Coal India is set to diversify into non-coal mining areas in 2021

Against all odds, including the decline in coal demand, the government auctioned 19 players and opened up the country's mining sector to private players.

New Delhi / Kolkata (Natural Energy News): State-owned Coal India Limited (CIL) is expected to diversify into non-coal mining areas, as well as make major investments in clean technology in 2021, despite the demand for dry fuel for most of the year. Has been prepared for Coronavirus epidemics affect economic activity.

Related Article: NLC to launch coal power project 17,238-crore in Uttar Pradesh

Against all odds, including the decline in coal demand, the government auctioned 19 players and opened up the country's mining sector to private players.

Analysts said worldwide coal demand is projected to decline by about five per cent this year compared to 2019.

“In 2021, we will strive to diversify Coal India Limited (CIL) into non-coal mining-related sectors. It (CIL) will also make major investments in areas other than coal mining so that it can be well prepared to make the transition. Away from fossil fuels.

Coal Secretary Anil Kumar Jain said, "Therefore, it (CIL) will invest in renewable energy, will get into aluminium and clean coal technology and more."

In the coming year, Jain said that CIL is also likely to move ahead with its agenda of achieving one billion tonne production target by 2023-24.

CIL "can move forward with an agenda of one billion tonnes. It is getting approval. It is gearing up to increase its production which was 603 million tonnes last year. It is making itself a bigger and bigger target.". It will be able to get. " One billion tonnes (production target) in 2023-24, ”he said.

Related Article: India InvIT of KKR buys FRV Solar Assets in Andhra Pradesh

Noting that CIL has a Rs 2.5 lakh crore investment plan in itself, Jain said that out of the proposed outlay, a significant portion will be spent on clean coal technologies and diversification.

"It will be the rest (investment) to increase coal production," he said.

Around 2020, Jain stated that "the auction of commercial coal blocks was the number one achievement (in the coal sector). We amended the Act to make these things easier".

The auction of coal blocks for commercial mining saw "fierce competition" and the 19 blocks which went under the hammer would generate total revenue of around Rs 7,000 crore per year and create more than 69,000 jobs once operational.

38 mines were put up for auction, which also marks the opening up of the country's coal sector to private players. The bid saw participation from players from sectors such as pharma, real estate and infrastructure.

A total of 42 companies participated in the auction and 40 of them were private players. 76 bids were received for 23 mines. Some of the larger corporate conglomerates include Adani Enterprises, Vedanta, Hindalco Industries and Jindal Power.

Related Article: Given the high ash content of Indian coal, how important the role of independent coal testing agencies?

According to the secretary, the government facilitated the mining scheme and made it environment friendly to make trade easier.

The Ministry of Coal took the initiative to revisit the old laws aimed at opening up the coal sector to improve efficiency, ease of doing business and improve domestic coal production and reduce imports.

Prior to the amendment of the Mining Law, both public sector companies dominated coal exploration and mining.

The Mineral Concession Rule, 1960 governed many aspects of coal mining and required amendments to pursue coal sector reforms.

Stating that the construction of the Sustainable Development Cell is another achievement of the Ministry of Coal, Jain said that it would ensure CIL and other companies to maintain environmental standards as well as the star rating of the mines.

The Secretary said, "Since coal mining is a core activity, we do not want any laxity in our effort to maintain the highest environmental standards."

Related Article: Ayana Renewable Gets Additional US $390 Million Funding

The Sustainable Development Cell aims to promote environmentally sustainable coal mining and address environmental concerns during fragmentation or closure of mines. SAIL also prepares a policy framework for environmental mitigation measures, including mine closure funds.

The coal sector also faced a rough season in 2020 as sluggish economic activity in the wake of the coronavirus epidemic led to a decrease in fuel demand.

An official of the Ministry of Coal did not mention that almost all areas of the country were affected due to the epidemic and the coal industry was no different. The official said coal sales fell as the power sector, a major consumer of dry fuel, saw a drop in lockdown.

CIL Chairman Pramod Agarwal said that the company plans to produce 650-660 million tonnes of coal in this financial year, while 334 million tonnes was produced by November.

Regarding the demand for coal in 2021, Jain said that it would depend on many things including the pace of the economy.

Related Article: CIL plans to prepare 80-85 MT of imported coal in the current financial year

Global coal consumption is projected to fall by 7 per cent or more than 500 million tonnes between 2018 and 2020. In 2019, global coal demand declined by 1.8 percent after a two-year increase, as coal-to-electricity generation is weak worldwide, including India.

Analysts said there will be a slight increase in demand in 2021 and prices are expected to strengthen.

Moody's Investors Service said in a report in October that demand for coal is set to rise again by 2021 in other Asian countries, including India and China.

Coal usage is projected to increase by 3.8 percent in 2021. In the medium term (until 2025), India has the highest capacity to increase coal consumption as power demand increases and infrastructure projects require more steel and cement, the International Energy Agency said.

Related Article: 15 corporations invest $ 3 billion in solar manufacturing

Post a Comment