.

Critics also argue that in a polity like ours, the government should remain committed to a strong and effective public sector, whose social objectives are met by commercial functioning. This is especially true of some industries which are reserved for the public sector, coal mining being one.

Divestment is justified by some who claim that the government’s finances are in bad shape and need to be shored up, but that seems a bit exaggerated. And even if that is partly true is the situation so bad that the government needs to put its assets on sale?

The fact is that since Coal India is a profit-making concern, it is capable of mobilising resources for investment and expansion from its own funds. It does not need to take the route of divesting equity in order to mobilise resources for modernisation.

Having gone through some of the arguments since the government decision was made public in early June 2008, Coal Insights tried to find if there could be another explanation for the government’s decision.

We spoke to the Coal India chairman P.S. Bhattacharyya, who in the past had opposed the idea of an IPO, especially at a time when the balance sheet of the company is very healthy and it has huge cash in hand to invest on any kind of expansion and modernisation.

In favour of IPOThis time, however, Bhattacharyya came out with an extremely innovative reason for the need to come out with IPO.

According to him, Coal India has identified nearly 190 projects that would be taken up during the Eleventh Plan to reach the production target of 521 million tons per annum by 2011-12.

Why should CIlgo for the IPO?

Rakesh Dubey

COAL INSIGHTS 17 JUNE 2008

COvER sTORy

For these projects, a total of about 41,000 hectares of land would be needed. Of this, only 12,000 to 13,000 hectares of land falls under the forest area, where there is practically no need to resettle human population. For the rest and majority of the population, acquisition might become a major issue.

With the recent events in Nandigram and Singur where land acquisition process had led to severe repercussions not only from local people, but political parties as well, the acquisition of habitable land for doing mining is going to be a difficult proposition, Bhattacharyya said.

In order to pacify the project-affected people and ensure smooth acquisition of land, Coal India had recently come out with its own Resettlement and Rehabilitation (R&R) policy, taking a cue from the national R&R policy. CIL’s policy talks about total community development instead of merely acquiring land and paying a price for it.

Bhattacharyya feels that if the company goes for an IPO, it would then become easier for it to acquire land. Since it is looking at total community development, the company will be in a position to offer shares to those from whom it is going to acquire land.That will provide an ownership to the displaced people, he said.

A case in point is the recent smooth acquisition of land by Jindal Steel and Power Ltd for its mega greenfield steel project at Salboni in West Bengal, Bhattacharyya said.

Incidentally, the steel company had been able to acquire land by offering shareholding in the company to the oustees, thereby creating a sense of belonging and confidence among them. The idea was not only innovative, but also successful. Not even a single protest over land acquisition at Salboni, which is not far away Singur and Nandigram where largescale violence took place over land acquisition.

Exodus of executivesAnother important issue that the proposed IPO could help to address is the expected largescale exodus of senior executives from Coal India to private mining companies, which have been allotted blocks for captive mining.

Till now poaching of executives from Coal India by private coal companies has not been a major issue, but it is perceived that as soon as these private companies plan to start mining, they will need experienced people to supervise their mining operations.

Private companies are unlikely to get experienced mining executives from any other place other than Coal India and its subsidiary companies.

So once the IPO is in place, Coal India might be in a position to offer Employees Stock Options (ESOP) to its senior executives in order to prevent them from leaving the company.

COAL INSIGHTS 18 JUNE 2008

COvER sTORy

Contrary to expectations that Coal India will immediately jump to take advantage of the government suggestion to come out with an initial public offering, chairman P.S.

Bhattacharyya, in an exclusive interview to Rakesh Dubey, ruled out the possibility before getting the ‘Navratna’ status. Bhattacharyya also shared his views on other developments taking place in the company.

Excerpts:

You have been asked by the government to prepare for IPO. How do you intend to move forward?There is nothing to move forward on, as of now. It is just that the government has taken a general decision that large companies with net worth of more than Rs 200 crore should be listed on the stock exchange. We also feel that should happen and would like to apply with the government for listing. But in terms of priority, we would like to be listed only after getting the ‘Navratna’ status because that will have an impact on our valuation.

By when do you expect to get the ‘Navratna’ status?It should not take too long, because it has already crossed the Inter Ministerial Group stage and now it has to go to the apex committee of secretaries of various ministries. That is the last stage and once it is cleared by the apex committee, it should be through. Given the kind of strategic relevance that we have today vis-à-vis the status of other ‘Navratna’ companies, I don’t see any reason why it should be denied.

CIL is flush with funds, and it does not need to go for IPO to raise funds. So why do you still want to go for it? The biggest benefit that we perceive in IPO is governance. A listed company has to follow certain norms, and we want all our companies to be exposed to the stringent norms in terms of reporting systems.

Another very important thing is we want to issue shares to the landless people as part of the Resettlement and Rehabilitation policy. If they are losing land and gaining ownership in a company, it will help us in acquiring land. We also want to issue shares to employees. We want to build this as part of our R&R policy and that can happen only if the company’s shares are listed on stock exchanges.

You had invited expressions of interest (EOIs) for developing seven underground mines. What is the status?The response of EOI so far is extremely good and we have extended the date of submission of bids to June 27. Hopefully then we will be able to assess the actual response.

What is the status of the EOIs invited to set up washeries?We are expecting a good response. In order to elicit better response, we have removed the clause that says if bidding is done by a consortium company, every member must have experience of either having set up a washery or operating a washery in the past. Now if the consortium in totality has the

experience of setting up and operating a washery, it is enough. Even if the lead member or any member in the consortium does not have such experience, we are OK with it now.

We decided to remove the clause because there could be financers who can put the money together, but does not have the experience. Now we even plan to allow such people to bid.

By when do you expect to invite EOIs for developing abandoned mines?We will invite EOIs for developing 26 abandoned mines, and they will be floated towards the end of June. Once that comes, some of these mines can resume production if world-class technology is made available to them. It is difficult to estimate any production figure from these mines as of now.

Is it true that this plan to invite EOIs to develop abandoned mines came only after ArcelorMittal offered to developed abandoned mines of Coal India? I would say ArcelorMittal’s proposal acted as a catalyst and triggered the process to a certain extent. We took stock of all the abandoned mines and arrived at the number of mines where reserves are there to be exploited. Possibly with the help of some new technology, it should be possible to do this.

no IPO before navratna: CIl chiefGlobal mining firms bid for

CIL’s UG mining pactCompanies like XIndia Ltd, Australia’s White Mining Co, Bucyrus and UK’s Anglo Coal are among the companies who have evinced an interest to carry out an underground mining contract in seven Coal India blocks.

CIL has invited expressions of interest (EoIs) for undertaking underground mining contracts in seven mines located in West Bengal, Jharkhand, Orissa, Chhattisgarh and Maharashtra.

These would be a long-term contract for extracting anything between 2 to 5 million tons (mt) of coal annually from each of these mines. Reserves are in excess of 400 mt in all these blocks and selected parties will invest in installing machinery and equipment in these mines.

Opening up seven new underground mines is part of CIL’s plan to enhance coal production from such mines to balance the supply of coal from opencast and underground mines. Currently, coal production is heavily skewed in favour of opencast mines.

Incidentally, a few companies interested in entering into contracts with CIL for underground mining have asked for more time to participate in the process of expression of interest. Accordingly, the last date for submitting EOIs has been extended from May 25 to June 27.

COAL INSIGHTS 19 JUNE 2008

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The coal ministry is all set to allot blocks for coal-to-liquid (CTL) projects. This is in spite of the Minister of State for Coal, Santosh Bagrodia’s comment barely a month ago

that he was not willing to give much priority to CTL projects. However, it seems the Prime Minister’s wish has finally prevailed. This has happened came exactly a year after an amendment was made in the Coal Mines Act in July 2007, wherein a provision was made that coal would be used to produce syn gas.

Now the ministry has not only identified a block for such a purpose, but has also invited applications from interested parties on June 19, 2008, for setting up such projects. The identified block for this CTL project is Palasbani in Talcher Coalfield area of Mahanadi Coalfields Ltd. The block is situated in Angul district of Orissa and its area is about 35 sq.km. spread over 12 coal seams with estimated total indicated reserve of 1500 million tons up to a depth of 600 metres.

That India should pursue CTL projects was first mooted by an Investment Commission headed by Ratan Tata way back in March 2007. Taking note of the recommendations, the PMO formed an inter-ministerial group in the Planning Commission to examine the feasibility of converting coal to liquid fuel and gas. In its presentation, the commission had noted that CTL was a feasible proposition and should become an integral part of India’s strategy for oil security. On its part, the PMO had suggested that a time-bound action plan should be prepared in this regard for ensuring oil security.

India, the commission argued, would have to import more than 90 percent of its oil requirements in the future and as new oil finds were unlikely to reduce imports, there was a need for CTL projects to ensure oil security. It had also noted that the low-grade coal in the country would not be a constraint and the converted liquid fuel and gas would be ultra clean. The project, it said, would require captive opencast coal mines with pit-head reserves of 1.3 billion tons of coal.

The commission also pointed out that the CTL technology was a success in South Africa with a significant impact on its economy. It felt that a mechanism for Centre-State partnership would be essential for the success of such a project. Incidentally, China too is pursuing CTL projects in a big way and the world’s biggest such plant came into operation recently in that country.

It said that four to five CTL projects can double India’s domestic proven oil reserves and the proposed project will add 20 percent to it. The liquid fuel to be produced would be predominantly diesel, but will also include naphtha and LPG.

After the presentation, the commission had recommended that as a first step, it was necessary to notifiy that CTL would enable large-scale consumption of coal.

Following this, the government had made amendments in the law, then constituted an inter-ministerial group to ensure speedy allocation of blocks. This was not only to iron out any differences, but also to evolve better guidelines for the technology.

The IMG was set up under the Chairmanship of Member (Energy) Planning Commission with representatives from the department of expenditure (Ministry of Finance), department of industrial policy and promotion (Ministry of Commerce and Industry), department of science and technology, ministry of petroleum and natural gas, and ministry of coal as members.

The IMG will also undertake detailed scrutiny of applications, evaluate them and obtain feedback from stakeholders. It will make additional recommendations to the government and allocate the blocks on the basis of relative merit. It will also monitor the progress of CTL projects and suggest changes in the guidelines.

IMG has been given the right to invite experts for its assistance and the ministry of coal will provide it with secretarial assistance. A viable coal liquefaction project requires at least 20 million tons of coal per year and the proposed block identified for the project meets this criteria.

Eligibility CriteriaSince the expected investment for 3.5 million tons oil and oil products project is around $6 billion to $8 billion, the government has set certain conditions to be eligible for applying for blocks for CTL projects.

The applicant company should have minimum net worth of Rs 4000 crore. It will also have to provide details of collaborations with the proven technology providers, along with supporting documents.

Coal Block Identified For CTL Project Lokenath Tiwary

Bigwigs ready for CTL projectThe country’s top corporate houses, including the Tatas (with Sasol Group of South Africa), Mukesh Ambani-controlled Reliance Group, the Jindals along with the Adani Group and others have already evinced interest in setting up CTL projects.

With the invitation of applications for a single coal block, all these companies will now have to compete and outbid each other to secure rights for a cluster of coal blocks with estimated reserves of about 1.5 billion tons, for their proposed $8 billion CTL project in India.

With the soaring cost of crude oil, currently close to $130 a barrel, there has been a huge rush of proposals from big corporate houses for coal block for setting up CTL project.

Tata Chemicals was the first to announce a technology tie-up with South Africa’s Sasol for setting up a CTL project, which was followed by Reliance, the Jindals and Adanis submitting similar proposals along with the details of their respective technology partners.

COAL INSIGHTS 20 JUNE 2008

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Rio Tinto said on June 23, that it has lodged mining lease applications for its Bunder diamond project in the Bundelkhand region of Madhya Pradesh, which

is a vital step in the development of what could be the first significant world class diamond mine in India.

The company also said in a press release that it has set an exploration target for diamond mineralisation of 40 to 70 million tons at a grade of between 0.3 and 0.7 carats per ton at the Bunder project. The targeted diamond grades are at least three times greater than the grade of the Panna mine, India’s only other hard rock diamond mine.

Incidentally, the Bunder project was originally discovered as part of a regional exploration reconnaissance in 2004. A prospecting licence was executed in September 2006, which allowed exploration activities to continue, and an order of magnitude study was commenced to evaluate the economic viability of the eight diamondiferous lamproites. The results of this are expected by the end of third quarter of 2008.

“Diamonds are a significant part of the history of India and an important product for Rio Tinto. We have spent more than Rs 100 crore ($25 million) over the last six years on diamond exploration and evaluation in India, and remain excited about the prospects for the Bunder project,” managing director of Rio Tinto in India, Nik Senapati, said.

The managing director of Rio Tinto’s diamond business, Bill Champion, commented, “We are delighted with the progress of the Bunder project, which has the potential to be a world class operation.”

Currently, Rio Tinto processes the majority of its diamonds in India and independently markets the diamond productions from its Australian, Canadian and African mines, with a well established presence in all the major diamond centres of the world.

Rio Tinto’s strategic alliance with the Indian diamond industry, built over the past 25 years, has enabled it to gain a deep understanding of India as the world’s largest diamond cutting centre and as one of the key emerging markets for diamond demand.

Work on the Bunder diamond project to date includes mapping, 48 drill-holes and five surface bulk samples. Drilling is continuing and further surface bulk sampling to support diamond valuation is underway. Environmental approval for a 10 ton per hour Dense Media Separation Plant is expected soon from the Madhya Pradesh government, which allows processing of bulk samples at the project site.

Following the completion of the order of magnitude study in the second half of 2008, a pre-feasibility study would involve further social and environmental studies, including further drilling and below the surface bulk sampling.

In total, Rio Tinto has spent over Rs 75 crore ($19 million) to date on evaluation of the deposit. Plans are in place to spend around a further Rs 135 crore ($30 million) to support continued evaluation of the deposit.

The company’s release, however, said that the exploration targets are based on assessments of prospects within Rio Tinto’s Bunder project prospecting licences, which are supported by drilling, geophysics, surface bulk sampling and modelling undertaken over the last three years.

However, there may be changes during evaluation of this mineralisation, which can only be established through further work.

The potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource.

Rio Tinto’s diamond businessRio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto Plc, a London and NYSE listed company, and Rio Tinto Ltd, which is listed on the Australian Securities Exchange.

The company has a global diamond exploration portfolio encompassing six continents and including projects in Canada, India, southern and western Africa, Brazil, Russia and Australia.

Currently, Rio Tinto produces about 16 percent of the world’s rough diamonds by volume and 8 percent by value through its 100 percent control of the Argyle mine in Australia, 60 percent of the Diavik mine in Canada and a 78 percent interest in the Murowa mine in Africa.

These three mines allow Rio Tinto to be present in all segments of the market. Rio Tinto’s share of the production from these three mines was approximately $1billion in 2007 and sold through Rio Tinto Diamonds NV in Antwerp, Belgium. About 70 percent of Rio Tinto’s diamonds are processed in India.

Rio Tinto Diamonds NV is the sales and marketing division representing the diamond mines of the Rio Tinto Group. It is a leading supporter of the Kimberley Process as well as a founding member of the Council for Responsible Jewellery Practices.

Rio Tinto Files ForDiamond Mining lease In India

Coal Insights Bureau

COAL INSIGHTS 21 JUNE 2008

fEATuRE

The North Delhi Power Limited (NDPL), a jv between Tata Power Co. Ltd and the Government of NCT of Delhi, won the Edison Award in the international category.

It is the first power utility from India to have received this award. The award was presented to NDPL, in recognition of its operational excellence in the electric industry, for innovatively utilising and integrating its Geographical Information System (GIS) with other applications for network planning, operations, commercial and asset management.

The award is given annually by the Edison Electric Institute (EEI) to honour both global and US electric companies for outstanding contributions to the power industry.

According to reports, the chairman of NDPL, Adi Engineer, said, “Distribution reforms are most critical for transformation of the power sector in India. NDPL’s trailblazing achievements over the past six years in North Delhi have finally won international recognition by way of the coveted Edison Electric Award.”

“For the first time, an Indian utility has been so acclaimed. We humbly accept it on behalf of team NDPL. We now look forward to playing a larger role in improving power distribution in other cities of India,” Engineer added.

“It’s a tremendous achievement for team NDPL to have won the prestigious international Edison award and a testimony of

commitment and dedication of our team at NDPL to provide world class services to our consumers using latest technology. GIS has been of immense help in our achieving several milestones in the power distribution operations for the benefit of all our stakeholders”, Sunil Wadhwa, CEO of NDPL said.

Innovative utilisation of GISNDPL innovatively utilised and integrated GIS with other applications for managing network planning, operations, commercial and asset management processes. NDPL’s asset base comprising over 10 lakh consumers spread over a distribution area of 510 sq km, were geospatially captured and digitised.

NDPL’s GIS was integrated with Customer Relation Management (CRM) processes which enhance stakeholder value with better connection, metering, billing and collections management. The application was also integrated with the company’s Enterprise Resource Package (ERP) for planning and execution of capital investment schemes for augmentation and extension of the distribution network.

The GIS initiatives have resulted in improvements in NDPL’s Consumer Satisfaction Index, overall system reliability, and significant reductions in aggregated technical and commercial (AT&C) losses.

Tata Power Arm Wins Global HonourCoal Insights Bureau

The Power Finance Corporation (PFC) will soon call for proposals for the 4,000-MW Tilaiya Ultra Mega Power Project (UMPP) at Jharkhand, the Power Secretary Anil

Razdan said.The project will start before the end of 2008. The ministry is

also looking into the proposal from the Government of Orissa for three new sites for setting up UMPPs, he said.

A site near Tilaiya village in Hazaribagh district of Jharkhand has been identified by the Central Electricity Authority (CEA) after consulting with the Jharkhand government.

It will be a pit head coal fired plant with the scope of future expansion. About 3,355 acres have been identified for the plant and ash dyke. State government will provide a township for the staff.

Imported coalRazdan said that if all the planned power plants go on line, then by the end of the Eleventh Plan, India will require 40 million tons (mt) of imported steam coal. Import are is around 24 mt currently. “We are in active dialogue with concerned ministries for faster handling of coal at the ports,” he added.

Land acquisitionThe process of land acquisition for UMPPs has been slow due to the opposition from the local population and huge area required for the projects.

Razdan said that in the last one year the Power Ministry, along with the CEA, has done an exercise in order to optimise the land requirement for the projects. The CEA has done a rethink on the land requirement and has come out with suggestion that would reduce land requirement by 15 to 40 percent, he said.

Razdan said that coastal UMPPs do not require a large area of land for handling coal because ash content of imported coal is less. There is a possibility of reducing land requirement, he said. “We need to keep in mind that the land requirement for UMPPs is huge and India is a densely populated country,” he added.

About the UMPP for Maharashtra that has been delayed due to change in the location of the plant, Razdan said that as soon as the ministry gets a new site duly cleared by the Maharashtra Government, the initial ground work could begin. The earlier site for the UMPP had faced opposition from the locals.

PFC to soon invite proposals for Jharkhand mega power projectCoal Insights Bureau

COAL INSIGHTS 22 JUNE 2008

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Leading Indian steel manufacturers have finally managed to enter into yearly contracts for supply of hard coking coal for the year 2008-09 beginning July, a top official of

a leading steel company said.While companies like Steel Authority of India Ltd and

Rashtriya Ispat Nigam Limited, have entered into contracts at a price ranging around $300 a ton, a few private companies like JSW Steel is believed to have signed the contract for the year at as high as $360 a ton range, sources said. It could not be, however, independently verified with JSW officials.

This year’s contract price is more than three times of 2007-08 price of $97 a ton. This year’s signing of annual coking coal contracts by Indian steel companies with Australian miners were delayed almost by a month. This had happened as Indian companies, which start negotiations after Japanese steel companies finalised their contracts.

Incidentally, major Australian miners had delayed the negotiation process following heavy rains in January, which had flooded a large number of mines. The miners took some time in assessing the damage caused by the flood and this had resulted in a huge spurt in spot prices for coking coal.

The spurt in spot prices had also affected long term contract

prices as miners like Xstrata, BHP Billiton etc. after assessing that there is going to be a slight shortfall in production of coking coal this year compared with demand.

Sources, however, said that delay in signing the contract was not significant as Japanese buyers, who sign contract for financial year beginning April and they had managed to seal the deals only around April 10 this year.

Compared with this, Indian companies, who enter into contracts for supply between July and June, had managed to sign the contract just towards the end of May this year, that is before the end of previous contract.

Since a large number of steel companies world over had gone for an increase in production capacity, infrastructure on mining front had not increased proportionately. While port facilities in Australia continued to be a major hazard, the situation was not much different on the Railways front in that country, industry sources said.

Meanwhile, SAIL sources said the company has tied up for almost entire quantity of expected coking coal requirement for the next year, except PCI coal. “We have signed contracts with six to seven miners spread over Australia, New Zealand and US for coking coal,” a source said.

Indian Steel Cos Close Coal Deals For FY09Coal Insights Bureau

RINL’s expansion plan which would take the hot metal production capcity to the 6.3 million ton mark by 2010, is being carried out smoothly. To

achieve this growth and ensure that there is no disruption in the supply of raw materials, the company had joined a consortium last year with SAIL, CIL, NMDC and NTPC known as the International Coal Ventures Limited (ICVL) to tap and acquire coal assets all over the world, with special emphasis on Australia and the US.

It was reported some time back that the SPV would alone invest somewhere close to Rs 5,000 crore, while a sum of close to Rs 10,000 to Rs 25,000 crore would be generated through investments. The countries which have already been identified for this purpose include Mozambique, Australia, Canada and the US. The process of setting up of a panel comprising investment bankers to take the project through is in progress.

At present, RINL imports around 4 million tons of coking coal mostly from Australia, on long term basis. According to Chairman and Managing Director, RINL,

P.K. Bishnoi, the mining companies from which RINL sources its coking coal include prominent names such as BHP Billiton, BMA, Anglo Coal and Massey Coal.

However, these companies are demanding a three-fold hike in prices for the current year. RINL wishes to add more names to the basket in the near future. Most of the coking coal required by the company is procured from Australia.

Unlike other large scale steel companies in India, RINL is not blessed with captive mines from where it can source its raw materials. This is the reason why the company has to depend heavily on external sources to feed its growing demand.

The over 200 percent hike in coking coal prices has come as a major blow. Besides this, RINL was among those big steel companies which offered to reduce its steel prices, for at least the next three months, after being requested by the steel ministry of India. In fact, Bishnoi said that the company would find it difficult to make any profits if the situation persists.

RInl Coking Coal Tie-upsNudrat Alim

COAL INSIGHTS 23 JUNE 2008

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It is estimated that SAIL will need around 14 million tons of coking coal to run its plants at expanded capacity and it will be importing about 90 percent of that hard coking coal from Australia and that too from BHP of Australia.

The source further said that the company is yet to start negotiation for soft coking coal and PCI coal as the same has not yet been concluded by Japanese buyers. Once the Japanese companies were through with the negotiation process for soft and PCI coal, then only Indian companies will start negotiation for those varieties.

Incidentally, Japanese companies had signed contracts with Australian buyers for supply of coking coal at various rates ranging between $280 and $300 depending on size and according to SAIL sources, the price range was almost similar for them as well.

In addition to the requirement of SAIL, RINL is likely to import around 5 million tons of coking coal this year. Considering the fact that SAIL and RINL, both public sector companies under Ministry of Steel, enter into negotiations jointly, they often manage to get a good deal compared with private steel companies.

But one disadvantage of these public sector companies is that they are required to buy at least 10 percent of their total coking coal through open global tender. In the current market scenario, because of this government condition, SAIL and RINL either do not get coal by floating global tenders, or they pay higher price, as spot price is generally more than annual contracted prices.

However, a company like Tata Steel, which had in the past acquired equity stake in a few mines in Australia, gets the coal at the cheapest rate among all companies, primarily because they had contributed to the equity of those companies.

Though many other companies, taking a cue from Tata Steel, are trying to acquire equity stake in coal mining companies of Australia, virtually none of them have so far managed to do so.

A few like JSW Steel have, however, managed some stake acquisition in mining companies, but that has taken place in countries like South Africa and Mozambique.

As Indian steel making companies increase production capacity, there is going to be an increased demand for coking coal. At present, steel companies are meeting a bulk of its coking coal requirement

through imports, but it is estimated that the country’s indigenous production is likely to increase significantly in the near future.

Of the total estimated geological reserves of 255 billion tons of coal, only around 13 billion tons is estimated to be coking coal, while the rest is steam coal. Coking coal is available in India in only one coalfield – Jharia – and a bulk of this, at present, cannot be mined due to various reasons.

Jharia, near Dhanbad in Jharkhand, is a highly inhabited place compared to other coalfields in the country, and its density of population is much higher than even some of the big cities. The coking coal reserves in the Jharia coalfields is expected to be around 3 billion tons.

Apart from the huge population, another reason why mining is not possible in Jharia is fire in a large number of blocks that happened due to unscientific mining conducted before nationalisation of coal mines in 1973.

Incidentally, nearly 640 coal blocks in Jharia is on fire and the population over the area is more than 400,000. They need to be relocated to a safe place to stop the fire and start mining, and the Jharia Action Plan was formulated a long time ago for this. The scheme, of course, could not be implemented due to various reasons.

“But now the plan is moving fast. Both the Jharkhand and West Bengal governments have taken a serious look at the plan and while the West Bengal government has approved the plan, the Jharkhand government is in the process of clearing it,” Coal India Chairman P.S. Bhattacharyya, said.

Once the Jharkhand government approves the plan, it will go to the Ministry of Coal and it is expected that the ministry will clear it by the end of this year, he said.

“Only once the plan is cleared and scientific mining takes off and mine fires are stopped, Coal India will be in a position to meet the substantial requirement of coking coal of steel industries,” Bhattacharyya said, while addressing members of Bharat Chamber of Commerce in the second week of June.

In addition, the company has identified 26 abandoned mines that would be developed in joint venture with private companies. Some of these mines have substantial amount of coking coal reserves, Bhattacharyya said.

All these measures together will ensure increased availability of coking coal to the steel industry, he added.

Incidentally, India is currently importing a total of around 50 million tons of coal, of which a majority or about 27 million tons is coking coal by steel companies, while the rest is steam coal by power companies.

Implementing Jharia Action Plan

CIL Confident Of Meeting Most Of steel Cos Demand

Coal Insights Bureau

COAL INSIGHTS 2� JUNE 2008

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Amid skyrocketing oil prices and increasing demand for energy, coal continues to hold its place of importance as a fuel. Though carbon dioxide emissions remain

a problem area, its importance as an energy source kept on surging. China and India have undergone rapid economic and industrial expansion with huge appetite for energy, and they are falling back on coal as oil prices soar.

Chinese coal import exceeded its export, setting off a near-doubling of prices. Japan is burning more coal since an earthquake damaged a nuclear reactor last year. In the US, coal usage increased faster than power output. While electricity use rose by 1.6 percent from 2006 to 2007, coal usage rose by 1.95 percent.

High demand for coal has driven its price even higher, to $150 per ton. China-driven coal boom has pushed up wages and created more jobs for US miners, port and rail workers. Oil consumers are forced to switch to coal, thanks to the soaring oil prices. OPEC increased its output but even that did not stabilise prices.

Economic impactThis situation has helped coal-producing states. High price and demand for coal increased the domestic demand for miners and increased wages, which in turn impacted the economy.

India and China are extensively setting up coal-fired plants. Coal is also gaining momentum in the US. Around 150 proposals for coal-fired plants were put forward in 2007.Datamonitor, the International Energy Agency, has long since projected a rise in coal usage based on energy security grounds.

There are coal reserves which can last up to 200 years and the deposits are evenly distributed in the US (27 percent), Russia (17 percent), China (13 percent) and India (10 percent).

Latest estimates suggest that coal will account for 27 percent of the global energy generation mix by 2030, up from today’s 24. It accounts for 60 percent of global energy resources. Given the abundance of resources and coal’s geographical spread a number of countries see the fuel as the only viable option to alleviate energy security concerns.

Statistical Review of World Energy 2008 The defining feature of global energy markets remains high and volatile prices, reflecting a tight balance of supply and demand. It has put issues such as energy security and alternative energies at the forefront of the political agenda worldwide, according to BP’s chief executive, Tony Hayward.

He said that the world’s fossil fuel resource base remains sufficient to support growing levels of production but the continued weakness in oil supply and increasing demand outside the OECD also highlight the challenges that industry faces in maintaining secure energy supplies.

Declining OECD oil production means that while resources are not a constraint globally, the resources within reach of

private investment by companies like BP are limited. Political factors, barriers to entry, and high taxes all play a role here.

World economic growth was strong last year, despite financial market turmoil which began in August, and this continued to support global energy consumption. And although growth in primary energy consumption slowed in 2007 to 2.4 percent it was still above the 10-year average for the fifth consecutive year.

Oil pricesOil prices are rising for over six years. BP’s data series since 1961 state it is the longest ever period of continuously rising prices. Dated Brent crude oil averaged $72.39 per barrel in 2007, an increase of 11 percent. Prices rose steadily from a low of just over $50 in mid-January to above $96 by year-end.

Global oil consumption grew by 1.1 percent in 2007, or 1 million barrels per day (bpd), slightly below the 10-year average. Consumption in the oil exporting regions of the Middle East, South and Central America, and Africa accounted for two-thirds of the world’s growth.

The Asia-Pacific region grew by 2.3 percent, even though growth in China and Japan was below average, with strong growth in a number of emerging economies. OECD consumption fell by 0.9 percent, or nearly 400,000 bpd.

Global oil production fell by 0.2 percent, or 130,000 bpd, the first decline since 2002. OPEC production dropped by 350,000 bpd due to the cumulative impact of production cuts implemented in November 2006 and February 2007. Increased output in Angola and Iraq, and growing supply of condensates/NGLs, partially offset larger cuts in other OPEC countries.

GasWorld natural gas consumption grew by 3.1 percent in 2007, although only North America, Asia-Pacific, and Africa recorded above average regional growth. The US accounted for nearly half of the world’s gas consumption growth, driven by cold winter weather and strong demand in power generation.

Coal growth fastestCoal was the fastest growing fuel in the world for the fourth consecutive year. Global consumption rose by 4.5 percent and it was spread in every region except the Middle East. Chinese coal consumption rose by 7.9 percent, the weakest since 2002. Indian consumption rose by 6.6 percent, and OECD consumption rose by 1.3 percent, both above average.

Environmental concerns Despite its advantages, it is the dirtiest carbon-based fuel accounting for 40 percent of global emissions but things may look up with global efforts to achieve clean burning of coal.

Coal As A Fuel Set To Remain Strong GloballyDhirendra Pandey

COAL INSIGHTS 2� JUNE 2008

The supply of inferior grade of coal to power plants by coal companies and a cut in unloading time of rakes to seven hours from previously set 11 hours, were

the main issues raised by representatives of various power plants in an interaction with power secretary Anil Razdan recently.

The power plants lodged strong protests with the power secretary, sources who attended the meeting said.

Power utilities based in Maharashtra, Punjab, Rajasthan, Andhra Pradesh, Karnataka and Madhya Pradesh were at the forefront to bring to the power ministry’s notice that due to the bad quality coal supplied by Coal India and its subsidiaries, they are forced to consume more coal.

Besides power plants, coal consumers in the country generally feel that most of the time they do not get the correct grade of coal from the companies. “If we are promised delivery of E grade coal, we generally end up getting F grade and for F grade, we get G grade,” a member of the Indian Coal Consumers Association told Coal Insights.

The power plants also alleged that besides getting inferior grade coal which affects their generation capacity, as per New Coal Distribution Policy, which required signing of Fuel Supply Agreements, the coal companies have reduced linkages, posing a serious threat to the functioning of several plants.

“We were getting up to about 80 percent of normal requirement under linkages, but the quantity has been reduced in recent FSAs to 75 percent, and there too, the commitment is only around 60 percent of the FSAs. Now, we are effectively getting only 45 percent of our normative requirement of coal,” an official of a power company said.

A source, who attended the meeting, said that Razdan has asked the Coal Ministry and coal companies to take corrective steps as early as possible. The Railways has also been asked not to press for unloading of coal in seven hours, when power plants have the arrangement of unloading a rake within 11 hours.

The state power utilities also informed that due to heavy reduction in coal linkages by the coal companies, some of the plants were left with coal of half day or for a day.

Razdan urged all power utilities to enter into FSAs as quickly as possible as the coal market is already tight and prices are soaring.

The current price of coal in international markets is

hovering around $156 per ton. The Centre has projected coal shortfall of about 76 million tons by the end of the Eleventh Plan period and it has asked the states to take necessary steps for import of nearly 20 million tons.

Unloading constraints

Meanwhile, it has been found by the Infrastructure Constraints Review Committee (ICRC) constituted by the Government of India that some power plants like the Ropar thermal plant and Lehra Mohabatt thermal plant are unable to unload the full quantity of supplied coal rakes in one go due to infrastructural constraints.

The sub-group constituted by the ICRC to address issues connected to study the critical coal stock at some thermal plants in the country has found that the problem did not really lie with inadequate coal supply, but with the unloading constraints at the thermal plants.

At a monitoring meeting of the sub-group, the representative of the Railways informed that as per a special review conducted by them in respect of 30 power utilities to assess the impact of this special drive to supply coal, it was revealed that materialisation of linkages was only around 84 percent only.

ICRC has indicated in its report that many of those power stations were unable to unload the full quantity of supplied rakes in one go, resulting in high detention time and demurrage charges.

The detention time was found to be very high in Ropar, Lehra Mohabatt Panipat Suratgarh, Yamuna Nagar, Gandhi Nagar, Bhusawal, Durgapur, Mejia, DTPS and Mettur power plants. ICRC has observed in its report that unless unloading performance of power stations improved, stock building would be very difficult.

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state Power Utilities DemandRevision In Coal Unloading norms

Lokenath Tiwary

For Classified Advertisements,please contact

Soumitra Bose, +91 92310 000232or soumitra.bose@mjunction.in

COAL INSIGHTS 27 JUNE 2008

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Despite recent reports that developed countries are slightly hesitant to provide funds for developing carbon capture and storage (CCS) technology because

of uncertainties about its success and cost effectiveness, the World Coal Institute (WCI) feels that since coal is one of the biggest sources of anthropogenic carbon dioxide emissions, it has to be fully involved in meeting the climate change challenge through international research, development and deployment of advanced coal technologies.

While arguing that CCS is the best available option to meet the current challenges, WCI also suggested a five-pronged strategy – policy certainty, collaboration, large-scale integrated projects, regulatory and legal frameworks and financing the future – to achieve a sustainable energy future.

In a report published recently, WCI, the only association representing the international coal industry, said that there should be a policy certainty among the governments across the world. They need to provide supportive policy frameworks that recognise the continuing role of coal and the need to work with industry in accelerating the development and adoption of low emission coal technologies.

It suggested that collaboration through public and private partnership route is also going to be critical to a sustainable energy future. It is clear that neither the industry nor the government, can alone deliver the technologies required to achieve the emissions reduction trajectory discussed by Inter Governmental Panel on Climate Change (IPCC), it said.

WCI feels that there is a pressing need for significantly more large-scale and integrated coal-based CCS demonstration projects if commercial readiness is to be achieved by 2020.

It said that a commitment to CCS needs to be complemented by regulatory and legal frameworks for carbon dioxide storage that provide policy certainty for project proponents and address the technical issues and uncertainties associated with projects.

It strongly recommends actions by governments, industry and financial institutions to create a suitable investment framework.

According to it, a sustainable energy future will be one where the society’s energy needs are met using resources available over the short, medium and long term. At the same time, it means producing and utilising all these energy sources in a way that minimise adverse impacts on the environment and maximises economic and social benefits.

“This is a significant challenge, particularly because of surging energy demand, concerns about energy security, and the environmental impact of energy production and consumption,” it said.

Though coal is abundantly available, affordable, reliable, geographically well-distributed and easy and safe to transport, the major challenges facing coal are concerned with its environmental impacts. More recently, greenhouse gas (GHG) emissions, including carbon dioxide and methane have become a concern because of their link to climate change, it said. Since climate change is a global challenge and requires a concerted global response, the measures suggested above could go a long way in effectively addressing the issue.

Carbon dioxide composition

Incidentally, carbon dioxide makes up 80 percent of anthropogenic (human induced) GHG emissions and over the last century, the amount of carbon dioxide in the atmosphere has risen, in large part driven by fossil fuel use, but also because of other factors, such as land-use change and deforestation.

There is growing recognition that technology developments have to be part of the solution to climate change. This is particularly true for coal, because its use is growing in so many large economies, including the largest and fastest growing countries such as China and India.

Despite opposition from many quarters, WCI feels that CCS offers the potential to move towards near-zero emissions to the atmosphere from coal-fired and gas-fired power plants.

In this connection, it pointed to the IPCC’s special report on carbon dioxide capture and storage, which found that the risk of leakage from geological storage was very likely to be less than 1 percent over 100 years and likely “to be less than 1 percent over 1000 years.”

The report also tried to allay the feature about cost involved with CCS projects saying of cost CCS is project specific depending on the technology of the plant producing the carbon dioxide and on the proximity of the plant to adequate storage resources.

It said that for power generation, the cost of CCS today is estimated at between $40 and $90 per ton of carbon dioxide avoided. Subject to access to suitable storage sites, capture and compression costs dominate the overall cost of CCS for power generation. Therefore, reducing these costs is a priority and it

WCI Pitches For CCS Technology

Suggests Five-Pronged Strategy For A Sustainable Energy Future

Coal Insights Bureau

COAL INSIGHTS 28 JUNE 2008

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indicated that it could be achieved only by following the five strategies mentioned earlier.

It argues that over the next decade, the cost of capture could be reduced by 20 to 30 percent and more should be achievable by new technologies that are still in the research or demonstration phase. Economies of scale will also help to bring down costs. Efficiency improvements include the most cost-effective and shortest lead time actions for reducing emissions from the coal-fired power generation. This is particularly the case in developing and transition countries, where existing plant efficiencies are generally lower and coal use in electricity generation is increasing.

Higher efficiency coal-fired power plants emit less carbon dioxide per megawatt and are also more suitable to retrofitting with the carbon dioxide capture system.

Coal-fired power plantsImproving the efficiency of pulverised coal-fired power plants has been the focus of the coal industry for a long time. There is

huge scope for achieving significant efficiency improvements as the existing fleet of power plants are replaced over the next 10 to 20 years with new, higher efficiency supercritical and ultra-supercritical plants.

A 1 percent point improvement in the efficiency of conventional pulverised coal combustion plants results in a 2 to 3 percent reduction in carbon dioxide emissions.

Gasification technologyAn alternative to achieving efficiency improvements in conventional pulverised coal-fired power stations is through the use of gasification technology.

Integrated gasification combined cycle (IGCC) plants use a gasifier to convert coal to syngas, which drives a combined cycle turbine. IGCC efficiencies typically reach the mid-40s, although plant designs offering around 50 percent are achievable. Gasification may also be one of the best ways to produce clean burning hydrogen for tomorrow’s cars and power-generating fuel cells.

With environment awareness growing, coal bed methane (CBM) projects are slowly becoming important as the country looks to develop

environment friendly fuel.Essar Exploration and Production Limited, a wholly

owned subsidiary of Essar Oil Ltd, has begun to develop the Raniganj-East coal-bed methane (CBM) block in West Bengal for the commercial production of the gas. The company has successfully completed the exploratory core hole drilling. This project in Raniganj (East) would be the second CBM-producing field in gas-starved West Bengal.

In the meantime, the block, which is located about 150 km from Kolkata in Durgapur, is expected to start producing CBM by the end of 2008-09.

“We have started the first production well at Raniganj on May 30. In the first phase, we will drill 15 production wells in the 500 sq km block in six months. Gas is expected to start flowing by the end of this year,” a senior company official was quoted as saying in a recent media report.

The company has also teamed up with Grades Energy of the US as the drilling technology partner for the project.

Though the real production potential of the block can only be determined at a later stage, early estimates have suggested that the block has 42 billion cubic metres (BCM) gas reserve.

CBM is the methane gas found within the coal seams generated during the coalification process, where the plant material is progressively converted to coal. This produces large quantities of methane gas which gets stored within the coal seams.

CBM is thus a lean gas and contains only methane, which is a primary source of energy in natural gas. However unlike natural gas, which comes out of high reservoir pressure, CBM remains trapped in coal, subdued under water.

Thus accordingly the reservoirs are first dewatered to allow the low-pressure gas to flow out. CBM production takes some time to reach its peak.

Great Eastern Energy Corporation Ltd (GEECL) has already earned the distinction of producing the country’s first commercial CBM project from the adjacent Raniganj block in 2007.

At present, GEECL is producing close to 3 million cubic ft of gas a day (mcft) and is slated to reach 100 mcft levels in a year.

CBM blocks of Essar and GEECL have the advantage of being located in an industrial zone, which includes two major steel plants of SAIL; three existing and one upcoming power plant of various utilities; a number of captive power plants; and a range of industries, all of which possess a huge appetite for energy. As a low-pressure gas, CBM can be best marketed closer to the production point.

Besides, the area is also dotted with a number of tier-II and III towns, which offer a ready market for compressed natural gas (CNG) as a cleaner auto fuel.

Meanwhile, BP Exploration (Alpha) Ltd, a British Petroleum group company, is getting ready to start exploration in Birbhum CBM block in Bengal. Other than this, ONGC and Reliance are developing CBM blocks in Jharkhand and Madhya Pradesh, respectively.

Essar To Start CBM Project In DurgapurSarbani Haldar

COAL INSIGHTS 29 JUNE 2008

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The $2.7-billion corpus of Coal Ventures International (CVI) may really not be enough to acquire assets abroad. CVI, floated by five PSUs, is likely to shortlist

a couple of merchant bankers soon, but may find the going tough given the sharp increase in coking coal assets globally. The empanelled merchant bankers will be asked to advise and assist CVI in identifying and acquiring mines in Mozambique, Australia, Canada and the US among target others.

P.K. Bishnoi, RINL chairman cum managing director, said that the response was good, and quite a few merchant bankers had made their presentations. Plans are also afoot to float a sovereign fund of $50 billion and ensure mineral security for domestic companies. China, for instance, has a $300-billion sovereign fund for similar purposes. “Given the global rush for acquiring strategic minerals like coal and iron ore, creation of such a fund is perhaps the need of the hour,” said Bishnoi.

Coking coal pricesMeanwhile, coking coal prices have gone up from as low as $97 a ton to over $300 a ton. Bishnoi, who heads CVI, said prices of coal mines abroad have gone up by five to six times. He said their owners are so cash-rich now that they do not need any equity partner or any tie-up. “CVI may have to go for hostile acquisitions abroad at the given situation,” Bishnoi said.

In fact, he said, even a $5 billion corpus would be small now. Some say the government should create a $50 billion wealth fund, but the government is reportedly averse to wealth funds in general.

Bishnoi said government should float a sovereign wealth fund or allocate money from its forex reserves to support strategic investment. “There can be a greater role of the ministry of external affairs in supporting acquisitions,” he said.

CVI had proposed three routes: strategic investment in shares of listed coal companies in Australia, Canada and the US, private equity deals with unlisted companies, partners or owners having producing or non producing coal assets and third was applying for prospecting mining licenses to develop coal mines.

An apex committee with five independent directors has been formed to select the merchant banker. The merchant banker would scout for coal assets in the US, Canada, Australia, Zimbabwe, South Africa, Indonesia, Mozambique and New Zealand.

The SPV has already identified a block in Mozambique, which could become its first acquisition, Bishnoi said.

Sources close to the development said that a six-member technical team visited Mozambique in January and identified a 230-sq km block, of which a 20sq km patch is assumed to have coal reserves.

CVI Funds InsufficientTo acquire global assets

Coal Insights Bureau

The South Eastern Coalfields Ltd (SECL) has requested Union coal ministry to consider removing a part of the total area under the Behraband coal block, from the

identified underground mines list to be offered to international developers.

The ministry has identified seven coal blocks for upgradation to high capacity underground mines. These will be handed over to internationally reputed and proven mine developers and operators who will carry out the upgradation.

In a communication to the ministry, SECL said that from an operational point of view, the boundary of lease hold area could be straightened on the northern side of Behraband North Coal Block. That way, 111 million tons of geological reserves will be available to SECL for developing a high capacity underground mine of nearly 2 million tons per annum, and it need not be handed over to any other developer.

The other blocks identified for the purpose are Tilaboni under Eastern Coalfields, Kapuria under Bharat Coking Coal Limited, Jagannath under Mahanadi Coalfields Ltd, Khairaha under SECL, Murpar and Borda under Western Coalfields Ltd.

SECL said that out of 111 million tons of geological reserves, 57 million tons is in the lease hold area of SECL. It requested for another 54 million tons of reserves from the Behraband North Extension Coal Block which is earmarked for allotment to non-power sector. Behraband North Extension Coal Block has a reserve of 175 million tons and even if 54 million tons of geological reserves is given to SECL, sufficient coal reserve will be available for allotment to others. SECL proposes to straighten the block boundary for its purpose.

EOIs issuedCIL, meanwhile, has issued Expressions of Interest (EOIs) to introduce modern technology either on turn-key contract or by joint venture for speedy development of few high capacity underground mines, 2 million tons or more, for their seven underground projects. Behraband North Extension is included in the list, to enable SECL meet the projected underground coal production of 75 million tons as envisaged in the Eleventh Plan period. The additional reserves of the Behraband North Extension Block could have played a crucial role as such a mega project cannot be planned in the other available blocks because of small reserves and other constraints.

SECL has said that since the Behraband UG is adjacent to the Behraband North Extension Block which is a running mine of SECL, the necessary infrastructure for starting a project is already available. It is, therefore, in a better position to execute the plan than any other outside agency, it said in its request to the Coal Ministry.

seCl against giving Coal Block Part To Private Player

Lokenath Tiwary

COAL INSIGHTS 30 JUNE 2008

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The process of steel making in India has evolved and matured over the years. With steel producers increasingly looking for advanced technology to achieve a hike

in production volumes, more and more companies are now flocking to India with their latest steel making technologies.

Recently, it was reported that HIsmelt Corporation, a unit of the Australian mining major Rio Tinto, has initiated talks with Indian companies for signing an agreement for the HIsmelt technology licence.

The HIsmelt technology allows the use of low grade iron ore and non-coking coal for producing steel, and adopts the DRI process where iron ore fines and non-coking coal are used to produce pig iron. The process, if adopted, will benefit both integrated as well as electric arc furnace steel mills.

The usage of non-coking coal is an apt alternative and would reduce the growing dependence on coking coal. The non-coking coal is crushed and dried before it is injected into the smelt reduction vessel. The technology allows steel makers the leeway to use different varieties and grades of coal, ranging between semi-anthracites to highly volatile steam coal, which cannot be done in the case of a usual blast furnace route. This reduces the cost considerably.

The deployment of this technology is likely to bring down the project cost by almost 20 percent as far as India is concerned. Operational costs too are expected to go down by as much as 20 percent since processes involving coke ovens and sinter plants will be eliminated. Moreover, there is also no need to process the raw materials before usage.

HIsmelt Corporation has approached some of the big names from the steel industry in India for the transfer of technology developed by the company. Ore with high phosphorus content tends to get passed on to the ultimate product, which is why it is not used in steel making. However, with the adoption of the new technology, almost 90 to 95 percent of the phosphorus can be separated with the slag itself.

The technology is also designed in such a way that it paves the way for a flexible raw material feed rate. This means the product quality would not get adversely affected even if the raw material feed rates are changed. The other significant advantage of HIsmelt technology is that the process, unlike the blast furnace route, can be started, stopped or simply kept idle with maximum ease.

Even on the environmental front, HIsmelt technology scores over the prevalent processes of steel making, since the level of sulphur, carbon and nitrogen oxide emissions are much lower than the industry benchmark.

Availing the licence

HIsmelt Corporation has laid down a specific process by which interested steel companies can avail of the licence. Organisations interested in constructing, operating and maintaining a HIsmelt plant need to first enter into a HIsmelt Process Licence (HPL) and then engage an accredited engineer.

The HIsmelt accredited engineers include renowned names such as Aker Kvaerner, Hatch, Outokumpu and Shougang. Another noteworthy aspect of the technology is that the projects in question need not necessarily be greenfield in nature. Companies who wish to upgrade their existing plants can also adopt the technology with ease.

Despite its obvious advantages as far as efficiency is concerned, HIsmelt might take a while to capture the Indian steel industry. According to a Coal Insights source, the installation cost of HIsmelt technology is high and, therefore, most companies are hesitant to take the plunge.

A number of Chinese steel companies have shown keen interest in the new technology. As per a media report, Stephan Weber, Managing Director, HIsmelt Corporation has confirmed that while more than 50 companies from China have approached them to get more details related to the technology transfer, two companies, namely Laiwu Steel and Huaigang have already signed technology licence agreements.

A recent media report stated that HIsmelt Corporation has already held talks with NMDC, apart from a few others in India. If the technology is able to deliver whatever it claims, then its adoption by Indian companies will go a long way in firmly establishing India’s place in the global steel scenario.

Other technologiesApart from HIsmelt, there are various other technologies

which have been gaining importance. Some of them include Corex, Finex and Inmetco, among others. Though the process adopted by each varies to a certain extent, all the technologies allow the usage of non-coking coal and aim at reducing the cost of production for steel makers.

One of the major concerns highlighted by Indian steel producers has been the availability of raw materials. Even though India has huge reserves of both iron ore and coal, all of it cannot be utilised in the production of steel because of quality variations. Moreover, steel producers continue to vehemently oppose export of higher grade iron ore. That way, they are forced to buy the raw material at higher costs. The HIsmelt technology is likely to address these concerns.

HIsmelt Technology Reduces Dependence On Coking Coal

Nudrat Alim

COAL INSIGHTS 31 JUNE 2008

Almost a year after the recommendation made by the Sankar Committee on coal sector reforms that a coal regulator should be in place to ensure fair growth and

enable the coal sector to meet future challenges, the Centre is reportedly still finalising the blueprint. The proposal for the regulator is likely to be placed before the Cabinet within the next three months and once the Cabinet clears it, a Bill would be tabled in Parliament.

It is expected that the regulator would ensure a transparent pricing mechanism and also check the process of coal block allocation, Coal Ministry officials said. The ministry will soon begin talks with the top brass of Coal India Limited (CIL) and its subsidiaries and take note of their suggestions before formally seeking a Cabinet approval. “This is imperative since they are the key players in the sector,” an official said.

The debate on the need for a coal regulator has been on for some time. Suppliers and consumers have been at loggerheads on whether there should be a regulatory mechanism for pricing. Those in favour say there is a case for regulation of coal block allocation process for rendering it objective and transparent. At present, 94 percent of production comes from state-owned companies, while private sector participation is limited to captive mining.

To tide over the coal shortage, the Ministry began e-auction of coal to potential buyers, but later reverted to e-booking. That was following observations made by the Supreme Court that e-auctions could lead to cartelisation among big players, before switching back to e-auction from November 2007.

Even the Planning Commission had pitched for an independent regulator that would identify and allocate coal and lignite blocks for exploration and mining, evolve a transparent mechanism for trading margins, recommend steps for fixing prices and protect the interests of consumers and ensure smooth e-auctions.

CIL, however, is not quite amused with the idea of a regulator. The chairman cum managing director, P.S. Bhattacharyya, said his company expected a level-playing field between private and public sectors by preventing under-pricing of coal, terms and conditions for pay and most importantly, wages and environment and social sustainability of mining activities.

Correct pricing of coal and social and environmental sustainability conditions for private and public sector will help CIL engage in more under ground mining activity,” he said.

Bhattacharyya feels that the country also needs a regulator, which will ensure a level playing field between the PSUs and private coal companies coming up in the captive mining sector.

With development of coal mines, both underground and opencast, the wages have to be balanced, and a regulator is needed for that, he said.

Regulator for pricing

On regulator for pricing, Bhattacharyya said this is one area in which possibly a regulator is not required.

“Coal is a commodity and the commodity has to be priced in a manner which is basically dependent on market forces and this is how it should be. If you reason up the whole thing, I am sure that coal will find its prices, which is related to imported coal prices adjusted for quality. That is the only price, which will prevail,” he said.

Besides the Coal Regulatory Authority, the coal ministry will put in place a new policy by which coal blocks will be awarded to their developers with prior necessary clearances from government itself. Allocation of coal blocks from 2009-10 will be accompanied by all the required clearances, minister of state for coal Santosh Bagrodia said during his visit to Kolkata last month.

This is to ensure that early coal production commences in such blocks without any delay, Bagrodia said. Addressing an interactive session on “Public Private Partnership in Coal Sector”, organised by Assocham, the minister further disclosed that a decision to set up a Coal Regulatory Authority has already been taken to introduce competition in the sector and remove inefficiencies of the Coal India Ltd and end its monopoly.

The ministry, according to Bagrodia, has also decided that coal blocks should be awarded after the government has already obtained over 60 clearances from its various departments to prospective developers.

According to industry sources, the government has so far awarded 182 coal blocks to various bidders in the public as well as private sector, of which only 17 developers have gone into coal production. The delay in coal production has become inevitable as the developers have not been able to obtain necessary clearances and that is why a new policy is being put in place.

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Coal Ministry Finalising Blueprint For Regulator

Lokenath Tiwary

COAL INSIGHTS 32 JUNE 2008

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Coal imports in India have been rising amid growing demand, in spite of the spiralling prices. In 2007-08, out of the 50 million tons of coal imported by India, nearly

27 million tons was coking coal, while the rest was steam coal. In the current financial year, imports are likely to increase marginally even though domestic coal companies may hike production by about 6 percent.

In a situation like this, MMTC, India’s largest trading company and a major trading company of Asia, has floated a tender for supply of up to 8 million tons of steam coal in 2008-09 (July-June) for its clients, comprising mainly the power generating companies.

The timing of the tender is crucial, as industry circles believe that international steam coal prices may harden a bit in view of increased demand from Asian countries. It is also expected that the response to the tender may not be very encouraging in view of uncertainty over prices.

However, the bid invited by MMTC states that it intends to buy 5 million tons (+/- 10 percent) of coal with an option to purchase an additional amount of 3 million tons (+/- 10 percent at MMTC’s option), taking the total to 8 million tons.

The scope of work for the suppliers as per the tender document is that they will have to supply steam coal to Indian ports for MMTC or its customers on free on board, cost and freight (C&F) or High Seas Sale basis and/or free on rail (FOR) destination basis. They even have to arrange for the coal delivery to customer’s site.

The tender document states that the price to be offered by the bidder has to be for the entire 8 million tons. However, if the bidders intends to quote different prices for the optional tonnage, that has to be pointed out in the offer. The bidders then have to submit two price bids separately for 5 million tons and 3 million tons.

The supplier will also have to arrange for vessels, stevedoring, handling, storage, port clearances, arranging railway rakes, loading, transportation and delivery at the customers’ site of MMTC.

The scope of work of the seller will also include all other activities for clearing and forwarding of the consignments such as customs clearance; coordination with the Port, Railways and any statutory authorities. However, the coal unloading at customers’ end from Railway Wagons in case of FOR delivery will have to be arranged by the final user.

Mentioning the qualifying criteria of the bidders, the tender document stated that the bidder should have supplied at least 4 million tons of imported steam (non-coking) coal directly or through PSUs to power utilities in the last three financial years.

In terms of handling, the document also added that the bidder should also have handled (Stevedoring & Handling) at least 2.5 million tons of coal for power utilities in the above supplies during the last three fiscals, either directly or through any PSUs. The handling must be composite in case of F.O.R. destination.

It should include port operations, namely ship/ rake/ unloading, intra port storage – stacking. It must also include responsibility for shortage, quality difference / deviations, prepayment of freights out of the bidder’s own monitoring resources / funds, allotment/ placement of rakes in association with Railway authorities, Custom/ Port clearance and transportation of material at plant location through railways.

Besides steam coal, MMTC has also in the month of June floated a few tenders to import low ash metallurgical (LAM) coke.

As per the first tender, MMTC invited bids for the import of 30,000 tons (+/- 10 percent) of LAM coke. The bid was for size 25 mm to 70 mm and was invited on June 9. The delivery as per the tender document has to be done at Mangalore Port by July 20 or 30, 2008.

The bidders have to submit their bids for the supply of LAM coke on the basis of cost and freight (free out) basis. The bidders have to separately indicate the freight per ton.

The scope of work as per the tender is that the supplier has to acquire all the required clearances for the export of the materials to the buyer.

MMTC had also floated another tender, inviting bids for supply of 15,000 tons (+/- 10 percent) of Lam Coke for 20 mm to 50 mm size. The bid also has an option to enhance the quantity to 30,000 tons (+/- 10 percent). The delivery for the coke according to the tender document has to be at Paradip Port.

When contacted by Coal Insights, MMTC officials refused to comment on how many bids it had received for supply of both LAM coke as well as steam coal. The officials also refused to comment on whether it has plans to float further tenders for steam coal or coke, but market sources believe that a few more tenders would be floated by the star trading house at least for steam coal.

Meanwhile, Kudremukh Iron Ore Company Limited (KIOCL) has also recently floated a tender for supply of 30,000 tons (+/- 10 percent) of Low Ash Metallurgical (LAM). The material has to be delivered at its pig iron plant situated at Mangalore.

According to the tender document, the shipment is for delivery during July 2008.

MMTC Invites Bids For Supply Of Coke And Steam Coal

Arusha Das

COAL INSIGHTS 33 JUNE 2008

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The Union Minister of State for Coal, Santosh Bagrodia, said that his ministry is planning to come out with a comprehensive Indian Coal Act soon, and is working

on making changes to widen the scope of captive mining in the country. However, he refused to even temporarily stop e-auction of coal as suggested by some of the consumers.

Refusing to give more details on the proposed Act, other than that it is not related to captive mining, Bagrodia told reporters on the sidelines of a seminar in Kolkata that the ministry is still working on it and the details would be announced once everything is finalised.

The ministry, he said, will organise a meeting of all stakeholders of the coal industry in mid-July in Delhi to get inputs for betterment of supply and other facilities.

“We are going to come out with new policies where no consumer will have nay problem in receiving coal supplies. To increase and optimise production, we have decided to buy the latest equipment of 2009 model and not of 2001 model, besides improving labour productivity, improvement in machines utilisations, and increase availability of heavy earth moving machineries (HEMMs) from the existing 60 percent,” he said.

The ministry has already identified a number of new coal blocks that would be allotted soon. “We are working towards allotting more and more blocks and if the situation demands, we should be in a position to allot a block every month,” Bagrodia added.

All these initiatives are being planned to increase availability of coal, as India will need to see a growth of around 15 percent to 20 percent in coal production in order to maintain a growth rate of 9 percent in GDP. “Unless we increase our GDP, the chunk of our population will not be benefited,” he added.

“Our target is to ensure that there is no shortage of coal in the country not only in the immediate future, but over the next two decades,” Bagrodia said.

Towards this initiative, the minister said for the first time, coal companies had offered nearly 12.5 million tons of coal for sale through e-auction against the average of 3 million tons. “This month (in June) we will try to offer 15 million tons for e-auction as there is no shortage of coal at pit head and also we are planning for 12 percent growth in coal production instead of 6 percent achieved in 2007-08,” the minister said.

Responding to a suggestion by a member of the Indian Coal Merchants Association that e-auction is temporarily stopped as buyers are not getting supplies even for purchases made through such auction way back in January-February, the minister ruled out the option.

Coal merchants pointed out that a number of consumers together had paid for coal of 1200 rakes purchased through e-auction in January-February. An amount of around Rs 800 crore was paid, but because of non-availability of rakes, the

coal could not be delivered. They said maybe e-auctions should be suspended temporarily till pending orders were cleared.

However, the minister said that: “It is not the time to stop e-auction. Let me sell it as stoppage would put premium on suppliers. At the moment it is not advisable to stop e-auction as prices will shoot up by 100 to 200 percent from the present levels.” He, however, said the government is reviewing the situation as it is not interested in blocking the money received from buyers under e-auction. “We are in talks with Railways to expedite the process. The Railways has assured us more wagons,” he added.

Commenting on the status of setting up of a coal regulator as suggested by T L Sankar Committee in 2007, Bagrodia said that his ministry is in favour of setting up a regulator.

We are not profiteers, but a service provider to the nation,” the minister said.

Earlier, Coal India Chairman P.S. Bhattacharyya, said the company’s plan to set up coal washeries in order to provide washed coal to all non-pithead consumers had been delayed because there was no consensus on who will bear the cost. “But now there is some progress and it will benefit both coal companies and consumers,” he said.

There is a plan to set up 28 washeries in the next few years and tenders will be floated for that soon, he said. “We are planning to utilise rejects from washeries, as feedstock to generate power,” he said.

Bhattacharyya further said that the coal companies are working hard to increase production from underground mines.

At the time of nationalisation of coal companies, India’s coal production was around 80 million tons per annum and of this, nearly 80 percent came through underground mines, he said.

The overall coal production increased to nearly 380 million tons in 2007-08, but production from underground mines stood at a low of 43 million tons and that too after efforts were taken in 2006-07 to increase production from such mines.

Underground coal mining is expensive, but coal companies have recognised that focusing on opencast projects for coal production is not the optimum way to move ahead, as in the next 30 years, the entire reserve that can be mined through opencast measures would be exhausted, he said.

“We have taken a decision to reverse the falling trend in coal production, and in 2008-09, we expect at least 5 percent increase in production from underground mines. In addition, we have identified seven underground mines that would be developed on turnkey basis by international mining companies and 26 abandoned mines that would be developed in joint venture with domestic as well as international companies,” Bhattacharyya said.

New Coal Act Planned For Captive MiningCoal Insights Bureau

COAL INSIGHTS 3� JUNE 2008

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At a time when Coal India Ltd (CIL), the world’s largest coal company, was introducing a series of proactive measures to deal with uncertainties in the coal sector,

K. Ranganath was at the helm of affairs in the company as its Director (Marketing). After 33 years, he quit CIL to join Kudremukh Iron Ore Co Ltd as its chairman-cum-managing director. In an exclusive interview to Rakesh Dubey, Ranganath talks about his vast experience of working with Coal India.

Excerpts:

How would you describe your experience of working with Coal India?Let’s put it this way. Whatever I am today and whatever I am going to be tomorrow, the credit for it will go to Coal India.

What, according to you, are the good or bad things about Coal India?The good thing about Coal India is its diversity. Every company believes in standardisation, and when you standardise something across a huge organisation like this, it may not be well taken or well accepted. Here, there are operation level standards for each operating unit, and they are drawn up keeping that particular unit in mind. Unlike other companies, standardisation is not possible in coal companies because there cannot be standard methods for mining and costing.

Why do you say that there cannot be standard methods for mining and costing in coal companies?The two main issues affecting performance in coal mines are haulage and pumping. In an underground mine, coal is brought to the pit bottom through haulage. From there it is taken to the surface by a rake, after which it is taken to the tipper where it is unloaded.

Generally when the haulage moves, if it changes the direction, it is called transfer point. Ideally, there should be a maximum of three transfer points, and the costing should also be done accordingly, and the standards should also be set accordingly.

However, the mines are so old that sometimes there are even 13 or 14 transfer points in an underground mine. So the whole purpose of setting a standard is lost.

Pumping, for instance, should take place only in the dip section in the rainy season for the water accumulation. In an ideal situation, only half a ton or at the most 1 ton of water should be pumped for every ton of coal. However, in certain mines of BCCL, 50 tons of water has to be pumped out to raise

1 ton of coal. Again, there is no point in setting a standard in a situation like this, and then term the mine ‘uneconomical’ or ‘inefficient’.

Isn’t it surprising that Coal India has survived despite so much difference in mining conditions in different companies?Coal India’s ability to survive in different situations is commendable. It has survived in a fully regulated economy, in a partially decontrolled economy and a fully decontrolled economy. It has always adapted to changing situations.

Standardisation also robs you of flexibility. Coal India has survived despite all odds because we were not bound by any standards and were free to adapt to changing situations.

What else should Coal India can do to improve efficiency?CIL remains profitable even after incurring huge losses at some point. It has been paying dividend since 2005, and has returned to the government the entire amount that it had invested as capital. Its balance sheet is clean and there is no borrowing.

CIL could not have delivered coal at $15 a ton against global thermal coal prices of over $75 a ton, if it was not efficient.

We should not make the mistake of comparing efficiency levels abroad with here in India, where we have to contend with several social issues like rehabilitation, several stages of clearance before acquisition and hundred-year-old mines. We are efficient, but of course there is always room for improvement.

Energy security is big issue despite Coal India’s best efforts. What are Coal India’s plans in this regard?Energy security is important because Indian’s economy centres around coal. However, with coal mines becoming old and reserves getting exhausted, we have to look for newer mines, which are more often than not in the environmentally protected zone, which need longer to get clearances.

Global coal market is very volatile, and we may not get coal at a competitive price in future. In India the options of having our own mines is limited and CIL is trying to buy overseas mines in order to ensure the energy security of India.

Of course CIL cannot ensure energy security all by itself, and needs other major players as well to help. Coal India, on its part, should expand its production capacity. Private blocks in India should come into place. Environment clearances should be given faster. To replace exhausted capacities of coal, we can opt for contract mining, import coal and also buy mines abroad to get the coal at a competitive price.

Coal India should Try To Create a Brand Image For Its Products: Ranganath

COAL INSIGHTS 35 JUNE 2008

CIL has been planning to acquire mines abroad for a long time but nothing has materialised yet. What are the problems? There is a general feeling that red tape is responsible for government companies not doing well. What is your view?The government has its own way of working and I have to follow that. There is a certain laid out procedure and an officer cannot ignore that even if he himself wants to speed up a particular process.

International mine contracts are not governed by any such stringent practices, and needless to say, they will not have the patience or the time to wait for us to take decisions.

Inevitably, decisions get delayed, and that has been one of the reasons for not being able to make fast acquisitions. But CIL is a government company, and the government is answerable in Parliament. So we cannot go ahead and take independent decisions. But we have sought special powers for deciding on a contract on a fast track basis. Even the ‘Mini Ratna’ status is going to give us some leverage for this.

Apart from this, a separate company, Coal Ventures International, has already been created along with four other major PSUs apart from us, to buy coal assets abroad. On its own, and also in participation with others, Coal India is trying to acquire assets abroad. The main purpose is to get the coal into the country at a transferred price and not at the market price.

Considering the fact that there are number of issues involved for a government company to acquire assets abroad, do you think that it would be advisable for Coal India to enter into

some kind of agreement with private companies who are also looking to acquire assets abroad? Coal India is not averse to tying up with a good joint venture partner. Usually government companies have to take the tendering route, but here tendering route will not be possible. If the proposal is good, we will tie up on a negotiated basis with due approvals and clearances from the government of India.

But private parties must be patient with the procedural delays that come with any PSU. If they are, they will find that Coal India is a gold mine of technical and financial competence. It also has a large data bank of zoological reserves and mining methods, and a knowledge bank of how to improve on old processes. But Coal India has to stick to processes, and if anyone wants access to all this, patience is the key.

What about ArcelorMittal’s proposal to develop old and abandoned mines of Coal India?We have received the proposal and referred it back to the ministry. We are waiting for the government’s decision.

Mines have been abandoned by Coal India for two reasons. Reserves have either been exhausted, or mines have become uneconomical or not safe to mine any longer. Sometimes DGMS asked us to close those mines and sometimes we did it ourselves and then informed DGMS.

If reserves are exhausted, there should be a separate technology to take out the balance coal economically. If it is closed on safety reasons, there should be a mechanism or technology in place to take care of that aspect.

The details are still not available with us and we are talking to the ministry. Even if we go ahead with ArcelorMittal’s proposal, we will probably need further details on the kind of technology they will use, and what exactly they want to do.

We are definitely looking for a technology to take up underground mining wherein higher percentage of coal reserves can be recovered. If somebody can do it and if there is a mechanism for that, we are open to it.

What is the progress on plans to sub-divide the existing seven grades of coal into more grades by reducing the Kilo calorie band?That is already in an advanced stage. The proposal has gone to the Coal Ministry, which is looking into it. They have asked for some data, which we have provided.

Selling the coal with a large band of kilo calorie (Kcal) is not going to help us. But the change will take time. The first step is to make the band smaller, so that the colliery manager and the people involved in production and dispatch activities try to maintain a standard.

The second step will be washing the coal. All the coal will be washed and then provided only at a particular Kcal through the washeries. That will take care of the size, calorific value and grade of coal.

Once we do these two things, then we can migrate to GCV concept of selling coal, which is the international standard. Because the first two steps are taking time, we have moved

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to the intermediate step, that is subdivide the existing grade and bring in some sort of discipline. The sub-divided category should be in place soon.

How is this new system going to benefit coal users and CIL?Today the consumer is getting a grade of coal in the bandwidth of nearly 600 to 700 Kcal. If he starts getting coal with a higher calorific value, he will need less coal, but if he is getting coal of lower Kcal within a same grade, he will need more.

At present he is not able to monitor properly the calorific value of coal that he is receiving, because the bandwidth

is varying between 600 Kcal and 700 Kcal. If the plant is inefficient, the consumer is blaming it on the quality of coal. But if the plant is inefficient, they are walking away with all the credit, and the quality of coal is not getting its due.

Once coal starts to come in a smaller band, and a boiler is designed for 3250 Kcal of coal, for instance, it will be easier for the consumer to monitor whether he is getting the correct quality or not. Also, the fluctuations in quality of coal for the boiler will not be much, and that will improve efficiency.

In the present system, if the colliery manager gives 3250 Kcal of coal, instead of say 2400 Kcal, then the volume of coal that has to be loaded in wagons will be much lower and that will increase turnover of loading.

However, if there is a smaller band, and since higher band has a better value and the price is little more, then without increasing the quantity and by giving the proper quality of coal we are increasing the bottomline of not only the buyer, but also of the coal company.

So it acts as a disincentive for a colliery to slip from an agreed grade of coal because then it will be answerable to the consumer.Right now it is not answerable for grade slippage, but in the new system, it will be. That will give the much-needed accountability to the system.

In the new system, the consumer will definitely get better quality coal for the slightly higher price that he will pay. For instance, if he pays Rs 520 for coal of 3200 Kcal instead of Rs 480 for coal of 2900 Kcal, he will get several advantages.

The coal will be lighter, and the consumer will automatically get a larger volume of coal as there will be no ash handling, no stone handling and no mud handling. Over and above that, his boiler runs smoothly and he gets a better PLF. On the other hand, if he chooses the cheaper variety of coal, he has to segregate the stone, segregate the mud and burn this coal and lose the heat in heating non commercial material. The day the consumer in the country decides to pay more for the coal, he will definitely get better quality. It is no point cribbing about the quality and quantity after sourcing a product worth $100 to $120 a ton, for only $14 to $16 a ton.

What is your message to CIL and to the person who is going to replace you in the company?The approach will become the most important aspect in the coming days, as Coal India will soon cease to have its monopoly in the market. There will be competition in the form of other major players as well as imported coal. And our product has to be competitive. For that, we need to develop a distinctive brand image for Coal India. Coal from any particular colliery should have a branding of its own.

We should be able to supply the coal on GCV basis, which is the internationally accepted standard, so that benchmarking can be done. The consumer should come first, and all our efforts should be directed towards the consumer. If I can ensure the quantity, quality and size of coal for my consumer so that he can use his boiler efficiently and optimally, I will have served my purpose.

Ranganath’s career graph

K. Ranganath completed his Chartered Accountancy and also LLB from Bangalore, and his first job was with Canara Bank in Mumbai for about six months.

He was selected to the then Coal Mines Authority Ltd (CMA), now Coal India, in 1975, and joined Eastern Coalfields Ltd (ECL) as Accounts Manager, where he worked till 1999, and rose to the level of General Manager (Internal Audit).

In 1999, he was transferred to Bharat Coking Coal Limited (BCCL) as General Manager (Finance) and worked in the same capacity for about a year before being promoted as Technical Secretary to Director (Finance).

From there in 2001, he went to Mahanadi Coalfields Ltd as General Manager (Finance) and in 2002 came to Coal India as General Manager (Finance) and then rose to become Chief General Manager (Finance). Thereafter in 2003, he again went to BCCL as Director (Finance) and continued there till September 2005.

In October 2005, he once again came back to Coal India as Director (Marketing) and continued till May 2008 before leaving the company to take charge as Chairman and Managing Director of Bangalore-based Kudremukh Iron Ore Ltd.

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Lok SabhaSeparate Power Sub-Station to Delhi Metro

Question by Kinjarapu YerrannaiduWill the Minister of Urban Development be pleased to state: (a) whether the Government proposes to set up a separate

power sub-station to supply power to Metro Rail in the Capital city of Delhi;

(b) whether the electricity will also be supplied to the colonies nearby the proposed power sub-station;

(c) if so, the details thereof; and (d) the time by which it will be set up?

Answer by Ajay Maken, Minister of State for Urban Development(a) Delhi Metro Rail Corporation (DMRC) Ltd has reported that eight power receiving sub-stations are being set up for Phase II of Delhi Metro. (b) DMRC Ltd, not being a licensee, is not authorized to supply power to the nearby colonies.It falls under the jurisdiction of power distribution companies (DISCOMs). (c) Does not arise. (d) DMRC Ltd has planned to commission the sub-stations by September 2010 progressively.

SPV for hydro power projects

Question by Iqbal Ahmed SaradgiWill the Minister of Power be pleased to state: (a) whether with a view to enhance competitiveness in the

power sector and for reducing the project cycle time for hydro power projects, the Union Government proposes to amend the bidding norms for hydro power projects under which the preparation of detailed project reports and subsequent formation of Special Purpose Vehicles (SPVs) would be made mandatory for the states before it invites bids for project construction;

(b) if so, the details thereof; and (c) the time by which the final decision is likely to be taken by

the Government in this regard?

Answer by Jairam Ramesh, Minister of State for Commerce and Industry and Minister of State for Power(a) No, Sir. No such proposal is presently under consideration of the Government under which the preparation of Detailed

Project Reports (DPRs) and subsequent formation of a Special Purpose Vehicle (SPV) are a mandatory pre-requisite for inviting bids by the States. (b) & (c) Do not arise.

Oustees of Dadri Power Plant

Question by Srichand KripalaniWill the Minister of Power be pleased to state: (a) whether there is any long pending demand of the displaced

people of Dadri Thermal Power Project; (b) if so, the details thereof; (c) whether said demand has not been fulfilled by the

Government so far; (d) if so, the reasons thereof; and (e) the steps taken/proposed to be taken by the Government

in this regard?

Answer by Jairam Ramesh, Minister of State for Commerce and Industry and Minister of State for Power

(a) to (e) Land for the NTPC Dadri Project was acquired by the State Government of Uttar Pradesh in accordance with the provisions of Land Acquisition (LA) Act in the year 1986. In addition to the compensation paid to the entitled persons according to the LA Act, NTPC Dadri has implemented Rehabilitation and Resettlement (R&R) activities in line with its extant R&R Policy and practices from time to time. A few individual representations have been received from displaced persons regarding employment. There is no recruitment presently in the Dadri project. Recruitment in NTPC projects against requirement is based on its recruitment policy and Government`s policies as applicable.

Reforms in Power Sector

Question by Ravi Prakash Verma, Raghuvir Singh Kaushal and P.C. ThomasWill the Minister of Power be pleased to state: (a) whether the Union Government proposes new reforms

package for investment in the power sector; (b) if so, the details of the outlay fixed for the new package; (c) the details of the component contained in the new scheme;

and (d) the steps taken or proposed to be taken to achieve the

various targets during the Eleventh Five Year Plan?

legIslaTORs’ COal QUeRIesCoal Insights Bureau

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Answer by Sushil Kumar Shinde, Minister of State for Power(a) to (d) Reforms in power sector are an on-going process. Electricity is a concurrent subject. The Central Government has taken various reform initiatives, inter alia, for mobilizing investment in the power sector, such as: 1. The Electricity Act, 2003 has put in place a liberal and

progressive legal framework including features like open access, non-requirement of license for generation and freely permitting captive power plants.

2. An independent regulatory framework at Centre and State levels.

3. The Appellate Tribunal for Electricity under the Electricity Act, 2003 has been made operational facilitating expeditious settlement of disputes.

4. Permitting 100 percent foreign direct investment in power sector.

5. The Accelerated Power Development and Reforms Programme (APDRP) for assisting the States in investment in sub-transmission and distribution segments and also for incentivising better financial performance by the State Power Utilities.

6. Rajeev Gandhi Grameen Vidyutikaran Yojana with 90 percent capital subsidy from the Central Government for providing access to electricity in rural areas. The scheme gives a special emphasis on mechanisms for improved revenue collection.

7. The Tariff Policy notified under the Act provides for competitive procurement of power in a transparent manner in accordance with the guidelines issued by the Central Government.

8. Mega Power Policy gives various tax incentives for promoting accelerated generation in capacity addition.

Violation of Norms by Private Power Distribution Companies

Question by Santosh Kumar Gangwar and Vijay Kumar MalhotraWill the Minister of Power be pleased to state: (a) whether the private power distribution companies in the

National Capital Territory of Delhi are supplying power to other States at higher tariff in order to earn more profit;

(b) if so, the details thereof along with the reasons thereof; and

(c) the action taken by the Government against these companies in this regard?

Answer by Sushil Kumar Shinde, Minister of State for Power(a) to (c) Distribution companies are regulated by the concerned State Electricity Regulatory Commission under the provisions of the Electricity Act, 2003.

The following has been intimated by the Delhi Electricity Regulatory Commission: 1. The peculiar load demand pattern in Delhi translates

to huge shortfalls in availability of power during peak seasons and peak load periods during days vis-à-vis the power tied-up through long term Power Purchase Agreement (PPA) for NCT of Delhi. These shortfalls are met by procuring power at market rates.During off-peak period, there are some surpluses of power which are, similarly, traded through bilateral trading/Unscheduled Interchange (UI) and the revenue so realized helps in partly off-setting the purchases made at market rates to meet the peak demand.In other words, such sales help reduce the revenue gap to a certain extent.

2. The private Distribution Companies (DISCOMs) in the NCT of Delhi as also the NDMC and MES are supplying power to the other States only when there is surplus power available over and above the requirement in their respective distribution area. The revenue realised by these utilities on account of sale of such surplus power is accounted for in the Annual Revenue Requirement (ARR) and finally leads to reduction in revenue gap.

3. The Commission vide its Order dated March 31, 2007, re-assigning the Power Purchase Agreements to the distribution utilities including deemed licensees in the NCT of Delhi has given the following directions to all the distribution utilities regarding sale of surplus power:-

”If the allocation results in any excess capacity in the hands of any of the Distribution Companies/agency at any time, such excess capacity shall be offered to other distribution utilities in Delhi at the first instance and only if such spare capacity cannot be absorbed within Delhi, it shall be offered to others. Necessary arrangements for this purpose shall be evolved in the Power Procurement Group constituted by the Government of NCT of Delhi.”

Kopili Hydel Power Project

Question by Moni Kumar SubbaWill the Minister of Power be pleased to state: (a) whether 275 MW Kopili Hydel Power Project at Umrangso

in NC-Hills has been subject to continuous threat and frequent attacks by militants;

(b) if so, whether the power generation capacity of the plant has been adversely affected during the last two years and the current year; and

(c) if so, the steps taken by the Government for optimum operation and power generation in the plant?

Answer by Sushil Kumar Shinde, Minister of State for Power(a) The Kopili Hydro Electric Project located in North Cachar Hills District of Assam issurrounded by dense forest from all

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sides and comprises three power stations of capacities 4x50 MW (Kopili-I), 2x25 MW (Khandong) and 1x25 MW (Kopili-II).The three power stations andthe various installations are located at a distance of 15-25 km from the Project Headquarter at Umrongso. The project is sensitive from the security point of view as various militant groups are operating in the area. As informed by the North Eastern Electric Power Corporation (NEEPCO), the Project management has been receiving continuous demands and threats from various militant groups. (b) After a militant attack on the shift duty personnel of NEEPCO on 11.02.2008,the generation from the power station had been temporarily affected. The 200 MW Kopili-I Power station had to be put under shutdown from February 12 to 21, 2008, while the 50 MW Khandong Power Station was shut down from February 12 to 15, 2008, and the 25 MW Kopili Stage II from February 12 to 16, 2008, consequent to the militant attack on February 11, 2008. During this period there was generation loss to the tune of 20 million units from these power stations.

The generation from these Power Stations was restored after security cover of Assam Police was provided by the Government of Assam to the employees and to the installation. The units are since in operation as per the normal schedule given by the North East Regional Load Dispatch Centre (NERLDC). (c) The matter regarding repeated threats by the militant groups to NEEPCO employees has been taken up with the Government of Assam. It has been informed that one platoon of Assam Police has been provided by the State Government initially at the Kopili Power station for escorting the shift duty personnel of the Power Plant. Thereafter, the security setup has been further strengthened subsequently by posting another two platoons of the Assam Police Battalion at Khandong & Umrongso. In addition, one company of the BSF and one company of Assam Rifles are also based at Umrongso to provide security cover to the employees of NEEPCO and to the installations.

Dabhol Power Plant

Question by Anandrao Vithoba Adsul and Mohan Rawale Will the Minister of Power be pleased to state: (a) whether the Union Government has approved an increase

in the power generation capacity of the Dabhol power plant in Maharashtra;

(b) if so, the details thereof and the steps taken by the Union Government in this regard;

(c) whether there is any shortage of gas for optimum operation of the Plant; an

(d) if so, the reasons thereof and the efforts being made in this regard?

Answer by Sushil Kumar Shinde, Minister of State for Power

(a) No, Sir.

(b) Does not arise.

(c) & (d) No, Sir. Presently, power generation at Ratnagiri Gas & Power Private Limited (RGPPL) is not affected due to shortage of gas supply.

Water Shortage for Hydro Power Generation

Question by Laxminarayan PandeyWill the Minister of Power be pleased to state: (a) whether substantial decrease in the water level has been

registered in major dams viz. Bhakra, Pong, Thein, Rihand, Matatila, Gandhisagar, Bansagar, Indira Sagar and Baragi etc. generating hydroelectricity in Northern India;

(b) if so, whether electricity generation capacity of these dams has been adversely affected due to decrease in water level;

(c) the details of electricity generation capacity of these dams and decrease in electricity generation registered in megawatt during the last six months; and

(d) the steps taken by the Government in this regard?

Answer by Sushil Kumar Shinde, Minister of State for Power(a) Yes, Sir. The water levels in the current year in the Bhakra, Pong, Thein, Rihand, Gandhisagar,Bansagar,Indirasagar and Bargi are lower than the levels on the same day of last year except in Matatila. The details of water level in respect of these dams are as under:-

sl. no. name of DamReservoir level (ft.) Reservoir level (ft.) Deviation (-)/(+) of level

w.r.t. last year (ft.)Date level Date level1. Bhakra 6.3.08 1553.53 6.3.07 1596.10 (-)42.572. Pong 6.3.08 1297.98 6.3.07 1344.69 (-)46.713. Thein Dam (Ranjit Sagar) 6.3.08 1632.02 6.3.07 1648.98 16.964. Rihand 6.3.08 842.00 6.3.07 843.70 (-)1.705. Matatila 5.2.08 997.11 5.2.07 994.19 (+)2.926. Gandhi Sagar 6.3.08 1273.98 6.3.07 1291.21 (-)17.237 Bansagar 28.2.08 1079.13 28.2.07 1084.78 (-)5.658. Indira Sagar 6.3.08 815.94 6.3.07 817.78 (-)1.849. Bargi 23.2.08 1353.35 23.2.07 1356.96 (-)3.61

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(b) No, Sir. The electricity generated in the current year upto Feb.08 is more than the generation in same period of the last year in case of Pong, Gandhisagar & Indirasagar whereas, the electricity generation in case of Bhakra, Thein (Ranjit Sagar). Rihand, Matatila, Bansagar & Bargi is less than the energy generation in the same period last year. The details are as under:

sl. no. name of Dam

total generation (in Mu) Deviation (+)/(-) of gen. w.r.t. last year

upto Feb. ’082007-08 2006-07

1. Bhakra 4778.98 5093.00 (-)314.022. Pong 1702.58 1366.00 (+)336.58

3. Thein (Ranjit Sagar) 1453.19 1589.28 (-)136.09

4. Rihand 542.20 890.54 (-)348.345. Matatila 65.91 124.63 (-)58.726. Gandhisagar 478.19 397.15 (+)81.047. Bansagar 1185.86 1263.46 (-)77.608. Indira Sagar 2637.72 2514.02 (+)123.709. Bargi 414.09 496.77 (-)82.68

15257.72 15733.85

The annual generation from reservoir based hydro power stations depends on the inflow during the year due to rainfall and snowmelt carry over storage and the quantum of water released for irrigation through the machines. The reservoir level at the end of the year depends on the inflow and quantum of release for irrigation/power generation. The generation from a reservoir based power station will be higher if the quantum of water released through machine for irrigation is more and this will result in decrease in the reservoir level.

(c) The details of electricity generation capacity (installed capacity) and available capacity of these dams are as under:

sl. no. name of Dam installed Capacity (Mw)

Capacity currently available (Mw)

1. Bhakra 1325 13252. Pong 396 3963. Thein (Ranjit Sagar) 600 6004. Rihand 300 2505. Matatila 30.60 30.60

6. Gandhisagar 115 115

7 Bansagar 425 4258. Indira Sagar 1000 10009. Bargi 90 90

In case of Rihand, one unit is under Major shutdown and hence not available. No decrease in generation capacity from these dams has been registered in the last six months. (d) Question does not arise.

Oustees of Kaniha Power Project Orissa

Question of Jual Oram Will the Minister of Power be pleased to state: (a) the details of norms fixed by the National Thermal Power

Corporation for providing employment to the oustees of thermal power plants in the country;

(b) whether any employment has been provided to the oustees of Kaniha National Thermal Power Plant in Orissa;

(c) if so, the details thereof and if not, the reasons thereof; and

(d) the steps taken by the Government in this regard?

Answer by Sushil Kumar Shinde, Minister of State for Power(a) NTPC Ltd’s power plants are highly automated state-of-the-art plants requiring very high skill levels and limited number of persons for its operation, maintenance and other support functions. However, employment to the oustees is considered according to the approved Rehabilitation Action Plan (RAP)/Memorandum of Understanding (MOU) of the specific project formulated with the concurrence of the respective State Governments. (b) to (d) NTPC Ltd has informed that employment has been provided to the oustees of Talcher-Kaniha project as per suitability and requirement to the extent possible, in line with the discussions and decisions taken in the meeting held by the Chief Minister, Orissa on August 19, 1991. According to the decisions taken in the above meeting, various rehabilitation options were considered of which one of them was provision of jobs.Against that provision, direct jobs have been provided to 435 affected persons at Talcher-Kaniha. In addition, affected persons have also been engaged through contracting agencies.

SPV for Setting up of Power Projects

Question by Braja Kishore Tripathy Will the Minister of Power be pleased to state: (a) whether the National Thermal Power Corporation (NTPC)

has signed an agreement with Coal India Ltd to form a Special Purpose Vehicle to set up power plants in the country;

(b) if so, the details thereof and the salient features of the agreement;

(c) the manner in which SPV will be beneficial for both the companies; and

(d) the time by which the power is likely to be produced from each of such plants covered under the SPV?

Answer by Sushil Kumar Shinde, Minister of State for Power(a) to (d) NTPC Ltd and Coal India Ltd (CIL) have signed a Memorandum of Understanding (MOU) on March 15, 2007 to

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jointly undertake development, operation and maintenance of Coal Blocks and Integrated Coal Based Power Projects. However, no Joint Venture agreement has been finalised so far.

Details / Salient features of the MOU are as under: NTPC Ltd. and CIL to co-operate and promote one or more Joint Venture (JV) Companies with the aim of jointly undertaking the development, operation and maintenance of Coal Blocks and Integrated Coal Based Power Projects. Execution of identified project(s) to be set out through a separate detailed agreement. The Parties to have equity holding of 50 percent each in the JV Company unless otherwise mutually agreed. The JV Company (ies) to arrange necessary funds for the project without any recourse to NTPC Ltd. and CIL. The Parties to nominate equal number of Directors on the Board of the respective JV Company(ies).

The proposed venture will benefit NTPC Ltd. and CIL by way of utilizing the synergies between the two companies for combined operation drawing upon their strengths in the respective core areas of power production and coal mining.

Dibang Valley Hydel Power Project

Question by Moni Kumar SubbaWill the Minister of Power be pleased to state: (a) whether the Government proposes to set up a Hydel

Power Project in Dibang valley; (b) if so, the details thereof; (c) whether clearance of the project has been accorded; and (d) if so, the estimated cost of the project and the names of the

States likely to be benefited?

Answer by Sushil Kumar Shinde, Minister of State for Power(a) & (b) The Dibang Multipurpose Project of 3000 MW capacity on the Dibang river has been entrusted to National Hydroelectric Power Corporation Ltd. (NHPC) for development.This is a multipurpose project with attendant benefits of flood moderation etc.and is located about 1.5 Km upstream of the confluence of the Ashu Pani River with Dibang river,in the Lower Dibang Valley District of Arunachal Pradesh.The project is expected to be completed in nine years after investment approval. (c) & (d) Central Electricity Authority (CEA) has accorded its concurrence to the project on January 23, 2008. The Public Investment Board (PIB) in its meeting held on January 28, 2008 has recommended the project at an estimated cost of Rs 15,886.40 crore at November, 2007 price level. The project is to be accorded investment approval after all the statutory clearances such as environment and forest clearance etc. have been obtained by NHPC. The power from the project

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is expected to be supplied to the States in the North Eastern Region and also to other deficit States in the Northern, Western and Eastern Regions.

Captive Power Generation

Question by Ramjilal SumanWill the Minister of Power be pleased to state: (a) whether the present power generation capacity of various

captive power plants in the country is much higher than their installed capacity;

(b) if so, whether the surplus power generated by the captive power plants is not being fully utilised in the country;

(c) if so, the reasons thereof; and (d) the steps taken by the Government in this regard?

Answer by Sushil Kumar Shinde, Minister of State for Power(a) to (c) No, Sir. The generation capacity of captive power plants in the country has not been higher than their installed capacity. According to information available with the Central Electricity Authority (CEA), surplus electric energy to the extent of about 5200 Million Units (MU) has been exported by such captive power plants to the utilities during the year 2006-07.

The installed capacity of industrial sector captive power plants of more than 1 MW was about 22,300 MW as on March 31, 2007. The power generation from the CPPs during 2006-07 was about 81,800 million units (MU) which is 11 percent higher compared to the previous year, at an average Plant Load Factor (PLF) of about 41.80 percent. Additional generation is possible in case of higher PLF being achieved by these plants and surplus being fed into the grid. It is estimated that about 24,300 MU of additional generation could be realised from steam and gas based captive power plants in case their average PLF is raised to 75 percent and 80 percent respectively. (d) The government has taken various legislative, policy and administrative measures to facilitate captive generation and utilization of surplus capacity.

Under the Electricity Act, 2003, captive power plants, including group captive, have been freely permitted. The Act provides that any person may construct, maintain or operate a captive generating plant and dedicated transmission lines. Under the provisions of the Act, every person, who has constructed a captive generating plant and maintains and operates such plant, shall have the right to open access for the purposes of carrying electricity from his captive generating plant to the destination of his use subject to the availability of transmission capacity.

National Electricity Policy, notified in February, 2005, emphasizes the need for bringing surplus capacity available with a large number of captive and standby generating stations in India to the grid continuously or during certain time periods.

COAL INSIGHTS �2 JUNE 2008

Tariff Policy, notified in January, 2006, recognises that captive generation is an important means to make competitive power available and urges the Electricity Regulatory Commissions to create an enabling environment that encourages captive plants to be connected to the grid.

The Conference of Chief Ministers on Power Sector Issues held in May, 2007, has resolved to facilitate captive power plants to provide the spare generating capacity to the grid and strive to do away with restrictive levies, duties and regulations in a time bound manner.

Ministry of Power has been actively involved in moderating the charges/duties on open access, cross-subsidy, etc. Various conferences and seminars with the stakeholders have been held to evolve consensus and expedite action on the concerned issues, the latest being the Round Table of Forum of Regulators held on November 5, 2007 and the Conference of Chief Secretaries on Power Sector Issues held on February 19, 2008.

Power Supply To Out Posts Of SSB

Question by Adityanath YogiWill the Minister of Home Affairs be pleased to state: (a) whether the Uttar Pradesh Power Corporation frequently

cut off the power supply to the Sashastra Seema Bal (SSB) outposts on Indo-Nepal border in Uttar Pradesh due to non-payment of electricity dues by the said organisation;

(b) if so, the details thereof; and (c) the time by when the pending electricity bills are likely to

be paid by SSB?

Answer by Prakash Jaiswal, Minister of State for Home Affairs(a) & (c) Power supply to any of the Border Out Posts of SSB has not been disconnected.

SSB for the units temporarily located in a part of the campus of the Fertilizer Corporation of India (FCI), Gorakhpur, has been regularly paying for its power consumption, totalling Rs 6.70 crore as on date. However, the Uttar Pradesh Power Corporation Limited has on a few occasions disconnected power supply to the campus on account of an outstanding amount of Rs 3.31 crore (including surcharge and interest) against the FCI. The matter has been taken up with the Ministry of Chemicals and Fertilizers and the FCI to clear their dues.

Setting Up Of Power Projects By Bhel

Question by Thaawar Chand GehlotWill the Minister of Heavy Industries and Public Enterprises be pleased to state: (a) the power projects (power houses) under construction by

BHEL and the names of the States where these are being constructed including Madhya Pradesh and the date from which the construction work is going on;

(b) the details of the construction of the said projects; (c) the details of the financial and physical achievements of

the projects; and (d) the time by which the said projects likely to be

completed?

Answer by Kanti Singh, Minister of State for Heavy Industries and Public Enterprises(a) to(d) Bharat Heavy Electricals Limited (BHEL) has been presently engaged in 75 (seventy five) thermal and hydel utility power projects by various utility companies.The projects are located in Andhra Pradesh (10); Assam (2); Arunachal Pradesh (1); Bihar (3); Chhattisgarh (4); Gujarat (5); Himachal Pradesh (6); Jharkhand (2); J&K (2); Karnataka (2); Kerala (1); Madhya Pradesh (3); Maharashtra (8); Mizoram (1); Punjab (2); Rajasthan (6); Tamil Nadu (3); Uttar Pradesh (4); Uttarakhand (Uttaranchal) (2); and West Bengal (8).

Each of these 75 projects is monitored as per the specific terms and conditions of order for that project placed by the respective utility agency which places the order. Besides BHEL, which is a power equipment supplier, utility agency engages a number of other contractors which include project developer, executors of balance of plant like coal handling, ash handling etc. The implementation schedule and completion dates are drawn up on the basis of various orders placed with such contractors by the utility company which monitors both the physical and financial progress.

Purchase of Coal Mines Abroad

Question by Chandrakant Bhaurao KhaireWill the Minister of Steel be pleased to state: (a) whether the Government has recently signed any contract

for purchase of coal mines outside the country so as to ensure uninterrupted supply of coking coal used in the furnaces of the plants of Steel Authority of India Limited functioning in Chhattisgarh and Jharkhand;

(b) if so, the details of the terms and conditions including the names of the countries with which contracts have been signed; and

(c) the quantum of coal to be extracted from these foreign mines alongwith the likely cost thereof?

Answer by Akhilesh Das, Minister of State for Steel(a) to(c) No, Sir. At present, the Government has not signed any contract for purchase of coal mines outside the country. However, Government has accorded approval for the formation of a Special Purpose Vehicle (SPV) constituted by the Steel Authority of India Limited (SAIL), Coal India Limited (CIL), Rashtriya Ispat Nigam Limited (RINL), National Mineral Development Corporation (NMDC) and National Thermal Power Corporation (NTPC) for securing metallurgical coal and thermal coal assets from overseas for these companies.

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Paradip Port Trust, one of the busiest ports in the eastern coast of the country, has decided to double its traffic handling capacity in next four years. The port which has

current traffic handling capacity of 56 million tons per annum (mtpa) has firmed up plans to touch 111 mtpa capacities by 2012 anticipating huge growth in demand in sectors including coal, iron ore and steel, among others. The port is expecting to handle a total cargo of around 70 million tons in 2011-12 from current level of 42.44 million tons in 2007-08.

Expected Traffic Projection as on March 2012(million tons)

year pol iRon oRe Coal ContaineR Bot

CaRgootheRs

CaRgoes total

2007-08 1.75 12.96 18.09 0.05 0.00 9.59 42.442008-09 9.71 13.00 18.5 0.08 0.00 10.10 51.392009-10 12.50 13.00 23.00 0.20 0.00 10.00 58.702010-11 12.50 13.00 23.00 0.30 5.00 11.00 64.802011-12 13.00 17.00 23.00 0.50 5.00 11.50 70.00

Installation of SBM by IOCAmong the several expansion projects that the port authority has taken up, one is the setting up of a Single Buoy Mooring (SBM) by IOCL. This SBM will be used to import crude oil through Very Large Crude Carriers (VLCCs). These facilities

when commissioned will add about 15 million tons of cargo to the present volume.

Deepening of Channel The Port also is undertaking the work of ‘Deepening of Channel’ at a cost of Rs 253.36 crore. The work has already been awarded to Dredging Corporation of India (DCI) this January. After deepening of channel, the port will be in a position to handle Cape size vessels (i.e. up to 125,000 DWT). On completion of the project, the depth of the entrance channel will be increased from 12.8 metres to 17.1 metres. The date of completion of the project is June 2009.

Deep Draught Iron Ore Berth on BOT basisThe port has also started work to construct one berth for handling of iron ore with back up facilities to meet the growing demand in this sector. The estimated cost of the project is Rs 504.77 crore.

According to the Port’s spokesperson P.K. Mishra, request for proposals (RFP) stage is over and proposal has been sent to TAMP for upfront fixation of tariff. After final approval of PPPAC, the short listed bidders will be asked to submit price bids. It is expected that concession agreement would be signed before December 2008. The likely date of completion of the project is March 2011. These facilities when commissioned will add about 10 million tons of cargo to the present volume.

Paradip Port To DoubleTraffic Handling Capacity

Arnab Mallick

COAL INSIGHTS �5 JUNE 2008

LOgIsTICs

Expected Port Capacity as on March 2012

planCapacity addition (Mtpa)

year of Completion

present Capacity (Mtpa)

Capacity expected (Mtpa)

Installation of SBM by IOCL 15.00 2008

56.00 111.00

Increasing Draught at existing dock system 5.00 2009

Development of new deep draught Iron Ore berth on BOT basis 10.00 2011

Development of new draught Coal berth on BOT basis 10.00 2011

Development of Southern Dock system having provision of 3Nos. Of berth. One for container, two for POL products

15.00 2012

Total 55.00

Deep Draught Coal Berth on BOT basisAnticipating the demand for coal that is likely to emerge from the planned steel projects in Orissa and other east Indian states, the port has planned that one berth will be built for handling coal with backup facilities. The estimated cost of the project is Rs 387.83 crore. The status of this project is also similar to that for iron ore. According to Mishra, thermal coal accounted for the maximum share of 32 percent amongst the entire traffic basket during 2007-08.

Traffic basket of Paradip Port (2007-08)(million tons)

year iron ore

thermal Coal

Coking Coal pol FRM

(Dry)other Cargo total

2003-04 5.93 11.01 2.24 1.36 1.59 3.18 25.312004-05 9.05 10.94 3.27 0.84 2.60 3.40 30.102005-06 10.27 12.53 3.76 0.91 1.57 4.07 33.112006-07 11.89 12.47 4.27 1.38 2.86 5.66 38.522007-08 12.96 13.35 4.74 1.75 3.42 6.23 42.44

Development of Southern Dock SystemThe port is working on developing a Southern dock system having berths with provision to handle containers and POL products. The cost of the project is Rs 530 crore. The feasibility study is in progress and a formal proposal will be sent to the Ministry before this month. The likely date of completion of the project is March 2012. These facilities, when commissioned, will add about 15 million tons of cargo to the present volume.

Record Performance of Paradip Port in 2007-08The port has handled record annual traffic of 42.44 million tons during 2007-08 surpassing the previous record of 38.52 million tons handled during the earlier year. It also handled all time highest number of vessels i.e. 1636 vessels during the year as against 1452 vessels handled during 2006-07.

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Formed in April 1992, Mahanadi Coalfields Ltd (MCL) is the youngest and the second largest among all subsidiaries of Coal India Ltd in terms of coal production

and profitability.As part of our initiative to highlight the various activities

undertaken by subsidiaries of Coal India, Rakesh Dubey spoke to the Chairman and Managing Director of MCL, Shree Ramji Upadhyay, to find out what is happening in the company and its future plans. Excerpts:

In 2007-08, MCL produced 88.01 million tons and the profit was Rs 2500 crore. What is the target for the current year?Our production target for 2008-09, which was initially set at 99 million tons, has been revised to 104 million tons at the initiative of the Coal Minister. We are confident of achieving the revised target and our profit will definitely cross the Rs 3000-crore mark.

Of the total planned production in MCL, what would be the share of private contractors or outsourcing?In 2007-08, most of the coal produced in MCL was through outsourcing. Out of the 88.01 million tons, 80.49 million tons, or about 90 percent, was produced through contractual means. By 2011-12, our coal production will have to be increased to 152 million tons per annum and around 60 percent of that would come through outsourcing, while departmental production would be only 40 percent.

What problems MCL may face in achieving the target?The major problems that might come up are acquisition of land, forestry clearance and availability of good contractors. Some of the projects for MCL that have been cleared by the Ministry of Coal are to be completed only through the outsourcing mechanism, wherein overburden removal as well as mining operations would be conducted by private contractors.

The projects, which have been cleared by the ministry and would be undertaken by outsourcing, are Bhuwaneswari, Kunda and Kaniha. Moreover, most of the new projects that would come up in the MCL area would be mined through private contractors.

How many new mines does MCL intend to open in the Eleventh Plan period and what would be the additional production from these new mines?We are planning to start work on eight new projects in the Eleventh Plan period. These are Siarmal OCP with an estimated production figure of 8 million tons per annum (mtpa),, Siarmal West Extension (6 mtpa), Gopalprasad OCP & Utkal ‘A’ – joint venture project- (15 mtpa), Ananta OCP Extension, phase 3 (12 mtpa), Madhupur OC (2 mtpa), Kalinga OC Extn (12 mtpa),

Balabhadra OC (6 mtpa) and Chhendiapada OC Expansion (5 mtpa). We expect an additional production of around 66 mtpa from these new projects.

What are the environmental, infrastructural and other hurdles MCL is facing in opening new mines?Since most of the projects under Basundhara Coalfields like Kulda OCP fall under forest land, clearance from the ministry of environment and forest takes time. This is one of the major hurdles in opening new mines.

One of the advantages of MCL is that it does not have many underground mines. What, according to you, are the other advantages of MCL vis-à-vis other subsidiaries of CIL?The major advantage of MCL is that it has a very low stripping ratio compared to other coal subsidiaries.

How many mines do MCL have at present? How many of these are underground mines and what is the total production from these underground mines?MCL has a total of 15 opencast and seven underground mines at present. The total production from underground mines in 2007-08 was only 2.12 million tons.

Recently CIL said that it will focus on increasing production from underground mines. What role does MCL plan to play in this grand plan of CIL, considering that you are not into underground mining in a big way? MCL plans to augment the production of underground mines by introducing continuous miners and mechanisation of its existing mines. Moreover, three new underground mines with a capacity of 1.81 million tons per annum will be introduced during the Eleventh Plan.

What is your scope for increasing production from underground mines?We have seven underground mines spread over two areas, but production from these is negligible. Our target is to produce 2.2 million tons of coal from these seven mines. This is, however, really small, considering the fact that we plan to produce 104 million tons of coal this year. However, in the Twelfth Plan, we hope to bring two new underground mines – Natraj and Jagannath – under operation, which are expected to produce around 1.5 million tons of coal annually.

It appears that your focus is not on increasing production from underground mines. Is it because the coal deposits in MCL area are found just below the surface?It is human nature to extract what is extractable easily. But later, when our requirement increases, we will definitely try

MCL ready to meet small consumers’ needsConfident of achieving 15% output rise

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to extract coal from bigger depths, if at all that is available. It is going to be difficult for companies like us as well as NCL, who depend largely on opencast mining for coal production; because we have to think about our future course of action once the coal near the surface is exhausted. Seams are getting deeper and deeper, and to maintain production through opencast means is going to be difficult.

Do you think that MCL will be able to maintain its growth record, considering the limited powers you have and the problems you are facing in starting new projects?MCL is confident of not only sustaining its present growth of 10 percent in production, but also to reach a growth rate of 15 percent this year itself.

What is MCL’s investment plan? How much does it plan to invest in 2008-09 and in the Eleventh Plan?We have chalked out a plan to invest Rs 350 crore in 2008-09 on the back of almost similar investment in 2007-08. Our investment plan for the Eleventh Plan is only Rs 2125 crore, as a majority of work is planned to be done through outsourcing. The entire investment plan would be met through internal accruals.

Of the Rs 350 crore, the highest amount of Rs 126.51 crore is likely to be spent on buying HEMMs, Rs 110 crore on land acquisition, Rs 29.20 crore on developing Railway siding, Rs 32.33 crore on plant and machinery and Rs 20 crore on exploration. The balance amount would be spent on building, furniture and fittings, vehicles, and overall development.

From where does MCL buy most of its mining equipment?MCL procures its mining equipment from BEML, Caterpillar India Pvt Ltd., L&T, Atlas Copco and Rebthi Equipments and OMZ of Russia. Earlier MCL procured equipment from Liebherr, Franch and Gmbh Germany.

A number of Coal India subsidiaries have a very poor record of utilising HEMMs. What is the position in MCL?

The utilisation of HEMMs has been increasing in MCL over the last five years. However, it is still below the CMPDIL norms, but we are making efforts to improve our utilisation percentage.

Do you have any plan to introduce the Highwall mining technology in any of your mines as has been done by SECL?We do not have any such plan yet. Under this technology, it is possible to extract coal from abandoned opencast mines, but in MCL, as of now, the number of abandoned mines is not that high.

S.R. Upadhyay graduated from the Indian school of Mines in 1971 and joined Lodna Coal Company of Mundra Group at Neegha near Asansol. He served in this company till 1973.

In 1974, he joined at Sripur Area in ECL, but within 20 days he was transferred to the Kuardih mines of Jalans where he worked till 1982. After that he was promoted as Manager and went to Cheenakuri mines where he served till 1989, and then moved to the Mugma area where he worked till May 2000. At Mugma, he was promoted from P5 to M1 and then to M2.

After the long stint at Mugma, he was transferred to Jhanjhra project of ECL as additional general manager.

His stint in Jhanjhra lasted for one year and nine months and from there he was transferred to Northern Coalfields Ltd as AGM of Khadia project area.

In 2004, he took charge as General Manager and in 2006 he was selected as Director (Technical) of Western Coalfields Ltd.

He joined WCL in September 2006, and left WCL on August 31, 2007 to take charge as CMD of Mahanadi Coalfields Ltd.

Profile ofs.R. Upadhyay

CMD, Mahanadi Coalfields

MCL identifies land for power projectCoal Insights Bureau

Mahanadi Coalfields Ltd Chairman and Managing Director S.R. Upadhyay, said the company has finally managed to identify land for setting up a 1000 MW power plant in joint venture with Neyveli Lignite and Hindalco Industries.

“We are not worried with reports that Neyveli Lignite is seeking 51 percent stake in the proposed joint venture that would set up the power plant. We are not worried about stake related issues as of now. Our main worry was to find land for the proposed venture. It was difficult to find land near water resources,” Upadhyay said.

He, however, said that the company has more or less, zeroed in on a plot of land which is near a river or a water source. “I think the land will be available near the Ib Valley area,” he added.

“We were not getting land where it was possible to take water through the pipeline, but this meets all our needs,” Upadhyay said.

He, however, refused to name the place, saying land prices will start rising as soon as the name is out and then acquisition will become difficult.

COAL INSIGHTS �8 JUNE 2008

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However, we have one abandoned mine where we have decided to fill the pit with fly ash and reclaim the area by building parks and gardens.

Highwall mining is suitable mainly for extracting coal that could not be mined during the opencast operation by installing the machine at the edge from where mining was not possible. Such conditions do not exist in mines of MCL, and so there is no scope for installing the Highwall technology.

Indian coal with high ash content needs washing. What steps are being taken by MCL in this direction?We have taken a decision in Coal India that only washed coal will be provided to all non-pithead consumers. For pithead consumers, we do not need any washery, but for those consumers where this stipulation of ministry of environment comes to play, we have to see that only washed coal is provided.

To meet this requirement, MCL is leasing infrastructure facilities to the private players like land, water, railway siding, electricity, if available, on chargeable basis for washing of coal.

We have proposed to set up three washeries, out of which two with throughput capacites of 10 mtpa and 5 mtpa respectively will be set up at Ib Valley coalfields and one with 5 mtpa throughout capacity would be set up in Talcher coalfields. Reports for these washeries are being prepared by CMPDIL.

These apart, two sites for washeries at Jagannath Area and Hingula Area have been selected and surface plans for both the OCPs where sites have been marked have been handed over to the team of CMPDIL engineers.

What is your opinion on opposition by local people for awarding mining contracts to private companies by MCL?The opposition from local people has always been there. They feel that once private parties start mining, their very existence in the area will be under threat. But I don’t agree with that.

We have been able to convince them that outsourcing work will not affect local people in any way as MCL will be deploying its own people. Even in some of the outsourced projects, we are going to install our own machines. We have decided to buy four surface miners for cutting of coal and about 100 tipping trucks for our own transport arrangement.

These surface miners and tipping trucks would be available with us by next year. Right now, we do not have our own surface miners and all the existing ones belong to contractors.

Apart from surface miners and tipping trucks, what are the other equipment that your plan to purchase?The list is pretty long. We plan to buy about 172 numbers

Mahanadi Coalfields Ltd Chairman and Managing Director S.R. Upadhyay, has said that he has received proposals from Sasol of South Africa and

Reliance Industries for setting up of coal-to-liquid (CTL) project in its mining areas. After going through both, he feels that Reliance’s technology is better than Sasol’s.

“Officials of Sasol met me when I was in South Africa recently. One of their representatives had also come to meet us here in India and had taken samples of coal from our mines,” he told Coal Insights.

“They have analysed the sample from Ib valley and Talcher as well and found that both the varieties are suitable for coal liquefaction projects. We have decided that the Ib North area, which is an extremely backward area, and where our new Vasundhara mine is coming up, can be considered for the project,” he added.

“I am saying this because the production capacity at Vasundhara is likely to be around 50 million tons per annum and it is going to be difficult to evacuate that amount of coal easily. As such we are considering setting up coal liquefaction project in Vasundhara area,” Upadhyay said.

The reason for selecting Ib North, besides backwardness, is the problem related with evacuation of coal from that area as there is no railway line yet from Vasundhara to

Rajmahal. The company has recently taken up the project to extend railway line from Vasundhara with South Eastern Railway and once the line is in place, the problem would be solved to some extent.

Upadhyay made it clear that the proposed coal liquefaction plant will definitely be set under a joint venture, but before that MCL will require the government’s approval. So the entire project now depends on the government’s decision.

Meanwhile, the Coal Ministry has invited bids from private parties for allotment of a coal block in Orissa for setting up coal liquefaction project. If the block is allotted to a private party, then MCL may perhaps have nothing to do with any CTL project.

Upadhyay said future of coal liquefaction projects is definitely there in India. “Today or tomorrow they will definitely come up. However, because we are still dependent to a large extent on coal for generating electricity, nobody will like to give priority to coal liquefaction projects,” he said.

The moment India becomes independent on energy; coal liquefaction projects will gather momentum. “I don’t think India is going to be independent on electricity till 2020, and therefore I don’t see anything major happening on coal liquefaction projects till then,” he added.

Reliance CTL technology better than Sasol: MCLRakesh Dubey

COAL INSIGHTS 50 JUNE 2008

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of equipment worth around Rs 320 crore. All these purchases would be made starting from July this year to September 2009.

Do you have any plan to start coal bed methane project in any of your project area?We have not given a serious thought to coal bed methane (CBM) projects yet. However, a joint venture between CIL and GAIL is under process for coal gasification plant at Talcher coalfields under MCL.

How much coal did you sell through e-auction in 2007-08 and what is the plan for 2008-09?We sold 8.45 million tons of coal through e-auction in 2006-07 and the quantity increased to 8.67 million tons in 2007-08. During 2008-09, the target for forward auction is 5 million tons and for spot e-auction is 10 million tons. Our target was to sell 4.10 million tons of coal through e-auction in May 2008, but we ended up with only 1.5 million tons.

It has been found that coaljunction is generally offered a less quantity of coal for auction by CIL subsidiaries compared to MSTC. What could be the possible reason for this?I do not see any particular reason for this. Apart from MSTC being a public sector company, there is no other reason for giving more quantity to MSTC.

It is not that coaljunction is offered less quantity in any auction because of any laxity in service. On the contrary, the service of coaljunction is very much up to expectation. It is just because MSTC is a public sector company, subsidiaries of CIL feel a bit free to deal with them. At the same time, if coaljunction continues to offer better service, it will definitely get more quantity to auction than MSTC.

Is it true that coal companies in India make a provision that a certain quantity of coal will be lost due to some reasons, including theft?No, that is not true. It is difficult to make such generalised statements. In some areas illegal mining takes place and also sometimes some pilferage takes place. Coal may sometimes fall off from wagons during transportation, but it definitely cannot be said that produced coal is being stolen.

It is said that there are some mandis in some states where trading of illegal coal takes place. What is your comment?Till the time there is scarcity of coal in the country, such things will keep happening and stories will keep doing the rounds. People need coal, but they do not approach Coal India, and go to traders or mandis instead.

The fact is that even if the smallest consumer wants to get coal from Coal India, they can team up with a few similar small consumers and get the coal directly from us. For this, they just have to ensure that their total demand touches 4200 tons per month.

This way, they will get coal from Coal India directly at a much cheaper rate instead of depending on traders or mandis.

The day the consumer starts approaching CIL directly, all these mandis will disappear automatically.

How do you think Coal India can achieve this?I think CIL should launch a massive campaign to inform consumers that there is a provision for the smallest consumer to to get coal directly from coal companies. This can be done by coal companies themselves or through outsourcing.

MCL to keep aside2.5% of profit for CSR

Coal Insights Bureau

Mahanadi Coalfields Ltd Chairman and Managing Director S.R. Upadhyay, said it is committed to keep aside 2.5 percent of retained profit or Re 1 per ton of coal production, whichever is higher, and that amount would be spent totally on meeting Corporate Social Responsibility (CSR) from current financial year. This is as per a directive of its parent company, Coal India Ltd (CIL).

In addition, the company is also planning to contribute 5 percent of its profit coming from Sundergarh operation area, which has been identified as Scheduled Area. As per a verdict of Supreme Court, the company will have to contribute 5 percent of its profit to Scheduled Area Development Fund and the company has already started contributing to the fund from the current financial year.

As another CSR initiative, the company has decided to adopt ITIs which are on the verge of closure, and introduce skill development programmes for project-affected people so that they can be self-sufficient, he said, adding that the company is helping project-affected people to form a cooperative of their own so that these cooperatives can be provided contract work by MCL.

The company, which spent around Rs 14 crore on CSR in 2007-08, plans that by next summer, it should be able to set up tubewells in all the villages falling under its operation are and where it is at present providing water through tankers so that there is continuous supply of water in those villages.

“We are preparing another drinking water scheme for Ib valley area wherein the state government along with the operating agency in that area and MCL will spend around Rs 105 crore for the water supply system,” Upadhyay said.

The company, which is providing mobile medical units to villagers and recently started a nursing training school for tribals from where 30 nurses pass out and are provided employment every year, is planning to set up a medical college in the Talcher area, he added.

COAL INSIGHTS 51 JUNE 2008

POwER sECTOR uPDATE

ALL INDIA INSTALLED CAPACITY (IN MW) OF POWER STATIONSLOCATED IN THE REGIONS OF MAIN LAND AND ISLANDS AS ON 30-04-08

Region ownership sector

Modewise Breakup

nuclear hydro (Renewable)

Res*(MnRe) grand totalthermal

total thermalCoal gas Diesel

Northern Region

State 11827.50 1231.20 14.99 13073.69 0.00 6691.15 583.02 20347.86

Private 0.00 0.00 0.00 0.00 0.00 786.00 705.25 1491.25

Central 7050.00 2311.99 0.00 9361.99 1180.00 5498.00 0.00 16039.99

Sub Total 18877.50 3543.19 14.99 22435.68 1180.00 12975.15 1288.27 37879.10

Western Region

State 15492.50 1430.72 17.28 16940.50 0.00 5234.50 313.89 22488.89

Private 3040.00 1658.00 0.20 4698.20 0.00 444.00 2817.05 7959.25

Central 5970.00 3512.00 0.00 9482.00 1840.00 1520.00 0.00 12842.00

Sub Total 24502.50 6600.72 17.48 31120.70 1840.00 7198.50 3130.94 43290.14

Southern Region

State$ 8282.50 735.80 362.52 9380.82 0.00 10685.18 867.77 20933.77

Private 510.00 2500.50 576.80 3587.30 0.00 0.00 5482.71 9070.01

Central 7890.00 350.00 0.00 8240.00 1100.00 0.00 0.00 9340.00

Sub Total 16682.50 3586.30 939.32 21208.12 1100.00 10685.18 6350.48 39343.78

Eastern Region

State 6495.00 100.00 17.06 6612.06 0.00 3219.93 200.36 10032.35

Private 1441.38 0.00 0.14 1441.52 0.00 0.00 3.25 1444.77

Central 8210.00 90.00 0.00 8300.00 0.00 714.00 0.00 9014.00

Sub Total 16146.38 190.00 17.20 16353.58 0.00 3933.93 203.61 20491.12

North Eastern Region

State 90.00 336.50 142.74 569.24 0.00 256.00 145.98 971.22

Private 0.00 24.50 0.00 24.50 0.00 0.00 0.02 24.52

Central 0.00 375.00 0.00 375.00 0.00 860.00 0.00 1235.00

Sub Total 90.00 736.00 142.74 968.74 0.00 1116.00 146.00 2230.74

Islands

State 0.00 0.00 50.02 50.02 0.00 0.00 5.25 55.27

Private 0.00 0.00 20.00 20.00 0.00 0.00 0.86 20.86

Central 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sub Total 0.00 0.00 70.02 70.02 0.00 0.00 6.11 76.13

All India

State 42187.50 3834.22 604.61 46626.33 0.00 26086.76 2116.27 74829.36

Private 4991.38 4183.00 597.14 9771.52 0.00 1230.00 9009.14 20010.66

Central 29120.00 6638.99 0.00 35758.99 4120.00 8592.00 0.00 48470.99

Total 76298.88 14656.21 1201.75 92156.84 4120.00 35908.76 11125.41 143311.01

Renewable Energy Sources (RES) includes SHP, BG, BP, U&I, and Wind EnergyAbbreviation: SHP = Small Hydro Project, BG = Biomass Gasifier, BP = Biomass Power, U&I = Urban & Industrial Waste Power, RES = Renewable Energy SourcesNote: (i) The SHP capacity of 1168 MW which was covered under the conventional Hydro capacity has been transferred to RES. 60.51 MWof captive capacity has been deducted from total SHP capacity under RES. Similarily wind capacity of 177.677 MW covered under captive (06-07 capacity has also been deducted from wind power capacity under RES.ii) The Shares of Sipat TPS(NTPC) are proposed shares, still to be approved.iii) * Based on data as on 31.12.2007 as furnished by MNRE.iv) The proportionate distribution of shares in respect of Bhilai TPP ( J V of Bhilai and NTPC) has been done.v) Figutres at second place of decimal may not tally due to rounding off by computer. Source: Central Electricity Authority

COAL INSIGHTS 52 JUNE 2008

Note: PLF for thermal stations is for coal/lignite based stations only; PLF for gas/liquid based stations given separately.

CategoryMonitoReD CapaCity

(Mw)

geneRation (gwh) plant loaD FaCtoR %

taRget(april 2008 to March 2009)

apRil 2008 apRil 2008 – apRil 2008 apRil 2008 apRil 2008 – apRil 2008

pRogRaM aCtual aCtual saMe Month (2007-08)

% oF pRogRaM

% oF last yeaR pRogRaM aCtual aCtual saMe

peRioD (2007-08)% oF

pRogRaM% oF last

yeaR pRogRaM aCtual aCtual saMe Month (2007-08) pRogRaM aCtual aCtual saMe

peRioD (2007-08)

ALL INDIA ENERGY GENERATION,

THERMAL 90882.92 631270.00 49742.00 49269.25 47310.19 99.05 104.14 49742.00 49269.25 47310.19 99.05 104.14 79.41 79.93 82.33 79.41 79.93 82.33

NUCLEAR 4120.00 19000.00 1499.00 1271.49 1651.98 84.82 76.97 1499.00 1271.49 1651.98 84.82 76.97 47.70 42.86 58.34 47.70 42.86 58.34

HYDRO 37085.85 118450.00 8019.00 8029.32 8745.18 100.13 91.81 8019.00 8029.32 8745.18 100.13 91.81

BHUTAN IMP 0.00 5624.00 279.00 245.12 323.16 87.86 75.85 279.00 245.12 323.16 87.86 75.87

TOTAL 132088.77 774344.00 59539.00 58815.18 58030.15 98.78 101.35 59539.00 58815.18 58030.51 98.78 101.35

NORTHERN REGION

THERMAL 22192.70 154234.00 11660.00 11867.85 11943.03 101.78 99.37 11660.00 11867.85 11943.03 101.78 99.37 73.29 77.57 80.73 73.29 77.57 80.73

NUCLEAR 1180.00 4744.00 344.00 279.50 189.84 81.25 147.23 344.00 279.50 189.84 81.25 147.23 30.60 32.90 22.34 30.60 32.90 22.34

HYDRO 13367.05 52067.00 3501.11 3036.01 4242.26 86.72 71.57 3501.00 3036.01 4242.26 86.72 71.57

TOTAL 36739.75 211045.00 15505.00 15183.36 16375.13 97.93 92.72 15505.00 15183.36 16375.13 97.93 92.72

WESTERN REGION

THERMAL 30238.22 220424.00 17440.00 16902.74 15678.23 96.92 107.81 17440.00 16902.74 15678.23 96.92 107.81 82.56 81.42 85.29 82.56 81.42 85.29

NUCLEAR 1840.00 8266.00 719.00 560.43 998.20 77.95 56.14 719.00 560.43 998.20 77.95 56.14 54.27 42.30 75.35 54.27 42.30 75.35

HYDRO 7400.30 18616.00 1176.00 1069.01 1201.07 90.90 89.00 1176.00 1069.014 1201.07 90.90 89.00

TOTAL 39478.52 247306.00 19335.00 18532.18 17877.50 95.85 103.66 19335.00 18532.18 17877.50 95.85 103.66

SOUTHERN REGION

THERMAL 19417.83 130904.00 11185.00 11268.33 11234.97 100.75 700.30 11185.00 11268.33 11234.97 100.75 100.30 90.13 89.82 93.30 90.13 89.82 93.30

NUCLEAR 1100.00 5990.00 436.00 431.56 463.94 98.98 93.03 436.00 431.56 463.94 98.98 93.02 55.02 54.49 71.04 55.05 54.49 71.04

HYDRO 111.36.65 32345.00 2350.00 3119.98 2527.71 132.77 123.43 2350.00 3119.98 2527.71 132.77 123.43

TOTAL 31654.48 169239.00 13971.00 14819.87 14226.62 106.08 104.17 13971.00 1481.9.87 14226.62 106.08 104.17

EASTERN REGION

THERMAL 18149.25 121642.00 9134.00 8170.38 8129.62 97.11 109.11 9134.00 8870.38 8129.62 97.11 109.11 72.74 72.56 72.64 72.74 72.56 72.64

HYDRO 3994.15 10527.00 673.00 633.19 579.99 94.08 109.17 673.00 633.19 579.99 94.08 109.17

TOTAL 22143.40 132169.00 9807.00 9503.57 8709.61 96.91 109.12 9807.00 9503.57 8709.61 96.91 109.12

NORTH EASTERN REGION

THERMAL 884.92 4066.00 323.00 359.95 324.34 111.44 110.98 323.00 359.95 324.34 111.44 110.98 54.63 45.43 18.46 54.63 45.43 18.46

HYDRO 1187.70 4895.00 319.00 171.13 194.15 53.65 88.14 319.00 171.13 194.15 53.65 88.14

TOTAL 2072.62 8961.00 642.00 531.08 518.49 82.72 102.43 642.00 531.08 518.49 82.72 102.43

POwER sECTOR uPDATE

COAL INSIGHTS 53 JUNE 2008

POwER sECTOR uPDATE

Source: Central Electricity Authority

PROGRAMME, AND PLANT LOAD FACTOR

CategoryMonitoReD CapaCity

(Mw)

geneRation (gwh) plant loaD FaCtoR %

taRget(april 2008 to March 2009)

apRil 2008 apRil 2008 – apRil 2008 apRil 2008 apRil 2008 – apRil 2008

pRogRaM aCtual aCtual saMe Month (2007-08)

% oF pRogRaM

% oF last yeaR pRogRaM aCtual aCtual saMe

peRioD (2007-08)% oF

pRogRaM% oF last

yeaR pRogRaM aCtual aCtual saMe Month (2007-08) pRogRaM aCtual aCtual saMe

peRioD (2007-08)

THERMAL 90882.92 631270.00 49742.00 49269.25 47310.19 99.05 104.14 49742.00 49269.25 47310.19 99.05 104.14 79.41 79.93 82.33 79.41 79.93 82.33

NUCLEAR 4120.00 19000.00 1499.00 1271.49 1651.98 84.82 76.97 1499.00 1271.49 1651.98 84.82 76.97 47.70 42.86 58.34 47.70 42.86 58.34

HYDRO 37085.85 118450.00 8019.00 8029.32 8745.18 100.13 91.81 8019.00 8029.32 8745.18 100.13 91.81

BHUTAN IMP 0.00 5624.00 279.00 245.12 323.16 87.86 75.85 279.00 245.12 323.16 87.86 75.87

TOTAL 132088.77 774344.00 59539.00 58815.18 58030.15 98.78 101.35 59539.00 58815.18 58030.51 98.78 101.35

NORTHERN REGION

THERMAL 22192.70 154234.00 11660.00 11867.85 11943.03 101.78 99.37 11660.00 11867.85 11943.03 101.78 99.37 73.29 77.57 80.73 73.29 77.57 80.73

NUCLEAR 1180.00 4744.00 344.00 279.50 189.84 81.25 147.23 344.00 279.50 189.84 81.25 147.23 30.60 32.90 22.34 30.60 32.90 22.34

HYDRO 13367.05 52067.00 3501.11 3036.01 4242.26 86.72 71.57 3501.00 3036.01 4242.26 86.72 71.57

TOTAL 36739.75 211045.00 15505.00 15183.36 16375.13 97.93 92.72 15505.00 15183.36 16375.13 97.93 92.72

WESTERN REGION

THERMAL 30238.22 220424.00 17440.00 16902.74 15678.23 96.92 107.81 17440.00 16902.74 15678.23 96.92 107.81 82.56 81.42 85.29 82.56 81.42 85.29

NUCLEAR 1840.00 8266.00 719.00 560.43 998.20 77.95 56.14 719.00 560.43 998.20 77.95 56.14 54.27 42.30 75.35 54.27 42.30 75.35

HYDRO 7400.30 18616.00 1176.00 1069.01 1201.07 90.90 89.00 1176.00 1069.014 1201.07 90.90 89.00

TOTAL 39478.52 247306.00 19335.00 18532.18 17877.50 95.85 103.66 19335.00 18532.18 17877.50 95.85 103.66

SOUTHERN REGION

THERMAL 19417.83 130904.00 11185.00 11268.33 11234.97 100.75 700.30 11185.00 11268.33 11234.97 100.75 100.30 90.13 89.82 93.30 90.13 89.82 93.30

NUCLEAR 1100.00 5990.00 436.00 431.56 463.94 98.98 93.03 436.00 431.56 463.94 98.98 93.02 55.02 54.49 71.04 55.05 54.49 71.04

HYDRO 111.36.65 32345.00 2350.00 3119.98 2527.71 132.77 123.43 2350.00 3119.98 2527.71 132.77 123.43

TOTAL 31654.48 169239.00 13971.00 14819.87 14226.62 106.08 104.17 13971.00 1481.9.87 14226.62 106.08 104.17

EASTERN REGION

THERMAL 18149.25 121642.00 9134.00 8170.38 8129.62 97.11 109.11 9134.00 8870.38 8129.62 97.11 109.11 72.74 72.56 72.64 72.74 72.56 72.64

HYDRO 3994.15 10527.00 673.00 633.19 579.99 94.08 109.17 673.00 633.19 579.99 94.08 109.17

TOTAL 22143.40 132169.00 9807.00 9503.57 8709.61 96.91 109.12 9807.00 9503.57 8709.61 96.91 109.12

NORTH EASTERN REGION

THERMAL 884.92 4066.00 323.00 359.95 324.34 111.44 110.98 323.00 359.95 324.34 111.44 110.98 54.63 45.43 18.46 54.63 45.43 18.46

HYDRO 1187.70 4895.00 319.00 171.13 194.15 53.65 88.14 319.00 171.13 194.15 53.65 88.14

TOTAL 2072.62 8961.00 642.00 531.08 518.49 82.72 102.43 642.00 531.08 518.49 82.72 102.43

COAL INSIGHTS 5� JUNE 2008

POwER sECTOR uPDATE

THERMAL POWER STATIONS HAVING CRITICAL COAL STOCKOF LESS THAN 7 DAYS AS ON 30-04-2008

sl. no. name of power station problem areas and Remedial action

NORTHERN

1 GHTP Leh. Moh. Stock could not be built up due to unloading constraint during the month of April 2008.

2 Kota StockhasdepletedduetolessreceiptofcoalduringthemonthofApril2008i.e.74%ofthelinkage.

3 Suratgarh DuetolessreceiptofcoalduringthemonthofApril2008i.e.85%ofthelinkage.

4 Harduaganj DuetolessreceiptofcoalduringthemonthofApril2008i.e.83%ofthelinkage.

5 Parichha DuetolessreceiptofcoalduringthemonthofApril2008i.e.84%ofthelinkage.

WESTERN

6 Korba East V StockcouldnotbebuiltupduetolessreceiptofcoalduringthemonthofApril2008i.e.80%ofthelinkage.

7 Wanakbori DuetolessreceiptofcoalduringthemonthofApril2008i.e.85%ofthelinkage.

8 Sanjay Gandhi Stock has depleted due to unloading constraint during the month of April 2008.

9 Satpura StockhasdepletedduetolessreceiptofcoalduringthemonthofApril2008i.e.95%ofthelinkage.

10 Bhusawal DuetolessreceiptofcoalduringthemonthofApril2008i.e.80%ofthelinkage.

11 Chandrapur Stock could not be built up due to unloading limitation.

12 Nasik Linkage accorded was less than the demand for generation.

13 Parli Linkaage accorded was less than the demand for generation.

14 Paras DuetolessreceiptofcoalduringthemonthofApril2008i.e.78%ofthelinkage.

SOUTHERN

15 Rayalseema Stock has depleted due to unloading constraint during the month of April 2008.

16 Ramagundam STPs Low linkage and higher generation result in higher consumption of coal during the month of April 2008.

17 Raichur DuetolessreceiptofcoalduringthemonthofApril2008i.e.65%ofthelinkage.

18 Ennore Due to non availability of adequate vessels resulting in evacuation constraint from ports.

19 Tuticorin Due to non availability of adequate vessels resulting in evacuation constraint from ports.

EASTERN

20 Kahalgaon DuetolessreceiptfromECL/Rajmahalmine(linkedmine).Materializationis58%inApril2008.

21 Durgapur DuetolessreaceiptofcoalduringthemonthofApril2008i.e.82%ofthelinkageandnotliftingofcoalbyroad.

22 Mejia Stock has depleted due to unloading constraint. Newa coal handling plant is expected to be commissioned by 31st May 2008. Receipt ofcoalduringthemonthofApril2008is72%ofthelinkage.

23 Durgapur DPL DuetolessreceiptofcoalduringthemonthofApril2008i.e.53%ofthelinkage.

24 Farakka DuetolessreceiptfromECL/Rajmahalmine(linkedmine).Materializationis77%inApril2008.

Note: Number of Power Stations having critical coal stock at the end of previous month =24 Source: Central Electricity Authority

COAL INSIGHTS 55 JUNE 2008

POwER sECTOR uPDATE

SECTOR-WISE PLANT LOAD FACTOR (%) TARGETS AND ACHIEVEMENTS

seCtoRapRil 2008 apRil 2008 – apRil 2008

pRog. (%) aCh. (%) pRog. (%) aCh. (%)

Central Sector 82.17 83.80 82.17 83.80

State Sector 76.21 75.94 76.21 75.94

Pvt. UTL Sector 94.40 96.36 94.40 96.36

All India 79.41 80.01 79.41 80.01

Source: Central Electricity Authority

Source: Central Electricity Authority

LIST OF UTILITY/ ORGANISATION WHOSE PLF ACHIEVEMENT WERE LOWER THAN THE RESPECTIVE TARGET DURING APRIL 2008

sl. no.

name of power station

plF %

programme achievement shortfallCENTRAL

1 FARAKKA STPS 89.67 84.35 5.322 KAHALGAON 91.11 61.39 29.723 SIPAT STPS 83.33 0.00 83.334 NEYVELI ST II 84.56 63.73 20.835 MUZAFFARPUR 22.10 11.20 10.906 BOKARO “B” 61.29 55.46 5.837 DURGAPUR 82.92 75.72 7.208 MEJIA 89.19 70.67 18.52

STATE1 UPRVUNL 61.13 57.40 3.732 GMDCL 67.78 54.09 13.693 MAHAGENCO 81.72 80.85 0.874 MPPGCL 80.11 68.90 11.215 APGENCO 96.24 84.22 12.026 BSEB 20.40 12.31 8.097 JSEB 22.49 12.15 10.348 TVNL 44.64 37.45 7.199 ASEB 54.63 45.29 9.34

PRIVATE1 NIL

Source: Central Electricity Authority

ALL INDIA PLANT LOAD FACTOR (%)DURING APRIL 2008

Source: Central Electricity Authority

HIGHLIGHTS OF POWER SECTORDURING APRIL 2008

DescriptionMarch 2008 March 2007

programme achivement programme achivementCAPACITY ADDITION (MW)Thermal 309.80 250.00 500.00 0.00Hydro 0.00 0.00 0.00 0.00Nuclear 0.00 0.00 220.00 220.00RES*Total 309.80 250.00 720.00 220.00GENERATION (MU)Thermal 49742 49288 44678 47310.19Nuclear 1499 1294 1679 1651.98Hydro 8019 7990 7774 8745.18Bhutan IMP 279 226 636 323.16Total 59539 58797 54767 58030.51

* Renewable Energy Sources (RES) includes Small Hydro Project(SHP), Biomass Gas (BG), Biomass Power(BP), Urban & Industrial waste Power(U&I), and Wind Energy.

ACHIEVEMENT IN GENERATION (MU)DURING APRIL 2008

Source: Central Electricity Authority

PROGRAMME/ACHIEVEMENT IN CAPACITY ADDITION (MW) DURING APRIL 2008

COAL INSIGHTS 5� JUNE 2008

POwER sECTOR uPDATE

Source: Central Electricity Authority

ALL INDIA CAPACITY ADDITION (MW) DURINGAPRIL 2008 – APRIL 2008

Source: Central Electricity Authority

ALL INDIA ENERGY GENERATION (MU) DURINGAPRIL 2008 – APRIL 2008

CAPACITY ADDITION FOR APRIL 2008 AND APRIL 2008 – APRIL 2008 (MW)

schemes status of schemes target 2008-09april 2008 april 2008 – april 2008

Deviation (+)/(-)programme achievement programme achievement

THERMAL Central 2910.00 250.00 250.00 250.00 250.00 0.00State 2957.20 59.80 0.00 59.80 0.00 -59.80Pvt. 3437.00 0.00 0.00 0.00 0.00 0.00Total 9304.20 309.80 250.00 309.80 250.00 -59.80

HYDRO Central 0.00 0.00 0.00 0.00 0.00 0.00State 1097.00 0.00 0.00 0.00 0.00 0.00Pvt. 0.00 0.00 0.00 0.00 0.00 0.00Total 1097.00 0.00 0.00 0.00 0.00 0.00

NUCLEAR Central 660.00 0.00 0.00 0.00 0.00 0.00Total 660.00 0.00 0.00 0.00 0.00 0.00

ALL INDIA Central 3570.00 250.00 250.00 250.00 250.00 0.00State 4054.20 59.80 0.00 59.80 0.00 -59.80Pvt. 3437.00 0.00 0.00 0.00 0.00 0.00Total 11061.20 309.80 250.00 309.80 250.00 -59.80

Source: Central Electricity Authority

PROGRAMME AND ACHIEVEMENT OF ENERGY GENERATION (MU)

gen. sch. sector-wise programme 2008-09

april 2008 april 2008 – april 2008programme achievement % achievement programme achievement % achievement

THERMAL Central Sector 260824 20130 20141.47 100.1 20130 20141.47 100.1State Sector 304764 24681 23627.48 95.7 24681 23627.48 95.7Pvt. IPP Sector 39299 2676 3218.77 120.3 2676 3218.77 120.3Pvt. UTL Sector 26383 2255 2300.10 102.0 2255 2300.10 102.0Total 631270 49742 49287.82 99.1 49742 49287.82 99.1

HYDRO Central Sector 42912 2950 2461.72 83.4 2950 2461.72 83.4State Sector 70221 4774 5250.90 110.0 4774 5250.90 110.0Pvt. IPP Sector 3731 165 150.24 91.1 165 150.24 91.1Pvt. UTL Sector 1586 130 126.66 97.4 130 126.66 97.4Total 118450 8019 7989.52 99.6 8019 7989.52 99.6

NUCLEAR Central Sector 19000 1499 1293.74 86.3 1499 1293.74 86.3Total 19000 1499 1293.74 86.3 1499 1293.74 86.3Bhutan IMP 5624 279 225.81 80.9 279 225.81 80.9

ALL INDIA Central Sector 322736 24579 23896.93 97.2 24579 23896.93 97.2State Sector 374985 29455 28878.38 98.0 29455 28878.38 98.0Pvt. Sector 70999 5226 5795.77 110.9 5226 5795.77 110.9Total 774344 59539 58796.89 98.8 59539 58796.89 98.8

Source: Central Electricity Authority

COAL INSIGHTS 57 JUNE 2008

PEAK DEMAND/ PEAK MET (PROVISIONAL)(Figures in net MW)

state/system/ Region

april 2008 april 2008 – april 2008

peak Demand peak Met Surplus/Deficit (-) peak Demand peak Met Surplus/Deficit (-)

(Mw) (Mw) (Mw) (%) (Mw) (Mw) ( Mw) (%)Chandigarh 226 226 0 0.0 226 226 0 0.0Delhi 3,509 3,366 -143 -4.1 3,509 3,366 -143 -4.1Haryana 4,563 3,617 -946 -20.7 4,563 3,617 -946 -20.7Himachal Pradesh 908 806 -102 -11.2 908 806 -102 -11.2Jammu & Kashmir 1,544 1,244 -300 -19.4 1,544 1,244 -300 -19.4Punjab 5,828 4,660 -1,168 -20.0 5,828 4,660 -1,168 -20.0Rajasthan 5,291 5,100 -191 -3.6 5,291 5,100 -191 -3.6Uttar Pradesh 8,413 6,313 -2,100 -25.0 8,413 6,313 -2,100 -25.0Uttarakhand 1,174 1,137 -37 -3.2 1,174 1,137 -37 -3.2Northern Region 29,257 24,678 -4,579 -15.7 29,257 24,678 -4,579 -15.7Chattisgarh 2,582 2,201 -381 -14.8 2,582 2,201 -381 -14.8Gujarat 11,841 8,462 -3,379 -28.5 11,841 8,462 -3,379 -28.5Madhya Pradesh 6,376 5,344 -1,032 -16.2 6,376 5,344 -1,032 -16.2Maharashtra 17,642 12,670 -4,972 -28.2 17,642 12,670 -4,972 -28.2Daman & Diu 224 199 -25 -11.2 224 199 -25 -11.2Dadar Nagar Haveli 462 427 -35 -7.6 462 427 -35 -7.6Goa 458 402 -56 -12.2 458 402 -56 -12.2Western Region 37,171 27,399 -9,772 -26.3 37,171 27,399 -9,772 -26.3Andhra Pradesh 9,724 8,486 -1,238 -12.7 9,724 8,486 -1,238 -12.7Karnataka 6,259 5,543 -716 -11.4 6,259 5,543 -716 -11.4Kerala 2,862 2,636 -226 -7.9 2,862 2,636 -226 -7.9Tamil Nadu 9,428 8,623 -805 -8.5 9,428 8,623 -805 -8.5Puducherry 248 248 0 0.0 248 248 0 0.0Lakshadweep# 6 6 0 0 6 6 0 0Southern Region 27,239 24,927 -2,312 -8.5 27,239 24,927 -2,312 -8.5Bihar 1,492 1,073 -419 -28.1 1,492 1,073 -419 -28.1DVC 1,758 1,738 -20 -1.1 1,758 1,738 -20 -1.1Jharkhand 709 695 -14 -2.0 709 695 -14 -2.0Orissa 3,036 2,922 -114 -3.8 3,036 2,922 -114 -3.8West Bengal 4,843 4,673 -170 -3.5 4,843 4,673 -170 -3.5Sikkim 60 60 0 0.0 60 60 0 0.0Andaman-Nicobar# 40 32 -8 -20 40 32 -8 -20Eastern Region 11,552 10,853 -699 -6.1 11,552 10,853 -699 -6.1Arunachal Pradesh 102 71 -31 -30.4 102 71 -31 -30.4Assam 826 690 -136 -16.5 826 690 -136 -16.5Manipur 110 86 -24 -21.8 110 86 -24 -21.8Meghalaya 456 194 -262 -57.5 456 194 -262 -57.5Mizoram 97 53 -44 -45.4 97 53 -44 -45.4Nagaland 86 84 -2 -2.3 86 84 -2 -2.3Tripura 159 130 -29 -18.2 159 130 -29 -18.2N-Eastern Region 1,724 1,197 -527 -30.6 1,724 1,197 -527 -30.6All India 106,943 89,054 -17,889 -16.7 106,943 89,054 -17,889 -16.7

# Lakshadweep and Andaman & Nicobar Islands are stand-alone systems, power supply position of these, does not form part of regional requirement and availabilityNote: Both peak met and energy availability represent the net consumption (including the transmission losses) in the various States. Net export has been accounted for in the consumption of importing States.

POwER sECTOR uPDATE

Source: Central Electricity Authority

COAL INSIGHTS 58 JUNE 2008

POwER sECTOR uPDATE

Source: Central Electricity Authority

POWER SUPPLY POSITION (PROVISIONAL)(Figures in net MU)

state/system/ Region

april 2008 april 2008 – april 2008

Requirement availability Surplus/Deficit (-) Requirement availability Surplus/Deficit (-)

(Mu) (Mu (Mu) (%) (Mu) (Mu) (Mu) (%)Chandigarh 105 105 0 0.0 105 105 0 0.0Delhi 1,697 1,671 -26 -1.5 1,697 1,671 -26 -1.5Haryana 1,922 1,622 -300 -15.6 1,922 1,622 -300 -15.6Himachal Pradesh 458 456 -2 -0.4 458 456 -2 -0.4Jammu & Kashmir 721 621 -100 -13.9 721 621 -100 -13.9Punjab 2,516 2,172 -344 -13.7 2,516 2,172 -344 -13.7Rajasthan 2,486 2,486 0 0.0 2,486 2,486 0 0.0Uttar Pradesh 4,472 3,772 -700 -15.7 4,472 3,772 -700 -15.7Uttarakhand 548 541 -7 -1.3 548 541 -7 -1.3Northern Region 14,925 13,446 -1,479 -9.9 14,925 13,446 -1,479 -9.9Chattisgarh 1,390 1,333 -57 -4.1 1,390 1,333 -57 -4.1Gujarat 6,646 5,111 -1,535 -23.1 6,646 5,111 -1,535 -23.1Madhya Pradesh 3,355 2,621 -734 -21.9 3,355 2,621 -734 -21.9Maharashtra 10,469 8,228 -2,241 -21.4 10,469 8,228 -2,241 -21.4Daman & Diu 93 75 -18 -19.4 93 75 -18 -19.4Dadar Nagar Haveli 279 275 -4 -1.4 279 275 -4 -1.4Goa 244 240 -4 -1.6 244 240 -4 -1.6Western Region 22,476 17,883 -4,593 -20.4 22,476 17,883 -4,593 -20.4Andhra Pradesh 5,709 5,444 -265 -4.6 5,709 5,444 -265 -4.6Karnataka 3,722 3,628 -94 -2.5 3,722 3,628 -94 -2.5Kerala 1,415 1,355 -60 -4.2 1,415 1,355 -60 -4.2Tamil Nadu 5,829 5,586 -243 -4.2 5,829 5,586 -243 -4.2Puducherry 160 160 0 0.0 160 160 0 0.0Lakshadweep# 2 2 0 0 2 2 0 0Southern Region 16,835 16,173 -662 -3.9 16,835 16,173 -662 -3.9Bihar 816 528 -288 -35.3 816 528 -288 -35.3DVC 1,093 1,062 -31 -2.8 1,093 1,062 -31 -2.8Jharkhand 427 365 -62 -14.5 427 365 -62 -14.5Orissa 1,712 1,669 -43 -2.5 1,712 1,669 -43 -2.5West Bengal 2,674 2,520 -154 -5.8 2,674 2,520 -154 -5.8Sikkim 36 35 -1 -2.8 36 35 -1 -2.8Andaman-Nicobar# 20 15 -5 -25 20 15 -5 -25.0Eastern Region 6,758 6,179 -579 -8.6 6,758 6,179 -579 -8.6Arunachal Pradesh 44 22 -22 -50.0 44 22 -22 -50.0Assam 418 333 -85 -20.3 418 333 -85 -20.3Manipur 35 34 -1 -2.9 35 34 -1 -2.9Meghalaya 123 82 -41 -33.3 123 82 -41 -33.3Mizoram 27 22 -5 -18.5 27 22 -5 -18.5Nagaland 34 33 -1 -2.9 34 33 -1 -2.9Tripura 64 56 -8 -12.5 64 56 -8 -12.5N. Eastern Region 745 582 -163 -21.9 745 582 -163 -21.9All India 61,739 54,263 -7,476 -12.1 61,739 54,263 -7,476 -12.1

# Lakshadweep and A & N Islands stand-alone systems, power supply position of these, does not form part of regional requirement and availability.Note: Both peak met and energy availability represent the net consumption (including the transmission losses) in the various States. Net export has been accounted for in the consumption of importing States.

COAL INSIGHTS 59 JUNE 2008

POWER CUTS IN INDUSTRIES DURING APRIL 2008

state/Region energy Cut Demand Cut

Northern Region

Chandigarh Nil Nil

Delhi Nil Nil

Haryana 0 MU/day to 2.2 MU/day on HT/LT industries on different days. 100 - 250 MW cut on HT/LT industries for different hours on different days depending upon day to day availability.

HP 0.255 MU / day on HT/LT industries 86 MW cut from 18:00 hrs to 22:00 hrs. daily on HT / LT industries.

J & K – 50%loadofffor17hrsinJammuarea;50%loadofffor15hrs.dailyandinaddition28.7%Loadofffor7hrs.twiceaweekinValleyarea

Punjab 1.8 to 4.08 MU/day on HT/LT industries on different days. 170 MW to 800 MW cut from 18:00 to 22:00 hrs daily on HT/LT industries

Rajasthan Nil Nil

Uttar Pradesh Nil Nil

Uttarakhand Nil Nil

Western Region

Chattisgarh Nil Nil

Gujarat All industries are required to stagger their weekly off days and cannot avail as per their choice. All industries are required to keep their recess timings staggered. One staggered holiday imposed on industries.

Madhya Pradesh Nil Nil

Maharashtra Nil Nil

Goa Nil Nil

Southern Region

Andhra Pradesh Nil

Karnataka Nil

Kerala Nil

Tamil Nadu Nil. However, “all welding sets irrespective of connected load not to work between 6 p.m. and 8:30 p.m”.

Eastern Region

Bihar Nil Nil

Jharkhand Nil Nil

DVC Nil Nil

Orissa Nil Nil

West Bengal Power cut to HT: Nil, Power cut to LT: 0.83 MU Nil

Note: (1) Although some states have reported “No Notified Power Cuts”, load shedding/restrictions are imposed on industries on day to day basis depending upon availability of power vis-à-vis requirement.

POwER sECTOR uPDATE

Source: Central Electricity Authority

COAL INSIGHTS �0 JUNE 2008

POwER sECTOR uPDATE

POWER SUPPLY TO AGRICULTURE SECTOR DURING APRIL 2008state/Region average hours of supply

NORTHERN REGIONChandigarh 24 hrs.

–

Delhi 24 hrs.Haryana Three Phase Supply: 5 hrs / dayHP 24 hrs.J & K -Punjab Three Phase Supply: (Approx.) 16 hrs/dayRajasthan Three Phase Supply: 11 hrs/dayUttar Pradesh About 8 hrs/dayUttarakhand Three Phase Supply: 24 hrs./dayWESTERN REGIONChattisgarh Three Phase Supply: 18 hrs /day –Gujarat Only 8 hours power supply in staggered form in rotation of day and night is given to Agriculture. No supply during rest of 16 hours.Madhya Pradesh Three Phase Supply: about 8 hrs/day Single phase Supply: about 5 hrs/dayMaharashtra Three Phase Supply: Average 11 hrs/day Single phase Supply: Average 13 hrs/dayGoa No restriction –SOUTHERN REGIONAndhra Pradesh Three Phase Supply: 7 hrs

–Karnataka Three Phase/ Single Phase Supply: 08 hrs 30 minutes /dayKerala No RestrictionsTamil Nadu Three Phase Supply: 14 hrs/day Single Phase Supply: 10 hrs/dayPuducherry No Restrictions –EASTERN REGIONBihar About 18 hrs

–Jharkhand About 20 hrsOrissa About 24 hrs ( It is being supplied by distribution company)West Bengal About 23 hrs

Source: Central Electricity Authority

Source: Central Electricity Authority

TRANSMISSION LINES (PROGRAMME & ACHIEVEMENT)Fig. in ckt Kms

voltage level/seCtoR

pRog 2008-09

apRil 2008 apR 08 – apR 08pRog aChieveD pRog aChieveD

+/- 500 kV HVDCCentral Sector 1250 10 10 10 10State Sector 0 0 0 0 0Total 1250 10 10 10 10765 kVCentral Sector 519 50 61 50 61State Sector 0 0 0 0 0Total 519 50 61 50 61400 KvCentral Sector 4879 300 295 300 295State Sector 2182 300 339 300 339Total 7061 600 634 600 634220kVCentral Sector 745 10 10 10 10State Sector 3524 200 230 200 230Total 4269 210 240 210 240

SUB-STATIONS (PROGRAMME & ACHIEVEMENT)Fig. in MVA

voltage level/seCtoR

pRog 2008-09

apRil 2008 apR 08 – apR 08pRog aChieveD pRog aChieveD

+/- 500 kV HVDCCentral Sector 0 0 0 0 0State Sector 0 0 0 0 0Total 0 0 0 0 0765 kVCentral Sector 0 0 0 0 0State Sector 0 0 0 0 0Total 0 0 0 0 0400 kVCentral Sector 4410 945 945 945 945State Sector 1890 315 315 315 315Total 6300 1260 1260 1260 1260220 kVCentral Sector 910 0 0 0 0State Sector 6963 150 150 150 150Total 7873 150 150 150 150

Source: Central Electricity Authority

COAL INSIGHTS �1 JUNE 2008

POwER sECTOR uPDATE

GENERATION CAPACITY ADDITION DURING 2008-09 (PROGRAMME & ACHIEVEMENT)

sl. no. unit name unit no. state Company type

Capacity (Mw) Commissioning schedule

programme achievement as per original prog.

actual(a)/ antc. now

CENTRAL SECTORNorthern

1 Barsingsar Lignit1 Rajasthan NLC TH 125.00 Sept. 2008 Dec. 20082 Rajasthan NLC TH 125.00 Mar. 2009 Jan. 2009

2 RAPP5 Rajasthan NPC Nucl. 220.00 Feb. 2008 June 20086 Rajasthan NPC Nucl. 220.00 Feb. 2008 Mar. 2009

Western

3 Bhilai TPP1 Chhattisgarh NTPC/SAIL (JV) TH 250.00 250.00 Feb. 2008 20.04.08(A)2 Chhattisgarh NTPC/SAIL (JV) TH 250.00 Aug. 2008 Sept. 2008

4 Sipat STPS-II 5 Chhattisgarh NTPC TH 500.00 Dec. 2007 June 20085 Sipat- STPS-I 1 Chhattisgarh NTPC TH 660.00 Apr. 2008 Nov. 2008Southern6 Kaiga APP 4 Karnataka NPCIL Nucl. 220.00 Feb. 2008 Jun. 2008Eastern7 Kahalgaon STPS-II (Ph-I & II) 7 Bihar NTPC TH 500.00 Mar. 2007 Oct. 2008

8 Chandrapura TPS Extn.7 Jharkhand DVC TH 250.00 Nov. 2006 Aug. 20088 Jharkhand DVC TH 250.00 Jan. 2008 Feb. 2009

Total Central Sector 3570.00 250.00STATE SECTORNorthern1 GHT (L. Mohabbat) TPS-II 4 Punjab PSEB TH 250.00 Jan. 2008 Jul. 20082 Giral Lignit-II 2 Rajasthan RRVUNL TH 125.00 Sept. 2008 Sept. 2008

3 Chhabra TPS1 Rajasthan RRVUNL TH 250.00 Sept. 2008 Oct. 20082 Rajasthan RRVUNL TH 250.00 Dec. 2008 Jan. 2009

4 Kota TPP 7 Rajasthan RRVUNL TH 195.00 Nov. 2008 Nov. 20085 Suratgarh TPP-IV 6 Rajasthan RRVUNL TH 250.00 Oct. 2008 Nov. 2008

6 Baglihar HEP1 J&K JKPDC HY 150.00 Sept. 2008 Sept. 20082 J&K JKPDC HY 150.00 Oct. 2008 Oct. 20083 J&K JKPDC HY 150.00 Oct. 2008 Oct. 2008

Western7 Kutch Lignite Ext. 4 Gujarat GSECL TH 75.00 Jul. 2007 Jun. 2008

8 Surat Lignit TPP Extn.3 Gujarat GIPCL TH 125.00 Sept. 2008 Nov. 20084 Gujarat GIPCL TH 125.00 Dec. 2008 Jan. 2009

9 Amarkantak TPS Extn. 5 MP MPPGCL TH 210.00 Feb. 2007 May 2008

10 Ghatghar PSS1 Maharashtra Maha. Irr. Dept. HY 125.00 May 2008 May 20082 Maharashtra Maha. Irr. Dept. HY 125.00 Jul. 2008 Jul. 2008

Southern

11 Valuthur CCPP Extn.GT TN TNEB TH 59.80 Nov. 2007 April 2008ST TN TNEB TH 32.40 Feb. 2008 June 2008

12 Vijayawada TPP-IV 1 AP APGENCO TH 500.00 Jan. 2009 Dec. 2008

13 Priyadarshini Jurala2 AP APGENCO HY 39.00 July 2008 July 20083 AP APGENCO HY 39.00 Nov. 2008 Nov. 20084 AP APGENCO HY 39.00 Mar. 2009 Mar. 2009

14 Varahi Extn.1 Karnataka KPCL HY 115.00 Dec. 2008 Dec. 20082 Karnataka KPCL HY 115.00 Feb. 2009 Feb. 2009

COAL INSIGHTS �2 JUNE 2008

POwER sECTOR uPDATE

15 Kuttiyadi Addl. Extn. 1 Kerala KSEB HY 50.00 Mar. 2009 Mar. 2009Eastern16 Sagardighi TPP 2 WB WBPDCL TH 300.00 Apr. 2007 Jul. 200817 Bakreshwar TPS-II 5 WB WBPDCL TH 210.00 Jun. 2007 Sept. 2008Total State Sector 4054.20 0.00PRIVATE SECTORWestern

1 OP Jindal (Raigarh) TPPPh. I & II 4 Chhattisgarh Jindal Power TH 250.00 Dec. 2007 Jun. 2008

2 Sugen CCPPBlock-1 Gujarat

Torrent Power Gen. Ltd.

TH 376.00 Sept. 2007 Aug. 2008Block-2 Gujarat TH 376.00 Dec. 2007 Oct. 2008Block-3 Gujarat TH 376.00 Feb. 2008 Dec. 2008

3 Pathadi TPS Ph-I(Lanco Amarkantak Mega TPP) 1 Chhattisgarh Lanco Amarkntak

Power Pvt. Ltd. TH 300.00 Jun. 2008 Sept. 2008

4 Trombay TPS Extn. 8 Maharashtra Tata Power Co. TH 250.00 Aug. 2008 Oct. 2008Southern

5 Gautami CCPPGT-1 AP

Gautami Power Ltd.

TH 145.00 Jun. 2006 Sept. 2008GT-2 AP TH 145.00 Feb. 2006 Sept. 2008ST AP TH 174.00 Jul. 2006 Sept. 2008

6 Konaseema CCPPGT-1 AP

Konaseema EPSTH 140.00 Sept. 2005 Sept. 2008

GT-2 AP TH 140.00 Dec. 2005 Sept. 2008ST AP TH 165.00 Mar. 2006 Sept. 2008

7 Torangallu Extn.1 Karnataka JSW Energy Ltd. TH 300.00 Jul. 2008 Oct. 20082 Karnataka JSW Energy Ltd. TH 300.00 Oct. 2008 Jan. 2009

Total Private Sector 3437.00 0.00Grand Total (Central Sector + State Sector + Private Sector) 11061.20 250.00

PROGRESS OF RURAL ELECTRIFICATION & PUMPSETS ENERGISATION

plan/yeaR villages eleCtRiFieD puMp sets eneRgiseD1997-98 3207 2840641998-99 2780 3672441999-00 2093 2975942000-01 1218 3110602001-02 4111 3160749th Plan 13409 15760362002-03 2626 6510952003-04 2781 3229632004-05 3884 3295732005-06 12632 3896362006-07 (Prov.) 22594 50159410th Plan (Prov.) 44517 2194861End of the 10th plan (31-3-2007) (Prov.) 482864 153502972007-08 (31-03-08) (Prov.) 4483 120807

SCHEMES APPRAISED BY CENTRAL ELECTRICITY AUTHORITY FROM APRIL ’08 - APRIL ’08

sl. no. name of schemes executing agency installed Capacity (Mw) state Cost Date of Clearance by Cea

1 Gundia Hydro Electric Project Karnataka M/s KPCL 1 x 200 = 200 Rs. 1119.56 Crs. (Price Level Nov. 07) 25.04.2008

Source: Central Electricity Authority

Source: Central Electricity Authority

Source: Central Electricity Authority

COAL INSIGHTS �3 JUNE 2008

snAP shOT

Lack Of Funds PlagueTanzania Coal sector

Nudrat Alim

Coal and Tanzania are quite closely connected, but lack of adequate investments has resulted in limited exploration of the resource. According to a recent

estimation, the total volume of deposits is around 2 billion tons, and is located in the Mbeya and Iringa region.

Out of these 2 billion tons, 300 million tons fall under the proven category. While in Mbeya region, coal reserves are found in Songwe Kiwira, in the Iringa region, the reserves are located in Mchuchuma Katewaka.

Although the Mchuchuma reserves have full potential for generating electricity, nothing concrete has been achieved on this front so far, owing to the budgetary constraints which plague the industry in Tanzania.

However, it has been reported that as much as 30 million tons of coal from Mchuchuma could be used to generate as much as 400 MW of electricity over a period of 20 years.

There are 10 coalfields in Tanzania, out of which it is the Mchuchuma Katewaka coalfield which has been explored to the largest extent.

Out of the total estimated reserves of 536 million tons, 159 million tons is of the proven category. The quality of coal found in the region is of superior thermal variety and is primarily non-coking in nature.

The National Development Corporation (NDC) of Tanzania has conducted various feasibility studies as far as setting up a thermal power station in Mchuchuma is concerned. Reliable and sustainable power supply would play a key role in developing the Tanzanian economy.

Development of the power sector would help in meeting the base load demand of various sectors of the economy. In fact, reports suggest that the country has the potential for producing electricity which can then be exported. Once proper efforts in this sector materialise, Tanzania would be exporting a great deal of power to the east and southern African regions.

Mining sectorThe government of Tanzania has invited expressions of interest from companies who wish to develop the large scale untapped coal reserves present in the country, spurred by the globally rising demand for coal.

This large scale demand and high prices are likely to sustain at least till the year 2030, which provides Tanzania with enough and more time to tap this mineral advantage. The projects which have already been identified by the country

in this regard include the development of the Kiwira and Mchuchuma coal deposits.

Tanzania has drawn out a plan for the commercial exploitation of these resources through direct exports to global markets, supply of energy to enable the processing of other minerals which fall within the region, and direct power generation which is to be supplied to the national grid.

The Kiwira deposits of Tanzania have coal deposits of 200 million tons. Currently, the area is home to a single coal mine which produces almost 35,000 tons of coal each year. Local operators have recently formed a consortium which has signed an agreement with the government of Tanzania to deliver 200 MW of power to the national grid of the country.

Power generation in Tanzania is largely hydro-based and is supplied by the three main stations, namely Mtera, Kidatu, and Kihansi which are linked together through the national grid. Tanzania has an annual per capital electricity consumption of 46 KW per hour, which is growing at the rate of 11 to 13 percent.

Hence the government is encouraging investment to expand generating capacity, distribution system and developing indigenous sources of energy, of which coal could be the main contributor. Apart from contributing towards power generation, large scale exploitation of the coal deposits in Tanzania would also help in providing energy for paper mills, cement factories, agriculture and household consumption.

With a view to providing adequate impetus to the under-developed southern part of Tanzania, the government has established the Mtwara Development Corridor Initiative. This would help in stimulating the infrastructure and mineral development in the region.

Power sector strategyThis apart, emphasis is being laid on developing a comprehensive power sector strategy which will provide the private investors with a formal framework for generation, transmission and distribution of power. However, one of the key developments in the recent past has been the commitment made by the Word Bank.

The World Bank will invest $1.7 billion in Tanzania, to ensure adequate development of the energy sector of the country. It has assured proper assistance to those investors who would wish to put their money for the development of the sector in Tanzania.

COAL INSIGHTS �� JUNE 2008

COAL wIRE

DOMesTIC neWsCoal Insights Bureau

Binani Cement eyes Indonesian coal mineBinani Cement Ltd, which imports $100 million worth coal each year to power its production, expects to slash its fuel bill by switching partly to lignite for its mother plant, and buying coal mines in Indonesia.

Vinod Juneja, managing director of the Braj Binani group outfit, said the company is setting up a new project in Gujarat that will have two plants, one near Veraval Port to feed clinker to its cement plant in Dubai and the other in Surat, with a combined capacity of 2.8 million tons.

The project, expected to be ready by 2010, will try to use lignite from the Ambamata mine straddling the Rajasthan-Gujarat border.

“We are going to acquire coal mines in Indonesia at a cost of $50 to $60 million (around Rs 200 crore),” Juneja said.

“We spend $100 million a year on buying coal in the international spot market, and coal accounts for 18 to 20 percent of total costs,” he said. The Indonesian mine’s reserves of 30 million tons will be enough to feed Binani entire needs.

Karnataka power plant may be a non-starterThe much-opposed 1,000 MW coal fired thermal power plant at Chamalapura near Mysore, appears to have been snapped on project preliminaries alone.

The Karnataka Udyog Mitra (KUM), a state government organisation, made it clear on June 6 that the Rs 4,800 crore proposal is deferred. The unit was proposed as a public-private partnership between the state and the Power Company of Karnataka Ltd (PCKL),

Responding to an application under the Right to Information Act, it has informed Bangalore-based Environment Support Group (ESG) Coordinator Leo F.Saldanha that, “the State High Level Clearance Committee (SHLCC) took note of the agitations of the farmers, activists of progressive organisations, intellectuals against the project on environmental issues and decided to defer a decision on the proposal.”

New coal washing norm to set prices on fireCoal prices will go up by Rs 300 to Rs 400 per ton, as the government has made it mandatory for all coal produced in the country to be washed by the producers.

The higher price would mean more input costs for thermal power companies and the railways. This is expected to add to the price of electricity. This follows the government’s decision to make it mandatory for all coal produced in the country to be washed, will now mean spending about Rs 1,500 crore to wash coal and about Rs 4,000 to Rs 6,000 crore to set up such washeries.

According to the government, the benefits of washing coal

are many. It will result in reduction of emissions owing to reduced ash content in coal, reduction in the size of the coal handling plant at the power station end with reduction in the size of ash disposal units and smaller ash ponds. Reduction in ash will also result in less wear and tear of machinery, and the railways will carry thermal coal with less ash, resulting in increased freight carrying capacity.

However, the above advantages have several shortcomings. Just the amount of money involved can make the proposition a costly affair.

The present cost of such beneficiation works out to Rs 15 crore per million ton of raw coal, with a yield of around 80 percent of clean and 20 percent rejected coal. Coal India Ltd (CIL), and its subsidiaries plan to wash about 100 million tons of coal, which will translate to a cost of about Rs 1,500 crore.

The investment requirement for setting up a washery will vary from Rs 400 to Rs 600 per ton of annual capacity. It will mean Rs 4,000-6,000 crore to set up a coal washery. This means the cost of producing washed coal increases substantially and can translate into higher cost of coal for thermal power plants of the country.

CIL chairman Partha S. Bhattarcharyya said that the company currently has seven to eight washeries and plans to set up 28 coal washeries in the next two to three years.

Gujarat NRE to raise coal output in Australia

Gujarat NRE Coke Ltd, which is increasing coal production at its mines in Australia, is planning to acquire half-a-dozen bulk carriers to bring coal to India.

“We are in the process of acquiring on lease charter six bulk carriers with the option of buying them out. These carriers are now under construction in shipyards and will be progressively put into use from 2010 onwards,” said the vice-chairman and managing director, Arun Kumar Jagatramka.

The company is planning to increase its production substantially from the two Australian mines it owns in the next couple of years and is evaluating plans to ramp up processing capacities in India to deal with the increase in production, he said.

Gujarat NRE Coke is aiming to garner a substantial share in the 25 million tons coke market globally, which is expected to triple to 75 million tons by 2011-12. It is the largest non-captive manufacturer of low-ash metallurgical coke in the country.

“Originally, we planned to mine about 7 million tons coking coal. However, considering the ongoing prices of coal, we have upped the target. We are currently revising our plans and would mine about 10-12 million tons of coal as part of our desire to emerge among the top 10 players in the sector globally.”

COAL INSIGHTS �5 JUNE 2008

COAL wIRE

Asked about the plans for the company’s coking units in India, Jagatramka said, “We are evaluating our plans for Indian units. We might expand the existing capacity or set up new facility. We don’t see coal prices coming down in the near future.”

PFC sanctions Rs 10,000 cr credit line to NTPCIn a biggest ever credit-line, Power Finance Corporation (PFC) has sanctioned a loan of Rs 10,000 crore to the country’s largest power producer NTPC for various projects to be completed in the current Eleventh Plan.

NTPC, which is a nearly 30,000 MW company, seeks to generate 50,000 MW by 2012. It has lined up over Rs 13,200 crore capital expenditure in the current financial year and the loans from PFC would be partly utilised for the projects being undertaken in 2008 -09. It reported capex of Rs 8,621 crore during 2007-08.

The power producer would double coal imports during the current fiscal to 5 million tons, while its overall consumption of the fuel during 2008-09 is expected to surge to 140 million tons.

NTPC consumed about 124 million tons of coal during 2007 -08. It has tied up for loans worth Rs 21,809 crore for capacity expansion plans from various domestic banks and other financial institutions. The cumulative domestic borrowing up to March 31, 2008 was Rs 20,739 crore, including Rs 4,000 crore bonds placed with LIC.

Coal supply assured for KSK Energy projectThe Gujarat Government said that it is committed to the coal supply pact with KSK Energy Ventures, which is tapping the capital market with the second biggest initial public offering in the power sector.

“We are committed to the supply of coal to KSK Energy Ventures for its Wardha Chhattisgarh power plant,” a senior official in the Gujarat government said.

KSK Energy Ventures had entered into a coal supply and investment agreement with Gujarat Government-promoted GMDC in 2006, under which the Wardha Special Purpose Vehicle (SPV) is entitled to seven million tonnes of coal per year from the Morga-II coal block at mutually agreed upon prices, starting three years from the beginning of commercial mining of the block.

Big guns in race for Punjab power plantReliance Power, L&T Power Development, Sterlite and Lanco Infratech are among nine companies that have qualified for setting up the 1,320 MW Rajpura (Punjab) thermal plant.

The shortlisted companies will have to submit requests for proposal (RFP) by November 7. The other companies that have qualified for the project are Tata Power, Essar Power, Indiabulls Power Project, the consortium of Jindal Steel Works and IDFC, etc.

Thirteen companies including Reliance Power, Tata Power, Larsen and Toubro, and Essar submitted requests for qualification (RFQ) bids last month.

Other firms that have shown interest in the project include Lanco Infratech, Bhilwara Energy, Indiabulls power project, Sterlite, the consortium of JSW and IDFC, and a consortium of Spanish companies Union Fenosa International and Isolux Corsen with Emco.

The project will be awarded to a developer selected on the basis of tariff-based competitive bidding in accordance with government of India guidelines and will run on a build-own-operate basis.

The proposed power project will be coal-based and will see an investment of Rs 6,000 crore.

Damodar Valley mulls floating subsidiaryThe Damodar Valley Corp (DVC) is contemplating floating a subsidiary to be able it to go for an initial public offer to raise funds for its super critical projects during the Twelfth Plan.

The idea has been conveyed to the DVC Board for approval, Chairman, DVC, Aseem Barman, said.

“The DVC Board will examine our proposal of floating the subsidiary company that can go for IPO since DVC itself is not a company but a statutory body only,” Barman said. He said DVC would like to have a ‘top-class’ strategic partner for the proposed subsidiary.

“It is very much at an initial stage,” he said, adding the corporation was exploring possibilities to what extent the new company would execute future projects, provided “other things are in order”.

He said that the whole idea was to give a new dimension and direction for better efficiency and improved operations with higher finance to the corporation.

The DVC Chairman said five power projects - Raghunathpur (phase-II), Koderma, Maithon (left bank), Panchet (right bank) and Ramgarh would come up in the Twelfth Plan.

“Super critical technology will be required for execution of all these projects, besides those relating to flood control measures,” he added.

SAIL mulls joint venture with BCCLThe public sector steel major SAIL is exploring the possibility of setting up a joint venture with Bharat Coking Coal Limited (BCCL) specifically for the rich Kapuria block in Jharkhand.

Top government officials said SAIL and BCCL are in advanced discussion to formalise the proposed joint venture.

“SAIL is exploring various options to augment availability of indigenous coking coal. One o the potential areas is the development of the Kapuria block of BCCL,” said an official.

BCCL is a subsidiary of Coal India Limited (CIL). SAIL’s annual requirement of coal is around 16 to 17 million tons, out of which 4 million tons is accounted for through domestic suppliers like state owned CIL. The bulk 12 to 13 million tons is imported.

SAIL is currently in the process of negotiating its annual coal contracts for imports and its chairman S.K. Roongta expects a 200 percent increase in long term prices.

“Despite the fact that we have captive iron ore reserves,

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the cost pressure is the steepest that the industry has ever witnessed. As opposed to $ 96-97 per ton coal last year, prices will be around $300 per ton this year,” Roongta said.

“We remain committed to holding our price line till July but the cost of coking coal for us inclusive of freight will see an increment of around Rs 8000 to Rs 9000 per ton. In the longer term some of it will have to be passed on,” Roongta added.

Earlier this month, a five-member delegation headed by minister of state for steel Jitin Prasada visited Australia to explore access to coal mines there. The delegation visited coal rich states like New South Wales (NSW) and the state government there has assured coking coal linkages from NSW to India.

RIL’s lignite plan in Rajasthan hits hurdleReliance Industries Ltd’s efforts at straddling the entire energy basket from crude, coal and right down to lignite have hit a bump. The company’s move to secure a “reconnaissance permit” for lignite in Rajasthan’s Barmer district has come under question as the area identified by it overlaps with acreage marked by government for the coal ministry’s regional promotional exploration scheme.

Barmer is home to one of the biggest oil finds of recent times, made by UK’s Cairn Energy, and has various agencies working with aim of tapping gas trapped in layers of coal (coal bed methane) or turn coal into gas (underground coal gassification).

Neyveli Lignite Corporation, however, has told that the coal ministry that the area proposed by RIL is overlapping with acreage marked for Centre’s special scheme. Under this scheme, government-run companies undertake exploration with a view to ensuring regional development in prospecting for coal or lignite.

RIL had sought the reconnaissance permit for a 74.34 sq km area in the Sanchore basin of Barmer district in western Rajasthan. Company executives were unavailable for comment but government officials said this area was meant for prospecting by state-owned gas utility GAIL, though the state government was yet to officially indicate it.

RIL is looking at pumping gas trapped between layers of lignite from the acreage. This is similar to tapping gas from between coal seams, called CBM (coal bed methane) in industry parlance. The company has a CBM acreage at Sohagpur in Madhya Pradesh. The company seeking mining acreages from the government for setting up a coal-to-liquid project, which could cost up to $9 billion, with a capacity to synthesise 80,000 barrels per day of motor oil.

The company had projected a coal requirement of approximately 30 million tons a year for its CTL project and sought mines with a total reserve of 1,500 million tons under the operational area of Mahanadi Coalfields Ltd, which are mostly open-cast mines.

Thermal unit sanctioned for Solapur: ShindeThe Union power ministry has sanctioned 1320 MW thermal power project for Solapur and the process of this proposed

project will start within few days, said Union Power Minister, Sushil Kumar Shinde.

This thermal power project will be located at Phatatewadi in South Solapur tehsil of the district.

Senior officers of the National Thermal Power Corporation (NTPC) visited the proposed sight and decided to start the sight office at the earliest, said Shinde.

Two units of 650 MW per unit will cost around Rs 6500 crore, he added.

Wongawilli coal to be shipped to IndiaGujarat NRE Coke Limited said that the first consignment of coking coal of the company, produced from its NRE Wongawilli colliery recently acquired by the company, has been loaded for India.

“More than 20,000 tons of coal from the mine was loaded onto the bulk carrier Sea Urchin at Port Kembla’s coal loader for India,” stated the company statement.

After the arrival of coal in India, it would be washed and prepared for the steel industry. This will be done at one of the three metallurgical coke plants of Gujarat NRE Coke Limited, said the Vice chairman and managing director, Arun Kumar Jagatramka.

Ispat to expand power businessIspat Industries has now set eyes on the expansion of its power business. The company plans its foray into super critical power generation by setting up a 1,980 MW thermal power plant in Jharkhand with a total investment of about Rs 8,000 crore.

The project, to be developed in collaboration with the state government would provide 25 percent of its total generation to power-starved Jharkhand. The power project is part of the ambitious power generation programme of the steelmaker that aims to have 5,000 MW of installed generation capacity by 2012.

According to sources in the Jharkhand government, the company has already entered into a MoU with the state government for the power project. The state has also identified around 2,000 acres of land at Govindpur in Karra near Khunti district for the project. Suitable coal blocks would be soon offered to the company for captive use. When contacted, an Ispat official confirmed the development.

L&T to pump $6 bn into power businessEngineering and construction giant Larsen and Toubro (L&T) on June 11 said it would invest Rs 250 billion or $6.25 billion in the power generation business, including nuclear energy, over the next five years.

“Power is going to be one of our focus areas in the coming years,” said L&T chairman and managing director A.M. Naik.

He said while the immediate focus will be on thermal power, the company will also go for nuclear energy eventually, an area that has been on the company’s radar for several years now.

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This won’t be the company’s first exposure to the power sector. It already sets up power plants on a turnkey basis, including those using thermal, hydro and nuclear technologies.

Larsen and Toubro had also forged a tie-up with Japan’s Mitsubishi to make steam turbines and generators, for which it had planned a separate venture.

Benga project to yield premium coalTata Steel said that its joint venture coal project with Riversdale Mining in Mozambique would yield premium hard coking and thermal coal, suitable for export and mine mouth power station.

Tata Steel said that the coal quality progress results for Benga deposits near Tete in Mozambique indicates that both hard coking and thermal coal would be of premium quality and make the venture a “world class project”.

It will also give Riversdale an opportunity to be a globally competitive coking coal producer, it added.

Tata Steel said further work is being undertaken to optimise the potential products from the Benga deposit. It said the Benga hard coking coal compares favourably against the premium Bowen Basin coals found in German Creek and are even superior in quality.

As for thermal coal, the steel major said it would be suitable for mine mouth power stations. It said the power produced will be used for supplying to the mines and will also find markets in Southern African Power Pool, which is currently experiencing acute power shortage.

States complain about bad quality coalVarious states made a strong complaint against the deteriorating quality of coal and revision in coal unloading norms by the Railways.

Maharashtra, Punjab, Rajasthan, Andhra Pradesh, Karnataka and Madhya Pradesh were at the forefront to bring to the power ministry’s notice that due to the bad quality coal supplied by Coal India Ltd (CIL) and its subsidiaries they had to consume more coal.

Some of these states, at the meeting convened by the power secretary, Anil Razdan said, against the assured quality of coal, they were receiving below grade quality which is affecting their generation plants.

Besides, coal companies have reduced coal linkage, which has posed a serious threat for the functioning of several power plants.

Moreover, Razdan asked states to tie up coal imports at the earliest as the coal market is already tight and the prices are soaring. The prevailing coal price is $156 per ton. The Centre has projected coal shortfall of about 76 million tons by the end of Eleventh Plan period and it has asked states to take necessary steps for the import of nearly 20 million tons.

Orissa firm eyes coal mines in MozambiqueOrissa-based mining company P K Ores plans to acquire coal

mines in Tete province of Mozambique. It has registered a new firm, Triveni P K Mining Company, in Mozambique and hopes to acquire the mines soon.

“We have already applied to the ministry of coal and mines of Mozambique for coal mines which may be allotted soon,” Manas Ranjan Das Pattnaik, director, P K Ores said. One of the coal mines is estimated to have reserves of 25 million tonnes.

Though the exact size of the deal will be known after a detailed survey, market sources put the value at more than Rs 100 crore. This will be the first overseas acquisition by the company. At present, it is executing the drilling and survey work for ETA, a Dubai-based company. Similarly, the company is also in talks with the Australian government for acquiring mines there. A senior company official will be visiting the country soon for assessing the investment opportunities in iron ore, coal and diamond.

ABB bags Rs 295-cr orders ABB announced on June 3, that it has bagged orders worth Rs 295 crore to provide power solutions for JSW Energy for its upcoming 4 X 300 MW thermal power plant at Ratnagiri in Maharashtra.

The orders are for a range of power solutions including electrical balance of plant, 400kV gas insulated switchgear substation and generator transformers.

Financial closure soon for R-Power projectThe financial closure of the Krishnapatnam ultra mega power project of Reliance Power Ltd would be achieved in the coming three months, said a senior company official.

The 4,000 MW coal fired project is located near Krishnapatnam in Andhra Pradesh. It is approximately 3 km from the nearest port where imported coal would be delivered to supply fuel for the project. The project would have five units of 800 MW each.

Lenders to the Rs 20,000-crore project, led by IDBI, have to commence due diligence for the project. Awarding contracts for boiler, turbine and generators would be completed in two months. These critical components component constitute 50 percent of the project cost.

Officials said that engineering majors such as BHEL, Doosan and L&T Ltd would be bidding for the contracts. These companies have submitted technical offers; commercial offers are yet to be negotiated. The EPC for the project would be undertaken by the group company Reliance Infrastructure Ltd.

Alstom, Bharat Forge plan $500-m power JVFrench power equipment major Alstom is planning a major expansion of its manufacturing activities in India.

Alstom’s Switzerland-based arm Alstom Power is likely to enter into a $500-million joint venture with Bharat Forge to produce high-value, super-critical turbine/generator (TG) sets for thermal and nuclear power plants. The two are expected to sign an agreement soon to set up a manufacturing facility with an estimated capacity of 5,000 MW per annum.

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The move is a strategic one for Bharat Forge, which is making a conscious effort to diversify into the manufacture of power equipment. The deal would also help Alstom enter manufacture of TG sets, an area being keenly looked at by the company. The proposed JV is also expected to enter into an MoU with Bhel for manufacturing super-critical boilers.

The JV is looking for 1,000 acres for the production facility and is in talks with the state governments of Maharashtra, Gujarat and Tamil Nadu. Once the site is finalised, the proposed JV plans to roll out power equipment within three years.

While the JV company is expected to manufacture equipment for thermal power plants initially, Alstom could bring in its expertise in nuclear equipment as and when the segment opens up. The deal follows the recent India visit of a high-level delegation of Alstom. During the visit, the company officials had indicated their interest in manufacturing power equipment to officials of the power ministry.

Through its subsidiary Alstom Power India, the European major has set up a thermal boiler manufacturing facility in Durgapur in West Bengal and a hydro equipment manufacturing facility at Vadodara.

The Alstom-Bharat Forge deal would be a big boost to the government’s initiative to promote large-scale manufacturing of power equipment in the country to meet the heavy requirements of capacity addition that involves putting up 78,577 MW of generation capacity by 2012.

Four more mega power projects clearedThe government approved the setting up of four additional ultra mega power projects (UMPP) in Orissa, Chhattisgarh, Tamil Nadu and Gujarat to meet the power shortages on May 29th.

“We have decided to put up four more UMPPs as these states had sent renewed requests to the government for the same,” said the power minister, Sushilkumar Shinde.

The government had earlier approved nine UMPPs, of which three are under execution. The government further received requests from Chhattisgarh, Orissa, Gujarat and Tamil Nadu for UMPPs to meet the power shortages, thereby bringing the number of UMPPs to 13.

“So, in totality there would be 13 ultra mega power projects that would come up during the Eleventh plan,” Shinde said.

Emco to foray into coal trade businessEmco, primarily focused on the transmission and distribution segment of the power sector, plans to foray into coal trading business and has tied up for coal supply from Indonesia, Chairman and Managing Director Rajesh Jain said on May 29.

The company will source coal for its proposed trading business from Indonesian coal mine company PT Bina Insan Sukses Mandiri, where it will acquire 37.35 percent stake by virtue of Emco’s arrangement with Singapore’s Rabaan (S) Pte Ltd.

Emco, through a subsidiary, has picked up 37.35 percent stake in Rabaan, which has a long-term exclusive coal offtake agreement with the Indonesian coal mine company. Emco has so far been in the business of manufacturing transformers, electric meters, and executing transmission and distribution projects. PT Bina Insan Sukses’ mine is spread over 5,000 hectares and has an estimated coal reserve of 105 million tons.

“We will start getting coal from this mine in the next three to four months,” Jain said.

MNCs keen on coal mining in IndiaCompanies like XIndia Ltd, Australia’s White Mining Co, Bucyrus and UK’s Anglo Coal are among the companies who have evinced an interest to carry out an underground mining contract in seven Coal India blocks.

“CIL has invited expressions of interest (EoIs) for undertaking underground mining contracts in seven mines located in West Bengal, Jharkhand, Orissa, Chattishgarh and Maharashtra. These would be a long term contract for extracting anything between 2-5 million tons of coal annually from each of these mines. Reserves are in excess of 400 mt in all these blocks and selected parties will invest in installing machinery and equipment in these mines,” said Partha S. Bhattacharyya, chairman of CIL.

Opening up seven new underground mines is part of CIL’s plan to enhance coal production from such mines to balance the supply of coal from open cast and underground mines. Currently, coal production is heavily skewed in favour of open cast mines.

Incidentally, a few companies interested in entering into contract with CIL for underground mining have asked for more time to participate in the process of expression of interest. “Accordingly we have extended the last date for participating in the EoI from May 25 to June 27,” said Bhattacharyya.

Interestingly, CIL has also decided to roll out forward e-auction and has decided to sell 15 million tons of coal each year through this platform two-third of which will be high quality coal from underground mines.

Andhra UMPP to go on streamAnil Dhirubhai Ambani Group company Reliance Power proposes to bring on stream the first 800 MW unit of the 4,000 MW Krishnapattanam ultra mega power project (UMPP) in Andhra Pradesh by March 2012, the end of Eleventh Plan, a year before the earlier plan of September 2013.

Reliance Power sources said, “The company will make all efforts to advance the commissioning of the first unit well before 68 months since the transfer date of January 29, 2008, and complete the project construction in 93 months. However, the first unit can be commissioned by March 2012 as the company will be able to award the boiler turbine generator (BTG) contract in next two to three months. It has already awarded engineering procurement construction (EPC) to Reliance Infrastructure.”

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Company sources said the Andhra Pradesh government has so far handed over 70 percent of the 2.625 acres required. Reliance Power would procure 15 to 17 million tons coal annually from the mines it acquired in Indonesia. The coal requirement of 25-year power purchase agreement period would be 375 to 400 million tons.

Meanwhile, Reliance Power has also bagged the Sasan UMPP in Madhya Pradesh.

Mytas Infra bags Maharashtra dealMytas Infra, the construction and infrastructure development company based in Hyderabad, has won the contract for the country’s first washery reject coal-based power project to be set up in Maharashtra’s Chandrapur district.

The 120 MW project will be executed on a total engineering, procurement and construction (EPC) basis at an estimated Rs 650 crore. The first phase of 60 MW will be completed in 20 months and the second in 22 months.

The project, which will run exclusively on washery reject coal fuel, has been entrusted to Mytas by Nagpur-based infrastructure and power company Gupta Energy.

UP rejects Lanco bid for 2 projectsThe UP Power Corporation (UPPCL) on May 28 sought the state power regulator’s permission to seek fresh global bids for two power project after rejecting Lanco Kundapalli offer.

The state power utility has appealed UP State Electricity Regulatory Commission (UPSERC) seeking re-bidding for the award of Bara and Karchana thermal power projects based in the Allahabad district.

Earlier, the power utility rejected Lanco’s bid for the projects citing high tariff. The power regulator on May 16 issued notice to Lanco Anpara Power, against the increase in capacity of Anpara C from 2X500 to 2X600, against the regulatory approval for 1,000 MW. The Anpara C project was awarded to Lanco in September 2006 through a tariff-based bidding.

Lanco in April last had won both the coal-based power projects - Rs 9,000 crore 660X3 Bara and Rs 6,500 crore 660X2 Karchana projects - on levelised tariff-based international competitive bidding (ICB).

The other bidders in the fray included Reliance Energy, Essar Power, Crompton Greaves, Torrent, AES of the US and three others.

The Lanco’s price of Rs 2.88 per unit for Bara and Rs 2.83 for Karchana was found to be the lowest. Accordingly, the bids evaluation committee recommended that both the projects be awarded to Lanco.

Neyveli Lignite posts higher Q4 netNeyveli Lignite Corporation’s net profit for the fourth quarter of last year was nearly 15 times as much as in the corresponding quarter of the previous year, but that was more due to a quirk of accounting rather than performance.

In fourth quarter last year, the company had to make

some adjustments for over-provisions made in the previous years --basically, the company had assumed certain tariffs for its power, but later, the Central Electricity Regulatory Commission allowed it a lesser tariff.

For the full year 2006-07, NLC had to reduce its profits by about Rs 500 crore on account of the ‘adjustments’ it had to make.

Nevertheless, the company’s performance for 2007-08 was marked by record mining of lignite and power generation. It produced 17.45 billion units last year compared with 14.77 billion units in the previous year.

NLC’s installed capacity will increase from 2,490 MW, between its two stations in Neyveli. By the end of this year, the installed capacity will go up by 500 MW. The addition will come equally from expansion at Neyveli and a new plant in Rajasthan.

BHEL, Italian co in race for NLC orderThe public sector Bharat Heavy Electricals Ltd (BHEL) and the Italian power major, Ansaldo, are in the race for supplying boilers to Neyveli Lignite Corporation’s Tuticorin project. The value of the order would be around Rs 1,300 crore.

A joint venture of Neyveli Lignite Corporation (NLC) and the Tamil Nadu Industrial Development Corporation (TIDCO) of the Tamil Nadu Government is investing Rs 4,950 crore in the 1,000-MW, coal-fired thermal project. NLC has 89 percent stake in it.

The value of boilers and turbines for the project works out to around Rs 2,200 crore. NLC invited ‘expression of interest’ for each equipment. BHEL was the sole respondent for supplying the turbines, whose value would be around Rs 900 crore. BHEL and Ansaldo have shown interest in supplying the boilers.

“We will shortly open the technical bids, after which we will open the financial bids,” said the director-Power, NLC, V. Sethuraman.

NLC’s Chairman and Managing Director, S. Jayaraman, said that the project would not use supercritical boilers, which, though costlier, are said to be more energy efficient.

The Tuticorin project is NLC’s first foray into coal-fired power plant and as such the company would not like to go in for the supercriticals, whose performance is yet to be experienced in India, he said.

However, for the other project on the drawing board -- the 2,000-MW Hirma project in Orissa -- NLC may opt for supercritical boilers, he said.

Jayaraman said that the Chinese power equipment manufacturers had not responded to NLC’s invitation for Expression of Interest.

Sources in the company said that this was probably because the Chinese suppliers are experts only in producing equipment for 600 MW units, where they are cheaper because of the standardised design.

The news reports published above have been compiled from various newspapers and web reports.

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InTeRnaTIOnal neWsCoal Insights Bureau

ArcelorMittal acquires Mid Vol CoalArcelorMittal announced on June 23, that announced that it has signed an agreement to acquire Mid Vol Coal Group of the US.

Located in southern West Virginia and southwestern Virginia in the Central Appalachian coal basin, Mid Vol produced 1.5 million tons of metallurgical coking coal in 2007 and has estimated reserves and resources in excess of 85 million tons, a statement from ArcelorMittal said.

“This acquisition further increases our self-sufficiency in a primary raw material during a time when metallurgical coking coal demand on a global scale remains strong,” ArcelorMittal’s CFO and group management member Aditya Mittal said.

Mittal said the company intends to double the production level at Mid Vol.

“It is our intention to double the production level at Mid Vol in a short to medium term and permits have been recently granted to the operation, which will facilitate this,” he said.

ArcelorMittal is currently the largest customer of Mid Vol and the quality of the coal produced, meets that demanded by our coke making facilities, Mittal added.

Churchill moves forward project schedule Churchill Mining announced that it was moving forward the first stage of production at its East Kutai Coal Project in Kalimantan, Indonesia to year-end 2009, 12 months ahead of the previously planned start date.

The decision was made after a scoping study for the East Kutai Coal Project was completed ahead of schedule and concluded that the mine could be brought into production earlier by using a staged approach.

The new plan suggests an initial production rate of 2 million tons per annum, with a gradual expansion towards a mine producing between 14 and 20 million tons per annum. As a result of the revised road map to production, Churchill said it had entered into project financing discussions, including off-take agreements, joint ventures and traditional bank finance.

On the coal resource development front, Churchill confirmed that it had contracted two ground survey teams to complete additional topographical surveys. The company said it was now working towards moving the current 250 million tons of indicated and inferred resources to the measured category, and ultimately into a mining reserve once the feasibility study is complete.

Meanwhile, at Churchill’s Sendawar Coal Bed Methane Project, the company said it was still awaiting CBM regulations to be laid down by the Indonesian Government. Until they are, it was not in a position to move towards any form of

production sharing contracts. In the meantime, the company is tendering for a seismic verification programme to confirm the data it has used in modelling the project.

“Churchill is pleased to confirm its commitment to fast-tracking the development of the East Kutai Coal Project which has been brought forward by some 12 months. This will deliver quicker cashflow and profits to the Company and value to its shareholders,” said Churchill Mining’s CEO, Paul Mazak.

Kenya takes stock of coal reserves The Kenyan government has started the process of quantifying the coal reserves in Kitui and Mwingi districts as pressure mounts to address escalating global oil prices.

The Energy ministry on June 22, invited bids from international firms to carry out the last phase of the drilling campaign in the Mui basin exploration area to determine the commercial viability of the reserves.

According to the tender notice carried in the local dailies, the successful firm will be required to drill 20 more wells at different selected sites in the basin to ascertain among other things, the coal quality and recommend its best method of extraction.

The contracted drilling company, which will begin the work in September, will also carry out detailed geological description and analysis of the coal seams and determine the quantities of the available coal reserves.

The move by the ministry comes in the wake of rising oil prices and it will be the last phase to conclude the slow exploratory drilling campaign in the two districts which began eight years ago.

However, there are fears that the fresh bids may not attract the best drilling expertise which is lacking in the region, to hasten the process of concluding the exploration.

This is the second time private drilling firms are being invited to supplement the slow Government efforts which have been worsened by lack of specialised machinery.

NamPower plans massive coal-fired plant NamPower, Namibia’s national power utility, plans to build a massive coal-fired power station at Walvis Bay to meet growing demands, mainly by uranium mines. The utility plans to construct a station capable of generating up to 800 MW of electricity.

The utility confirmed the development, although it could not elaborate. “We are not in a position to answer those questions individually. We are in the process of planning a wider public participation process which will be advertised and to which the media will be invited. At these stakeholder-

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gatherings, all your questions and other related issues will be addressed,” said NamPower spokesman, John Kaimu.

According to a report by Ninham Shand Consulting Services, which has been appointed by NamPower to prepare an Environmental and Socio-Economic Impact Assessment Report, the plans show that the plant will come with an associated coal stockyard, an ash disposal facility and transport infrastructure to deliver coal and, potentially, seawater to and from the plant.

NamPower plans to construct a 100-megawatt multi-fuelled emergency generation facility, which will be located on the coal-fired power station site or in the vicinity of the existing Paratus Power Station.

It also proposes to construct a 50-MW power station that could, in future, be used to support the proposed black start emergency generation facility.

The report states that Namibia is experiencing unprecedented growth as a result of developments in the West Coast area. In addition, the country is experiencing power shortages, which could inhibit growth if not resolved.

The current national peak is approximately 550 MW of which South Africa supplies a significant portion, especially during the dry season when the Kunene River Flow is far below the requirements to operate the Ruacana Power Station at full base-load capacity.

Indonesia may produce 262 mt of coal Indonesia may produce 261.6 million tons of coal next year, reported a country’s newspaper citing Simon Sembiring, director general of the mines and energy ministry.

The government plans to include coal output and price estimates in the country’s 2009 budget, adding to oil output and price estimates in the current budget, Bisnis said.

Shenhua May sales rise 19% Shenhua Energy Co Ltd has registered 19.4 percent more sale in May than a year ago, for the company supplied China and raced to meet the deficit.

According to a foreign news agency report quoting a company’s statement, 13.3 percent or 15.3 million tons more coal was produced by the company last month. The company sold 19.7 million tons.

However, the exports declined by 4.8 percent to 2 million tons. The company told that it has planned to keep exports flat in 2008. This initiative is to hold back the fuel, which runs three-quarters of China’s power capacity, for domestic use.

Coal deficit and soaring coal prices, have pressurized the Chinese power firms. This has even threatened to trigger power outages as the country heads into the peak summer demand season, added the report.

Xstrata sees more Australian coal mining takeoversXstrata Plc. views more acquisitions of coal assets in Australia

in the middle of record prices for the fuel, stated a foreign news agency report.

“There will be more deals in Australia and it remains an interesting place to grow one’s business,’’ stated the report quoting the chief executive officer of Zug, Switzerland-based Xstrata’s coal unit, Peter Freyberg. “Coking coal remains a very, very interesting place.’’

The acquisitions of coal and iron ore assets in Australia will witness an increase as steelmakers try to cut down the costs, said UBS AG in a May 21 report.

ArcelorMittal’s acquisition of a 14.9 percent stake in Macarthur Coal Ltd. for A$631 million ($600 million) last month has encouraged the takeover speculation in the nation’s coal industry.

“That is an interesting position that they have taken and obviously security of supply is a concern to them and that is why they have made that investment,” Freyberg added. “It just underpins our fundamental belief that it is a great sector.”

China to raise fees on coal mining: reportIn an effort to save energy by wasteful mining China will raise fees on using coal mines across the country, state media reported.

“We will soon charge resource utilisation fees in the whole coal mining sector to achieve our energy-saving goal,” quoted a leading Chinese daily, citing Vice Finance Minister Zhang Shaochun.

According to the report the government will invest the fees in expanding coal exploration and to improve environmental protection and the livelihoods of miners, the report said.

Meanwhile pilot programmes have been conducted in eight provinces and regions including Shanxi and Inner Mongolia in the north since a reform of the fees started in November 2006, aiming to improve awareness of resource savings.

“The pilot programmes are successful and we should implement the practice nationwide,” Zhang said.

The report added that in the past, mine owners were charged only 1,000 yuan (145 dollars) per square kilometre (0.4 square miles) of coal mine, it added.

As per the new rules, the fees in the pilot areas would now be decided through auctions and have been increased by large margins, the daily informed. However there was no timetable on when the increased charges would be introduced, or what level they would be set at.

Low costs seemed to give a free rein to wasteful mining, as revealed in a recent example showing mines in northern Shaanxi province extracting only 30 percent of the coal in a seam, leaving the other 70 percent buried forever, the paper informed.

US floods could slow coal exportsIt is likely that floods on the upper Mississippi River could slow down US coal exports owing to the stalled barge traffic and disrupted rail shipments, some industry sources said.

COAL INSIGHTS 72 JUNE 2008

COAL wIRE

The news reports published above have been compiled from various newspapers and web reports.

Other experts said problems will diminish as the flood crest moves to the lower Mississippi, which unlike the upper reaches is not dependent on locks to raise and lower vessels. According to these experts the impact on coal ought to be limited.

Meanwhile, major US railroads have reported problems owing to flooding. However it has been possible to route most domestic coal deliveries around high water, electric utility watchers said.

The most affected coal is the sub-bituminous stuff mined in the Powder River Basin of Wyoming. It moves by rail to the south, away from the river, and to the east, across it. “Most of the routes for PRB coal to the east are cut off,” a mining company official said.

PRB is not itself a major export commodity, but it has been flowing to eastern utilities to replace Appalachian bituminous coal that is moving into the export market. He said that with less PRB, it is likely that more eastern coal could stay home.

Other coals, Western and Illinois Basin bituminous coals, are more likely to join Appalachian in the export market, but they enter the Mississippi Valley south of the flooding, and there has been little impact so far, sources said.

“We’re seeing some barges being stuck at their origination points rather than destinations due to the flooding, but overall are not seeing much impact to our coal shipments,” said Emily Mir Thompson, spokeswoman for Kinder Morgan, which operates several coal terminals.

Another terminal operator on the lower river said flooding up north actually has sent him more business.

“It has deviated cargo,” said Bruce Conti, president of IC Rail Marine in Louisiana between Baton Rouge and New Orleans. “Stuff that can’t move up there is coming to us and moving out by barge.”

There is some concern about what happens when the flood crest moves farther south, said New York-based coal trader Frank Kolojeski. “High water could impact barge moves within the next couple of weeks, so stay tuned,” he said.

Sandor Toth, editor of the River Transport News, which covers U.S. inland barge traffic, said the lower Mississippi will not close. Below Cairo, Illinois, there are no locks to be flooded.

“Once this big glob of water moves through, it’ll cause some navigational issues, but the river won’t close like it has on the upper Mississippi,” Toth said.

The lower river already had been operating under restrictions because of high water that started in the spring. Among restrictions that are imposed are fewer barges in each tow and minimum towboat power requirements for tows.

COAL INSIGHTS 73 JUNE 2008

ALL InDIA COAL DATA – mAy ’08

COAL PRODUCTION (Company-wise)(Million Tons)

sl. no.

name of the Company

annual target

During the Month Corresponding Month of previous year upto the Month Corresponding period

of previous yeartarget achievement actual target achievement actual

1 ECL 31.000 2.472 2.253 1.901 4.635 4.420 3.7992 BCCL 26.500 1.800 1.735 1.953 3.500 3.415 3.6973 CCL 47.000 3.057 2.832 2.830 6.035 4.879 5.1994 NCL 61.250 4.820 4.685 4.468 9.270 9.267 8.5525 WCL 43.050 3.594 3.796 3.618 7.026 7.351 6.6396 SECL 96.000 7.049 7.627 6.677 13.869 15.301 13.2797 MCL 99.000 8.110 6.700 6.262 15.955 13.706 12.6768 NEC 1.200 0.085 0.075 0.097 0.185 0.146 0.1689 CIL 405.000 30.987 29.703 27.806 60.475 58.485 54.009

10 SCCL 41.500 3.423 3.634 3.209 6.803 7.114 4.72711 OTHERS* 45.190 3.766 2.834 2.383 7.532 5.558 6.377ALL INDIA TOTAL 491.690 38.176 36.171 33.398 74.810 71.157 65.113

* Excluding Meghalaya, Monthly Target of others is obtained by proportioning the annual target. Source: Coal Controller’s Organisation

COAL LOADING BY RAIL (Company-wise)(F.W.W/day)

sl. no.

name of the Company

annual target

During the Month Corresponding Month of previous year upto the Month Corresponding period

of previous year

target achievement actual target achievement actual1 ECL 1848 1742 1783 1660 1742 1838 16702 BCCL 2684 2766 2250 2411 2763 2310 24603 CCL 4081 3954 3517 3549 4000 3656 38354 NCL 1712 1545 1886 1530 1571 1979 15725 WCL 2383 2413 2442 2646 2425 2398 25916 SECL 4842 4625 4597 4602 4591 4589 45197 MCL 6356 6116 5570 5698 6118 5827 58718 NEC 110 84 102 110 96 106 1059 CIL 24016 23245 22147 22206 23306 22703 22623

10 SCCL 2729 2564 2508 2543 2665Source: Coal Controller’s Organisation

PITHEAD VENDIBLE CLOSING STOCK (Company-wise)(Lakh Tons)

sl. no. name of the Company last Date of the Current Month last Date of the Corresponding Month of the last year1 ECL 4.368 5.1722 BCCL 4.401 3.4493 CCL 12.107 9.3764 NCL 1.396 0.8355 WCL 3.143 3.7476 SECL 5.921 6.6477 MCL 11.786 6.6498 NEC 0.056 0.1619 CIL 43.178 36.036

10 SCCL 0.252 0.91011 OTHERS* 0.292 0.390

ALL INDIA TOTAL 43.722 37.336* Excluding Meghalaya, ** Previous year’s data is from Coal Directory Source: CIL, SCCL and others

COAL INSIGHTS 7� JUNE 2008

ALL InDIA COAL DATA – mAy ’08

COAL DESPATCHES (Company-wise)(Million Tons)

sl. no.

name of the Company

annual target

During the Month Corresponding Month of previous year upto the Month Corresponding period

of previous year

target achievement actual target achievement actual1 ECL 30.601 2.406 2.297 2.376 4.769 4.614 4.5912 BCCL 26.228 2.296 1.990 2.046 4.513 4.023 4.1573 CCL 46.970 3.872 3.365 3.480 7.698 6.677 7.3074 NCL 61.250 4.830 4.742 4.633 9.675 9.461 8.7005 WCL 43.027 3.646 3.862 3.856 7.268 7.499 7.5756 SECL 95.980 7.781 8.133 7.484 15.321 16.057 14.5167 MCL 99.000 8.164 7.004 6.848 16.077 14.272 13.9998 NEC 1.200 0.085 0.094 0.101 0.185 0.170 0.1879 CIL 404.256 33.080 31.487 30.824 65.506 62.773 61.032

10 SCCL 41.410 3.420 3.574 3.372 6.810 6.983 6.92711 OTHERS* 45.190 3.766 2.731 2.495 7.532 5.441 4.865

ALL INDIA TOTAL 490.856 40.266 37.792 36.691 79.848 75.197 72.824* Excluding Meghalaya Source: Coal Controller’s Organisation

COKING COAL PRODUCTION (Company-wise)(Million Tons)

sl. no.

name of the Company

annual target

During the Month Corresponding Month of previous year upto the Month Corresponding period

of previous year

target achievement actual target achievement actual1 ECL 0.070 0.006 0.005 0.005 0.011 0.009 0.0112 BCCL 13.200 1.099 0.754 0.888 2.198 1.487 1.6473 CCL 11.940 0.782 0.873 0.825 1.546 1.463 1.5124 WCL 0.840 0.067 0.042 0.057 0.134 0.083 0.1045 SECL 0.160 0.013 0.012 0.011 0.026 0.023 0.0246 CIL 26.210 1.967 1.686 1.786 3.915 3.065 3.2987 OTHERS* 8.250 0.688 1.012 0.728 1.375 1.675 1.400

ALL INDIA TOTAL 34.460 2.655 2.698 2.514 5.290 4.740 4.698* Excluding Meghalaya, Monthly Target of others is obtained by proportioning the annual target. Source: Coal Controller’s Organisation

COKING COAL (Washed & Direct feed) DESPATCHES TO STEEL PLANTS (Company-wise)(Million Tons)

sl. no.

name of the Company

annual target

During the Month Corresponding Month of previous year upto the Month Corresponding period

of previous year

target achievement actual target achievement actual1 ECL 0.030 0.004 0.004 0.000 0.004 0.005 0.0022 BCCL 2.450 0.173 0.148 0.148 0.422 0.302 0.3183 CCL 2.400 0.191 0.133 0.150 0.384 0.300 0.3204 WCL 0.386 0.029 0.023 0.022 0.062 0.045 0.0445 SECL 0.170 0.014 0.014 0.013 0.027 0.028 0.0276 CIL 5.436 0.411 0.322 0.333 0.899 0.680 0.711

Source: As reported by CIL

COAL INSIGHTS 75 JUNE 2008

ALL InDIA COAL DATA – mAy ’08

DATA OF RAW COAL (Company-wise) FOR MAY 2008 AND MAY 2007(Million Tons)

CoMpany May 2008 May 2007

pRoDuCtion DespatChes Closing stoCK pRoDuCtion DespatChes Closing stoCKECL 2.253 2.297 4.368 1.901 2.376 5.172BCCL 1.735 1.990 4.401 1.953 2.046 3.449CCL 2.832 3.365 12.107 2.830 3.480 9.376NCL 4.685 4.742 1.396 4.468 4.633 0.835WCL 3.796 3.862 3.143 3.618 3.856 3.747SECL 7.627 8.133 5.921 6.677 7.484 6.647MCL 6.700 7.004 11.786 6.262 6.848 6.649NEC 0.075 0.094 0.056 0.097 0.101 0.161SCCL 3.634 3.574 0.252 3.209 3.372 0.910JKML 0.001 0.001 0.003 0.002 0.002 0.001JSMDCL 0.062 0.062 0.000 0.068 0.068 0.000DVC 0.039 0.031 0.020 0.045 0.045 0.007IISCOCJ 0.062 0.062 0.002 0.075 0.074 0.002IISCOR 0.026 0.024 0.011 0.028 0.028 0.006TISCOJH 0.131 0.129 0.005 0.129 0.128 0.006TISCOWB 0.493 0.462 0.015 0.479 0.470 0.036BECML 0.344 0.337 0.022 0.265 0.308 0.008ICML 0.285 0.245 0.015 0.264 0.246 0.171JSPL 0.511 0.511 0.000 0.506 0.506 0.000HIL 0.162 0.143 0.059 0.088 0.103 0.026MIL 0.049 0.072 0.019 0.049 0.052 0.039CML 0.000 0.000 0.020 0.000 0.000 0.020PANEM 0.366 0.360 0.027 0.256 0.342 0.049PIL 0.085 0.085 0.000 0.070 0.070 0.000SIL 0.000 0.002 0.000 0.000 0.000 0.000JPL 0.147 0.151 0.007 0.000 0.000 0JNL 0.040 0.034 0.044 0.025 0.021 0.015BLA 0.031 0.020 0.023 0.034 0.032 0.004INDIA 36.171 37.792 43.722 33.398 36.691 37.336

Source: Coal Controller’s Organisation

WASHED COKING COAL PRODUCTION (Company-wise)(Million Tons)

sl. no.

name of the Company

annual target

During the Month Corresponding Month of previous year upto the Month Corresponding period

of previous year

target achievement actual target achievement actual1 BCCL 2.410 0.200 0.153 0.150 0.400 0.301 0.3072 CCL 2.400 0.192 0.137 0.140 0.384 0.282 0.2833 WCL 0.386 0.031 0.024 0.024 0.062 0.047 0.0454 CIL 5.196 0.423 0.314 0.314 0.846 0.630 0.635

Source: Coal Controller’s Organisation

COAL INSIGHTS 7� JUNE 2008

ALL InDIA COAL DATA – mAy ’08

Sector/Mode wise Offtake for 2008-09

sectorsapRil 2008 pRogRaMMe 2008-09 pRogRaMMe 2007-08 gRowth

target achieved % achieved target achieved % achieved achieved absolute percentage

POWER (lakh tons)

R/C Rail 117.16 125.71 107.30 117.16 125.71 107.30 119.92 5.79 4.83

Road 30.56 24.03 78.64 30.56 24.03 66.42 26.22 -2.19 -8.34

RD/NCK INT FEED 12.67 8.83 69.72 12.67 8.83 238.45 9.25 -0.42 -4.51

MGR 67.60 58.64 87.44 67.06 58.64 87.44 57.06 1.58 2.77

BELT 5.96 5.29 88.78 5.96 5.29 88.78 4.45 0.84 18.90

ROPEWAY 2.19 2.19 100.00 2.19 2.19 100.00 2.55 -0.36 -14.12

R/C WITH INT FD 235.60 224.70 95.37 235.60 224.70 95.37 219.45 5.25 2.39

MIDDLINGS 1.12 1.62 114.89 1.12 1.62 144.89 1.28 0.34 26.98

N/C/W/COAL & dsh 10.45 8.19 78.35 10.45 8.19 78.35 9.17 -0.98 -10.71

TL Excl NCK INT Fd 234.50 225.67 96.24 234.50 225.67 96.24 220.65 5.03 2.28

STEEL + COKERIES

Rail 2.18 1.81 82.81 2.18 1.81 82.81 1.84 -0.03 -1.89

Road (Incl Pck) 0.19 0.39 207.37 0.19 0.39 207.37 0.42 -0.03 -6.19

Rd’ (INT) + HCKMAKING 6.47 4.16 64.33 6.47 4.16 64.33 5.58 -1.42 -25.41

TOTAL 8.84 6.36 71.96 8.84 6.36 71.96 7.84 -1.48 -18.86

LOCO 0.00 0.00 0.00 0.00 0.00 0.00 0.02 -0.02

CEMENT

Rail 3.84 4.54 118.26 3.84 4.54 118.26 4.89 -0.35 -0.07

Road 2.87 1.97 68.62 2.87 1.97 68.62 2.22 -0.25 -11.32

TOTAL 6.71 6.51 97.03 6.71 6.51 97.03 7.11 -0.60 -8.40

FERTILIZER

Rail 2.04 1.83 89.61 2.04 1.83 89.61 1.89 -0.06 -3.18

Road 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Belt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 2.04 1.83 89.61 2.04 1.83 89.61 1.89 -0.06 -3.18

OTHERS

Rail 32.84 28.81 87.72 32.84 28.81 87.72 30.36 -1.55 -5.10

Road 31.15 40.22 129.13 31.15 40.22 129.13 29.45 10.77 36.59

MGR 4.70 3.06 65.19 4.70 3.06 65.19 3.61 -0.55 -15.12

Belt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Rope 2.38 2.30 85.16 2.38 2.03 85.16 2.37 -0.34 -14.48

Road (INT) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 71.07 74.12 104.29 71.07 74.12 104.29 65.78 8.34 12.67

OVERALL::

Rail 158.06 162.69 102.93 158.06 162.69 102.93 158.91 3.78 2.38

Road 64.77 66.62 102.86 64.77 66.62 102.86 58.31 8.31 14.25

MGR 71.76 61.70 85.98 71.76 61.70 85.98 60.67 1.03 1.70

Belt 5.96 5.29 88.78 5.96 5.96 88.78 4.45 0.84 18.90

Ropeway 4.57 4.22 92.27 4.57 4.22 92.27 4.92 -0.70 -14.29

Road (INT) 19.14 12.99 67.88 19.14 12.99 67.88 14.83 -1.84 -12.39

**DESPATCH 324.26 313.52 96.69 324.26 313.52 96.69 302.09 11.43 3.78

COLLY.CONS 0.62 0.74 119.19 0.62 0.74 119.19 0.66 0.08 12.65

OFFTAKE 324.88 314.26 96.73 324.88 314.26 96.73 302.75 11.51 3.8

POWER:> Offtake includes R/C with internal noncoking feed; STEE>Offtkincludes R/C with ‘dfeed cokeries & int ck feed* TL Despatch including product & excluding nck int feed for PH Source: CIL

COAL INSIGHTS 77 JUNE 2008

OFFTAKE PERFORMANCELakh Tons

CompanyMay 2008 %

achievedapril 2008 May 2007 progress. th year %

achievedpRog/l. yeaR

achievedgrowth

target achieved achieved achieved target achieved aBs. %

ECL 24.39 23.37 95.32 23.49 24.12 48.35 46.86 96.92 46.62 0.24 0.51

BCCL 23.20 20.15 86.85 20.57 20.7 45.60 40.72 89.30 42.06 -1.34 -3.19

CCL 38.75 33.69 86.94 33.14 34.82 77.03 66.83 86.76 73.12 -6.29 -8.60

NCL 48.30 47.42 98.18 47.19 46.33 96.75 94.61 97.79 87.00 7.61 8.75

WCL 36.47 38.65 105.98 36.38 38.58 72.71 75.03 103.19 75.78 -0.75 -0.99

SECL 77.83 81.35 104.52 79.26 74.86 153.25 160.61 104.80 145.20 15.41 10.61

MCL 81.64 70.04 85.79 72.68 68.49 160.77 142.72 88.77 140.00 2.72 1.94

NEC 0.85 0.94 110.59 0.76 1.01 1.85 1.70 91.89 1.88 -0.18 -9.57

CIL 331.43 315.61 95.23 313.47 308.91 656.31 629.08 95.85 611.66 17.42 2.85

WAGON LOADING PERFORMANCEFig. in Fws/day

May 2008 % achieved

april 2008 May 2007 progress.th year % achieved

pRog/l. yeaR

achieved

growth

target achieved achieved achieved target achieved aBs. %

ECL 1742 1783 102.35 1895 1660 1742 1838 105.51 1670 168 10.06

BCCL 2766 2250 81.34 2373 2411 2763 2310 83.60 2460 -150.00 -6.10

CCL 3954 3517 88.95 3800 3549 4000 3656 91.40 3835 -179.00 -4.67

NCL 1545 1886 122.07 2075 1530 1571 1979 125.97 1572 407 25.89

WCL 2413 2442 101.2 2353 2646 2425 2398 98.89 2591 -193.00 -7.45

SECL 4625 4597 99.39 4580 4602 4592 4589 99.94 4519 70 1.56

MCL 6116 5570 91.07 6093 5698 6118 5827 95.25 5871.00 -44 -0.74

NEC 84 102 121.43 110 110 96 106 110.42 105 1.00 0.95

CIL 23245 22147 95.28 23278 22206 23306 22703 97.41 22622 81 0.36

Source: CIL

Source: CIL

ALL InDIA COAL DATA – mAy ’08

COAL INSIGHTS 78 JUNE 2008

E-AuCTION DATA – MAY 2008Coal Insights Bureau

E-AuCTIOn DATA

COMPANYWISE, PERFORMANCE OF E-MARKETING OF RAW COAL IN CIL DURING APRIL - MAY 2008Coal Company eCl BCCl CCl nCl wCl seCl MCl neC Cil

No of Bidders 851 868 2124 744 1056 2184 760 58 8645No of Successful bidders 608 501 1232 448 602 1103 605 37 5136Total Qty Offered (L. Tonnes) 7.591 2.458 42.407 6.140 5.964 26.597 53.370 0.640 145.167Total Qty Allocated (L. Tonnes) 3.884 2.059 17.251 5.261 5.744 19.071 26.342 0.640 80.251NotifiedPriceofTotalAllocatedQty(InRsCr) 69.240 25.022 161.947 64.627 75.037 143.728 154.734 16.514 710.848Bid Price of Total Allocated Qty (In Rs Cr) 103.440 42.461 306.371 97.084 119.148 264.721 275.880 26.561 1235.665%increaseoverNotifiedPrice 49.4 69.7 89.2 50.2 58.8 84.2 78.3 60.8 73.8

Source: CIL

COMPANYWISE, PERFORMANCE OF E-BOOKING/AUCTION OF RAW COAL IN CIL DURING MAY 2008Coal Company eCl BCCl CCl nCl wCl seCl MCl neC Cil

No of Bidders 386 0 1466 459 555 1228 337 58 4489No of Successful bidders 275 0 866 287 310 700 309 37 2784Total Quantity Offered (L. Tonnes) 3.762 0.000 40.980 5.010 3.015 21.000 41.040 0.640 115.447Total Quantity Allocated (L. Tonnes) 1.200 0.000 15.919 4.131 2.968 13.478 14.558 0.640 52.893NotifiedPriceofTotalAllocatedQty(InRsCr) 20.921 0.000 143.409 49.964 38.848 95.173 88.716 16.514 453.545Bid Price of Total Allocated Quantity (In Rs Cr) 31.715 0.000 277.326 73.900 65.300 154.209 137.653 26.561 766.663%increaseoverNotifiedPrice 51.6 0.0 93.4 47.9 68.1 62.0 55.2 60.8 69.0

Source: CIL

COMPANYWISE, PERFORMANCE OF E-MARKETING OF RAW COAL IN CIL DURING APRIL - MAY 2007Coal Company eCl BCCl CCl nCl wCl seCl MCl neC Cil

No of Bidders 1112 808 7039 3589 7926 11999 902 783 34158No of Successful bidders 765 757 3163 1055 2576 4377 890 208 13791Total Qty Offered (L. Tonnes) 2.996 4.489 14.740 0.619 6.284 16.955 16.375 1.370 63.828Total Qty Allocated (L. Tonnes) 1.124 1.153 10.591 0.595 4.885 12.817 12.414 1.350 44.928NotifiedPriceofTotalAllocatedQty(InRsCr) 16.674 13.604 86.473 3.997 56.737 106.257 68.457 19.863 372.061Bid Price of Total Allocated Qty (In Rs Cr) 21.677 17.685 112.415 5.196 73.758 138.134 88.994 25.821 483.679%increaseoverNotifiedPrice 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0

Source: CIL

Eventwise Data

Client event Date Mode no. of

Bidsno. of

Biddersno. of

winnerstotal Qty

auctioned (Mt)total Qty sold (Mt)

total Reserve value (in Rs. lacs)

total auctioned value (in Rs. lacs)

gain over Reserve value (in Rs lacs)

increase in price (%)

Qty sold (%)

SAIL-ISP 9-May-08 Road 63 10 7 50000 10000 96.43 127.23 30.80 31.94 20.00NEC 16-May-08 Rail 575 25 11 53000 53000 1796.97 2236.87 439.90 24.48 100.00NCL 17-May-08 Road 1943 129 52 70000 70000 1406.30 1734.85 328.55 23.36 100.00WCL 21-May-08 Road 7835 161 90 93000 89050 1468.19 2001.06 532.87 36.29 95.75ECL 28-May-08 Road 1111 182 162 258850 46474 945.82 972.84 27.02 2.86 17.95MCL 28-May-08 Road 223 133 133 1605000 547800 4532.55 4545.89 13.35 0.29 34.13MCL 28-May-08 Rail 228 27 11 114000 114000 652.08 1220.18 568.10 87.12 100.00SECL 29-May-08 Road 1377 124 112 1130000 565150 3939.95 4308.27 368.32 9.35 50.01NCL 30-May-08 Road 131 89 88 180000 178850 2697.06 2700.32 3.26 0.12 99.36SCCL 31-May-08 Road 3353 85 61 120500 116253 1528.76 2137.81 609.05 39.84 96.48SCCL 31-May-08 Rail 155 9 2 7900 7900 162.92 284.98 122.06 74.92 100.00

Source: www.coaljunction.in

COAL INSIGHTS 79 JUNE 2008

E-AuCTIOn DATA

Source: www.coaljunction.in

Detailed Data

Client e-auction Date ex location grade size Mode of

DespatchQuantity

offered (t)Quantity sold (t)

no. of Buyers

no. of winners

Reserve price (Rs./t)

Notified price (Rs./t)

average price in Rs/Mt

% gain(over Reserve

price)

NCL 17-May-08 Block -b B LF STM Road 70000 70000 129 52 2009.00 1545.38 2478.36 23.36

NCL 30-May-08 Dudhichua C LF ROM Road 130000 128850 86 86 1508.00 1160.00 1508.76 0.05

NCL 30-May-08 Jayant C LF ROM Road 50000 50000 23 20 1508.00 1160.00 1512.56 0.30

NCL TOTAL 250000 248850 238 158

WCL 21-May-08 Kolarpimpri E CRUSH ROM Road 3000 3000 30 3 1450.00 1115.38 2270.83 56.61

WCL 21-May-08 Kumbharkhani CD MIX Road 20000 20000 21 8 1764.00 1356.92 2169.60 22.99

WCL 21-May-08 Junad CE MIX Road 5000 5000 39 12 1650.00 1269.23 2229.80 35.14

WCL 21-May-08 Ukni OC CE MIX Road 2000 2000 27 7 1669.00 1283.85 2380.00 42.60

WCL 21-May-08 Pimpangaon E CRUSH ROM Road 10000 10000 46 14 1450.00 1115.38 2080.45 43.48

WCL 21-May-08 Silewara UG C STM Road 1000 1000 28 12 1879.00 1445.38 2770.50 47.45

WCL 21-May-08 Silewara AB CD MIX Road 1000 1000 17 5 1764.00 1356.92 2370.50 34.38

WCL 21-May-08 Saoner U/G III CD MIX Road 3000 3000 22 4 1790.00 1376.92 2561.33 43.09

WCL 21-May-08 Saoner U/G II C STM Road 1000 1000 12 4 1879.00 1445.38 2312.00 23.04

WCL 21-May-08 Saoner U/G I C STM Road 3000 3000 29 10 1879.00 1445.38 2546.77 35.54

WCL 21-May-08 Gondegaon DE MIX Road 15000 15000 53 22 1595.00 1226.92 2276.47 42.73

WCL 21-May-08 Gondegaon E CRUSH ROM Road 10000 10000 37 18 1450.00 1115.38 2153.90 48.54

WCL 21-May-08 Patansaongi C STM Road 2000 2000 25 12 1879.00 1445.38 2642.45 40.63

WCL 21-May-08 Ghorawari B STM Road 2500 2500 35 17 2041.00 1570.00 2563.48 25.60

WCL 21-May-08 Ghorawari C SLK Road 500 500 14 5 1684.00 1295.38 2021.40 20.04

WCL 21-May-08 Mohan/Mouri OC D CRUSH ROM Road 5000 1050 8 8 1736.00 1335.38 1740.76 0.27

WCL 21-May-08 Telwasa DE MIX Road 1000 1000 25 6 1595.00 1226.92 2327.00 45.89

WCL 21-May-08 NM UG - 3 C SLK Road 3000 3000 20 5 1684.00 1295.38 2196.83 30.45

WCL 21-May-08 NMOC - II A DE MIX Road 1000 1000 29 6 1595.00 1226.92 2196.50 37.71

WCL 21-May-08 NMOC - I A DE MIX Road 1000 1000 21 5 1595.00 1226.92 2152.00 34.92

WCL 21-May-08 Navin Kunada DE MIX Road 1000 1000 28 5 1595.00 1226.92 2312.00 44.95

WCL 21-May-08 Dhorwasa DE MIX Road 2000 2000 41 8 1595.00 1226.92 2307.25 44.66

WCL TOTAL 93000 89050 607 196

ECL 28-May-08 Chitra A (Old Stock) A STM Road 70000 11480 30 30 2892.50 2225.00 2892.50 0.00

ECL 28-May-08 Chitra B B STM Road 35000 2873 14 14 2606.50 2005.00 2606.50 0.00

ECL 28-May-08 Sangramgarh OCP D STM Road 45000 6401 41 41 1384.50 1065.00 1384.66 0.01

ECL 28-May-08 Bonjemehari OC C STM Road 5000 800 2 2 1670.50 1285.00 1670.50 0.00

ECL 28-May-08 Bonjemehari OC C ROM Road 3900 1855 23 23 1456.00 1120.00 1456.00 0.00

ECL 28-May-08 Mohanpur OC D STM Road 25000 50 1 1 1384.50 1065.00 1584.50 14.45

ECL 28-May-08 Mohanpur OC E ROM Road 4700 2036 25 25 884.00 680.00 884.00 0.00

COAL INSIGHTS 80 JUNE 2008

Source: www.coaljunction.in

E-AuCTIOn DATA

Client e-auction Date ex location grade size Mode of

DespatchQuantity

offered (t)Quantity sold (t)

no. of Buyers

no. of winners

Reserve price (Rs./t)

Notified price (Rs./t)

average price in Rs/Mt

% gain(over Reserve

price)

ECL 28-May-08 Dabor C STM Road 700 429 4 4 1670.50 1285.00 1670.50 0.00

ECL 28-May-08 Gourangdih D STM Road 2000 300 2 2 1384.50 1065.00 1391.17 0.48

ECL 28-May-08 Rajpura OCP C STM Road 2000 2000 23 19 1904.50 1465.00 1910.00 0.29

ECL 28-May-08 Kumardubi UG C ROM Road 1050 1050 24 5 1690.00 1300.00 2668.10 57.88

ECL 28-May-08 Bermuri OCP C STM Road 60000 13350 17 17 1904.50 1465.00 1904.87 0.02

ECL 28-May-08 Mandman C STM Road 500 500 13 4 1904.50 1465.00 2553.70 34.09

ECL 28-May-08 Badjna C ROM Road 1000 1000 14 5 1690.00 1300.00 2286.10 35.27

ECL 28-May-08 Gopinathpur OC C STM Road 2000 1350 11 11 1904.50 1465.00 1910.43 0.31

ECL 28-May-08 Khoodia C STM Road 350 350 9 3 1904.50 1465.00 2674.50 40.43

ECL 28-May-08 Shyampur B C ROM Road 650 650 23 6 1690.00 1300.00 2379.23 40.78

ECL TOTAL 258850 46474 276 212

MCL 28-May-08 Belpahar F STM Road 270000 119150 47 47 787.00 605.38 787.08 0.01

MCL 28-May-08 Lilari F STM Road 70000 14500 10 10 787.00 605.38 787.00 0.00

MCL 28-May-08 Lajkura F STM Road 220000 10500 6 6 787.00 605.38 787.00 0.00

MCL 28-May-08 Orient - 3 D LF STM Road 120000 700 1 1 1307.00 1005.38 1307.00 0.00

MCL 28-May-08 Hingula F Road 600000 110750 15 15 572.00 440.00 572.00 0.00

MCL 28-May-08 Ananta E STM Road 250000 217200 88 88 943.00 725.38 946.97 0.42

MCL 28-May-08 Lingaraj E STM Road 75000 75000 23 22 943.00 725.38 949.17 0.65

MCL ROAD TOTAL 1605000 547800 190 189

MCL 28-May-08 Belpahar IV & V F Rail 57000 57000 21 4 572.00 440.00 1126.67 96.97

MCL 28-May-08 Jagannath I, III & IV F Rail 57000 57000 13 8 572.00 440.00 1014.00 77.27

MCL RAIL TOTAL 114000 114000 34 12

MCL TOTAL 1719000 661800 224 201

NEC 16-May-08 Tirap A Rail 26500 26500 19 3 3817.00 2936.15 5245.00 37.41

NEC 16-May-08 Tikak A Rail 26500 26500 13 8 2964.00 2280.00 3196.00 7.83

NEC TOTAL 53000 53000 32 11

SECL 29-May-08 Rajgamar B STM Road 2500 2500 19 2 1826.50 1405.00 3856.50 111.14

SECL 29-May-08 Rajgamar B SLK Road 1500 1500 16 2 1631.50 1255.00 3410.17 109.02

SECL 29-May-08 Baroud OCM F ROM Road 205000 56950 23 23 676.00 520.00 680.39 0.65

SECL 29-May-08 Baroud OCM D ROM Road 15000 15000 34 8 1040.00 800.00 2569.80 147.10

SECL 29-May-08 Chhal OCM F ROM Road 200000 149350 39 39 676.00 520.00 676.00 0.00

SECL 29-May-08 Chhal U/G D ROM Road 3000 3000 13 5 1040.00 800.00 2409.50 131.68

SECL 29-May-08 Dharam U/G D ROM Road 3000 3000 10 7 1040.00 800.00 1258.00 20.96

SECL 29-May-08 Dipika Exp OC F ROM Road 400000 263250 56 56 676.00 520.00 679.46 0.51

SECL 29-May-08 Kusmunda OC F ROM Road 300000 70600 40 40 676.00 520.00 679.10 0.46

SECL TOTAL 1130000 565150 250 182

COAL INSIGHTS 81 JUNE 2008

april 2007 (in tons) March 2007 (in tons) in percentage (%)Quantity offered

Quantity sold

Quantity offered

Quantity sold

offered Quantity

sold Quantity

BCCL Road – – 59700 43050 NA NABCCL Rail – – 98800 76000 NA NAMCL Road 1605000 547800 355000 300500 352.11 82.30MCL Rail 114000 114000 114000 114000 No Change No ChangeNCL Road 250000 248850 80000 80000 212.50 211.06NCL Rail – – – – – –NEC Rail – – – – – –SECL Road 1130000 56150 – – NA NASECL Rail – – – – – –ECL Road 258850 46474 87620 47479 195.42 -2.12ECL Rail – – – – – –WCL Road 93000 89050 81500 72250 14.11 23.25WCL Rail – – 7700 7700 NA NASCCL Road – – 73500 57908 NA NASCCL Rail – – 11550 11550 NA NATotal 3450850 1102324 969370 810437 255.9 36.02

Quantity Offered In April v/s March by Various Subsidiaries (Rail & Road)

Source: www.coaljunction.in

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

NOV DEC JAN FEB MAR APR MAY

OFFERED QTY (in tons) SOLD QTY (in tons)

0

500

1000

1500

2000

2500

3000

NOV DEC JAN FEB MAR APR MAY

NO. OF BIDDERS NO. OF WINNERS

Month offered Quantity (in tons) sold Quantity (in tons) no. of Bidders no. of winnersDecember 1054850 996021 -5.58 2539 1163January 1511050 1198525 -20.68 1435 964February 1443870 1140760 -20.99 1170 947March 1198790 956632 -20.20 971 813April 969370 810437 -16.40 852 622May 3682250 1798477 -51.16 974 729TOTAL 10534130 7544201 -28.38 9605 5906

Source: www.coaljunction.in

E-AuCTIOn DATA

Monthly Data of Offered Quantity (Road & Rail)Month oFFeReD By RoaD oFFeReD By Rail

November 604150 69800

December 771450 283400

January 1092300 418750

February 1066170 377700

March 975590 223200

April 737320 232050

May 3336850 167000

Total 8583830 1771900

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

Nov Dec Jan Feb Mar Apr May

OFFERED BY ROAD OFFERED BY RAIL

Source: www.coaljunction.in

COAL INSIGHTS 82 JUNE 2008

Country of origin

Customs tariff heading item Description Date invoice

Currency unit price total

AU 27011910

BLACK WATER WEAK COKING COAL22-Apr-08 USD 64 2301928-Apr-08 USD 64 200007-May-08 USD 81.19 33749

BULLI HARD COKING COAL22-Apr-08 USD 106.86 1000030-Apr-08 USD 106.86 1797510-Jun-08 USD 115.74 34235

CAPRICON BLEND HARD COKING COAL 10-Jun-08 USD 96.4 27647

COKING COAL IN BULK

7-Apr-08 USD 93.03 220008-Apr-08 USD 93.03 48212-May-08 USD 93.03 37322-May-08 USD 93.03 24000

30-May-08 USD106.78 22000112.53 25000

31-May-08 USD 93.03 22000

14-Jun-08 USD339.85 31545354.21 19954

23-Jun-08 USD 113.53 22000COLLINSVILLE SUPER COKING COAL IN BULK 13-Jun-08 USD 381 46804CURRAGH HARD COKING COAL IN BULK 10-Apr-08 USD 108.23 17176FRESHLY MINED AND WASHED GERMAN CREEK COKING COAL 26-May-08 USD 96.40 27210

FRESHLY MINED AND WASHED ISAAC COKING COAL

4-Apr-08 USD 96.40 2780417-Apr-08 USD 96.40 272108-May-08 USD 95.65 2954419-May-08 USD 96.40 2634423-May-08 USD 96.40 2742926-May-08 USD 96.40 34240

FRESHLY MINED AND WASHED GOONYELLA MIDDLE SEAM COKING COAL

10-Apr-08 USD 96.0 2728322-Apr-08 USD 96.00 27538

FRESHLY MINED AND PRIME QUALITY WASHED/UNWASHED BROAD BOROUG 10-Apr-08 USD 96.45 27392

FRESHLY MINED AND WASHED BLACK WATER SOFT COKING COAL22-Apr-08 USD 65.00 278888-May-08 USD 65.00 3000010-Jun-08 USD 65.00 27970

FRESHLY MINED AND WASHED GERMAN CREEK COKING COAL10-Apr-08 USD 96.40 2742922-Apr-08 USD 96.40 2724722-May-08 USD 96.40 27429

FRESHLY MINED AND WASHED GOONYELLA B COKING COAL4-Apr-08 USD 96.50 2742922-Apr-08 USD 96.50 3437725-Apr-08 USD 96.50 52400

COal IMPORT DeTaIlsCoal Insights Bureau

Coking Coal Imports During April - June 2008(In Tons)

LAnDED PRICE

COAL INSIGHTS 83 JUNE 2008

Country of origin

Customs tariff heading item Description Date invoice

Currency unit price total

AU 27011910

FRESHLY MINED AND WASHED GOONYELLA B COKING COAL

8-May-08 USD 96.5 3468519-May-08 USD 96.5 2746526-May-08 USD 96.5 3460430-May-08 USD 96.5 3521910-Jun-08 USD 96.5 8945219-Jun-08 USD 96.5 34286

FRESHLY MINED AND WASHED RED HILL BRAND COKING COAL

22-Apr-08 USD 97.3 2783225-Apr-08 USD 97.4 248258-May-08 USD 97.2 300003-Jun-08 USD 97.3 26573

FRESHLY MINED ANDPRIME QUALITY WASHED/UNWASHED HAIL CREEK PR 26-May-08 USD 83.5 27490

FRESHLY MINED PREMIUM NRE COKING COAL OF AUSTRALIA 28-Apr-08 USD 125 27813

GGNP COKING COAL3-Jun-08 USD 82.1 1859620-Jun-08 USD 82.1 15000

GOONYELLA COKING COAL 7-May-08 USD 299.1 11011

GREGORY WEAK COKING COAL13-May-08 USD

70 10000270 695

27-May-08 USD 70 9358HAIL CREEK COKING COAL 12-Jun-08 USD 294.52 50746HAIL CREEK HARD COKING COAL 16-May-08 USD 300 59863

HARD COKING COAL IN BULK26-May-08 USD

90 19767300 27539

20-Jun-08 USD 435 21700

ILLAWARRA HARD COKING COAL IN BULK15-Apr-08 USD 210 730643-Jun-08 USD 300 19242.1

JELLINBAH COAL IN BULK 10-Apr-08 USD 173.23 32601KESTREL9.5%ASHCONTENTCOKINGGOALINBULKOFAUSTRALIANO 15-May-08 USD 329.024145 50733MOURA SOFT COKING COAL AGAINST AGREEMENT NO 515/2006 22-May-08 USD 64.12 26000NORWICH PARK ULV COKING COAL 7-May-08 USD 270 11441

OAKY CREEK HARD COKING COAL10-Apr-08 USD 338.23 364221-May-08 USD 340.63 17776

PEAK DOWN COKING COAL

2-Apr-08 USD 98 698

7-May-08 USD96.7 5086

298.7 15510

13-May-08 USD98 6229

300 10000

19-May-08 USD97.2 5000

299.2 500027-May-08 USD 299.2 3279

3-Jun-08 USD97.3 4258.6

299.3 5695.38POITREL COKING COAL OF AUSTRALIAN ORIGIN 10-Jun-08 USD 103.625 18756

POITREL ULV COKING COAL OF AUSTRALIAN ORIGIN22-Apr-08 USD 95.872 1000030-Apr-08 USD 95.872 3110510-Jun-08 USD 105.6849 21542

(In Tons)

LAnDED PRICE

COAL INSIGHTS 8� JUNE 2008

Country of origin

Customs tariff heading item Description Date invoice

Currency unit price total

SOFT COKING COAL IN BULK

1-May-08 USD 80.63 5669213-May-08 USD 60 69004

5-Jun-08 USD59.04 3478062.01 26433

WOLLOMBI COKING COAL IN BULK15-Apr-08 USD 421.80 217802-May-08 USD 339.90 27500

WOLLOMBI HARD COKING COAL IN BULK 13-Jun-08 USD 426 21901FRESHLY MINED AND WASHED BARWON COKING COAL 23-May-08 USD 89.72 35964

AU TOTAL 2356472.08

CN 27011910DATONG COKING COAL IN BULK 15-Apr-08 USD 98.65 67232DATONG SOFT COKING COAL 28-Apr-08 USD 98.65 73977

CN TOTAL 141209

GB 27011910145GCOAL(ASHCONTENTMAXIMUM5%) 20-May-08 GBP 192.50 17

9-Jun-08 GBP 209 70GB TOTAL 87

ID 27011910COKING COAL (BALIK HV COAL) 7-Apr-08 USD 198 45281

COKING COAL IN BULK22-Apr-08 USD 153 1500023-Jun-08 USD 298.60 14895

ID TOTAL 75176

NZ 27011910COKING COAL (GRADE A) 30-May-08 USD 95.68 26000GRADE B NEW ZEALAND COKING COAL 22-Apr-08 USD 91.88 35000NEW ZEALAND LOW ASH SEMI SOFT COKING COAL 22-May-08 USD 94 24423

NZ TOTAL 85423

US 27011910

FRESHLY MINED AND PRIME QUALITY WASHED/UNWASHED GREEN VALLE 10-Apr-08 USD 129.10 26835

FRESHLY MINED AND PRIME QUALITY WASHED CAMBRIA CREEK MEDIUM 10-Apr-08 USD 163.50 28000

FRESHLY MINED AND PRIME QUALITY WASHED/UNWASHED L&K MID VOLATILE HARD COKING COAL 22-Apr-08 USD 97.40 34928

FRESHLY MINED AND PRIME QUALITY WASHED CAMBRIA CREEK MEDIUM VOLATILE HARD COKING COAL

19-May-08 USD 163.50 29000

19-Jun-08 USD 163.50 28000

FRESHLY MINED PRIME QUALITY WASHED/UNWASHED GREEN VALLEY STRAIGHT HARD COKING COAL

22-May-08 USD 129.500 27149

10-Jun-08 USD 128.90 27341

US TOTAL 201253

ZA 27011910 SEMI-SOFT COKING COAL8-Apr-08 USD 100.68 71944

21-Apr-08 USD 108.33 71705

ZA TOTAL 143649

gRanD total 3003269.08

Disclaimer: All the data has been acquired and compiled through varied sources and are considered accurate to the best of our knowledge. However, we regret if any incorrect information has inadvertently crept in.

The data set is not exhaustive. This data set does not include data for few ports including Paradip, Ennore and few other minor ports. We however, expect to provide data from these ports soon.

For any further information or clarification on the data, please write to: coalinsights@mjunction.in

(In Tons)

LAnDED PRICE

COAL INSIGHTS 85 JUNE 2008

Country of origin

Customs tariff heading Description of goods Date invoice

Currencyunit price total

CN 27011910

HARD COKING COAL IN BULK

23-Oct-07 USD 179.00 15586

15-Dec-07 USD 214.10 12473

21-Jan-08 USD 220.00 13634

12-Feb-08 USD 220.00 6000

PANZHIHUA COKING COAL

11-Jan-08 USD 234.44 4865

14-Jan-08 USD 234.44 9731

24-Jan-08 USD 234.44 4865

11-Feb-08 USD 234.44 10435

CN TOTAL 77,589.00

ID 27011910

COKING COAL IN BULK 10-Dec-07 USD

125.00 20000

141.00 9700

170.64 13000

CFRI 1 OF 26 COKING COAL 11-Jan-08 USD 17.10 3

RDCIS 1 OF 13 COKING COAL 11-Jan-08 USD 17.10 1

NML 1 OF 2 COKING COAL 11-Jan-08 USD 17.10 0

COKING COAL IN BULK 11-Jan-08 USD 141.00 7000

ID TOTAL 49,704.00

MY 27011910 COKING COAL 14-Nov-07 USD 130.00 9028

MY TOTAL 9,028.00

NZ 27011910

COKING COAL 5-Nov-07 USD 107.19 2586

HARD COKING COAL 4-Feb-08 USD 220.08 289

COKING COAL (GRADE A)

26-Sep-07 USD 95.45 17982

4-Oct-07 USD98.00 19440

116.00 7333

10-Oct-07 USD 95.45 3591

5-Dec-07 USD 96.15 29910

11-Jan-08 USD93.25 20000

96.53 14850

18-Mar-08 USD 95.08 30000

COKING COAL (GRADE B)12-Jun-07 USD 94.75 29694

13-Jul-07 USD 92.00 21722

Non-Australian Coking Coal Imports During 2007-08(In Tons)

LAnDED PRICE

COAL INSIGHTS 8� JUNE 2008

Country of origin

Customs tariff heading Description of goods Date invoice

Currencyunit price total

19-Jul-07 USD 94.75 29640

6-Aug-07 USD 94.75 30514

26-Sep-07 USD 92.25 20680

4-Oct-07 USD 94.75 29574

6-Nov-07 USD 94.75 26649

17-Dec-07 USD 93.50 30000

7-Feb-08 USD 94.75 30000

NZ TOTAL 394,454.00

SG 27011910 INDONESIA COKING COAL IN BULK 16-Aug-07 USD 125.00 15001

SG TOTAL 15,001.00

US 27011910

FRESHLY MINED AND PRIME QUALITY WASHED/UNWASHED CAMBRIA CREEK MEDIUM VOLATILE HARD COKING COAL

15-Nov-07 USD 163.50 28000

22-Nov-07 USD 163.50 2275

13-Dec-07 USD 163.50 23000

17-Dec-07 USD 163.50 28000

24-Dec-07 USD 163.50 2632

FRESHLY MINED AND PRIME QUALITY WASHED/UNWASHED L&K MID VOLATILE HARD COKING COAL 5-Dec-07 USD 97.40 38000

FRESHLY MINED PRIME QUALITY WASHED/UNWASHED L&K MID VOLATILE HARD COKING COAL

7-Dec-07 USD 97.40 2742

7-Feb-08 USD 97.40 35000

FRESHLY MINED PRIME QUALITY WASHED/UNWASHED CREEK MEDIUM VOLATILE HARD COKING COAL 7-Feb-08 USD 163.20 30000

WOLLOMBI HARD COKING COAL 17-Jan-08 USD 200.00 5571

US TOTAL 195,220.00

ZA 27011910

OPTIMUM SEMI-SOFT COREX COAL 15-Nov-07 USD 120.92 70518

SEMI SOFT COKING COAL IN BULK

6-Sep-07 USD 95.13 59972

21-Sep-07 USD 96.80 65999

7-Jan-08 USD 118.51 67280

SEMI SOFT COREX COAL 14-Dec-07 USD 142.40 70581

ZA TOTAL 334,350.00

gRanD total 1,075,346.00

Disclaimer: All the data has been acquired and compiled through varied sources and are considered accurate to the best of our knowledge. However, we regret if any incorrect information has inadvertently crept in.

The data set is not exhaustive. This data set does not include data for few ports including Paradip, Ennore and few other minor ports. We however, expect to provide data from these ports soon.

For any further information or clarification on the data, please write to: coalinsights@mjunction.in

(In Tons)

LAnDED PRICE

COAL INSIGHTS 87 JUNE 2008

Country of origin

Customs tariff heading item Description name of importer Date invoice

Currencyunit price total

AU 27011920 STEAM (NON COKING) COAL IN BULK

BALAJI SWAMY PREMIUM STEELS PVT.LTD, 15-Apr-08 USD 101.15 20000

COASTAL ENERGY (P) LTD., 15-Apr-08 USD 101.15 17072HARE KRISHNA METALLICS PVT. LTD., 15-Apr-08 USD 101.15 5000

AU TOTAL 42072

CN 27011920LOW ASH METALLURGICAL COKE IN BULK SJK STEEL PLANT LIMITED 2-May-08 USD 564.95 11985

NON COKING COAL IN BULK GRASIM INDUSTRIES LIMITED 21-Apr-08 USD 101.05 46277CN TOTAL 58262

ID 27011920 NON COKING COAL IN BULK

ACC LIMITED 9-Jun-08 USD 105.6 49858

ADANI ENTERPRISES LIMITED9-Apr-08 USD 78 2023416-Apr-08 USD 81.84 72034

AGARWAL COAL CORORATION PVT.LTD.,

16-Jun-08 USD 64.69 146719-Jun-08 USD 64.69 1467

AGARWAL SPONGE AND ENERGY PVT LTD 16-Apr-08 USD 73 3000

ASR MULTIMETALS (P) LTD. 30-Apr-08 USD 64.28 1000

BHATIA INTERNATIONAL LTD.,15-Apr-08 USD 41.05 4457728-May-08 USD 40.27 44487

GALLANTT METAL LTD., 16-May-08 USD 29.21 9000GUJARAT STATE ELECTRICITY CORPORATION LTD, 2-May-08 USD 84.32 74400

HARIYANA SHIP BREAKERS LTD. 17-Apr-08 USD 73 12500HARYANA POWER GENERATION CORPORATION LTD. 17-Jun-08 USD 89.74 54527

HINDUSTAN ZINC LTD.,10-Apr-08 USD 97.99 719176-May-08 USD 89.89 73002

HOTHUR ISPAT PVT LTD 15-Apr-08 USD 73 4500KUNDIL SPONGE IRON LIMITED, 16-Apr-08 USD 73 12000M/S.AGARWAL COAL CORORATION PVT.LTD., 10-Apr-08 USD 45.64 23219

MID INDIA POWER AND STEEL LIMITED,

2-Apr-08 USD 64.28 2500

11-Apr-08 USD 64.28 2500

24-Apr-08 USD 64.28 7000

16-May-08 USD 64.19 2500

MONO STEEL (INDIA) LIMITED, 8-Apr-08 USD 64.28 7500

SANGHI INDUSTRIES LTD. 23-Jun-08 USD 64.69 10000

SIGMA SOLID STRIPS PVT LTD., 28-May-08 USD 40.27 6000THE STATE TRADING CORPORATION OF INDIA LTD. 13-Jun-08 USD 49.28 19830

WELSPUN GUJARAT STAHL ROHREN LTD.

16-Apr-08 USD 63.05 1500018-Jun-08 USD 66.25 10000

YASIN AGENCIES (P) LTD. 10-Apr-08 USD 45.64 20000

Non-Coking Coal Imports During April - June 2008(In Tons)

LAnDED PRICE

COAL INSIGHTS 88 JUNE 2008

Country of origin

Customs tariff heading item Description name of importer Date invoice

Currencyunit price total

ID 27011920 STEAM (NON COKING) COAL IN BULK

ADAM & COAL RESOURCES PVT LTD 18-Jun-08 USD 60.72 43665AGARWAL SPONGE AND ENERGY PVT LTD 15-May-08 USD 70 4000

AMBEY METALLIC LIMITED 23-Apr-08 USD 85.65 3000AMEET ENTERPRISES 23-Jun-08 USD 62.5 2500

ANIK INDUSTRIES LIMITED20-May-08 USD 32.41 200026-May-08 USD 32.41 49996-Jun-08 USD 32.41 5000

ASIAN PAINTS LTD., 21-May-08 USD 82 2000B M M ISPAT LTD 15-May-08 USD 70 8000BANSWARA SYNTEX LTD. 4-Jun-08 USD 62.5 5000BELLARY STEELS & ALOOYS 16-Apr-08 USD 41.05 4000

BGH EXIM LIMITED,4-Jun-08 USD 66 41019-Jun-08 USD 66 2999

BHARAT FOODS CO-OPERATIVE LTD.21-May-08 USD 32.41 10006-Jun-08 USD 32.41 2000

BHATIA INTERNATIONAL LTD., 27-May-08 USD 25.6 200BUNGE INDIA PVT.LTD. 21-May-08 USD 82 2000

COASTAL ENERGY (P) LTD.,24-Apr-08 USD 126 95011-Jun-08 USD 81.24 19730

COCHIN MINERALS AND RUTILE LIMITED 2-Jun-08 USD 31.56 2500

DAVANGEREE SUGAR CAMPANY LTD ,24-Apr-08 USD 126 1500012-May-08 USD 80 30000

DEVENDRAN COAL INTERNATIONAL PRIVATE LTD, 21-May-08 USD 82 23944

EMBITEE IRON & STEEL PVT.LTD, 15-May-08 USD 70 5000GALLANTT METAL LTD., 23-Jun-08 USD 32.41 7271

GOA SPONGE AND POWER LIMITED5-Jun-08 USD 62.97 500016-Jun-08 USD 64 500017-Jun-08 USD 64 5000

GRASIM INDUSTRIES LIMITED6-Jun-08 USD 66 100016-Jun-08 USD 66 999

GUJARAT AMBUJA EXPORTS LTD 3-Jun-08 USD 32.41 2000

GUJARAT SPICES & OILSEEDS GROWERS CO.OP. UNION LTD

26-May-08 USD 32.41 100010-Jun-08 USD 32.41 1000

HATSUN AGRO PRODUCT LTD 11-Jun-08 USD 81.24 8000HINDUSTAN NEWSPRINT LIMITED 13-May-08 USD 31.56 42500

HINDUSTAN ZINC LTD.,16-Apr-08 USD 92.98 274517-Apr-08 USD 92.98 10000

HOTHUR ISPAT PVT LTD 15-May-08 USD 70 3000

INDIAN CANE POWER LTD,24-Apr-08 USD 126 3500012-May-08 USD 80 21227

JK LAKSHMI CEMENT LTD.,23-May-08 USD 69.6 45006-Jun-08 USD 62.5 500018-Jun-08 USD 66 5000

(In Tons)

LAnDED PRICE

COAL INSIGHTS 89 JUNE 2008

Country of origin

Customs tariff heading item Description name of importer Date invoice

Currencyunit price total

ID 27011920 STEAM (NON COKING) COAL IN BULK

JMD OILS PVT. LTD 11-Jun-08 USD 32.41 1999KAKATIYA CEMENT SUGAR & INDUSTRIES LTD.,

25-Apr-08 USD 76.06 500011-Jun-08 USD 81.24 5000

KALEESUWARI REFINERY PRIVATE LIMITED, 11-Jun-08 USD 81.24 1000

KANISHK STEEL INDUSTRIES LTD., 11-Apr-08 USD 75.5 11000

KNOWLEDGE INFRASTRUCTURE SYSTEMS PVT.LTD.

17-Apr-08 USD 103.19 6079115-May-08 USD 66.4 82500

KUTCH CHEMICAL INDUSTRIES LTD., 19-Jun-08 USD 73.33 1000KUTCH PETROCHEM PVT.LTD. 26-May-08 USD 32.41 1000KYORI OREMIN LTD 16-Apr-08 USD 29.64 40374

M/S.AGARWAL COAL CORORATION PVT.LTD.,

11-Apr-08 USD 73 2291515-May-08 USD 70 18150

MADRAS CEMENTS LTD.,2-Apr-08 USD 103.51 2500011-Jun-08 USD 106 35601

MAHESWARI BROTHERS6-Jun-08 USD 104.7 3377317-Jun-08 USD 68.27 22500

MAHESWARI COAL SERVICES LTD. 17-Jun-08 USD 68.27 17400

MY HOME INDUSTRIES LTD.23-Apr-08 USD 92.63 2406125-Apr-08 USD 76.06 10000

NANDAN EXIM LTD. 20-Jun-08 USD 66 500NITIN SPINNERS LTD, 25-Apr-08 USD 25.6 4000ORCHID CHEMICALS AND PHARMACEUTICALS LIMITED 12-Jun-08 USD 81.24 2000

RAFIQ INTERNATIONAL ENTERPRISES PVT LTD

25-Apr-08 USD 76.06 500011-Jun-08 USD 81.24 10000

RAMAKRISHNA MAGNESITE MINES, 21-May-08 USD 82 1000RIDDHI SIDDHI GLUCO BIOLS LTD. 17-Jun-08 USD 64 5000

RUCHI SOYA INDUSTRIES LTD19-May-08 USD 32.41 20003-Jun-08 USD 32.41 2000

SADASHIVA SUGAR LTD,9-Jun-08 USD 62.97 500013-Jun-08 USD 62.97 10000

SAMAY IMPEX PVT.LTD. 5-Jun-08 USD 32.41 2000

SANGAM (INDIA) LTD.,4-Apr-08 USD 69.6 250023-Apr-08 USD 69.6 10005-May-08 USD 69.6 2500

SHINAGO EXIM PVT LTD 11-Apr-08 USD 72 9000SHREE BAJRANG SALES PVT LTD 22-May-08 USD 82 2000SPACE EXIM PVT.LTD. 23-May-08 USD 32.41 2000SREE RAYALASEEMA ALKALIES & ALLIED CHEMICALS LTD. 16-Apr-08 USD 41.05 2000

STONE ON NET (INDIA) PVT. LTD., 4-Jun-08 USD 62.5 2500SUMILON INDUSTRIES LIMITED, 26-May-08 USD 32.41 1000SUNSHINE OLEOCHEM PRIVATE LIMITED 27-May-08 USD 32.41 2000

(In Tons)

LAnDED PRICE

COAL INSIGHTS 90 JUNE 2008

Country of origin

Customs tariff heading item Description name of importer Date invoice

Currencyunit price total

ID 27011920STEAM (NON COKING) COAL IN BULK

SWASTIK COAL CORPORATION PVT. LTD.,

25-Apr-08 USD 25.6 600015-May-08 USD 64 10000

TANFAC INDUSTRIES LIMITED, 11-Jun-08 USD 81.24 5000

TCP LIMITED23-Apr-08 USD 92.63 2000025-Apr-08 USD 76.06 30170

TERAPANTH FOODS LTD. 18-Jun-08 USD 66 500

THE INDIA CEMENTS LIMITED2-Apr-08 USD 103.51 244909-May-08 USD 76.49 5090018-Jun-08 USD 121.02 39287

THE MADRAS ALUMINIUM CO. LTD., 21-May-08 USD 82 20000THE MYSORE PAPER MILLS LTD 12-Jun-08 USD 113.33 60945.37

THE TATA POWER COMPANY LTD

9-Apr-08 USD 29.24 7396910-Apr-08 USD 35.34 7308921-Apr-08 USD 35.36 6940816-May-08 USD 29.46 5023219-May-08 USD 29.77 501236-Jun-08 USD 29.7 50005

THE WEST COAST PAPER MILLS LTD 4-Jun-08 USD 62.97 11000V.B.S. MINERALS 17-Jun-08 USD 68.27 5000VARRSANA ISPAT LTD. 9-Apr-08 USD 67.66 11000WELSPUN POWER AND STEEL LTD. 19-May-08 USD 69.6 15000WILSON INTERNATIONAL TRADING (INDIA) PVT LTD 11-Apr-08 USD 73 28803

STEAM COAL IN BULK MADRAS CEMENTS LTD., 21-Apr-08 USD 102 46410ID TOTAL 2276553.37

PH 27011920 STEAM (NON COKING) COAL IN BULK

BHATIA INTERNATIONAL LTD., 15-Apr-08 USD 36.67 2000M/S.AGARWAL COAL CORORATION PVT.LTD., 5-May-08 USD 87 19594.74

STAR COAL (INDIA) PVT. LTD., 6-May-08 USD 83.5 10000

PH TOTAL 31594.74

ZA 27011920

SIZED STEAM (NON COKING) COAL IN BULK BHATIA INTERNATIONAL LTD.,

8-Apr-08 USD 115.75 17898

115.75 5000

STEAM (NON COKING) COAL IN BULK

ACC LIMITED16-Apr-08 USD 85.71 36000

28-May-08 USD 89.79 20684

AKSHARA INDUSTRIES LTD23-May-08 USD 157.5 10000

19-Jun-08 USD 114.6 5000

AMBEY METALLIC LIMITED20-May-08 USD 156 8000

23-May-08 USD 156 5000

AMEET ENTERPRISES 10-Apr-08 USD 115 5000

BELLARY STEELS & ALOOYS 2-May-08 USD 89.85 2500

BHATIA INTERNATIONAL LTD.,

1-May-08 USD 89.85 20000

9-May-08 USD 88.95 5000

27-May-08 USD 53.95 14974

85.69 4194

(In Tons)

LAnDED PRICE

COAL INSIGHTS 91 JUNE 2008

Country of origin

Customs tariff heading item Description name of importer Date invoice

Currencyunit price total

ZA 27011920

STEAM (NON COKING) COAL IN BULK

BHATIA INTERNATIONAL LTD., 19-Jun-08 USD 114.6 3301

COASTAL ENERGY (P) LTD.,

4-Apr-08 USD 158 303248-Apr-08 USD 87.9 499522-Apr-08 USD 154.7 5140423-May-08 USD 157.5 25961

GALLANTT METAL LTD., 21-Apr-08 USD 143.39 7000GAYATRI METALS PVT LTD. 1-May-08 USD 89.85 1211HKT MINING PVT LTD 1-May-08 USD 89.85 10000HOTHUR STEELS 4-Apr-08 USD 158 15000

JANKI CORP LTD.,8-May-08 USD 88.95 1000013-May-08 AED 510.48 500023-May-08 USD 157.5 10000

KESORAM INDUSTRIES LTD. 15-May-08 AED 510.48 15000M.P.S.STEEL CASTINGS (P) LTD, 21-Apr-08 USD 129.78 11338MAHESWARI BROTHERS 19-Jun-08 USD 114.6 3000

NILKANTH CONCAST PVT.LTD.24-Apr-08 USD 143 438921-May-08 USD 143 6500

RANGINENI STEEL P.LTD, 2-May-08 USD 89.85 2500RAYEN STEELS PVT.LTD, 1-May-08 USD 89.85 2500ROSVAR IRON AND POWER PRIVATE LIMITED, 1-May-08 USD 89.85 5000

SAI SINDHU SPONGE IRON PVT LTD., 19-Jun-08 USD 114.6 3000SAJJALA IRON & STEEL PRIVATE LIMITED 23-May-08 USD 157.5 5000

SHRADDHA ISPAT PRIVATE LIMITED,16-May-08 USD 154.2 200021-May-08 USD 156 800022-May-08 USD 156 8113

SRITHIK ISPAT PVT. LTD.,3-Apr-08 USD 74.8 300016-May-08 USD 154.2 5000

STAR COAL (INDIA) PVT. LTD., 9-May-08 AED 510.48 50075SUPRA STEEL & POWER PVT LTD. 2-May-08 USD 89.85 2500VANYA STEELS PRIVATE LIMITED 1-May-08 USD 89.85 5000

VARRSANA ISPAT LTD.24-Apr-08 USD 145.5 550017-Jun-08 USD 151.98 500018-Jun-08 USD 154.29 2000

ZUARI CEMENT LIMITED,8-May-08 USD 88.95 1000019-Jun-08 USD 114.6 30000

STEAM COAL (RBI)ASR MULTIMETALS (P) LTD. 13-May-08 USD 67.5 7000VARRSANA ISPAT LTD. 15-May-08 USD 67.5 4000

STEAM COAL IN BULK GUJARAT NARMADA VALLEY FERTILIZERS CO LTD 24-Apr-08 USD 75.3 61750

ZA TOTAL 600611gRanD total 3009093.11

Disclaimer: All the data has been acquired and compiled through varied sources and are considered accurate to the best of our knowledge. However, we regret if any incorrect information has inadvertently crept in.

The data set is not exhaustive. This data set does not include data for few ports including Paradip, Ennore and few other minor ports. We however, expect to provide data from these ports soon.

For any further information or clarification on the data, please write to: coalinsights@mjunction.in

(In Tons)

LAnDED PRICE

COAL INSIGHTS 92 JUNE 2008

LAnDED PRICE

Country of origin

Customs tariff heading Description of goods name of the importer Date invoice

Currency unit price total

AU 27011920 STEAM (NON COKING) COAL IN BULK

A & A INTERNATIONAL TRADING28-Sep-07 USD 78.29 10000

7-Mar-08 USD 100.70 5000

AKSHARA INDUSTRIES LTD. 19-Nov-07 USD 84.58 4000

BALAJI SWAMY PREMIUM STEELS PVT. LTD.28-Sep-07 USD 78.29 7000

7-Mar-08 USD 100.70 10000

COASTAL ENERGY (P) LTD.

28-Sep-07 USD 78.29 22575

18-Oct-07 USD 85.26 33916

19-Nov-07 USD 84.58 12257

7-Mar-08 USD 100.70 2011

HINDUSTHAN CALCINED METALS PVT. LTD. 7-Mar-08 USD 100.70 5000

JANKI CORP LTD.19-Nov-07 USD 84.58 13000

7-Mar-08 USD 100.70 10000

KAKATIYA CEMENT SUGAR & INDUSTRIES LTD. 18-Oct-07 USD 85.26 4000

POPURI STEELS LTD. 19-Nov-07 USD 84.58 3000

SAJJALA IRON & STEEL PRIVATE LIMITED 7-Mar-08 USD 100.70 5000

SOUTH INDIA SPONGE IRON (P) LTD. 19-Nov-07 USD 84.58 3000

SWASTIK COAL CORPORATION (INDIA) LTD. 19-Nov-07 USD 84.58 7000

SWASTIK COAL INTERNATIONAL PVT LTD. 7-Mar-08 USD 100.70 5000

TANFAC INDUSTRIES LIMITED 18-Oct-07 USD 85.26 4000

AU TOTAL 65,759.00

CN 27011920

STEAM (NON COKING) COAL IN BULK

BHUSHAN POWER & STEEL LIMITED 14-Sep-07 USD 125.00 13188

STAR COAL (INDIA) PVT. LTD. 9-Jan-08 USD 130.00 10000

SHENHUA STEAM (NON COKING) COAL IN BULK

BELLARY STEELS & ALOOYS 24-Jan-08 USD 77.65 3000

BENAKA SPONGE IRON PVT. LTD. 24-Jan-08 USD 77.65 5000

BHATIA INTERNATIONAL LTD. 23-Jan-08 USD 77.65 5000GAYATRI METALS PVT LTD. 23-Jan-08 USD 77.65 2199RANGINENI STEEL P. LTD. 24-Jan-08 USD 77.65 2000RAYEN STEELS PVT. LTD. 23-Jan-08 USD 77.65 3000ROSVAR IRON AND POWER PRIVATE LIMITED 24-Jan-08 USD 77.65 5000

SAI SINDHU SPONGE IRON PVT LTD. 23-Jan-08 USD 77.65 2000SREE RENGARAAJ ISPAT (P) LTD 23-Jan-08 USD 77.65 12000SUPRA STEEL & POWER PVT LTD. 24-Jan-08 USD 77.65 2000VANYA STEELS PRIVATE LIMITED 24-Jan-08 USD 77.65 3000VIJAYA STEELS LIMITED 24-Jan-08 USD 77.65 2000

DANTONG STEAM (NON COKING) COAL IN BULK STAR COAL (INDIA) PVT. LTD. 31-Jan-08 USD 130.00 20000

CN TOTAL 89,387.00

Steam Coal Imports In 2007-08 (excluding S Africa & Indonesia)Quantity in tons

COAL INSIGHTS 93 JUNE 2008

LAnDED PRICE

Country of origin

Customs tariff heading Description of goods name of the importer Date invoice

Currency unit price total

PH 27011920 STEAM (NON COKING) COAL IN BULK

AGARWAL SPONGE AND ENERGY PVT LTD. 21-Jan-08 USD 83.50 5000

BHATIA INTERNATIONAL LTD.4-Dec-07 USD 36.67 2000

28-Jan-08 USD 36.67 4000

GRAMOX PAPER AND BOARDS LIMITED 19-Dec-07 USD 72.00 1000

HKT MINING PVT LTD. 21-Jan-08 USD 87.00 10000

M/S AGARWAL COAL CORORATION PVT. LTD.

21-Sep-07 USD 66.41 23929

21-Jan-08 USD 81.00 14552

M/S K.G. DENIM LTD. 13-Dec-07 USD 72.00 1999

STAR COAL (INDIA) PVT. LTD.

20-Aug-07 USD 60.00 2000

4-Oct-07 USD 60.00 14710

14-Nov-07 USD 72.00 5000

9-Jan-08 USD 72.00 10000

14-Jan-08 USD 72.00 10000

SUN PAPER MILL LIMITED29-Jun-07 USD 60.00 1000

31-Dec-07 USD 72.00 1000

SUNVIK STEELS PVT. LTD. 21-Jan-08 USD 80.50 10000

TAMIL NADU NEWSPRINT & PAPERS LIMITED 20-Nov-07 USD 72.00 6999

YASIN AGENCIES (P) LTD.21-Sep-07 USD 66.41 19940

21-Jan-08 USD 83.00 2000

PH TOTAL 45,129.00

SG 27011920 STEAM (NON COKING) COAL IN BULK

AGARWAL SPONGE AND ENERGY PVT. LTD. 17-Aug-07 USD 21.85 10000

BELLARY STEELS & ALOOYS 17-Aug-07 USD 21.85 5000

BHATIA INTERNATIONAL LTD. 18-Aug-07 USD 21.85 7150

M/S AGARWAL COAL CORORATION PVT. LTD. 17-Aug-07 USD 21.85 3000

MAHESWARI BROTHERS 17-Aug-07 USD 21.85 5000

MOHAN BREWERIES & DISTILLERIES LTD. 17-Aug-07 USD 21.85 10000

SIGMA SOLID STRIPS PVT. LTD. 17-Aug-07 USD 21.85 3000

SREE RAYALASEEMA ALKALIES & ALLIED CHEMICALS LTD. 17-Aug-07 USD 21.85 6000

SG TOTAL 49,150.00

gRanD total 49,425.00

Disclaimer: All the data has been acquired and compiled through varied sources and are considered accurate to the best of our knowledge. However, we regret if any incorrect information has inadvertently crept in.

The data set is not exhaustive. This data set does not include data for few ports including Paradip, Ennore and few other minor ports. We however, expect to provide data from these ports soon.

For any further information or clarification on the data, please write to: coalinsights@mjunction.in

Quantity in tons

COAL INSIGHTS 9� JUNE 2008

LAnDED PRICE

IMPORTED COAL RECEIVED AT POWER HOUSESFigs in ‘000T

Board/ pu. p. house Firmed up annual Quantity 2006-07

whole year 2006-07

april - March 2008 target (prov) 2009-09

april 2008target Receipt target Receipt

Torrent AEC Ahmedabad 350 551 480 455 480 40 75

GSECL

Gandhinagar 720 732 787 74Ukai 0 0Wanakbori 300 53Sikka 360 234 241 34

Total 1380 1019 1380 1028 1380 115 108

CESCBudge Budge 300 308 343 20New Cossipore (CESC) 0 0 12 0Titagarh 190 49 95 0

Total 490 357 490 450 490 41 20Reliance Energy Dhanu 420 469 420 427 480 40 50HPGCL Panipat 360 245 360 166 500 42 34IPGCL I.P Station 0 0 0 0

PSEBL. Mohabbat 190 99 0 0Ropar 310 95 0 0

Total PSEB 500 194 0 0 500 40 0

APGENCOVijayawada 0 0 0 0Royalseema 0 0 0 0

Total APGENCO 0 0 0 0 600 50 0

WBPDCLKolaghat 0 30 23 0Santhaldih 26 0

Total WBDCL 0 49 500 42 0DPL Durgapur(DPL) 0 0 0 0

DVCMejia 0 0 0Durgapur 0 0 0 0

Total DVC 0 0 0 0 660 55 0UPRVUNL Obra 0 0 0

RRVUNLSuratgarh 300 181 0 0Kota 100 24 0 0

Total RRVUNL 400 205 500 0 600 50 0

MPSPGCL

Nasik 700 279 347 590 15Khaperkheda 500 353 253 300 17Parli 400 246 179 200 10Bhusawal 400 173 160 230 0Koradih 0 180 0

Total MSPGCL 2000 1051 1380 939 1500 125 42

TNEBMettur 1560 326 505 380 53Tuticorin 431 841 800 64N.Chennai 320 449 380 58

Total TNEB 1560 1077 1560 1795 1560 130 175KPCL Raichur 960 239 0 0 600 50 0

NTPC

Dadri 600 279 31 0Badarpur 111 39Talcher STPS 1000 732 868 49Simhadri 1000 213 151 3Ramagunden STPS 1000 95 0 0Kahalgaon STPS 1000 233 598 40Farakka STPS 600 542 748 61Rihand/Singrauli/Vindhyachal 1000 249 251 0

Total NTPC 6200 2343 3630 2758 8250 688 192Import excl. Trombay 14620 7780 10200 8067 18100 1508 696Trombay 1884 1800 2086 1900 158 193Total Import 9664 12000 10153 20000 1667 889

Note: Stock available at Port is 370Th tonnes as on 01.04.08