Professional Documents
Culture Documents
719097 631025 591373 522537 483350 545983 559264 578511 548115 497890 519398 623087
650000 600000 550000 500000 450000 400000 1999-00 2000-01 2001-02 2002-03 Demad 2003-04 Supply 2004-05
480430 450594 507216 467400
2005-06
2006-07
Type Hydro
Thermal Indigenous Coal Imported Coal Lignite Gas/ LNG Nuclear
Total
62065
Lignite Gas
Domestic LNG Transnational piped gas
Hydro Nuclear
Why coal?
safe
safe
affordable
affordable
reliable
reliable
plentiful
plentiful
increasingly clean
increasingly clean
23%
energy
of world primary
39%
of the worlds
electricity is produced using coal. Main fuel for electricity in USA, Germany, China, India, South Africa, Australia, much of central Europe
70
of the
COAL FIELDS
Talcher (39.6 b.t ), Raniganj (25.5 b.t.), Ib-River (22.4 b.t.), Jharia (19.4 b.t.) and Mand-Raigarh (19.10 b.t.). Godavari Valley (17.46 b.t.), North Karanpura (15.86 b.t), Rajmahal (14.12 b.t.), Singrauli (12.91 b.t) and Korba (10.12b.t)
COALIFICATION
As geological processes apply pressure to dead matter over time, under suitable conditions, it is transformed successively into Peat Lignite Sub-bituminous Bituminous Anthracite
Questions ?
Coking Coal
These are such coal which when heated in absence of air from coherent bead, free from volatiles, with strong and porus mass, called coke.
These have coking properties mainly used in Steel making and metallurgical industries
Non-Coking Coal
Such coals which do not have coking properties, are Non-Coking Coal. Mainly used as thermal grade coal for power generation. Also used for Cement, Fertilizer, Glass, Ceramic, Paper, Chemical, Bricks manufacturing and for other heating purpose.
COAL MINING
Coal is mined by two methods
Coal Transportation
Coal is generally transported by conveyor or truck over short distances. Trains are used for longer distances within domestic markets. Ships are commonly used for international transportation
1) 2) 3) 4) 5) 6) 7) 8)
Eastern Coalfields Limited ( ECL ) Central Coalfields Limited (CCL ) Bharat Coking Coal Limited ( BCCL ) Northern Coalfields Limited (NCL) South Eastern Coalfields Limited (SECL) Mahanadi Coalfields Limited (MCL) Western Coalfields Limited (WCL) Central Mine Planning and Design Institute Limited (CMPDIL)
Medium Coking
Semi Coking Non coking TOTAL Lignite
11.8
0.5 81.0 97.9 4.3
11.6
1.0 105.7 119.0 12.7
1.9
0.2 36.2 38.3 20.1
25.3
1.7 222.9 255.2 37.1
2. HIGH ASH AND LOW CALORIFIC VALUES + ASH & AVERAGE UHV 4000 K.CAL./KG)
UHV = Useful Heat Value
(40%
3. MISMATCH IN LOCATION OF DEPOSITS AND MAJOR CONSUMPTION CENTRES 4. HIGH COST OF TRANSPORT
PIT HEAD PRICE 43%
12
Quadrillion Btu
9.8
10 8 6 4 2 0 Oil Natural Gas Coal Nuclear Renew ables 0.2 0.4 0.4 2.4 0.2 0.6 0.7 4.2 3
Fuel
1995 2020
Quadrillion = 1016
POWER
POWER (CAPTVE) CEMENT
249.23
16.02 15.22
312.80
26.30 18.33
483
57.06 31.90
66.06
7.80 4.36
750
85 50
66.67
7.56 4.44
STEEL
OTHERS TOTAL
29.84
41.6 351.91
17.60
45.18 420.21
68.50
90.64 731.10
9.37
12.4 100
105
135 1125
9.33
12.00 100
DEMAND POWER SECTOR Power Survey projected energy requirement of 975 BU in 2011-12. going by the trend that around 70% of the projected energy requirement to be coal based working group assessed that the most likely coal based generation in the terminal year 2011-12 of the XI Plan could be of the order of 690 BU. Further considering the current trend of specific coal consumption of 0.70 kg/kWh the coal requirement for power sector utilities works out to 483 mt in 2011-12.
- Imports
Total Gap (domestic supply)
DETERMINATION OF UHV
GoI has notified the following formula for determination of Useful Heat Value (UHV): UHV = 8900 -138 x (A+M) Where A = Ash % & M = Moisture %
Cost of production was lower/higher than the average cost of production of CIL as a whole. To avoid such anomalies the concept of Retention Price was introduced under the aforesaid Colliery Control Order by a notification dated 30 March 1982. Under this system, CIL had to monitor and administer Coal Price Regulation Account (CPRA) under which low cost mines were to contribute the difference between the notified price and the cost and the high cost mines were to get compensation for the shortfall in price to cover the cost.
Subsequently, the pricing under APM, were being determined as per guidelines of the BICP report 1987 by updating the cost indices as per the escalation formula contained in the 1987 report of the Bureau of Industrial Costs and Prices.
Guidelines of BICP
STEP-I: An weighted average price (WAP) calculation for all mines (UG/OC) together, as applicable.
WAP is calculated by taking sample opencast and underground mines in a certain ratio and taking average cost for opencast mine and corresponding cost for underground mines
Guidelines of BICP
STEP II: Addition of other cost elements to WAP
Other cost elements are Interest on Working capital, Interest on Term Loan; and post tax return on equity. These element are calculated on the Net Block Per Tonne basis.
STEP III: Summation of I & II above and Distribution of the average price among various grades.
Allocation of cost amongst different grades based on an identified mechanism say heat value (UHV) basis.
Guidelines of BICP
STEP-IV: Normative correction of the costs based on norms to derive fair prices developed by BICP or CMPDIL.
To achieve uniformity of prices among different mines of same Coal Companies, BICP used norms for price finalizations (its own norms as also CMPDI norms) For this purpose Normated levels of production, Stripping Ratio, Annual Capacity, Interest, Power consumption, Consumption of explosives and detonators, Requirement of Working capital etc were prescribed.
Guidelines of BICP
STEP V: Grade wise distribution of cost & price fixation for different Grades of Coal and Classes of Mines.
Grades of Coal D E
CCL
CCL
D
E
284.20
207.20
438.2
329.2
4.52%
4.91%
Govt. of India decided to decontrol the prices of coal based on recommendation of BICP 1996 While decontrolling the Prices of Coal Govt. allowed the Coal Companies to fix and notify the prices No clear guidelines or mechanism were prescribed by Govt. In certain guidelines Govt. suggested negotiated prices between Buyers and Sellers
Coal Company
Grades of Coal
Price as on 1-1-1989
Price as on 1-2-2001
NCL
NCL CCL CCL
D
E D E
284.2
207.20 284.20 207.20
760
547 778 559
13.95%
13.67% 14.48% 14.15%
NCL
NCL CCL CCL
D
E D E
486
342 486 342
604
436 604 436
24.28%
27.49% 24.28% 27.49%
Pricing principle for new mines from 1997 (IRR Based pricing )
As per the new policy guidelines laid down vide Ministry of Coal , Govt. of Indias letter dated 17.7.97, the Govt. has stipulated certain stipulations for the coal companies for fixing the prices of coal produced from new coal mines. As per the policy Coal Companies would take up the new projects provided the IRR i.e. Internal Rate of Return is not less than 16% at 85% capacity utilization or at the average capacity utilization for that category of mines in that company whichever is less.
Pricing principle for new mines from 1997 (IRR Based pricing )
So far IRR mechanism was used by Coal Companies in justifying the viabilities of these projects. As per MOC notification dt 7-11-2001 the IRR to be achieved is 12%- pre-tax in place of 16% -pre-tax mentioned above.
A.
I. EXISTING PRICING STRUCTURE Under price notifications OR II. COAL PRICE UNDER DE-CONTROL REGIME with price escalation provision
B. OTHER CHARGES
i. Transportation Charges + ii. Sizing/Crushing Charges + iii. Rapid Loading Charge
i. Transportation Charges
Where coal is transported by the Seller beyond the distance of 3 Kms from the pit-head to the delivery/unloading point the Purchaser shall pay transportation charges as applicable from time to time
C. STATUTORY CHARGES
The Statutory Charges shall comprise- royalties, -cesses, -duties, -taxes, -levies etc., if any,
shall be payable by the Purchaser Subject to : - Provisions of relevant statute - not included in the basic price
COMPENSATION
COMPENSATION FOR EXCESS SUPERFICIAL MOISTURE COMPENSATION FOR SUPPLY OF STONES & FOREIGN / METALLIC MATERIAL The Seller shall compensate the Purchaser
for the quantity of (+) 200 mm stones and foreign/metallic material received by the Purchaser alongwith the coal supplies during the month Sellers representative to be deputed by 4th day of following month for joint assessent - a jointly signed statement is to be prepared
(from which date price escalation to be calculated for the first time or any
subsequent times) P1= Escalated price of Coal to be calculated annually on the date of revision.
P1 = P0 dP1 dP2
where dP1 = Price escalation Part-1 Applicable on components of cost of Coal comprising : Salaries & Wages, Explosives, Power, Other items including Stores & Spares which are linked to published indices/ SEB tariff notifications dP2 = Price escalation Part 2 Applicable on components of cost of Coal comprising : Depreciation, Interest and Pre-tax return which are based on Net Block per tonne of Coal and are related to the capacity
PRICING Changing grading and pricing of thermal coal from the existing Useful Heat Value system to the international practice of Gross Calorific Value system is under consideration. A pilot study on migration from UHV to GCV based gradation of coal has been carried out and completed by Central Fuel Research Institute. The draft report is being over-viewed by a Committee comprising of members from Ministry of Coal, CEA, NTPC, CIL and CFRI.
ECL BCCL CCL NCL INDONESIA/ MAGDALLA SECL INDONESIA/OKHA WCL SECL MCL INDONESIA/MAGDALLA MCL/TUTICORIN BCCL/TUTICORIN INDONESIA/TUTICORIN ECL INDONESIA/HALDIA
B PRM ROM W-IV ROM PPWR-W/C BINA-W/C THERMAL C PRM ROM THERMAL D ROM C PRM ROM F ROM THERMAL F ROM W-III ROM THERMAL B PRM ROM THERMAL
1021.40 963.80 925.30 752.10 905.90 1408.30 0.00 87.60 609.60 524.90 609.60 201.50 332.40 0.00 186.10 151.50
6049 4524 4200 4200 6200 5597 6200 5089 5597 3865 6200 3865 5089 6200 6049 6200
TUTICORI N (South)
CESC (East)
Indian Oil and Gas Industry - Prime mover of the Indian economy
India is the Fifth largest energy consumer in the world Primary Energy Consumption (2005) 387.3 MMTOE Oil and gas accounts for 44% of Indias primary energy consumption
2011-12
2024-25
Oil Demand
Production
Demand
Supply
Sedimentary Area 3.14 million sq km Only 19% of the area extensively explored Domestic Hydrocarbon Scenario (as on 1.04.2006):
Prognosticated Resources (Oil + Oil Equivalent Gas) Established Geological reserves (O + OEG) O + OEG already produced Balace Recoverable Reserves (O + OEG)
32.19 MMT
88.22 MMSCMD
Discovery Gas Gulf of Cambay Oil & Gas Krishna Godavari Deep waters Gas KG Basin Deep waters (Worlds biggest discovery for the year) Oil in Barmer-Sanchor basin (Rajasthan) Gas in Mahanadi basin shallow waters Gas in KG Basin shallow waters Oil in KG Basin shallow waters
GSPC
RIL
2002
Mode of Transportation
India
11% 4% 43%
"I'd put my money on the sun and solar energy. What a source of power! I hope we don't have to wait 'til oil and coal run out before we tackle that." - Thomas Edison
(The sunlight that intersects the earth in 24 hours contains more energy than all the conventional oil that has been or ever will be extracted from the earth.)
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