Transcript Document

MOBILISATION OF COAL SUPPLY
SHASHI KUMAR
CHAIRMAN
COAL INDIA LIMITED
27TH JULY 2006
PRESENTATION COVERAGE
MOBILISATION
OF
COAL SUPPLY
Assessment of Coal Requirement.
Coal Vision, IEP, Working Group, Expert Committee.
Assessment
Assessment of Indigenous Production Capacity (Raw Coal).
CIL, SCCL, IISCO / TISCO / Captive Block allocatees.
Assessment of Capacity to extract CBM, Underground Gasification.
Mobilisation
Of
Coal Supply
Assessment of Gap / Mechanism to Import
Cost of Production
Notified Price for Utilities
Competitive Pricing
Market Price for Others
Remunerative Pricing
Notified Price to approximate
To International Market Price
-Quality adjustments.
Capacity ( Corridors Sea Route )
Transport of Coal from Production
Point to Consumption Point
Cost of Transportation
Rationale of transporting of Inert
material.
Ash % age.
Coal Quality
Size
FSTA
Consistency.
GCV based Grading with lesser band width.
2
MOBILISATION
OF
COAL SUPPLY
ASSESSMENT OF COAL REQUIREMENT
SOURCE
SECTOR/
PERIOD
0607
X PLAN
WORKING
GROUP
POWER
322
469
617
CAPTIVE
POWER
28
32
37
STEEL
43
40
40
CEMENT
25
24
25
FERTILISER
4
5
5
OTHERS
51
50
56
TOTAL
473
620
780
POWER
322
427
CAPTIVE
POWER
28
STEEL
4
CEMENT
COAL VISION
2025 & 8%
GDP
2010
11-12
2015
1617
2021
21-22
24-25
553
699
804
44
63
90
112
43
54
69
90
123
FERTILISER
25
39
61
95
123
OTHERS
51
65
82
106
123
TOTAL
473
630
828
1079
1267
CONTD.
2025
3
MOBILISATION
OF
COAL SUPPLY
ASSESSMENT OF COAL REQUIREMENT
SOURCE
SECTOR/
PERIOD
INTEGRATED
ENERGY POLICY
0607
2010
498
1112
2015
1015
1670
2021
877
2122
2425
1113
2025
1541
(26-27)
2040
(31-32)
HYDROCARBON
VISION 2025
BEST CASE
1118
1402
BUSINESS
AS USUAL
538
659
(EIA) ENERGY
INFORMATION
ADMINISTRATIO
N, PARIS
HIGH
408
473
548
611
629
LOW
374
411
447
481
490
REFERENCE
390
439
493
(IEA)
INTEGRATED
ENERGY
AGENCY, USA
P&E DIV.
PLNG. COMM.
484
481
623
612
764
920
1483
713
957
1417
(31-32)
4
AUGMENTATION OF EXISTING
PRODUCTION CAPACITY
MOBILISATION
OF
COAL SUPPLY
EFFORT BY
COAL
PRODUCER
INITIATIVE BY
STATE
AGENCIES
MAXIMISATION OF PRODUCTION
A
ENVIRONMENTAL FRIENDLY MANNER
B
LEAST HUMAN DISPLACEMENT/ SUFFERING
C
HIGHEST EFFICIENCY/ LOW COST OF PRODUCTION
D
BENEFICIATION
1
SIMPLER LAND ACQUISITION
2
NATIONAL R & R POLICY – LEGALLY ENFORCEABLE
3
SPEEDY EMP/ FORESTRY CLEARANCE/ NPV
4
MODIFICATION : CONTRACT LABOUR REGULATION &
ABOLITION ACT 1971 + LABOUR LAWS.
5
SCRAPPING OF NCWAs
6
LAW & ORDER SITUATION
7
EVACUATION OF COAL
5
MOBILISATION
OF
COAL SUPPLY
PRODUCTION FROM CAPTIVE CAPTIVE
BLOCK
CAPTIVE DISPENSATION
POWER
STEEL & SPONGE IRON
CEMENT
BLOCK
RESERVE (MT)
PUBLIC
29
5486.48
PRIVATE
9
1496.47
PUBLIC
4
372
PRIVATE
42
7699.34
PUBLIC
NIL
-
PRIVATE
1
7
PUBLIC
2
92.18
PRIVATE
NIL
-
11
4291.58
100
19445.05
NON-CAPTIVE DISPENSATION
ISOLATED PATCHES NOT REQUIRING RAIL
TRANSPORT
CENTRAL/STATE/CORPORATION OWNED BY
CENTRAL GOVT. (GENERALLY NOT FULLY
EXPLORED ONES)


Start of production within 3 Years (OC), 4 Years(UG)
Grace of six months if forest land
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MOBILISATION
OF
COAL SUPPLY
SOURCE
COAL BED
METHANE
STATUS OF COAL BED METHANE & U/G COAL
GASSIFICATION
NO.OF BLOCKS ALLOTTED
16
10
TO BE ALLOTED BY SEPT’06
RESERVE
(BCM)
AREA (SQ.
KM)
820
7800
597
5791
STATUS OF OPERATION : CIL-ONGC(JV)-OBTAINED 2 BLOCKS.
JHARIA-CIL COMPLETED 8 SLIM HOLES. METERAGE DRILLED:
9000. DEWATERING IN PROGRESS.
U/G
GASSIFICATI
ON
NO. OF BLOCK CHOSEN (5 NOS.) HINGANA BAZARGAON, KASTA,
WANI MANDAR, LAPANGA
(CHORDHARA), BHARATWADA.
STATUS OF OPERATION
ONE BLOCK TO SELECT
FROM FIVE IDENTIFIED
BLOCKS.CMPDI
IDENTIFYING MORE
BLOCKS.
CIL JOINS HAND WITH
ONGC.
CONSULTANT-SKOCHINSKY
INSTITUTE OF
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MINING,RUSSIA
ASSESSED COAL PRODUCTION CAPACITY
MOBILISATION
OF
COAL SUPPLY
Producing Unit
Projected Production (Mt)
X-Plan
(06-07)
XI-Plan
(11-12)
XII-Plan
(16-17)
XIII-Plan
(21-22)
2025
CIL TOTAL
(Incl. NE)
Non-CIL Areas
Unblocked Areas
373
536
648
730
782
-
-
5
25
57
Total CIL
373
536
653
755
839
-
-
5
15
25
SCCL
37
41
45
47
47
Others : Captive
TISCO/IISCO/
GRAND TOTAL
(Domestic)
19
44
75
125
175
429
621
778
942
1086
Coal-equivalent
CBM-UCG
8
IMPORT OF COAL
MOBILISATION
OF
COAL SUPPLY
YEAR
IMPORT (MT)
2004-05
31.8
2005-06
39.4
2025-26 (Projected)
455.0
2031-32 (Projected)
> 800
REDUCTION OF DUTY
YEAR
COKING
NON-COKING
<12% ASH
>12% ASH
1991-92
5%
85%
85%
2000-01
9.72%
21.16%
32.6%
2005-06
NIL
5%
5%
DEVELOPMENT OF PORT CAPACITY
2005-06
: 39.4 MT (IMPORT) + 15.6 MT (COASTAL MOVEMENT)
CAPACITY ENHANCEMENT : 200MT BY NEAR FUTURE AUGMENTATION OF
4 MINOR PORTS TO MAJOR PORT
9
EVACUATION OF COAL
MOBILISATION
OF
COAL SUPPLY
FREIGHT CORRIDOR
10
EVACUATION OF COAL
MOBILISATION
OF
COAL SUPPLY
I.
RAIL MOVEMENT OF COAL (INCLUDING IMPORT)
YEAR
COAL
TOTAL
%SHARE
1991-92
46
338
43
2000-01
224
473
47
2005-06
294
667
44
2024-25
664
1650
40
CAGR (05-25)
4.4%
4.9%
DEDICATED FREIGHT CORRIDOR – (DFC)
CHITPUR TO LUDHIANA ; MOURIGRAM TO BHUSAWAL; TALCHER TO
VIZAYWADA
II.
ELIMINATION OF X-SUBSIDISATION
III.
CONSUMPTION POINTS NEAR PRODUCTION POINT
IV.
FSTA
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COAL QUALITY / BENEFICIATION
PRESENT CAPACITY
MOBILISATION
OF
COAL SUPPLY
COKING
NON-COKING
TOTAL
CIL
19.7
19.7
39.4
PRIVATE
11.3
69.3
80.6
TOTAL
31.0
89.0
120.00
CAPACITY ENVISAGED IN 2025 :
TOTAL
:
INVESTMENT :
464 MTY
(UNDER CONSTRUCTION- 87 MTY+ FROM EXISTING - 81MTY(CIL
-11; PRIVATE -70 ) + ADDITIONAL -296)
RS.5920 CRORES FOR ADDITIONAL CAPACITY OF 296 MTY
INDUCEMENT :
CIL OFFERING INFRASTRUCTURE FACITILTY TO PROMOTE WASHING ON
CHARHEABLE BASIS.
REMUNERATIVE PRICING: RS.100.00 /TONNE
12
COMPETITIVE PRICING
MOBILISATION
OF
COAL SUPPLY
BICP
:
MARCH 1996
COAL COMPANIES
:
JANUARY 2000
TARIFF COMMISSION :
MAY 2006
A.
UNIFORM PRICING ACROSS CIL
B.
NORMATIVE COST OF PRODUCTION + 15% RETURN ON
NET WORTH
C.
DIFFERENTIAL PRICING
(I) POWER UTILITIES + FERTILIZERS
(II) CEMENT & STEEL AT REASONABLE PRICE
(III) MARKET DRIVEN PRICE FOR REST.
13
COMPETITIVE PRICING
MOBILISATION
OF
COAL SUPPLY
SUGGESTIONS:
I)
MARKET DRIVEN FOR SOME
II)
REST TO APPROXIMATE INTERNATIONAL PRICING
WITH QUALITY ADJUSTMENTS
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CONCLUSION
MOBILISATION
OF
COAL SUPPLY

COAL SECTOR TO AUGMENT COAL PRODUCTION IN ENVIRONMENT
FRIENDLY MANNER WITH LEAST HUMAN SUFFERING ,
APPROPRIATE BENEFICIATION AND COST REDUCTION.

GOVT. TO ENSURE FASTER LAND ACQUISITION, UNIFORM LEGALLY
ENFORCEABLE R&R POLICY, SPEEDY ENVIRONMENTAL AND
FORESTRY CLEARANCE AND MODIFICATION OF LABOUR LAWS.

NEED TO FACILITATE REMUNERATIVE PRICE FOR COAL
PRODUCERS, SETTING UP OF COAL WASHERIES, SIGNING AND
EXECUTION OF FSTA.

STATE TO ENSURE LOCATION OF CONSUMPTION CENTRES NEAR
PRODUCTION POINTS.

OPTIMUM PRODUCTION BY COAL SECTOR STILL SHORT OF
REQUIREMENT : DEVELOPMENT OF INFRASTUCTRE FACILITY TO
FACILITATE IMPORT.
15
THANK YOU
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