TOPIC

INTERNATIONAL TRADE OF
THERMAL COAL AND ITS
IMPACT ON ENERGY SECTORS
IN INDIA

OBJECTIVE

Following are the objectives of the study

CONTENT

INTRODUCTION
GOVERNMENT POLICY FOR COAL BLOCK DISTRIBUTION

FSA (FUEL SUPPLY AGREEMENT) WITH COAL INDIA

Criteria

Duration

Commitment and Penalties

Coal Imports

Force majeure clause

FACTORS INFLUENCING COAL

PRODUCTION IN INDIA
CURRENT SCENARIO

Nationalization Process of Coal Mines in India

Coal Resources in India during last 5 years

Contribution of State Run PSU Coal India Ltd.

.. FACTORS INFLUENCING COAL

PRODUCTION IN INDIA
DEMAND & SUPPLY OF COAL FOR THE POWER SECTOR

GOVERNMENT POLICY IMPACT

GEOGRAPHICAL IMPACT
ENVIRONMENT ISSUES

SOCIAL ISSUES

.. FACTORS INFLUENCING COAL

PRODUCTION IN INDIA
POOR QUALITY & STANDARD OF RESERVES

CORPORATE INEFFICIENCY
R1
Government Policy

Environment Issue
Socio Economic Issue

R2

R3

R6

RBQ

67.95%

69.23%

Corporate Inefficiency
4

R5

Low Quality of Coal

Inability to Coal India Ltd.

R4

82.05%

37.18%

25.64%

68%

INTERNATIONAL TRADE OF COAL

COAL PRODUCTION ACROSS THE GLOBE

INTERNATIONAL TRADE OF COAL

Coal Transportation
Coal Prices
Analysis of Sampling based on questionnaire
Coal Price

R1

R2

11

2
2

R3

R4

R6

RBQ
97.43%

Availability of vessel of right

size and price
Exporting Country coal policy

Port Clearance Facility

Unstable foreign currency

R5

50%

50%

Current account deficit of the

country

73.07%
4
2

57.69%
11

19.23%

FACTORS INFLUENCING PRICE OF COAL

FACTORS OF STOCK OUT
For domestic product
stock out

For procurement through

import

SWOT ANALYSIS

INTERNATIONAL COAL PRICE & ITS

IMPACT ON DOMESTIC COST OF ENERGY
Month

Price

Change

Month

Price

Change

Month

Price

Change

Feb-10

100.92

Oct-11

127.92

-3.00%

Jun-13

88.67

-5.65%

Mar-10

101.12

0.20%

Nov-11

121.91

-4.70%

Jul-13

82.78

-6.64%

Apr-10

107.3

6.11%

Dec-11

119.53

-1.95%

Aug-13

82.46

-0.39%

May-10

107.28

-0.02%

Jan-12

124.78

4.39%

Sep-13

83.16

0.85%

Jun-10

105.2

-1.94%

Feb-12

125.38

0.48%

Oct-13

85.08

2.31%

Jul-10

102.84

-2.24%

Mar-12

115.14

-8.17%

Nov-13

88.13

3.58%

Aug-10

96.19

-6.47%

Apr-12

110.99

-3.60%

Dec-13

90.36

2.53%

Sep-10

101.68

5.71%

May-12

102.68

-7.49%

Jan-14

87.44

-3.23%

Oct-10

104.41

2.68%

Jun-12

93.42

-9.02%

Feb-14

81.74

-6.52%

Nov-10

114.81

9.96%

Jul-12

94.54

1.20%

Mar-14

78.58

-3.87%

Dec-10

126.74

10.39%

Aug-12

97.5

3.13%

Apr-14

78.02

-0.71%

Jan-11

141.94

11.99%

Sep-12

95.31

-2.25%

May-14

78.95

1.19%

Feb-11

137.53

-3.11%

Oct-12

87.7

-7.98%

Jun-14

76.59

-2.99%

Mar-11

135.14

-1.74%

Nov-12

92.03

4.94%

Jul-14

73.66

-3.83%

Apr-11

131.25

-2.88%

Dec-12

99.51

8.13%

Aug-14

73.86

0.27%

May-11

127.63

-2.76%

Jan-13

99.4

-0.11%

Sep-14

70.65

-4.35%

Jun-11

128.67

0.81%

Feb-13

101.72

2.33%

Oct-14

68.26

-3.38%

Jul-11

129.38

0.55%

Mar-13

97.48

-4.17%

Nov-14

67.02

-1.82%

Aug-11

128.71

-0.52%

Apr-13

94.03

-3.54%

Dec-14

66.9

-0.18%

Sep-11

131.88

2.46%

May-13

93.98

-0.05%

Jan-15

66.54

-0.54%

Feb-15

65.79

-1.13%

FIGURE 12: PRICE MOVEMENT (TABLE CONTENT: COAL, AUSTRALIAN THERMAL COAL, 12000 BTU/POUND, LESS
THAN 1% SULPHER, 14% ASH, FOB NEWCASTLE/PORT KEMBLE, US DOLLARS PER METRIC TON

INTERNATIONAL COAL PRICE & ITS

IMPACT ON DOMESTIC COST OF ENERGY

THE FINDINGS

CONCLUSION & RECOMMENDATIONS