Bridging the gap

Chapter Heading Key Take Away

Chapter 1: The coal sector in
India:
Target FY 2020
Chapter 2: Scenario estimation
vis--vis targets
Chapter 3 - Outlook of coal
demand and imports till FY
2020
Dissection of coal supplies in India
Background of coal block allocation
and production targets
Production from CIL mines
CIL has planned to achieve 908 MT from 535 mines
Production from SCCL mines
Production from captive mines
Overall production scenarios in FY
2020
Coal demand
Imports of coal
Total Coal Production in India in FY16 626 MT
Total Coal Imports in FY16 193 MT of value 721 billion INR (25% reduction from FY15
74 blocks have been auctioned / allotted
Production target for achieving 1.5 BT
o CIL 908 MT
o SCCL 100 MT
o Mines with SAIL 10 MT
o Non-de-allocated mines (4) 30 MT
o Schedule II mines (35) 73 MT
o Schedule III mines (39) 208 MT
o 14 blocks allocated under Competitive bidding rules 2012 79 MT
In FY16, CIL was operating 430 mines
To achieve 908 MT CAGR of 14% is required
o Last 10 year CAGR of CIL preproduction 6%
To achieve 97% of production target of 881 MT CAGR of 13 % required
To achieve 100 MT target CAGR of 15% is required
To achieve 96 % of target CAGR of 96 MT CAGR 0f 10% required
Production target of 400 MT has been envisaged from captive mines
Total 110 Mines of 204 mines de-allocated have been classified under Schedule II and Schedule III,
balance `94 mines under Schedule I not likely to commence production by FY 2020
Production under Scenario 1 (As planned under roadmap) 1330 MT
Production under Scenario 2 (Considering past trend production) 1215 MT
Production under Scenario 3 (Considering delays and adjustments) 1124 MT
Coal consumption in FY 15 818 MT. Share of Power sector 527 MT (62%)
Between FY09 and FY16 CAGR of installed capacity coal based power generation was 13 %
o Electricity from coal based power plants increased at CAGR 8.5 %
As per IEA by FY2020 coal based generation to be 230 GW
o Average annual PLF assessed is 71-81 %
For Power sector coal demand to range from 862 MT to 1,038 MT depending upon PLF
Government has set a target to save Rs.40,000 crore of foreign exchange in FY 2017 from coal
imports
Demand of coking coal in FY 2020 may reach 140150 MT
Coal import for coastal power plants in FY16 40-50 MT
Coal Imports in 3 scenarios
o Scenario 1 (As planned under roadmap) 43 MT
o Scenario 2 (Considering past trend of coal production) 119 MT

Chapter 4 - Essentials for coal
sector augmentation
Chapter 5 : The way forward
for the coal sector
Requirement of coal transportation
Infrastructure
Wagon requirement for additional coal
supply
Private participation in railway
infrastructure development
Manpower requirement in FY 2020
Investment requirement
Commercial bank lending to
mining sector
Key focus areas
o Production under Scenario 3 (Considering delays and adjustments) 180 MT
40% of total railway lines for evacuation are running over 100% line capacity
121 projects of CIL are facing issues with coal evacuation
3 major railway projects have been envisaged
o Tori-Shivpur-Kathotia evacuation capacity 59.5 MT
o Jharsuguda-Barpali-Sardega single and Angul-Kalinga connectivity - evacuation capacity
72MT
o East Rail Corridor and East-West Rail Corridor - evacuation capacity 59.5 MT
The wagon loading requirement is expected to increase to 328342 rakes per day by FY 2020, as on
FY15 CIL had availability of 194 rakes
Gandhidham-Tuna Tekra rail line made under nongovernmental railway private line model
To achieve a target of 1.5 BT by FY 2020 there will be a requirement of 32,00044,000 skilled
manpower depending on the supply scenario
HR issues identified in CIL are
o High attrition rate of 11%
o High rate of superannuation (approximately 750 per year) from senior level management
o Development and implementation of a training regime for developing management
capabilities
Total investment requirement FY 2020 950,0001,160,000 crore INR
o This capacity addition in coal sector would require an investment of around 13,00015,000
crore INR
60,00070,000 crore INR of investment will need to come from other players
other than CIL
o There will be a power capacity addition of 44,000 MW by FY 20
2,50,000300,000 crore INR will be required in the power sector
Between FY08 to 2015, commercial bank lending to the mining sector increased at a CAGR of 17%
and was 36,000 crore INR in FY 2015
In FY 2020, the loan requirement of coal companies (excluding CIL) will be 40,00050,000 crore
INR
Incentivising private sector participation and international collaborations
o Promote MDO model with proper risk allocation
o Promote international collaborations
Increase exploration spend as well as capacity augmentation
Increasing funding options
Phased implementation
Capacity Building