presentation

46
Coal Supply Scenario and Identification of Challenges

Upload: ishan-jain

Post on 15-Apr-2017

34 views

Category:

Documents


7 download

TRANSCRIPT

Page 1: presentation

Coal Supply Scenario and Identification of Challenges

Page 2: presentation

Present scenario for coal supply

Supply scenario for coal in the coming ten years

Imports and Acquisitions

Logistics Constraints

Port Infrastructure

Way Forward

Agenda

Page 3: presentation

Coal Demand CAGR (2002-2012): 7.33 % Coal Supply CAGR (2002-2012): 5.16 %.

Demand-Supply Scenario

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-010

2010-11

2011-12

360377

409 412

452

493

550

597

656

696

337356

383 371391

462490

514 523 534

23 21 2641

6131

6083

133162

Demand

Supply

Gap

Million Tonnes

Source: CILCIL Production (in MT)

379.5

403.7

431.3 431.3 435.82007-08 2008-09 2009-102010-11 2011-12

SCCL Production (in MT)

40.6 44.6 50.4 51.3 52.2

2007-08 2008-09 2009-102010-11 2011-12

Source: SCCL

Page 4: presentation

Sector Despatch in2010-11 (MT)

% of Total Despatches

Despatch in 2009-2010

% of Total Despatches

Power 304.15 71.82 298.03 71.79Steel 4.21 0.99 3.78 0.91Cement 9.69 2.28 9.25 2.22Fertilizer 2.78 0.65 2.61 0.62Others 102.61 24.23 101.46 24.43

Total 423.44 100 415.14 100

Where does the coal go??

Sector April-March,2011-12 ( in million tonnes)

April- March, 2010-11 (in million tonnes)

Actual %Achd.

Power 36.9 112 32.7Cement plants 5.6 85 7.3Captive power plants 2.8 73 3.2Heavy Water Plant 0.4 83 0.5Sponge Iron 1.1 51 1.5Others 4.4 67 4.5Total despatches 51.3 97 50.0

CIL dispatches

SCCL dispatches

Source: CIL/SCCL

Others includes Coal liquefaction and Industrial Processes

Page 5: presentation

CIL Year 2011-12 at a glance

2010-11(MT) 2011-12(MT) Growth over Previous Year(%)

Production 431.32 435.84 1.00

Offtake 424.5 432.53 1.90

Closing Stock 70 63 (10)

2010-11(MT) 2011-12(MT) Percentage of total coal production

Opencast 391.3 397.45 91.19

Underground 40.02 38.39 8.81

2010-11 (MT) 2011-12 (MT) % GrowthECL 30.8 30.56 -0.78

BCCL 29 30.2 4.14CCL 47.52 48.01 1.03NCL 66.25 64.5 -2.64WCL 43.65 43.51 -0.32SECL 112.71 113.84 1.00MCL 100.28 103.12 2.83NEC 1.25 1.4 12.00CIL 431.32 435.84 1.05 Source: CIL

Page 6: presentation

FSA’s worth 313 MT (post NCDP) and 120 MT (pre NCDP) currently under process ( power sector only).

Implementation of “ GO-NOGO “ category has lead to many projects being stalled.

The current stock with CIL is about 63 MT.

The average number of rakes per day was 168.7 in 2011-12 against 161.9 in 2010-11. Even then there was a shortfall of about 20%.

Coal movement by rail grew by 1 per cent in 2008-09, 1.5 per cent in 2009-10 and in 2010-11 year by 2.6 per cent.

CIL Year 2011-12 at

a glance

Source: CIL

Y E A RPRODUCTION (Million Tonnes)

UNDERGROUND OPENCAST TOTAL

2010-11 11.6 39.7 51.3

2011-12 10.4 41.7 52.2

SCCL Year 2011-12 at

a glance

SCCL has produced more than its target estimates since the last 5 years.

21 % of the production comes from underground mines compared to a national average of 11 %.

SCCL had a better wagon availability growth at a CAGR of 6% compared to CIL’s 4.3%.

A total of 25 projects are under implementation by SCCL. Projects with a combined capacity of 41.27 MTPA

Page 7: presentation

Production- Power Sector (MT)

3.45.4 6.9 7.6

10.112.8

21.2

25.726.92002-03 2003-04 2004-05 2005-062006-07 2007-08 2008-09 2009-102010-11

Captive Coal Blocks

Source: MoC

Purc

hase

of G

RM

ine

Appr

oval

Pla

nEM

P Cl

eara

nce

Gran

ted

Min

ing

Leas

e Ob

tain

edFo

rest

Cle

aran

ceBl

ocks

to P

SUs

Prod

uctio

n st

arte

dLa

nd A

cq. C

ompl

eted

Peak

Rat

ed C

apac

ity

145126

74

47 41 4029 29

9

Source: Metis Research

Out of a total of 218 Coal blocks that have been allocated so far, 25 blocks have been de-allocated by the Ministry of Coal till April 2012.

Net allocated coal blocks are 195 with total reserves of approximately 44.25 BT. (PIB, GoI)

Page 8: presentation

Reasons for delay Around 58 Coal Blocks were stalled due to “Go/NoGo” categorization. 90 Coal

Blocks stand the risk of getting de-allocated. Delays in

◦ acquisition of land and associated problems of rehabilitation.◦ due to adverse geo-mining condition.◦ contract management issues.

Allotment of blocks to organisations which do not have mining expertise. Allotment of blocks in joint venture ( in some case 8 parties are involved) causing

delays. Lack of proper technical information and funding sources. Allotment of blocks in naxal areas & areas with very less infrastructure Other misc. problems such as non-participation in tender, DGMS permissions.

Page 9: presentation

Projected Supply-Demand for 12th and 13th Five Year Plans for Power sector

Page 10: presentation

Demand Projections- Methodology 62 power projects were considered from 14 major power producing states. The projects that were analysed had all reached completion. The stages identified are:

◦ Start to Completion◦ Environment Clearance/MoEF Clearance to Completion◦ Land acquisition to completion◦ Power Purchase Agreement Signing to completion◦ Engineering, Procurement and Construction (EPC) contractor finalization

to completion◦ Financial Closure to Completion◦ Fuel – Linkage Tie Up

• Part1: The projects were divided according to the states. • Part2: The same above samples were then divided into government and

private sectors. • The projects were divided into 4 different range of capacities.

Page 11: presentation

Based on the Annual Report for 2010-11 of CIL/SCCL and on-going projects and future projects, the production for a particular year was derived up-to FY2016-17.

The CAGR for 2012-2017 was calculated for each subsidiary and further projections up-to FY2021-22 were made by taking CAGR of the period (2012-2017).

Methodology for Coal Supply Projections

Lack of data was a limitation for these projections as each type of data as mentioned above was not available for each subsidiary. For example list of future projects were not available for NEC and WCL and list of ongoing projects were not available for NEC and BCCL. In such cases projections were made with the available data.

Page 12: presentation

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-220

5000

10000

15000

20000

25000

12443 13180

1511113875

12315

15155

19480 18760

1658015010

Coal Based Capacity Addition

Addition in 12th Five Year Plan – 66924 MWAddition in 13th Five Year Plan – 84985 MW

Page 13: presentation

Year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

CIL 340.9 352.9 365.1 377.4 390.3 403.6 419.0 434.4 450.6 467.6

SCCL 38.4 40.4 42.4 44.6 46.9 49.3 51.8 54.4 57.2 60.1

MTPA 379.3 393.2 407.5 422.0 437.2 452.9 470.8 488.8 507.8 527.7

Projections for Coal Supply for Power Sector (CIL & SCCL)

Projections for Coal Demand from Power Sector 2012-

20132013-2014

2014-2015

2015-2016

2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

2021-2022

Forecasted Capacity Addition(MW) 12443 13180 15111 13875 12315. 15155 19480 18760 16580 15010

Coal(MT) (additonal required)

45.5 48.2 55.3 50.7 45.0 55.4 71.3 68.6 60.6 54.9

Total coal required(MT) 498.5 546.7 602.0 652.7 697.8 753.2 824.5 893.1 953.7 1008.6

Page 14: presentation

2012-2013

2013-2014

2014-2015

2015-2016

2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

2021-2022

Forecasted Capacity Addition(MW) 12443.0 13180.0 15111.0 13875.0 12315.0 15155.0 19480.0 18760.0 16580.0 15010.0

Coal(MT) (additional required) 45.5 48.2 55.3 50.7 45.0 55.4 71.3 68.6 60.6 54.9

Plants designed on coal imports (MT) 1.6 11.7 4.4 5.1 26.6 14.4 14.3 10.6 11.1 13.3

Total coal required(MT) 498.5 546.7 602.0 652.7 697.8 753.2 824.5 893.1 953.7 1008.6Total available (MT) (Excluding Captive) 375.7 387.9 400.6 413.8 427.5 441.6 456.6 472.1 488.1 504.9

Captive Coal Supply 28.0 29.0 40.5 55.5 81.2 101.2 126.1 157.2 195.9 244.3Gap to be met by imports 96.4 141.5 165.3 188.5 215.7 224.8 256.0 274.4 280.8 272.8

Supply-Demand Analysis – Power Sector

•Current Coal based installed capacity• Addition of about 66925 MW in the 12th year plan and addition of 84985 MW for the 13th year plan.• SECL is going to be the largest producer in the coming years followed by MCL.• The supply-demand gap will increase which will have to be met by imports which are going to rise at a CAGR 15.91 % over the next ten years.

Page 15: presentation

Coal Imports

Page 16: presentation

Rising Demand-Supply Gap

Depleting Reserves

Coal Quality

Transportation Issues

Why do we need to Import?

Page 17: presentation

Particulars 2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

Power Cost for Indigenous Coal Rs. kWh 1.13 1.21 1.3 1.4 1.5 1.61 1.73 1.86 2 2.14

Power Cost for Imported Coal Rs. kWh 1.98 2.18 2.4 2.64 2.9 3.19 3.51 3.86 4.25 4.91

Pooled Price for Indigenous & Imported Coal

Rs. kWh 1.3 1.45 1.6 1.76 1.9 2.08 2.28 2.49 2.68 2.93

% age Increase w.r.t. Indigenous Coal

% 14.74 19.12 22.77 25.41 26.28 28.66 31.62 33.67 34.32 36.84

Financial Impact of Imported Coal

Domestic Coal Cost: Rs.1650/tonneDomestic Coal GCV: 3700 kcal/kgIndonesian Coal GCV: 5000 kcal/kgSHR: 2383 kcal/kWhForeign Exchange Rate: Rs. 55/ $Freight Rate: 13$/tonne

Page 18: presentation

Challenges & Opportunities in Coal Acquisitions

Gives the surety of supply and can securitize the energy needs of a nation.

Huge reserves of unexplored coal But coal asset acquisition can be tricky due to its inherent risks.

Demands heavy investment in infrastructure and working in different countries with different kind of manpower.

Quality of assets and its legality, land acquisition and environmental clearances and approvals are issues in other nations as well.

Indonesia: Low freight cost. Low labor cost. High grade of coal. But high moisture content, political risks, underdeveloped infrastructure and increasing domestic requirement

Australia: Politically stable. Skilled manpower with latest technology. But high freight cost, expensive labor, environmental compliance requirement

South Africa: Low cost of labor as compared to Australia. Large resource base. But week rail infra and high freight cost.

Indonesia: Ban on coal exports below 5600 kcal/kg by 2014, Mining Export Tax ( 25 percent on mining exports to be raised to 50 % in 2013), Divestment of 51% stake to Indonesian entities

Australia: Mineral Resource Rent Tax, Carbon Tax

South Africa: Coal Beneficiation is compulsory

Page 19: presentation

Country Reserve Base Year of DealEssar Group Indonesia 64 MT 2010

US 200 MT 2010Adani Group Australia 7.8 BT 2010JSW US 123 MT 2010Reliance Power Indonesia 2 BT 2010GMR Indonesia 115 MT 2009Tata Power Indonesia 2.9 BT 2010Lanco Infratech Australia 1.1 BT 2010Gujarat NRE Coke Australia 550 MT 2005

New Zealand 15 BT 2006Bhushan Steel Australia n/a 2007

GVK Power and Infrastructure Australia 8 BT 2011

Indonesia 1.5 BT Deal Under Consideration

Coal India Limited US 2.3 BT Deal Under Consideration

Australia 9 BT Deal Under Consideration

Indonesia n/a Deal Under Consideration

NTPC Indonesia 1.8 BT Deal Under ConsiderationAustralia 720 MT 2010

South Africa 1 BT Deal Under Consideration

Acquisitions made by Indian Entities

Source: Metis Research

Page 20: presentation

Logistics “Hurdles”

Page 21: presentation

Mode 2010-11 2009-10 Growth Absolute %

Railways 215.81 210.37 5.44 2.6Road 112.35 105.63 6.72 6.4Merry-Go-Round 83.62 86.58 (2.96) (3.4)Others 11.66 12.56 (0.90) (7.2)

Total 423.44 415.14 8.30 2.0

Dispatches by CIL

Mode 2010-11 2011-12 GrowthAbsolute %

Rail 277.07 269.54 (7.53) (2.72)

Road 95.99 105 9.01 9.39

Merry-Go-Round 96.66 102.99 6.33 6.55

Others 31.17 37.51 6.34 20.34

Total 501.44 515.04 13.6 2.71

Dispatches by SCCL

Source: CIL/SCCL Annual Reports

Page 22: presentation

Road Network

1950-51

1960-61

1970-71

1980-81

1990-91

2000-01

2010-11

0

9.9

14.6

7.4

5.3

14.6

9.1

2.1 1.9

0

2.9

0.6

5.14.2

Freight Traffic CAGRNational Highways CAGR

National Highways: 70548 kms / State Highways: 131899 kms

Currently over 22 % of the national highways are four-laned while only 2% of the state highways are four-laned. 59% of national highways are two laned.

Road freight traffic has increased at a CAGR of 11.01% from 1950-51 to 2010-11.

The investments made in the 10th Five Year Plan were Rs. 1271 billion while that in the 11th Five Year Plan were Rs. 2786 billion. Of the Rs. 2786 billion, 51 % came from the state government, 32.6 % from the central government and 16.5 % from the private sector.

Source: India Infrastructure

Page 23: presentation

Issues with Road Freight Network

Lack of last mile connectivity to coal mines. Investment skewed towards government sector. Highly fragmented and unorganized sector with too many players Lack of barrier free movement and high stoppage time at toll-booths results

in shorter distances being covered. A truck covers on an average 250-400 kms in India while is covers 700-800 kms in developed countries. (Source: Metis Research)

Time consuming and risk of pilferage. 5-15 % of the truck fleet lying idle. (Source: Metis Research) Due to an increase in fuel price, less supply of truck and variability in

demand, freight rates have considerably increased.

Page 24: presentation

Rail Network : Entangled??

Page 25: presentation

Indian Railways is the largest passenger and fourth largest freight carrier in the world. The Indian Railways carries about 35 % of the freight traffic in India.

Indian Railways runs 18518 trains per day (as of June 2011) out of which 7845 are goods trains.

Between 2007 and 2011 Indian Railways has managed to add 1472 km of new lines, 4465 km gauge conversion and 2006 km of doublings.

2006-07 2007-08 2008-09 2009-10 2010-11 CAGRCoal Freight(MT) 313.33 338.30 369.10 396.10 420.21 7.61Coal (for power plants) (MT) - - - 271.45 285.52 -

Total Rail Freight (MT) 727.75 793.00 833.31 887.99 921.51 16.40

Coal Freight by rail as a % of Total Rail Freight 43.05 42.66 44.29 44.61 45.60 -

Railway 2011-12 (MT) 2012-13( MT)

South East Central 150.73 158

East Coast 120.77 130

South Eastern 117.01 118.3

South Central 103.17 111.5

East Central 94.68 102

Source: Ministry of Railway

Page 26: presentation

Coal India’s production growth CAGR of 5.3%, wagon availability growth was just 2.6%. At SCCL, it was much better, with production CAGR of 4.3% and wagon availability CAGR of 6% ( 2001-2011)

Indian Railways acquired 15400 and 16638 wagons in 2009-10 and 2010-11 respectively. About 18000 wagons were planned to be purchased in 2011-12.

According to India Infrastructure order of as many as 12000 wagons were pending with private firms as on March 31, 2011.

The average freight carrying capacity in India is 3376 tonnes/rake while that in US and Australia it is 12500 tonnes/rake and 9600 tones per rake respectively.

Issues with the Rail Network

Saturated Corridors

Service Quality

Low speed of freight

trains

Low level of technology integration

Slow pace of private

participation

Source: Metis Research

Page 27: presentation

Ports & Shipping : Coal aboard ????

Page 28: presentation

Traffic Handled at Indian Ports (Million Tonnes)

Major/Non- Major Ports

Traffic Handled Growth over previous year/period

2009-10 2010-11 2009-10

2010-11

Major Ports 561.0(66.01)

569.9(64.43) 5.7 1.6

Non-MajorPorts

288.9(33.99)

314.6(35.57) 35.5 8.9

All Ports 850.0(100.00)

884.5(100.00) 14.2 4.1

Commodity-wise Traffic Handled at Major Ports (Million Tonnes)

Commodity 2009-10 2010-11

POLIron OreFertilisera. FinishedB. RawCoala. Thermal Coal b.Coking CoalContainerOthers

175.0100.317.710.96.7

71.743.328.3

101.295.0

180.3873.020.012.47.6

72.744.228.4

114.095.4

Total 561.0 569.9

Commodity-wise Traffic Handled by Non-Major Ports

CommodityGROUP

Traffic Handled (Million Tonnes)

% Change over Previous Period

2009-10 2010-11 2009-10 2010-11

POL 137.7(47.66)

153.4(48.78) 40.79 11.45

Iron Ore 48.8(16.89)

42.4(13.51) 36.11 12.94

BuildingMaterial

13.1(4.55)

14.1(4.50) 0.88 7.67

Coal 41.2(14.29)

58.5(18.60) 92.37 41.79

Fertilizer 9.5(3.29)

10.9(3.49) 7.30 15.61

Others 38.4(13.32)

35.0(11.12) 6.99 9.05

Total 288.9(100)

314.6(100) 35.51 8.90

Others includes aluminia, bauxite, other minerals, agribulks, etc.

Page 29: presentation

Port Freight Traffic

3.1% increase in cargo at major ports during the first half of 2011-12 due to following increases viz. 18.5% thermal coal, 11.4% in Fertilizer Raw material, 8.4% in containers & 7.3% in other cargo.

Non-major ports saw a growth of 8.9 % in 2010-11 mainly driver by increase in coal imports which grew at a rate of 41 %.

Presently, over 75% of the coal traffic is concentrated along the east coast as a result of the location of both mining centers and steel making capacity in the east.

Capacity Utilisation at

Ports

Year Traffic

Handled (In million

tonnes)

Capacity (in million

tonnes)

Percent Utilisation

(%)

2000-01 281.1 291.45 96.44

2005-06 423.57 456.2 92.85

2006-07 463.78 504.75 91.88

2007-08 519.31 532.07 97.6

2008-09 530.53 574.77 92.3

2009-10 561.09 616.73 90.98

2008 2009 2010

4044 44

25 27 27

463530 561.

Coal Traffic vs All Traffic (MT)

Coal(coking) Coal (thermal) All Traffic

Source:Ministry of Shipping

Page 30: presentation

in million tonnes

Traffic Capacity

PORT 2016-2017

2019-2020

2016-2017

2019-2020

Kolkata 17.5 20.95 19 21

Haldia 28.5 31 33.5 38

Paradip 28 30 32.5 32.5

Vishakhapatnam 18.5 27.5 26.44 33.94

Ennore 34 38 34 34

Chennai - - - -

Tuticorin 26.38 29.91 28.75 35.75

Cochin 0.5 0.5 - -

New Mangalore 8.5 11.4 11.4 11.4

Mormugoa 10 11.5 11 11

Mumbai 7 7 - -

JNPT - - - -

Kandla 12.36 15.72 - -

Port Blair - - - -

Total 191.24 223.48 196.59 217.59

Coal Traffic &Future Capacity

• The traffic of major ports are expected to reach to the level of 1031.518 million tonnes by end of 2016-17 and 1214.820 million tonnes in 2019-20.

• Coal traffic handled at non-major ports is likely to grow at a CAGR of 28.1%, from 20.8 million tonnes in 2008-09 to 71.9 million tonnes in 2013-14.

• Coal traffic at major ports may get reduced by 4%, from 71.1 million tonnes to 58 million tonnes during the same period above.

Source: Maritime Agenda

Page 31: presentation

PORT Crane Productivity

for small berth vessels (TEU)

Berth Productivity for small vessels

(TEU)

Crane productivity for large vessels

(TEU)

Berth Productivity for large vessels

(TEU)

Singapore 23 45 36 140

Port Rashid and Jabel Ali (UAE) 22 40 30 110

Khor-Fakkan Fujairah (UAE) 20 32 28 100

Salalah (Oman) n/a n/a 29 90

Aden (Yemen) n/a n/a 28 70

India

NSICT 18 30 22 40

JNPT 16 24 20 36

Tuticorin 14 14 - -International

Standards - - 27-33 -

Indian Ports vs International Ports

Source: Maritime Agenda

Page 32: presentation

Level of Mechanization

JNPT Singapore Port

Source: Maritime Agenda

Page 33: presentation

Upcoming Projects

Page 34: presentation

DFC and Inland waterways

Page 35: presentation

Way Forward – Regulations

Need for coal regulator. Implementation of Competitive Bidding

should help in further development of coal blocks.

Rapid clearances of land and forest and reducing the delay in implementation of projects after necessary approvals.

Auctioning based on maximum proposed production.

In case of a consortium of companies, only serious players should be allowed to collaborate.

Providing incentives to companies taking up clean coal technologies.

Coal beneficiation & Modernization of aging infrastructure.

Renewed Focus on Underground Mining Deep Opencast Mining ( Depth 500 m) Use of better technology and drilling

equipment More exploration activities need to be

done to identify higher grades of coal Preference of mine allotment through

bidding and to whose with mass production technologies

Shortage of skilled mining engineers and technologists.

Way Forward – Mining

Page 36: presentation

Way Forward – CIL & SCCL CIL is far behind in meeting the

commitments made in terms of linkages to various customers. CIL imports will rise in future if the current production trend persists.

Will the NCDP ensure the supply of coal ??

CIL needs to clear its huge number of delayed projects if it wants to meet the customer requirements in the future.

Reopening of abandoned mines. Global Coal Asset Acquisition by CIL. Coal gasification and Extraction of coal

bed methane. SCCL Planning to take up development of

between six to eight underground coal-mining projects through a revenue sharing agreements with contract miners.

Increase total coal production by 2-million ton to 53-million ton in next 5-10 years.

Improve profitability from underground coal mine projects was through higher productivity by greater adoption of longwall technology in the new projects.

Page 37: presentation

Way Forward - Imports Imported coal will be a crucial mode of fuel for India. Indonesia and Australia would be our major exporters. Single company to import coal. Acquire long term supply agreements rather than short term agreements for

imported coal. Due to the tough competition for imported coal, acquisitions/strategic buyouts will

have to be made but only after due diligence has been made in all related aspects. The economies of scale and the trade-off between the price and quality will bring

parity between the imported coal prices and the domestic coal thus bringing competitiveness.

Keeping domestic production growing in order to keep the reliability on imported coal in check if not reduce it.

Page 38: presentation

Way Forward – Road & Rail NetworkRoad Network The planning commission has estimated that around Rs. 4903 billion will be required

for the road sector under the 12th Five Year Plan. Better information availability, uniform tolling technology, rationalization of tax

structure and bring the entire segment under a single authority. Implementation of Information Technology for Surface Transport (Electronic

monitoring, Management and regulation of Vehicles and Driver Licenses)

Rail Network CIL’s three railway infrastructure projects are stuck and need fast clearances. Introduction of new wagons, movement of rakes during night Better information sharing between the railways and the coal producers. Rapid clearances of new projects for tracks leading to coal mines. The Ministry of Railways has aimed a freight share of 50 % by 2020. With this in mind

infrastructure development through projects like DFC and National Rail Vikas Yojna have been planned to boost the rail segment.

Page 39: presentation

Capacity Creation

Adequate Drafts

Massive Mechanization

Development of adequate Storage

Areas Hinterland

Connectivity

Cost Efficiency

Indian Maritime Cadre & Pilots Pool

Way Forward -Port Infrastructure

Page 40: presentation

Thank You.

Page 41: presentation

Net Sales of 62415 Crores in FY 2011-12. Total expenses 48716 Crores. Registered a net profit of Rs. 14775 crores ( increase of 36 % over the

previous years net profit of Rs. 10860 crores) FY2011-12. Net worth of Rs. 40453 Crores as on 31.3.2012 ( an increase of 21 % over

previous year).

Financial Status – CIL FY2011-12

Page 42: presentation

SCHEMEXI Plan Period

2007- 08 2008- 09 2009- 10 2010- 11 2011- 12 Total Existing Mines 13.95 13.40 13.38 13.58 14.22 68.52Completed Projects 133.93 125.40 88.06 73.24 64.10 484.72On-Going Projects 167.28 71.27 18.63 17.75 28.47 303.40New Projects 205.43 395.23 400.50 467.51 725.00 2193.67Total Mining 520.58 605.30 520.57 572.07 831.78 3050.30Non-mining projects 50.00 60.00 60.00 60.00 60.00 290.00Total 570.58 665.30 580.57 632.07 891.78 3340.30

SCCL Investments

Page 43: presentation

Coal Demand & Consumption- Power Utilities

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 (As per CEA)#

307.92 332.4 362.93 380.13442 453

Demand for Coal(MT)

2004-05 2005-06 2006-07 2008-09 2009-10 2010-11 2011-12*

278 281 302355 367 387 417

Coal Consumption(includes imports)(MT)

Source: CEA

India imported 27.9 MT for indigenous coal based projects in 2011-12.

Page 44: presentation

Purchase of Geological

ReportApproval of Mine Plan

Application for EMP

Clearance

Obtaining Mining Lease

Application of Forest

Clearance

Mining Lease Application

Submission of Mine Plan

Grant of Forest

Clearance

Application of Land

Acquisition

Completion of Land

Acquisition

Application for Coal Controllers

Permission

Prior Approval for Coal

ProductionCoal

Production

Mines Development Stages

Page 45: presentation

Governing Bodies: Ministry of Coal, Ministry of Environment & Forests and Ministry of Mines

Major Industry Participants: Central Sector Mining Companies, State Mining Companies, Private Mine. Private players can produce coal but only for their own consumption.

3rd Largest Producer of Coal 8% of World Production and

Consumption CIL has the monopoly in coal production

with 80 % market share. SCCL is the second major coal produce with 10 % market share.

Indian Coal Industry

Coal56%

Gas9%

Oil1%

Hydro19%

Nuclear2%

Wind9%

Solar1%

Others3%

Fuel Energy Generated

(MW)Coal 113782Gas 18381Oil 1199.75

Hydro 38990Nuclear 4780

Wind 17644Solar 1030

Other (BG,BP) 5829

Page 46: presentation

Others USA

South

...Russ

ia

New Z...

Indon

...Chin

aAust

r...

0.17 1.02 3.

24

0.05 0.61

16.0

6

3.08

14.3

7

0.35 0.88 2.

39

0.05 0.69

18.7

4

4.09

15.8

9

0.65

0.54

6.07

0.10 0.76

19.5

2

0.55

20.7

0

0.54 1.22

7.09

0.44 0.84

28.7

7

0.52

19.5

9

1.11 1.40

14.4

9

0.15 1.06

32.1

7

0.04

22.3

9

Country wise Coal Imports to India (All figures in MT)FY2006 FY2007 FY2008 FY2009 FY2010

Coal Imports

Source: Metis Research